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Microsoft orders Va. Beach, VA to provesoftware ownership

Business/Economy News
Source: Virginian-Pilot online
Published: Nov 4, 2000 Author: Katrice Franklin
Posted on 11/05/2000 06:08:41 PST by spudsmaki

November 4, 2000
Microsoft orders Va. Beach to prove software ownership
By KATRICE FRANKLIN © 2000, The Virginian-Pilot

VIRGINIA BEACH -- Jack Averett was sifting through mail one September day when he read a one-page letter that would disrupt every city department and give some 50 employees new marching orders. The letter from Microsoft Corp. was brief and to the point. Basically, it demands that Virginia Beach, the state's most populous city, produce a list of all the Microsoft software it uses. The company also wants to see the city's software licenses -- paperwork that proves the software was purchased.

For an organization that's 99 percent reliant on Microsoft software, and has more than 5,900 employees and 3,500 computers, the letter was jolting.

Averett, a purchasing agent in the city's information technology department, quickly handed off the letter to the appropriate people. ``We certainly weren't expecting that,'' said David C. Sullivan, the Beach's chief information officer. Nick Psyhogeos, a Washington, D.C.-based attorney for

Microsoft, said the firm has found that government agencies sometimes inadvertently acquire counterfeit software because they generally work with companies that submit the lowest bid. Psyhogeos said Microsoft periodically asks all of its customers, private companies and government agencies, to inventory their computer products.

``If there is an issue, we try to narrow the field,'' he said. ``Maybe it's limited to one product or one vendor. But in the end, the responsibility for keeping records and licenses rests with the customer directly.''

Microsoft, like most software companies, includes contracts with its merchandise explaining that the company reserves the right to ask consumers at any time for proof of purchase and an inventory of what is being used. The rule applies not only to governments and privately owned companies but to individuals.

If the city can't verify that it bought all the Microsoft software in its inventory, it might have to pay for any programs that aren't accounted for. That could cost thousands of public dollars.

City leaders say they have gathered substantial documentation, but are uncertain of the final outcome. ``We have no sense of where we're going to come out,'' Sullivan said.

The city has until Nov. 27 to meet Microsoft's request, after getting a 30-day extension. Meanwhile, departments in need of new computers have had to cool their heels.

Sullivan said it is the first time Microsoft has asked the Beach to account for its software. In the past year, Microsoft has targeted Virginia in its software inquiries. Last year, the company sued two retailers in Northern Virginia and two more in West Virginia for software piracy.

The company settled a lawsuit in April with Compu-Link Inc., a Virginia Beach-based computer retailer, for selling 594 counterfeit copies of expensive office software. Details of the settlement were not disclosed.

To fulfill Microsoft's request, the Beach has pulled five members, or 25 percent, of its core technical staff away from their regular duties to focus on the pending deadline. As a result, staffers in line for new computers or replacement computers must now wait three to four weeks to receive them, said Gwen Cowart, director of communications and information technology.

City leaders said their first priority has been to inventory their Microsoft software. Cowart said the city is finishing that project now, double checking to make sure nothing was missed.

Technical staffers have also asked all city departments to provide receipts for any software they purchased. Sullivan said this has proven to be the most difficult task. And it's not just the city's computer experts who must assist.

Employees such as Karen Havekost, an administrative assistant in the technology division, are dedicating their time to inputting the inventory and receipts into a computer.

Sullivan said he's sure the city will get the work done in time. He also said that companies should be ready for Microsoft to ask them for the same data. The city has implemented new policies so that by next June, it will be easier to meet a similar request from any software company, he said.

For example, any staffer wanting to buy a new program must first get permission from the information technology division. That'll make it easier for the city to keep track of the software that departments use, as well as proof that the programs were purchased. ``It's the world we live in,'' Sullivan said. ``Microsoft has every right to ask us for the information.''

Reach Katrice Franklin at 222-5138 or kfrankli@pilotonline.com


I'm sure the desktop licenses are OK, but it's those Client-Access Licenses needed on the servers that'll do your budget in.

Now, personnel just has to go through the list of every temp, fired, and passed over person to figure out who ratted on them.

Maybe this will teach management to learn how to Samba.

1 Posted on 11/05/2000 06:08:41 PST by spudsmaki
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To: spudsmaki

look for more of this as msft goes down the tubes. network apps and the tv pc will kill this cow.

2 Posted on 11/05/2000 06:14:08 PST by blue_nova
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To: spudsmaki

Install Linux.

3 Posted on 11/05/2000 06:17:57 PST by Clive
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To: spudsmaki

Hey, maybe Bill Gates can rent some "ninjas" from the Justice Department or INS???

4 Posted on 11/05/2000 06:21:58 PST by The Duke
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To: spudsmaki

I live in Va. Beach, and I hadn't heard this, lol.

Documentation, one of those pesky tasks, it's a pain until you need it.

5 Posted on 11/05/2000 06:25:42 PST by csvset
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To: spudsmaki

Governments are the biggest software pirates around. I'm a defense contractor, and the command I work at is pretty tight--but someone visiting from the Defense Information Systems Agency told me that DISA doesn't care about licenses until they get sued.

