XP fines

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maw

Supreme [H]ardness
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Sep 27, 2000
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sorry if this has been asked before, but i couldn't find anything doing a search.

Basically the story is this, a client asked me to check out some problems he was having with some of his PC's. after wiping some spyware off the machines i noticed he wasn't even on SP1 yet, so told him we probably needed to patch the machines as well. That's when i noticed all 10 of his PC's are running a cracked Corp version.. apparently his ex son-in-law had built the machines for him a few years back and well..you get the idea.

well, the client is hesitant to shell out the money to get legal, so i told him he could get fined if caught, but his attitude is he'll just deal with it if it happens, but he wanted to know exactly what the fines would be and how they would know in the first place. that's when i realized i really didn't know the answer to those questions. please keep in mind that i don't do PC installs or repair for a living, just the occassional job for a friend of a friend sort of thing, so i'm not up on the licensing rules.

anyway, could anyone tell me what the fines are or what happens if you (i.e. - small business owner) is caught running illegal copies of XP?
 
Most likely nothing would happen to him, but the person who built the comps and installed the operating systems, and IF he can give microsoft any info about the person who did the install he can get legit keys for free through the windows genuine advantage program.

google it.

dx2
 
I dont think there is a set $$ amount. The fines (if they ever found out) could be huge or tiny..

Ms isnt really after people like this but rather the people who are "loading the systems" an honest mistake is still a mistake with them..

Microsoft does have a site for people who want to go legit ,, which requires them to report the people who they bought the stuff from.. thats probabally not going to happen here but I believe its at www.microsoft.com/piracy.

I guess his only real course is to buy the licenses
 
It's EXPENSIVE.

BSA.

Piracy Report: September, 1999 - Chicago firm settles software copyright issue with BSA for more than $350,000 relating to non-compliant software titles found on computer systems the firm acquired in a recent merge with another company.

Chilling fact: What is the ACTUAL COST of a non compliance event?

In speaking with the victims, SAMs has found that the real world costs of non compliance events such as those listed above are known to range from 3 to 6 times the value of the settlement amount.

That Chicago firm? Do the math: $350,000 X 3 = $1,050,000.00

Now, that's larger scale, but they will go after smaller places too. If the OS is pirated you can bet office is too. Even if it's not, multiple the settlement cost (amount you settle with the vendor to get licensed) times 3-6 for the BSA fines.
 
hulksterjoe said:
Microsoft does have a site for people who want to go legit ,, which requires them to report the people who they bought the stuff from.. thats probabally not going to happen here but I believe its at www.microsoft.com/piracy.

I guess his only real course is to buy the licenses
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That would require turning in the person who provided the installs, IE the ex son-in-law. Hmm this could get interesting. :p
 
maw said:
anyway, could anyone tell me what the fines are or what happens if you (i.e. - small business owner) is caught running illegal copies of XP?
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The fines far exceed the cost of the licenses. That much I can tell you. It greatly depends on how the owner reacts to having an audit done and if he trys to hide anything.

While I realize this could be construed as "going out on a limb" , I would advise him that because he is currently using a cracked or warez version, the security of his systems are compromised and thus any customer information could be at risk. Depending on privacy laws and the type of business he runs, he could be in for more than he bargained for if he chooses to play "dumb".
 
thanks for the very informative responses everyone!! i'll have a sit down with him later today and explain the risks and options.

he's already pretty worked up over the ex son-in-law's apparent scam (he remembers paying him an extra $300 to the cost of each PC to get WindowsXP and Office XP).
 
maw said:
thanks for the very informative responses everyone!! i'll have a sit down with him later today and explain the risks and options.

he's already pretty worked up over the ex son-in-law's apparent scam (he remembers paying him an extra $300 to the cost of each PC to get WindowsXP and Office XP).
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If he has an invoice MS will honor that, give him legal licenses, and track down the person who sold the illegal copies.

He *has* to have an invoice from what I have read though, so if it was all under the table, he's fucked as far as the original $ goes. In that case, he'd be better off buying all new licenses (ouch).
 
Microsoft will get as much as they think they can. There is a local college who years ago went over on their Windows 98 site license, by just 10 machines mind you, they settled for for a even $100,000. That was actually a honest mistake, and JUST for Windows, the rest of the software was correctly licensed.

And then a place I usedt to work for was sued by MS for licensing issues, that was somewhere between a quarter and half a million when finally done, though it was much worse, it was many many times over the retail value of the license.

If he's a small biz, and he were caught, they'd probably go after far less, but he'd still pay way more in fines than the cost of buying legit now and not worrying about it.
 
Dude...if that guy paid an EXTRA $300 per rig for the OS....he needs to have it LEGAL....the EX son-in-law should get to it, or I would call MS and ahhh, inform them about what happened, get my 10 FREE licenses, and mr ex son-in-law is gonna be in a bit of a tight spot...
 
i've decided to just inform him of the possible consequences, point him to who he needs to contact, and then wipe my hands of this mess. this is just not something i want to have any more involvement in.
 
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