Microsoft Clamps Down On Illegal Sale Of Source Code

by Glen Shapiro, LawAndTax-News.com, New York

01 September 2005

It emerged on Monday that Connecticut-based William P. Genovese Jr has pleaded guilty to illegally selling portions of Microsoft Windows source code.

According to reports, Mr Genovese made the trade secrets available for sale after another, unknown, individual had distributed the code over the internet.

The one count of unlawfully distributing a trade secret being faced by Mr Genovese carries a maximum prison sentence of 10 years and a fine of up to $250,000. However, the US Attorney's Office is said to have reached a plea agreement with the defendant which would see him serving between 10 and 30 months in federal prison.

Speaking to the Ziff Davis Internet news service with regard to the case this week, lawyer Daniel E. Venglarik suggested that the stakes are higher for Microsoft in this case than in other software piracy claims that the firm has pursued, explaining that:

"This was source code, not the typical bootleg copy of the executables. So the value to Microsoft is not just the sale price of a copy of Windows, but the value of any trade secrets - which means a completely different number of zeros somwhere after the dollar sign."

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