REDMOND, WASHINGTON, U.S.A, 1996 JAN 12 (NB) -- Microsoft Corp. 
(NASDAQ: MSFT) and Novell Inc. (NASDAQ: NOVL) have announced what 
may be the largest settlement ever in a software piracy case. 
The two software giants said they have reached a settlement with 
Scott Morris, the operator of the computer bulletin board known as 
the Assassin's Guild Bulletin Board Service.  
 
The deal calls for Morris to pay $70,300 in cash and forfeit 
computer hardware valued at more than $40,000. Morris also 
reportedly agreed to assist Microsoft and Novell in their 
continuing BBS investigations.  
 
The Lexington, Kentucky-based Assassin's Guild promoted itself as 
the worldwide headquarters for two large software pirate groups, 
Pirates with an Attitude and Razor 1911.  
 
In April 1995 Newsbytes reported that US Marshals and 
investigators for Microsoft and Novell had raided Morris' 
residence, charging him with illegal reproduction and distribution 
of copyrighted software. Law enforcement officials said the 
Assassin's Guild had been offering hundreds of pirated software 
products for downloading at no charge, including programs 
published by Microsoft and Novell.  
 
US Marshals seized 13 computers, 11 modems, a satellite dish, 
nine gigabytes of online data and more than 40 gigabytes of offline 
data dating back to 1992, according to Microsoft.  
 
Jim Lowe, Microsoft corporate attorney, said online piracy is a 
growing concern for software publishers. Microsoft has often 
announced it is committed to put a crimp in pirate operations.  
 
Both Microsoft and Novell are members of the Business Software 
Alliance (BSA), and industry alliance formed to promote the growth 
of the software industry through education and enforcement 
initiatives. According to Bob Kruger, director of enforcement at 
BSA, the Assassin's Guild settlement sends a strong message to 
pirates. "It sends a clear message to operators of bulletin boards 
who are illegally distributing copyright-protected software that they 
will be investigated and sued, or criminally prosecuted."  
 
Following the raid BSA spokesperson Kim Willard told Newsbytes the 
pirated software on the Assassin's Guild computers included 
Microsoft Windows, Novell Netware, Wordperfect word processor 
software and numerous games and utilities.  
 
Before the settlement was reached Morris faced potential penalties 
that included up to $100,000 in fines and up to five years in 
jail if convicted.  
 
In 1994, the last year for which complete figures are available, an 
estimated $15.2 billion in revenue was lost by the software 
publishing industry as a result of software piracy, according to 
the BSA. the organization estimates that in the US alone 35 
percent of the business software in use is pirated, resulting in 
almost $3 billion in losses to the industry. Loss figures refer to 
the retail value of the pirated software if it were purchased 
legitimately.  
 
The BSA maintains a toll-free hotline to report suspected software 
piracy and also has an e-mail address for that purpose. The group 
can be contacted at 800-688-2721 or software@bsa.org.  
 
Microsoft and Novell also maintain hotlines and e-mail addresses for 
users with questions about the legitimacy of those company's 
products. The Microsoft number is 800-786-3448 or you can send 
e-mail to piracy@microsoft.com.Inquiries to Novell go to 
800-747-2837 or pirates@novell.com.  
 
(Jim Mallory/19960112/Press contact: Greg Shaw, Microsoft, 
206-882-8080 or Ron Barker, Novell, 81-429-7811 or Diane Smiroldo, 
BSA, 202-87-5500/PIRATE960112/PHOTO)  
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