Software Publishers Association Targets Distributors of Counterfeit
Software

Preliminary Injunctions Issued in Three Lawsuits

July 17, 1995 (Washington D.C.) -- The Software Publishers Association
(SPA) announced today the issuance of preliminary injunctions in three
lawsuits against five distributors for allegedly selling counterfeit
copies of SPA member software. The lawsuits, filed on May 30 in
California, are part of an extensive investigation undertaken by SPA on
behalf of its members to stop the unauthorized duplication and
distribution of PC software.

E.V. International, M&S Associates, MaxMedia Distributing, Inc. d/b/a/ MR.
CD ROM, Softshoppe and Stylin Multimedia were preliminarily enjoined from
distributing counterfeit versions of certain titles published by five SPA
members. The suits were initiated based on reports that the defendants,
selling primarily through organized trade shows in California, were
distributing unauthorized copies of software products. SPA retained
private investigators who combed trade shows and in several cases,
defendants' stores, to identify and purchase suspect products. Upon
verification that the products purchased were counterfeit, SPA proceeded
with legal action.

The software programs involved and their SPA member publishers and/or
developers are: "Doctors Book of Home Remedies" (Compton's New Media,
Inc.); "Falcon Gold" (Spectrum Holobyte, Inc.); "Global Explorer" (DeLorme
Publishing Company); "Wrath of the Gods" (Luminaria, Inc.); and "DOOM II"
(id Software, Inc.).

SPA is seeking, among other things, damages and a permanent injunction
against further distribution of the plaintiffs' software. Each defendant
faces damages of up to $100,000 per work infringed, plus court costs and
attorneys fees. In addition, SPA is proceeding to identify the defendants'
suppliers of the counterfeit software.

According to Sandra Sellers, SPA Director of Litigation, "Counterfeit
software is not a problem limited to the Far East; it is available in our
own backyard. The SPA is committed to tracking down counterfeit software
both at the source and at the retail level, even at the weekend trade
shows at which much of these counterfeits were purchased. Organizations
engaged in selling counterfeit software products at all levels of
distribution will be investigated and sued."

SPA estimates that software piracy cost the industry over $8 billion in
1994. The US currently has a piracy rate of 25%, with losses in the US
alone at over $1 billion in 1994. Other countries have much higher piracy
rates, such as China at 98%, Russia at 95%, and Thailand at 92%, where
most software in use are pirated copies.

"We are extremely pleased with SPA's action on this serious issue affecting
all software companies," says Kelly Jo MacArthur, Director of Legal and
Business Affairs of Compton's NewMedia, Inc., one of the plaintiffs in the
case. "Compton's NewMedia has been increasingly concerned with the number
of organizations selling counterfeit copies and supports strong action
against these and other similar organizations. Compton's NewMedia is
working with SPA on other investigations so that this pervasive problem
facing our industry will be eliminated."

Customers can often identify counterfeit products by looking closely at the
disks, documentation, and packaging. If the designs, logos, or color is
poorly reproduced, or out of place, if the documentation is missing or not
aligned on the pages, or if either the disk or documentation contains
typographical errors, the product may be counterfeit. A customer who
purchases a counterfeit product runs a risk that it will not work
properly, and that support may not be available from the publisher to
address the problem. Customers should also refrain from purchasing
individual copies of software products that are marked with designations
such as "not for resale" or "not to be sold separately." Sale of such
software without the accompanying hardware may violate the software
publisher's distribution license agreement and may not qualify for the
publisher's customer support.

The Software Publishers Association is the principal trade association of
the PC software industry. Its 1,160 members represent the leading
publishers in the business, consumer, and education markets. The SPA has
offices in Washington, DC, and Paris, France. SPA press releases are
available on-line through CompuServe (GO:SPAFORUM), and from the Internet
(WWW.SPA.ORG).

Software Publishers Association
1730 M St, Northwest, Suite 700, Washington, D.C. 20036
202-452-1600,  Fax: 202-223-8756
 
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