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Sino-US task force recovers millions in bogus software

An "unprecedented" China-US operation has seized a huge haul of Chinese-made counterfeit software and arrested 25 people for exporting the bogus goods, the FBI said yesterday.

The joint investigation, codenamed "Summer Solstice," was carried out by China's Ministry of Public Security and the FBI, an FBI statement said.

All the arrests and seizures -- of mainly counterfeit Microsoft and Symantec software that was to be shipped globally -- were made in China, it said.

"This unprecedented cooperative effort led to the arrest of 25 individuals, the search of multiple businesses and residential locations... and the seizure of over 290,000 counterfeit software CDs," the statement said.

"The counterfeit software has an estimated retail value of US$500 million," it said, with more than 70 percent of the bogus software destined for the US.

The Chinese government also seized assets in China worth more than US$7 million, it said.

Among those arrested in China was Ma Kepei and 10 others allegedly involved in producing bogus Microsoft products and distributing them in the US.

Ma was indicted in New York in 2003 for pirating Microsoft software, but fled back to China where he began pirating Symantec products and distributing them globally, it said.

Chinese law enforcers also froze US$500,000 and five real estate properties owned by Ma and seized equipment to manufacture counterfeit Symantec products.

The investigation also uncovered 14 major producers of high-quality counterfeit software in Shenzhen, leading to the arrests of 14 people and the disabling of six manufacturing and retail facilities, it said.

The US Chamber of Commerce says counterfeiting and piracy costs the US economy about US$250 billion annually, has led to the loss of more than 750,000 jobs and exposes people to dangerous and defective products.
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