Microsoft has filed eight lawsuits against computer system builders and resellers for alleged distribution of counterfeit software and software components. Microsoft officials said the practice of software counterfeiting is undercutting legitimate licensees. “Our partners are coming to us and asking for our help,” Bonnie MacNaughton, senior attorney at Microsoft, said in a statement. “They are being undercut and forced out of business by having to compete with dishonest PC manufacturers and resellers who continue to sell illegitimate software. That isn’t fair to our partners or to the customers who depend on them.” The suits cited the federal Anti-Counterfeiting Amendments Act of 2003, which provides for criminal and civil penalties for the distribution of genuine stand-alone Certificate of Authenticity (COA) labels or authentic COA labels that are separated from the software they were intended to certify. The lawsuits stem from Microsoft’s test purchase program, set up in 1997 to ensure that software being distributed is legitimate, Microsoft said. Under the program, Microsoft acquires software, software components or computer systems from dealers and tests the software and components for authenticity. If it is not legitimate, the dealer is generally sent a cease-and-desist letter and told how it can obtain legal, genuine software.In addition to sending cease-and-desist letters to targets of the test purchase program – thousands of system builders and resellers – Microsoft sent an additional round of letters in January alerting them to the passage of new legislation and warning them of the illegality of distributing standalone or separated COA labels, the company said. According the Business Software Alliance, 22 percent of the software being used on computers in the U.S. today is unlicensed, including counterfeit and pirated software.One analyst said software piracy represents a significant problem for Microsoft and its customers.“Microsoft has been on an anti-piracy kick for quiet some time, becoming very aggressive in the last two years,” said Rob Enderle, founder and president of the Enderle Group. “Small OEMs were shipping equipment that had Windows on it but wasn’t paying Microsoft licensing fees. Microsoft was not getting any revenue so they starting tracking it back.” The lawsuits, which allege copyright and trademark infringement and in one of the cases, violation of the new legislation, were filed against Abacus Computer, of Anaheim, Calif.; Avantek, of Orlando, Fla.; First E-Commerce (dba Discount Electronics and/or DiscountElectronics.com), of Austin, Texas; M&S Computer Products, of Boonton, N.J.; Micro Excell, of Gadsden, Ala.; Odyssey Computers, of Pasadena, Md.; Signature PC, aka Signature Computers, of Warwick, R.I.; and Technology One, of Los Angeles.Defendants in each case allegedly continued their distribution of counterfeit software or software components, separated COA labels, or unlicensed software even after they were contacted by Microsoft requesting that they halt their illegal activities, Microsoft said.“The IT industry is a vital contributor to a vibrant U.S. economy, and small businesses are the economy’s backbone. To ensure continued viability of our industry, we must preserve the incentives to innovate that fuel productivity increases and economic growth,” said Jonathan Zuck, president of the Association for Competitive Technology (ACT), in a statement. “ACT commends Microsoft’s efforts to take legal action against purveyors of pirated and counterfeit soft-ware, along with its efforts to work together with channel partners to promote healthy industry competition and innovation.” Technology Industry