/ 7 January 2003

Microsoft wins copyright case against SA vendor

Computer vendor Beachware Computers CC has been ordered by the Durban magistrate’s court to pay the Microsoft Corporation R243 620 in damages after Microsoft filed claims against the vendor during the middle of last year for infringing copyright laws.

Beachware, which was subsequently closed down, was found guilty of hard disk loading the command.com file, an increasingly common type of computer piracy.

Microsoft initially lodged a R100 000 damages claim, the highest amount that can be claimed “per main action” in a magistrate’s court. But according to Mark Reynolds, group licensing compliance manager at Microsoft SA, the company subsequently proved that Beachware was guilty of 297 instances of hard disk loading the command.com file – not just one.

Based on this evidence, the Durban magistrate’s court handed down a judgement against Beachware Computers CC on December 4, ordering them to pay the amount of R243 620.

Reynolds said the judgement was a strategic victory for the company, as it is the first court ruling taken against a vendor found hard disk loading the command.com file. The command.com file serves as a command interpreter function of an Operating System, without which the Operating System cannot work. The presence of the command.com file allows an end-user to boot up any Microsoft Operating System.

“The command.com file, which is copyright material, is protected in terms of the copyright laws of South Africa,” Reynolds commented.

“We have an ongoing responsibility towards end users and the channel. If computer resellers are selling illegal software then this can have a profoundly negative impact on both the channel and on end users.

“The bottom line is that end users end up with unlicensed software and the honest computer resellers continually lose out on revenue because they cannot compete with prices offered by pirates. Our court victory over Beachware will hopefully send out a strong message to other unprincipled computer vendors.” – I-Net Bridge