Prison For Making Restore Disks for PCs With Legal Windows

[Perknose]

Microsoft won the suit because, imho, the judge didn't have a basic understanding of how this works.

Some excerpts from the article:

Prosecutors said the 33-year-old ripped off Microsoft by manufacturing 28,000 counterfeit discs with the company’s Windows operating system on them. He was convicted of conspiracy and copyright infringement, which brought a 15-month prison sentence and a $50,000 fine.

The case centers on “restore discs,” which can be used only on computers that already have the licensed Windows software and can be downloaded free from the computer’s manufacturer, in this case Dell.

Lundgren only wanted to provide them, for free, with PCs he'd recycled that all came with licensed Windows, but had had their hard disks wiped by the companies who gave them to him.

The discs are routinely provided to buyers of new computers to allow them to reinstall their operating systems if the computers’ hardware fails or must be wiped clean. But they often are lost by the time used computers find their way to a refurbisher.

The judge received evidence of Lundgren’s recycling company, IT Asset Partners, his projects to clean up e-waste in Ghana and China and a 2016 initiative in which Lundgren’s company repaired and donated more than 14,000 cellphones and $100,000 to “Cellphones for Soldiers” to benefit U.S. soldiers deployed overseas.

^^^ What a terrible person!

As their expert witness at the sentencing, prosecutors called a Microsoft program manager from Ireland to explain to the judge how the discs worked and their value. Jonathan McGloin testified that Microsoft licensed Windows to computer manufacturers such as Dell and also licensed them to make restore or recovery discs to be included with the new computers. McGloin also testified that Microsoft charges computer refurbishers about $25 for a new license and copy of the software but didn’t differentiate that from what was done by Lundgren, who was not making a new copy of the software and intended his restore discs only for computers that were already licensed.

“I thought it was freeware,” Lundgren said of the restore discs. “If it’s free, then I’m just going to duplicate the free repair tool and give it away, and that’ll be fine,” he thought. “The value’s in the license. They didn’t understand that.”

There is one way Lundgren did mess up:

The discs had labels nearly identical to the discs provided by Dell for its computers and had the Windows and Dell logos. “If I had just written ‘Eric’s Restore Disc’ on there, it would have been fine,” Lundgren said.

His case in now on appeal.

 

[sdifox]

That is such bullshit

 

[kage69]

It's hard to read that story and not get mad. That guy has some story, deserves a damn medal IMO. Anyone who moves to China to study pollution has some serious drive. Shame on M$ for a blatant act of corporate thuggery. Hope the appeal is successful because that's a load of horseshit.

 

[bbhaag]

First off I in no way want to discount what Mr. Lundgren is doing to help combat e-waste. It is a very noble cause that IMO could use some more attention. The the thing is according to the article posted is that Mr. Lundgren

"thought that producing and selling restore discs to computer refurbishers — saving them the hassle of downloading the software and burning new discs — would encourage more users to restore their computers instead of discarding them."

I do not believe producing and then selling restore discs for the Windows Operating System is legal.

 

[kage69]

"Senior U.S. District Judge Daniel T.K. Hurley observed that none of the discs Lundgren made were actually sold and declined to order him to pay restitution. Hurley imposed a 15-month sentence that was less than half of that called for by federal sentencing guidelines, which indicated 36 to 47 months."

 

[urvile]

First off I in no way want to discount what Mr. Lundgren is doing to help combat e-waste. It is a very noble cause that IMO could use some more attention. The the thing is according to the article posted is that Mr. Lundgren
I do not believe producing and then selling restore discs for the Windows Operating System is legal.

He sure as shit can't sell them. The IP belongs to microsoft.

 

[bbhaag]

While in China, Lundgren hit upon the idea of selling “restore discs” to computer refurbishers.

“I thought it was freeware,” Lundgren said of the restore discs.

Again more excerpts from the article posted. It appears he not only sold the restore disks but also thought they were freeware. Because it is completely within the realm of reason to believe that a copy of the Windows Operating System would be considered freeware.

