Microsoft filed a lawsuit against a do-it-yourself PC vendor in Zhongguancun, accusing Beijing Strong Well Future Technology Development of using pirated Microsoft software.

Microsoft is demanding 500,000 yuan in compensation, People's Daily reported.

The case was recently heard during a court session at First Intermediate People's Court in Beijing.

Microsoft said that it commissioned an intellectual property agency, accompanied by notary office personnel, to buy computers from Strong Well on Oct 16.

The personnel sent by Microsoft purchased four computers from the vendor's four outlets. According to the lawsuit, the personnel, monitored by the notary office staff members, bought another eight computers on Oct 27 and Nov 6.

Microsoft's lawsuit said that all Windows XP and Office 2003 software programs installed on the 12 computers were counterfeit.

Microsoft requested that the court order Strong Well to immediately stop the infringement of its rights and compensate the US-based company 500,000 yuan for its economic losses.

Strong Well's attorney accused Microsoft of engaging in a coercive purchase.

He said Strong Well only sells computer accessories, not whole computers, and prohibits employees from pre-installing software for customers.

However, the attorney for Strong Well said the investigators hired by Microsoft threatened the company's salesman by saying that they would return the products if the software was not pre-installed.

To close the deal and earn a sales commission, the salesman purchased pirated software on his own and installed it, the attorney said, describing it as the action of one salesman.

The court did not deliver a verdict.

(China Daily 07/06/2009 page9)