6 Posted on 11/05/2000 06:31:49 PST by Poohbah
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To: Poohbah

I think they should do the same thing to the entire federal gov't and each state that entered the law suit.

That will teach them for suing MS.

7 Posted on 11/05/2000 06:39:43 PST by for-q-clinton
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To: spudsmaki

As a salesman for a software company, we have a right to request audits whenever we want, basically.

We only do it when we KNOW that licenses have been pirated or wholesale copying has taken place.

In 99% of the cases, the corporate and public sector attorneys are only to happy to fork over whatever additional charges the audit reveals. Many times, they'll bring the check to the office themselves.

No company wants to get sued, publicly, for cheating and for looking cheap.

Our auditors estimate we leave millions of dollars on the table by not being more aggressive in pursuing software pirates.

8 Posted on 11/05/2000 06:51:22 PST by sinkspur
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To: spudsmaki

As noted in the WSJ October 30th, 2000 Page B20, Microsoft is now attempting to convert to "per use" payement for using its programs.

Yes, That's right, pay every time you launch WORD, or Excell, etc.

The only way that could be done is if they are "inside your PC". That is an out rite violation of the Fourth Ammendment. They don't have any right inside your machine unless you open the door to them and invite them in. But they are already in there, friend. No doubt by virtue of some arcane language in the so called "License" or EULA that know one reads, assuming that it is just protecting MS from you reselling their stuff.

That is why I stopped "upgrading" with them, and turned of the "upgrade" programs. They are allowing "Less and less" control over the machine.

And if there is "competiton" I don't see it. I was in the store yesterday and saw a LINUX Windows package, so maybe that';s coming along. Gopd knows Microsoft needs to be put back in its place.

We need some serious "operating system" competition for this emerging "gatekeeping monopolist". MS is getting way too "greedy", and wants you to support them forever if you use the operating system. As far as I can tell they have sold the same thing essentially over and over again to each user.

When you buy your car, its yours.

But they want you to believe that when you buy your computer then you pay, and pay, and pay, and pay - THEM, foever.

Virginia Beach ought to go back to doing its work for the people of their own city, and throw this MS letter where it belongs, in the trash.

What are they afraid of? MS is going to come in a fire the Mayor?

9 Posted on 11/05/2000 06:56:48 PST by RISU
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To: RISU

Virginia Beach does not have to prove its innocence - Microsoft has to prove them guilty. I would let Microsoft sue and then countersue Microsoft for a billion dollars. Just because Microsoft was too lazy and cheap to build a workable copy protection shouldn't mean that they have the right to cause Viginia taxpayers useless time and money.

10 Posted on 11/05/2000 07:08:39 PST by afz400
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To: afz400

Bill Gates has sucked at the teats of too many Commie Mommies. He needs to take a vacation!

11 Posted on 11/05/2000 07:15:18 PST by po'boy
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To: RISU

'Yes, That's right, pay every time you launch WORD, or Excell, etc.'

The US Navy is in the process of implementing a system that would do just that.

12 Posted on 11/05/2000 07:15:30 PST by Always Right
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To: spudsmaki

an organization that's 99 percent reliant on Microsoft software

There's the real problem.

13 Posted on 11/05/2000 07:18:15 PST by B Knotts
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To: spudsmaki

It's pretty common to discover businesses that have pirated software.

Usually some independent contractor installs a system or network and does't give the business the licenses.

It usually catches up with them when they upgrade.

I don't blame Microsoft for getting tough. After what Janet Reno and the Clinton/Gore administration is doing to them.

14 Posted on 11/05/2000 07:25:36 PST by Roux
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To: Clive

Install Linux

I'm considering doing just that, but I understand that hardware compatibility can be a real problem. Redhat 6.0 looks like the best option for me based on the parts I put in my box. So far, the plan is to buy another HD to make a dual boot system with the two OS's residing on separate physical drives.

Can you recommend a book or two on Linux operation and configuration? A concise guide to the command syntax would help. Also, since Linux is far more user controllable than Windows, I would expect that a new install could have huge security gaps. Do you know of a good guide to Linux configuration?

There's a ton of information out there, I'm just looking for ideas from someone who has already ridden up the learning curve.

Regards,

Jack

15 Posted on 11/05/2000 07:30:46 PST by Jack of all Trades
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To: Poohbah

Governments are the biggest software pirates around. I'm a defense contractor, and the command I work at is pretty tight--but someone visiting from the Defense Information Systems Agency told me that DISA doesn't care about licenses until they get sued.

Ain't that the truth. I don't know how many times I've gone to management to point out the dangers, and to do something about it, before the sh!t hits the fan. And every time, I've been fobbed off with "I'm not worried about it. Just put the software in, and get the job done."

Of course, working for the government, or a big company, means never having to pay for a management screwup. In both cases, it's easier for them to pay the fine when caught, rather than run a proper operation from day one. They see paying the fine as being no more expensive than being legit from the start, plus they didn't have to spend all that "mickey mouse" time in keeping accurate books.

16 Posted on 11/05/2000 07:47:59 PST by 300winmag
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To: Jack of all Trades

Peripherals compatibility is becoming less and less of a problem. There are many people writing drivers for just about everything.

