Microsoft Australia has won a copyright infringement dispute with The Laptop Factory Outlet, with the PC reseller agreeing to hand over $50,000 in compensation for counterfeit use of Microsoft's Windows 7 software.

The out of court settlement will also see the Sydney company replace the pirated Microsoft Windows Certificates of Authenticity (COA) software with genuine product for affected customers at no charge.

Microsoft was tipped off to the possible misuse of its software by customers who had purchased laptops with questionable software attached. The company sent in undercover investigators on two occasions during several months of investigation to purchase laptops, who then determined the PC reseller was removing the COAs off second-hand PCs and reusing them on new PCs loaded with counterfeit Windows 7 software.

Microsoft attorney Clayton Noble said the greatest concern was the unknown origin of the software meant customers could be vulnerable to various types of malware.

"We have to try to take action to get these things out of the market," he said.

Noble said The Laptop Factory Outlet's willingness to acquiesce to Microsoft's requests meant the case was able to be settled out of court. The company required the reseller to produce sales documents and attend a settlement meeting to negotiate the extent and manner of the piracy committed.

Noble said the infringement would not affect the ongoing relationship.

"They've agreed they will no longer sell infringement software. We do encourage them to continue trading, but only with genuine non-infringement product that has the guarantee of Microsoft."

Laptop Factory Outlet did not respond to requests for comment by the time of publication.

(Souce: www.crn.com.au)