Microsoft battles reseller pirates

Microsoft is taking action against groups that sold copies of Windows and Office discounted for academic use to regular users.

The software behemoth has filed nine lawsuits and sent more than 50 letters threatening such action, it said in a statement. The suits were filed in the US but target groups that operate internationally, posing as academic resellers in Jordan and elsewhere in that region and reselling discounted Microsoft products in the US.

"These companies reaped millions of dollars in illegal profits by allegedly selling the software to internet retailers in the United States rather than supplying it to the students," Microsoft said in the statement.

Many of the internet retailers, in turn, allegedly made hefty profits by selling the software at retail prices to unsuspecting US consumers who were deceived into buying software that was not licensed for their use, Microsoft said.

One of the largest offenders, EDirectSoftware.com, has already agreed to settle Redmond's lawsuit for more than $1m in cash and property, Microsoft said. Other merchants that received letters have agreed to stop selling the software, the company said.

Software piracy resulted in a loss of $34bn worldwide in 2005, a $1.6bn increase over 2004, according to a study commissioned by the Business Software Alliance. Microsoft has been fighting software pirates for years, taking a multi-pronged approach that includes action against pirates and tools that check licences on PCs.

The products for education are marked "Student Media" and "Not for retail or OEM distribution. Not for resale."

Joris Evers writes for CNET News.com