Microsoft Wins Major Canadian Piracy Judgment

TORONTO—Microsoft Corp. was awarded a victory over software piracy, as the Federal Court of Canada made its decision against Carmelo Cerrelli, of Dollar-des-Ormeaux, who pleaded guilty to contempt of court for selling counterfeit software.

Cerrelli was fined $100,000 by the court and will be imprisoned up to 60 days if the fines are not paid.

This was not the first time Cerrelli has been caught dealing in illegal software. In December 2006, while running a company called Inter-Plus, he was fined for distributing, selling and possessing counterfeit goods. He was fined $500,000 in statutory damages and $200,000 in punitive damages, a landmark judgment for statutory damage in Canadian history.

Copies of Microsoft’s Windows operating system, including Microsoft Windows 98 and NT as well as several versions of Microsoft Office where among the counterfeit software seized during a civil search conducted in November 2007.

“Counterfeiting and piracy have become a highly organized, global business that has a significant and negative impact on the Canadian economy,” said John Cotter, Chair of the Outreach Committee of the Canadian Anti-Counterfeiting Network (CACN).

“The problem of software piracy continues to be a primary focus for Microsoft since it affects a wide range of Canadians, from the rights holders to consumers to legitimate businesses,” said Christopher Tortorice, Anti-Piracy Corporate Counsel at Microsoft Canada. “The substantial fine handed down by the Federal Court of Canada in the contempt proceedings emphasizes that orders of the Court must be respected.”

“Together with the Court’s original decision to award the maximum amount of statutory damages for copyright infringement against Mr. Cerrelli and Inter-Plus, this is a strong statement that software piracy and counterfeiting are unacceptable,” Tortorice continued.

Microsoft has long battled counterfeiters both domestically and abroad. The company said it is committed to educating consumers “on the importance of reducing software piracy and will continue to work alongside customers, partners, government officials, the RCMP and local law enforcement agencies to curtail this illegal industry.”