Identifier | Created | Classification | Origin |
---|---|---|---|
05TAIPEI1907 | 2005-04-25 08:18:00 | UNCLASSIFIED | American Institute Taiwan, Taipei |
This record is a partial extract of the original cable. The full text of the original cable is not available. |
UNCLAS SECTION 01 OF 02 TAIPEI 001907 |
1. WORKING ON A TIP FROM MICROSOFT AND AFTER AN INVESTIGATION LASTING SEVERAL MONTHS, TAIWAN'S CRIMINAL INVESTIGATION BUREAU (CIB) RECENTLY RAIDED A MARKETING FIRM AND AN OFFICE LOCATED IN TAIPEI CITY AND COUNTY, SEIZING COUNTERFEIT MICROSOFT CERTIFICATES OF AUTHENTICATION (COA). FOUR SUSPECTS WERE ARRESTED. THE FOUR SUSPECTS ALLEGEDLY IMPORTED BOGUS MICROSOFT COAS FROM MAINLAND CHINA AND THEN SOLD THEM TO LOCAL USERS AND FOREIGN BUYERS. THE SUSPECTS HAVE BEEN CHARGED WITH VIOLATION OF THE TRADEMARK LAW AND FORGERY, CIB CONTINUES TO TRACK THE CASE FOR FURTHER DEVELOPMENT. END SUMMARY FAKE COA FOUND IN AUSTRALIA -------------------------- 2. IN AUGUST 2004, AUSTRALIAN POLICE SEIZED OVER 1000 FAKE MICROSOFT COAS FROM AN IT SHOP RUN BY AN OVERSEAS CHINESE WHO STUCK FAKE COAS ON COMPUTERS LOADED WITH FAKE SOFTWARE. DURING THE INVESTIGATION, AUSTRALIAN POLICE DETERMINED THAT THE COUNTERFEIT COAS WERE IMPORTED FROM TAIWAN. MICROSOFT REPORTED INFORMATION PROVIDED BY AUSTRALIAN POLICE TO TAIWAN'S CRIMINAL INVESTIGATION BUREAU (CIB). AFTER SEVERAL MONTHS OF INVESTIGATION, CIB RAIDED A MARKETING FIRM AND AN OFFICE LOCATED IN TAIPEI CITY AND COUNTY AND ARRESTED FOUR SUSPECTS. SUSPECTS LEE CHARNG AND CHE ZHI-LI, OWNERS OF THE CHIANG YOU MARKET INTEGRATION OFFICE, ALLEGEDLY PURCHASED FAKE COAS AT A PRICE OF NT$500 (US$15.80)/PER PIECE FROM THE PRC AND THEN SOLD THEM TO CUSTOMERS FOR NT$900-2,500/PER PIECE. FOREIGN BUYERS WERE REQUIRED TO PURCHASE AT LEAST 300 PIECES, WHICH WERE SHIPPED BY AIR PARCEL. THE SUSPECTS ARE ESTIMATED BY CIB TO HAVE NETTED OVER NT$1 MILLION FROM SALES OF THE FAKE CERTIFICATES. WEBSITE SELLER -------------------------- 3. IN ADDITION TO LEE CHARNG AND CHE ZHI-LI, CIB ALSO ARRESTED WANG DONG-SHENG AND WANG DONG-CHENG, TWO BROTHERS, WHO ARE ACCUSED OF USING THE YAHOO! AUCTION WEBSITE TO SELL COUNTERFEIT MICROSOFT COAS. BOTH WANGS ADMITTED TO CIB THAT THEY PURCHASED FAKE COAS FROM MAINLAND CHINA. THE TWO RAIDS SEIZED ONLY 33 COUNTERFEIT MICROSOFT COAS. CIB BELIEVES THE SUSPECTS WERE NOT COOPERATING WITH EACH OTHER AND DID NOT DEAL DIRECTLY WITH A MAINLAND SUPPLIER BUT MIGHT HAVE PURCHASED THE FAKE COAS FROM ANOTHER TAIWAN-BASED SUPPLIER, WHO IN TURN BOUGHT THEM FROM THE MAINLAND. WHY BUY A FAKE COA? -------------------------- 4. MICROSOFT INC. EXPLAINED TO CIB THAT MICROSOFT'S GENUINE SOFTWARE CONTAINS A SERIAL NUMBER FOR INTERNET REGISTRATION AND A COA TO BE PLACED ON THE COMPUTER TO IDENTIFY IT AS CONTAINING LEGALLY PURCHASED SOFTWARE. SOME LOCAL COMPUTER SELLERS AND ASSEMBLERS BUY FAKE COAS IN ORDER TO DECEIVE CONSUMERS THAT THE COMPUTERS THEY BUY ARE LOADED WITH LEGITIMATE SOFTWARE. THE SELLER CAN CHARGE A HIGHER PRICE AND POCKET THE SIZEABLE DIFFERENCE. 5. SOME CONSUMERS MAY NOT EVEN BE AWARE THAT THE SOFTWARE ON THEIR COMPUTERS IS COUNTERFEIT. FOLLOWING THE PUBLICITY GENERATED BY THE RAID, MICROSOFT ANNOUNCED THAT IT WOULD CHECK ANY COAS FOR VALIDITY IF CONSUMERS WOULD BRING THEM TO MICROSOFT'S TAIWAN OFFICES. ACCORDING TO MICROSOFT, SEVERAL CONSUMERS HAVE AVAILED OF THE OFFER AND TWO FAKE COAS HAVE BEEN FOUND. VICTIMS OF THE FRAUD HAVE LIMITED LEGAL RECOURSE AND MICROSOFT HAS BEEN ADVISING THEM TO APPROACH THE SELLER TO ASK FOR A REFUND OR FOR LEGITIMATE COPIES OF THE PURCHASED SOFTWARE. 6. MICROSOFT REPRESENTATIVES SPECULATED THAT SOME SMALL AND MEDIUM SIZED BUSINESSES MIGHT ALSO BE CUSTOMERS FOR COUNTERFEIT COAS. THESE COMPANIES MIGHT ATTEMPT TO DISGUISE THEIR USE OF COUNTERFEIT SOFTWARE BY PURCHASE OF FAKE COAS TO FOOL LAW ENFORCEMENT OFFICIALS WHO MIGHT INSPECT THEIR PREMISES FOR COUNTERFEIT PRODUCTS. CIB CONTINUES TO TRACK CASE -------------------------- 7. FAKE MICROSOFT COAS HAVE NO OTHER PURPOSE BUT TO ALLOW USERS TO DISGUISE THEIR USE OF COUNTERFEIT SOFTWARE. CIB HAS PROMISED TO CONTINUE INVESTIGATING THE CASE TO TRACK DOWN THE SUPPLIERS AND THE BUYERS OF THESE FAKES. CIB HOPES THAT THE RESULTS WILL LEAD THEM TO OTHER COUNTERFEIT SOFTWARE PRODUCERS AND USERS, PUTTING A DENT IN SALES OF COUNTERFEIT MICROSOFT PRODUCTS. RECOGNITION FROM MICROSOFT -------------------------- 8. DURING HER APRIL 19 VISIT TO MINISTRY OF JUSTICE, PROSECUTORIAL AFFAIRS DEPARTMENT DIRECTOR TSAI CHING- HSIANG, MICROSOFT'S NORTHERN ASIAN LEGAL AFFAIRS DIRECTOR DIANE D'ARCANGELO THANKED TAIWAN'S MOJ FOR ITS ASSISTANCE IN THE CASE AND PRAISED TAIWAN'S ENFORCEMENT ON IP PROTECTION. PAAL |