On August 27, 2010, Microsoft filed suit against online retailer Jigantic.com alleging fraudulent software sales, copyright violations, trademark violations, and other claims.  The August 27th filling in the District of Connecticut also names 20 “John Does,” because the retailer allegedly went out of its way to mask its identity.

The suit alleges that Jigantic.com purported to sell to a Microsoft investigator one discounted copy of Microsoft SQL Server 2008 Standard software with five client access licenses, but, upon inspecting the shipment sent to the investigator, Microsoft determined the package contained only a compact disc and no license.  Jigantic.com shipped licenses for Microsoft Software Assurance, a maintenance and support program often sold with Microsoft software.  Software Assurance, significantly cheaper than actual software, provides no independent rights or licenses to use software.  Jigantic.com also allegedly charged customers the full cost for Microsoft software, shipped a less expensive non-software product which does not allow use of the software, and kept the difference.

Microsoft’s complaint requests damages for copyright infringement, trademark infringement, false designation of origin, and fraud and requests that that the court enjoin Jigantic.com from any further, related prohibited conduct.

Software purchased at uncharacteristically low prices may be fraudulent or counterfeit and may convey no rights to use the software.  In the event of a software audit, the publisher or its representative may claim that the purchasing business has violated applicable copyrights.  In order to reduce the legal exposure that can accompany unlicensed software use, it is important to discuss planned software purchases with an attorney or licensing consultant if there is any doubt regarding the legitimacy of licenses to be included in those purchases.