Microsoft Sued Over Antipiracy Software

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Microsoft Sued Over Antipiracy Software

Robin Arnfield, newsfactor.comFri Jun 30, 6:08 PM ET

Microsoft is feeling the heat after an aggrieved computer user in Washington filed a class-action lawsuit over the company's Windows Genuine Advantage (WGA) software-verification program.

WGA consists of antipiracy software that collects information from a Windows user's PC to check whether the computer is running an illegal copy of Microsoft's Windows operating system.

The WGA program, which Microsoft launched in July 2005, began to generate significant controversy with the rollout in April of this year with a piece of software that contacted Microsoft servers every time a system was rebooted, even if that system was found to be authentic by the software. It alarmed some consumers who feared it was behaving in the same way as spyware.

Microsoft, bowing to consumer pressure, made changes to WGA this week with a new version designed to address privacy concerns by reducing the number of times Microsoft is contacted. The updated version also allows PC users to remove the application from their machines should they desire to do so.

Users 'Misled'

The lawsuit was filed June 26 in U.S. District Court in Seattle, Washington, by U.S. attorney Scott Kamber. It alleges the software-verification program violates not only consumer-protection laws in California and Washington, but also laws prohibiting spyware.

Kamber claims Microsoft misled users by bundling WGA with monthly critical security updates. He is asking the company to remove all information assembled by WGA and is seeking damages.

Paul Stamp, a Forrester Research analyst, said the lawsuit hinges on two factors: "Firstly, people are concerned that WGA may be the thin end of the wedge, as far as Microsoft's surveillance of their computers is concerned," he said. "Also, there is an element of 'we are going to fire a shot across your bows because we can.'"

While Stamp said he believes Microsoft is partly to blame because the company was not as forthcoming about the antipiracy tool as it should have been, he added that people are looking for their "15 minutes of fame" by bringing legal action.

Addressing Concerns

Simon Yates, another Forrester Research analyst, said that, while he understands user concerns about privacy violations, Microsoft has already taken action to address those worries.

"It's not surprising that consumers are concerned about Microsoft collecting private information about their hardware and software, but the modifications that Microsoft has put in place with the final release of WGA should go a long way to allaying their concerns," Yates said.

"I'm sure that Microsoft doesn't want to be put in the position of having to pass information along to law enforcement if those agencies began an investigation into who uses illegal software, so Microsoft won't collect the information in the first place," he said.

One example of information that could be used to identify a violator is the Internet Protocol (IP) address of a machine running a pirated copy of Windows, but Yates pointed out that Microsoft will only collect a certain set of numbers from each IP address, not the whole string.

Yates said that, in the long term, it makes sense for Microsoft to develop some kind of software that explains to users what data is being gathered and sent back to the company. "The WGA is really designed to protect Microsoft intellectual property in fast-growing, emerging markets like China where piracy is an enormous problem," he said.

Microsoft Responds

Microsoft spokesperson James Desler called the allegations meritless, and said they distort the objectives of the Microsoft antipiracy program. "This lawsuit should not obscure the real issue here, the harm caused by software piracy," Desler said.

"The WGA program has been carefully developed to focus on this industry-wide problem in a manner that is lawful and provides customers with the confidence and assurance that they are running legitimate software," he added.

In response to customer feedback on the pilot phase of the WGA software, Desler said Microsoft has made some changes to the program.

"The End User License Agreement is now more descriptive, with a deeper explanation of the program, its purpose, and functions," he said. "It also includes a preamble that provides a high-level summary of important aspects to consider when installing the software. There is also an updated privacy statement that covers the behavior of this software."