The biggest equipment problem is the so-called Winmodems and so-called Winprinters. These devices have their firmware gutted so that they will only run using Microsoft proprietary routines. In effect, they have transferred the workload from the device's processor to the computer's central processor. This takes cycles away from other work that the computer is doing. The supposed justification for them is economy, but in actuality, the price of a real modem is not much more than the price of these abortions. The actual effect is to make the owners of these pieces of junk captive customers of Toyland.

As to books, I would suggest Linux Unleashed. You can probably get one for the brand of Linux you prefer and it includes the whole operating system in the back flap. Also, Open Linux, The Complete Reference is good for Caldera Linux.

I am using Mandrake version 7, which is basically Red Hat Linux except they have abstained from using "improved" network facilities and heve kept then very standard, totally compliant, tcp/ip and DHCP. I much prefer to use standard protocols so that I know what my configurations should be and what effects they should produce. I don't want to have to re-write configuration files every time I upgrade.

The vendor version numbers are not important. What is important is the kernel version number. Wersions bearing the same kernel number will be identical. What varies from company to company is the package of applications and utilities that comes with the kernel and the manual that accompanies it.

Linux is open source. The software is free and most of the utilities can be had by simply downloading them. The vendors make their money by packaging utilities and applications and by their manuals.

Just about any omnibus book on Linux has the most recent version (as of publication date) in the pocket in the back flap.

Go to Chapters, Indigo or Barnes & Noble and you will see a wide range of Linux books ranging from Linux for Dummies to text books written for network managers.

Linux was designed ab initio as a network operating system, so you are more secure and have a more consistant and reliable network capability than Windows or even OS/2.

Each of my machines has partitions for Linux, OS/2 and Windows 95. I use OS/2 for my business and Linux for enjoyment and development and any new uses. I started with OS/2 before Linux came along. Windows 95 is only on board because the Ontario Government has written its title search and registration software to run only on Windows and I need to use that software to search land titles.

I will eventually phase into primary reliance on Linux.

I have an inexpensive LinkSys hardware router to tie my machines together and give all of them access to the internet without having to pay for multiple ip addresses. but for the fact that the LinkSys router is so cheap and easy to install, I would have used an old 486 box with two ethernet cards and installed Linux using the Server option and connected my machines to it using a cheap passive hub.

If you want to explore this further, send me a note through the Free Republic Post Office.

17 Posted on 11/05/2000 08:13:53 PST by Clive
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To: Clive

In the latest issue of 2600, they reproduced a letter warning them about software piracy. They had a believable defense. They would never use Microsoft stuff at all.

18 Posted on 11/05/2000 08:33:28 PST by Stentor
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To: Jack of all Trades

Mandrake 7.2 is about to hit the stores. Buy it if you don't have the bandwidth to download it for free, and you don't have a cd burner for the isos. I installed it on a stock Dell XPS D300 in 30 minutes and didn't have to use one driver disk. Internet connecion is handled by the installer. Home networking is documented HERE.

There's a good firewall called firestarter that ran on to Redhat 7.0 no problem. I'm using pmfirewall on Mandrake but that requires more hands on to get things buttoned up. If your running a server, that's out of my league, as I'm only surfing and home networking using Verizon ADSL. Have fun.

19 Posted on 11/05/2000 08:48:02 PST by Stentor
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To: RISU

Once your system has a public ip address, anyone who knows or can find that address can get in, especially if you are using Windows. It is the least secure network operating system known to mankind.

Put a router between your system and your broadband modem. Give your machines ip addresses reserved as private and have a public ip address only on your router.

check your system from an external source to ensure that your router is not letting requests in past its firewall.

20 Posted on 11/05/2000 08:48:20 PST by Clive
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To: sinkspur

Our auditors estimate we leave millions of dollars on the table by not being more aggressive in pursuing software pirates.

Pirates illegally board ships, kill the men, rape the women, steal things, then either burn the ship or sell it. Someone who uses a non-licensed copy of a piece of software might be a thief, but he's no pirate.

21 Posted on 11/05/2000 13:21:02 PST by dwollmann
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To: dwollmann

Someone who uses a non-licensed copy of a piece of software might be a thief, but he's no pirate.

I didn't coin the term; it's in common usage, including among corporate attorneys. Take it up with them.

22 Posted on 11/05/2000 13:41:22 PST by sinkspur
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To: RISU

A voluntary contractual relationship does not violate the Fourth Amendment.

The main thing we need is a form of Linux that doesn't require a double-domed geek to install and operate. Sadly, I've seen several items hyped for this that fail miserably outside of a "typical" (read: mostly atypical) installation.

23 Posted on 11/06/2000 05:19:51 PST by Poohbah
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To: spudsmaki

I'd like to see the same thing happen at the Federal level. Starting with the inJustice Dept. Then head on down to the IRS, BATF, DEA, and every other alphabet soup agency.

It would not surprise me if Microsoft found at least 50% in violation of STEALING software.

What goes around comes around !!!

24 Posted on 11/06/2000 05:24:19 PST by unixfox
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