Microsoft suit claims electronics recycler illegally sold its software

Microsoft has filed a lawsuit against Phoenix-based electronic scrap recycling firm Global Electronics Recycling (GER) for alleged unauthorized resale of Microsoft Office 2010 software by employees of the recycling firm*.

In the 10-page Sept. 11, 2015, lawsuit filing, a copy of which can be found here, Microsoft says GER should be held responsible for copyright payments relating to some 70,000 Microsoft Office “key cards” or serial numbers.

“Microsoft has suffered at [sic] millions of dollars in actual damages from the rampant piracy proximately caused by the theft/loss of the product key cards and the foreseeable unauthorized use of such product key cards to activate unlicensed and pirated software,” attorneys for the Redmond, Washington-based company say in the legal filing. “Microsoft’s damages are continuing due to additional activations of pirated and unlicensed software with the product keys,” the filing adds.

A summary of the suit reported by website Geekwire says Microsoft is accusing GER employees* of selling the Microsoft Office 2010 key cards “on the black market.”

The lawsuit indicates Microsoft had worked with GER since July 2009 “to dispose of returned, current, and/or obsolete Microsoft hardware and software.” The filing does not make clear how many GER employees may have been involved in the alleged resale scheme.
 

*This report was updated Dec. 9, 2019. Originally, the author misstated that GER was involved in the unauthorized resale of the keycards. Rather, Microsoft sued GER for the negligent breach of its obligations to protect the keycards, which were to be securely disposed of and recycled, John P. McKelligott, an attorney based in Pennsylvania who represents GER says. The suit was settled out of court according to a Jan. 6, 2017, filing with the U.S. District Court for the Western District of Washington.