1. What is Digital Piracy? Digital piracy is a form of online piracy and includes the unauthorized online distribution of electronic copies of copyrighted material such as software, movies, and music. Counterfeit Microsoft software often includes spyware, malware, and incomplete code. Consumers who install counterfeit Microsoft software risk security breaches and the potential loss of personal or business data. One seminal study by IDC in 2006 (1) showed that one in four Web sites offering counterfeit software attempted to install unwanted or malicious code upon downloading. The 2006 IDC White Paper also described a review of counterfeit Microsoft software purchased at resellers in 17 countries: more than 50 percent contained phony code, had malware, or could not even be installed. (1) IDC White Paper sponsored by Microsoft, The Risks of Obtaining and Using Pirated Software, Doc # WP1006GRO, October 2006

2. Working with others in the fight to shut down sites that distribute counterfeit Microsoft software “Our goal in downloading and analyzing unauthorized copies of Windows was to help identify the risks associated with using counterfeit software. Our analysis shows that a significant percentage of pirated software contains malware and presents a very real and ongoing threat to consumers. The evidence is clear and compelling that counterfeit software puts consumers and their data at risk.” Matt Lundy, Senior Attorney, Worldwide Anti-Piracy, Microsoft

3. Three Solutions to the Problem Partnering with our customers has been extremely helpful in our enforcement efforts. We are raising awareness among consumers about the risks of counterfeit software and how to avoid sites that offer files with malicious code. If an offer looks to good to be true – it probably is. We continue to monitor the internet for sites that illegally offer Microsoft products. Many of our customers have also come forward to report pirate sites and the availability of infringing files. Once we locate an infringing Microsoft file online, we take action to remove that file in order to prevent potential harm to consumers. 1 23

4. If You’re Not Sure…. Microsoft’s Genuine Advantage Website: Customers may file a report of counterfeit software through the Microsoft Genuine Advantage website as well as by e-mail at piracy@microsoft.com. These reports have contributed directly to the filing of numerous civil actions against software pirates around the globe and to law enforcement prosecutions. piracy@microsoft.com Microsoft’s “How to Tell” Website: http://www.microsoft.com/resources/howtotell provides detailed information and examples of counterfeit software. In addition, a customer may also determine whether they are using authentic Microsoft Windows and Office software by selecting “Validate Windows” or “Validate Office” on the Microsoft Genuine Software website at http://www.microsoft.com/genuinehttp://www.microsoft.com/resources/howtotell http://www.microsoft.com/genuine