Intellectual Property News

Man Sentenced To 20 Months In Prison For Fraudulently Obtaining Microsoft Software

United States Attorney McGregor W. Scott and Sacramento County Sheriff John McGinness announced today that DARREN McWAINE, aka Darren Macwangwala,David Marsh, Dave Watts, and Darren McWayne, age 35, formerly of Antelope, California wassentenced to 20 months in prison for his role in a scheme in which he stole more than $500,000worth of Microsoft software.

This case is the product of an extensive/joint investigation by the Sacramento Valley High Tech Crimes Task Force, which is comprised of more than 30 federal, state, and local law enforcement agencies, and the United States Postal Inspection Service. Microsoft also assisted with the investigation.

According to Assistant United States Attorney Robin R. Taylor of the Computer Hacking and Intellectual Property Unit , who is prosecuting the case, defendant McWAINE previously admitted in court that from approximately November 1999 through January 2004, he fraudulently activated more than 179 subscriptions of Microsoft Developer Network Software,Universal Edition (MSDN), which was used by developers to create computer products compatible with Microsoft software. The initial subscription for the MSDN retailed at approximately $2,799, and could be renewed annually for approximately $2,299.

According to documents filed in court, a legitimate purchaser of the MSDN software would receive a 15-digit Product Identification Numbers  or activation number from Microsoft which could be used to activate a software subscription via the Internet, phone, or mail. Defendant McWAINE admitted that as part of the fraud, he obtained legitimate PID numbers and then, by manipulating the digits of those numbers, created new and unauthorized PID numbers.

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