China jails four for Microsoft piracy - Windows XP offered for free

China jails four for Microsoft piracy - Windows XP offered for free
By Justine Lau in Hong Kong
Copyright The Financial Times Limited 2009
Published: August 21 2009 05:43 | Last updated: August 21 2009 09:55
http://www.ft.com/cms/s/0/37ecd29c-8e08-11de-93df-00144feabdc0.html


Microsoft said it had won a major battle against software piracy in China after four people were on Thursday sentenced to jail for illegal reproduction and distribution of the Windows XP software through a website called “Tomato Garden”.

The US company said the court victory was the first successful criminal prosecution against large-scale software privacy in China.

“The judgement declares the collapse of China’s biggest online software privacy group. It is a milestone in the fight against online software privacy in China,” the company said.

Tomato Garden allowed the public to download pirated software for free, in return for advertising revenues, according to Microsoft. The software company, quoting unofficial estimates, said more than 10m “Tomato Garden” Windows XPs had been installed in China.

Hong Lei, chief developer and creator of the “Tomato Garden” Windows XP, was on Thursday sentenced to 3½ years in prison and fined Rmb1m ($146,000). Sun Xiansheng, who managed the website, received the same prison term and fine.

Two other people were jailed for one year and fined Rmb100,000 each. A Chengdu-based company, which operates “Tomato Garden”, was ordered to turn in Rmb2.92m it made illegally and pay a fine of three times that amount, or about Rmb8.87m.

It was not clear whether the four would launch an appeal.

China has long been attacked for failing to combat widespread privacy. Faked versions of many products, from luxury watches and handbags to chocolates, remain readily available.

Microsoft said that illegal copies of Windows 7, its new operating system with an October launch date, could already be found on the mainland.