Another Microsofty Accused Of Stealing Millions In Software

from the cost-controls dept

Last December there was a ton of attention paid to a former Microsoft employee who was caught having resold $9 million worth of Microsoft software that he received for free via the Microsoft store. The guy later died after ingesting anti-freeze (suggesting suicide, though, I don’t know if any official determination was made). Now, they’ve found an almost identical case where the guy is accused of stealing $17 million worth of Microsoft software in the same way before reselling it. I’m assuming this guy won’t die under mysterious circumstances as well, though, it would provide good fodder for all the conspiracy theorists out there. The thing that gets me is that for all the hype about “$17 million worth of software”, no where does it say how much he actually sold the software for. Microsoft can claim $17 million in losses – but that’s misleading, since it’s unlikely most eventual customers of these stolen copies would have bought them at retail anyway. Also, you have to wonder how someone can order 5,436 products from the company store for internal or personal use and not have someone notice. Apparently, process controls aren’t such a big deal at Microsoft. Finally, if you average it out, each product’s average selling price had to be well over $3,000, which sounds a bit high.


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Comments on “Another Microsofty Accused Of Stealing Millions In Software”

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5 Comments
F. Berfle says:

How it's done

As a former ‘softie, this kind of thing isn’t done through the Company Store. There’s hard limits on how much an individual employee can buy annually through the store at a discount.

These guys used an internal system originally set up to let employees within certain groups or departments order “promotional” software to be sent to partners, prospective customers, PR & media folks, et cetera — “shmooze-ware”.

Most likely it was all big-ticket enterprise stuff. Multi-seat license versions of server apps go for many thou$ands at ‘retail price’, have the biggest market, be the easiest to move via eBay or ‘gray-market’ resellers. Let’s face it, the guy would have been caught a lot sooner and easier if he was trying to move *thousands* of copies of Windows XP or Office on eBay.

Bigger irony still. Each of these products leaves the Microsoft warehouses with a BIG sticker saying “Not For Resale – Promotional Use Only”. So not only did was this guy an idiot, but the buyers (and possibly resellers) were willing accomplices, if you will.

Oliver Wendell Jones (profile) says:

In reference to...

by F. Berfle

Each of these products leaves the Microsoft warehouses with a BIG sticker saying “Not For Resale – Promotional Use Only”.

Perhaps F. Berfle isn’t familiar with a little thing called ‘Goo Gone’ that removes stickers like that in a few seconds. Most such products are no different inside the shrink wrap than those without the stickers. Just ask any college student who’s taken advantage of the ‘student use only’ software at the campus bookstore.

by CHIA GARCIA

The first guy was found pumped full of anti freeze.

Had he been found ‘pumped full’ of antifreeze as you claim, I’m sure someone would have noticed. Did you even read the original article?

F. Berfle says:

Re: In reference to...

Perhaps Oli has never heard of a little thing called “anti-theft” stickers – that leave alternating stripes of material right on the printed box – as well as the CD-ROM case.

Also – Oli seemed to presume there was some distinction in my post about whether the software was any different than “full retail” versions. Too bad Oli – go back & re-read. They *are* full versions… I never claimed nor implied they were any different or disabled.

Lastly, what I neglected to mention is that one of the greatest conveniences of the ordering system in question is it was designed to drop-ship the items directly to the target – employees typically did not/could not get items sent directly to themselves. Certainly anyone with that many copies of internal software being shipped to their office or home would have raised suspicions sooner.

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