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This is an archive article published on August 5, 2011

Pirated software: HC fines Nehru Place firm

Sending a strong message to promoters of software piracy and dealers of such products,the Delhi High Court on Thursday slapped a penalty of Rs 5 lakh on a Nehru Place shop found selling pirated software.

Sending a strong message to promoters of software piracy and dealers of such products,the Delhi High Court on Thursday slapped a penalty of Rs 5 lakh on a Nehru Place shop found selling pirated software.

Justice V K Jain ordered M/s Supreme Peripherals Pvt Ltd to pay the penalty to Microsoft Corporation as punitive damages for selling their software to its customers without a licence.

In a warning of sorts to other firms dealing in pirated software,the judge noted that in cases where not just individuals but shops were involved in this illegal business,a more stringent view was required.

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“Defendant No. 2 (the firm) has been found using the pirated software of the plaintiff company for making gains in its business. There is a strong likelihood of it persisting with sale of computer system having hard disk loaded with pirated software unless adequate punitive damages are awarded against it. In fact use of pirated software by a commercial entity needs to be dealt with more strictly than use of software by an individual for his personal purpose,” Justice Jain said.

As the firm owners refrained from appearing in court despite notices,the court observed that in the absence of any counter-arguments on the quantum of damages to be paid to Microsoft,it was for the legal processes to determine the amount so that it acted as a deterrent.

“The firm is a company,carrying business in Nehru Place,a prime locality,which is the main market for sale of such products. It can,therefore,be safely assumed that it must be making handsome profits by selling computers loaded with pirated software and that is why it has taken the risk of carrying business of this nature and has chosen not to come forward to contest the suit. The punitive damages to be awarded against it,therefore,need to be adequate,exemplary and deterrent enough,” the court held.

The court also restrained the firm from selling or offering for sale or storing or distributing of any computer systems or any other computer hardware loaded with the software belonging to Microsoft or any other software in which the company held the copyright or trademark registration,except under a licence from the company.

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