Chinese police, FBI seize 360 million euros worth of pirated software

A two-year collaboration between Chinese police and the FBI has born fruit after officials busted two criminal gangs producing pirated software and seized over 360 million euros worth of illegal products in China.

The pirated products were knockoffs of Microsoft Corp. and Symantec Corp. software and they were being sold around the world, including in the US, says Gao Feng, an official with China's Ministry of Public Security.

Gao said that 25 suspects have been arrested and USD 8 million (5.8 million euros) worth of property has been confiscated.

In 2005, Chinese police discovered that Chinese gangs were collaborating with suspects in the United States and notified the FBI's Beijing office.

Ma Kepei, who was indicted in 2003 for counterfeiting Microsoft programs, and ten other accomplices were arrested in Shanghai.

In Shenzhen, 14 people responsible for an estimated USD 2 billion (1.45 billion euros) in fake software sales were arrested and six manufacturing and retail facilities were shut down.

In Los Angeles, FBI agents seized about USD 2 million (1.45 million euros) in counterfeit software from Chinese suspects.

Bonnie MacNaughton, a senior attorney on Microsoft's worldwide anti-piracy team, told AP that the Shenzhen group was the "largest criminal syndicate in Microsoft's history."

During the operation, Microsoft provided investigators with information gathered from customers and partners. According to MacNaughton, the company's anti-piracy software Windows Genuine Advantage, has proven very helpful in tracking pirated products.

According to a report by the Business Software Alliance, software piracy in China has dropped in recent years. In 2006, software producers worldwide lost USD 40 billion (28.9 billion euros) to piracy.