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Microsoft Finds Malware Pre-Installed on 59% of Notebooks Sold in China

Tencent Tech, 12/13/12

Microsoft today announced it is launching computer security awareness presentations in over 40 mainland China cities, adding that a recent survey in those cities found that 59% of notebooks are infected with malware and 72% have modified browser settings before being sold.

Pirated copies of Windows come with pre-installed malware that bypasses Windows built-in security system, according to Microsoft, enabling online criminals to hijack users' computers, steal account credentials and credit card numbers, and engage in other profit-generating criminal activities.

Microsoft has recently taken action against 16 PC vendors for sale of computers with illegal copies of Windows pre-installed. Brands involved include Acer, Asus, Dell, Founder (600601.SH), Hasee, Hedy (002027.SZ), HP, Lenovo (0992.HK), and Tsinghua Tongfang (600100.SH), but Microsoft said the illegal copies of Windows were not installed by the manufacturers but by individuals or resellers downmarket to substitute for genuine, licensed copies of the operating system.

Microsoft said actions against the 16 resellers were the beginning of a series of activities to be undertaken in the aforementioned 40-plus cities. Nick Psyhogeos, VP of Microsoft's OEM division, said the resellers must cease distributing illegal versions of Windows and pay compensation, stating that Microsoft will preserve evidence while engaging in talks with the resellers; if the resellers fail to take action, Microsoft will seek legal remedy.

Keywords: IPR infringement law Nick Psyhogeos computer hardware malware pre-installed Microsoft Windows notebook piracy

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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