CUPERTINO, Calif. - July 28, 2003 - Symantec Corp. (Nasdaq: SYMC), the world leader in Internet security, today announced it received an order for summary judgment against CD Micro, Inc., based in Grants Pass, Ore., for infringement of Symantec's trademarks and copyrights. The order, handed down by the United States District Court for the District of Oregon, is the alternative to a trial by jury and found CD Micro liable for infringements associated with selling counterfeit Symantec software. CD Micro CEO Vincent Webb also was held liable for copyright infringement.
The order lays the groundwork for a hearing scheduled on August 8 to determine the amount of damages. Symantec is seeking to recover at least the $3.3 million in profits that CD Micro made from the sale of counterfeit copies of Norton SystemWorks Professional Edition software.
Symantec initiated legal proceedings against CD Micro in April 2002 after Symantec received spammed email from CD Micro offering Symantec products at grossly reduced prices under the Web site heading of Free-IRewards.com. Upon further investigation of the software being offered, Symantec was able to confirm the software was counterfeit. CD Micro was unresponsive to Symantec's inquiries into the matter, resulting in legal action taken by Symantec to halt the distribution of the counterfeit software.
"The summary judgment against CD Micro is another critical step in our ongoing efforts to combat the proliferation of counterfeit Symantec software," said William Plante, director, Worldwide Security and Brand Protection for Symantec. "Counterfeit software poses tremendous threats to users. The software may not work, causing damage to a computer system or leaving the system unprotected to cyber attack. Furthermore, the code of the counterfeit software itself may contain viruses or a Trojan horse to collect the private and financial information of the user."
In his summary judgment opinion, United States District Judge Garr M. King found CD Micro liable for infringement of Symantec's copyrights and of Symantec's trademarks. In the ruling pertaining to the violation of Symantec's trademarks, the judge specifically mentioned the "too-good-to-be-true price" offered by CD Micro as illustrating a differentiator of legal software versus counterfeit software in this case. The judge also found in favor of Symantec's claims for unfair competition and trademark counterfeiting.
Symantec is the world leader in providing solutions to help individuals and enterprises assure the security, availability, and integrity of their information. Headquartered in Cupertino, Calif., Symantec has operations in more than 40 countries. More information is available at www.symantec.com.
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