Symantec Awarded More Than US$10 Million in CD Micro Counterfeit
Software Case
CUPERTINO --Calif. - October 7, 2003 -- Symantec, the world leader in Internet
security, today announced that the federal District Court in Oregon has awarded
it more
than US$10 million in damages for infringement of Symantec's trademarks
and copyrights by CD Micro, Inc. and its chief executive officer,
Vincent Webb.
The award follows a summary judgement handed down in July 2003
that found
CD Micro guilty of the same charges.
The award was based on CD Micro's profits of more than US$3 million made
from the sale of the counterfeit software, which was designated by the judge
as the initial amount of damages. Under federal trademark law, the court
tripled
the damages to the final amount of US$10 million after finding that the infringement
was wilful."
The amount of this award underscores how
heavy the penalties are for trafficking pirated and counterfeit software," said
William Plante, director for Symantec Worldwide Security and Brand Protection
Task Force. "Symantec
takes software piracy very seriously and is extremely aggressive through
its Brand
Protection Task Force in investigating and pursuing charges against
anyone that engages in these types of illegal activities."
Symantec initiated legal proceedings against CD Micro in April 2002 after
receiving 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 confirmed that 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.
In July 2003, the case culminated in a ruling by Judge Garr M. King of the United States District Court for the District of Oregon that awarded summary judgment in favour of Symantec against CD Micro for violating copyright and trademark laws by selling counterfeit software. The court also found CEO Webb personally liable for copyright infringement as part of the judgment and extended the ruling following a second summary judgment hearing in September to include violations by Webb of trademark protection laws.
About Symantec
Symantec (NASDAQ: SYMC), the world leader in Internet security technology, provides a broad range of content and network security software and appliance solutions to individuals, enterprises and service providers. The company is a leading provider of client, gateway and server security solutions for virus protection, firewall and virtual private network, vulnerability management, intrusion detection, Internet content and e-mail filtering, remote management technologies and security services to enterprises and service providers around the world. Symantec's Norton brand
of consumer security products is a leader in worldwide retail sales and industry
awards. Headquartered in Cupertino, Calif., Symantec has worldwide operations
in 36 countries. For more information, please visit www.symantec.com.au
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