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S.African Indians arrested in Microsoft software scam



Software copyright issue from South Africa...FN

S.African Indians arrested in Microsoft software scam

By Fakir Hassen, India Abroad News Service

Pretoria, Jan 5 - A South African Indian father and son duo has been
arrested at their home in the suburb of Erasmia on charges of being involved
in the sale of illegal Microsoft software products.

Local police launched a sting operation after a tip-off from the public that
stolen software was being sold from the house of Farouk Shah and his son
Yasin Mohamed. Information found at the house led police to raid two more
computer dealers in Johannesburg. Software with a value in excess of 12
million rands was confiscated.

"The goods that were sold were previously taken off the shelves of Microsoft
service providers and were destined for destruction," said police spokesman
Gert Swart.  "They were then by some means taken from the firm that was
supposed to destroy them and resold to different merchants," he added.

Police said they suspected that a syndicate was behind the scam, which may
have included employees of the disposal company making available the goods,
which were then resold by computer dealers at very low prices. Unsuspecting
buyers would not have known they were buying illegal software as the
packaging and all other marks would have still been intact.

Mohammed appeared in court on Thursday and was released on bail of 750
rands. Shah was still in detention Thursday evening.

"When products are discontinued and they can't be used or sold, they are
often destroyed," said Microsoft South Africa head Mark Reynolds. "But they
are supposed to be destroyed under controlled circumstances," he added.
Reynolds said Microsoft would leave it to the police to handle the matter.

The newest case comes close on the heels of another major one between
Microsoft and a South African Indian computer wizard living in the same
area, which resulted in an out-of-court settlement.  Mohamed Cassim, former
chief executive officer of Casey Investment Holdings, a black empowerment
company in the information technology sector in South Africa, was accused of
dealing in pirated and illegally obtained copies of Microsoft software.

Cassim resigned from the company after issuing a statement denying that he
had traded in illegal software, but the company paid Microsoft 75,000 rands
as settlement and distanced itself from Cassim's statement. Microsoft also
acquired audit rights on the company's sales for the next three years and
undertook to sell Microsoft products legally.