Also the writer Mr. Jackmon has several discrepancies in his article. If the judge declared none of the discs in question were actually sold why does his article state on multiple occasions that they were?

 

[bbhaag]

He sure as shit can't sell them. The IP belongs to microsoft.

That is correct. I believe the illegal distribution of any copyrighted material is generally frowned upon by the persons or company that owns the copyright in question. In this case it is the Windows Operating System owned by Microsoft.

 

[urvile]

That is correct. I believe the illegal distribution of any copyrighted material is generally frowned upon by the persons or company that owns the copyright in question.

That's straight up piracy. I can see how it gets murky though but if he was selling the disks it doesn't matter if it can be downloaded for free. Anyway. I haven't read the article so *shrugs*.

But you have to have a windows license right? So if he provides the disk with a valid license....what if he charges a nominal fee for the cost of the disk(s)?

Good times.

 

[shortylickens]

I'm gonna steal 1 copy of each of windows and all the Office programs.

Wont use. Just stealing.

Fuck Bill. FUCK HIM!

 

[Perknose]

Also the writer Mr. Jackmon has several discrepancies in his article. If the judge declared none of the discs in question were actually sold why does his article state on multiple occasions that they were?

The entire batch was seized first.

In 2013, federal authorities intercepted shipments of 28,000 restore discs that Lundgren had manufactured in China and sent to his sales partner in Florida.

 

[bbhaag]

The entire batch was seized first.

In 2013, federal authorities intercepted shipments of 28,000 restore discs that Lundgren had manufactured in China and sent to his sales partner in Florida.

Okay so he was selling them then. I mean I don't have a sales partner in Florida but if I posted an ad in the FS/FT forum selling copies of Windows to "refurbishers only" how well would that go over Perk?
What if it grew to tens of thousands of copies being sold to refurbishers?

 

[Sunburn74]

Seems like freeware to me. Not sure where the comec is.

 

[Jaskalas]

I need to ask this... a restore disk. Can only be used on the SAME PC hardware it was created for... right?

My Windows 10 license cannot be transferred to another PC without Microsft's blessing. Where is the crime of making a BACKUP copy of my data? They going to sue Acronis and Carbonite next?

 

[Fanatical Meat]

Full disclosure I did not read many of OP links. I did see something about a guy getting in trouble for this because while the disks were free they were bundled into a PC maintenance service which did cost money.

 

[TheELF]

I need to ask this... a restore disk. Can only be used on the SAME PC hardware it was created for... right?

My Windows 10 license cannot be transferred to another PC without Microsft's blessing. Where is the crime of making a BACKUP copy of my data? They going to sue Acronis and Carbonite next?

Depends on the version,but newer windows like windows 10 all come as the same version and the only thing that makes them different is the key,so the restore disk is going to work on any PC and if it's kosher it will give you a 30day period of having to enter your key if it doesn't find a company bios (volume licence) that unlocks windows right away.

Prosecutors said the 33-year-old ripped off Microsoft by manufacturing 28,000 counterfeit discs with the company’s Windows operating system on them. He was convicted of conspiracy and copyright infringement, which brought a 15-month prison sentence and a $50,000 fine.

The discs had labels nearly identical to the discs provided by Dell for its computers and had the Windows and Dell logos. “If I had just written ‘Eric’s Restore Disc’ on there, it would have been fine,” Lundgren said.

I'm pretty sure he is right there and he just got sentenced for faking trademark logos.

 

[Sunburn74]

Full disclosure I did not read many of OP links. I did see something about a guy getting in trouble for this because while the disks were free they were bundled into a PC maintenance service which did cost money.

Yes but any competent person can download the disks online and burn them to a blank cd; in fact you can do this yourself directly from microsofts website I believe. Its crazy. it appears to me that what MS is really selling is the licence keys and he never did anything to try and manipulate that.

 

[feralkid]

"The discs had labels nearly identical to the discs provided by Dell for its computers and had the Windows and Dell logos."


That was a bone-headed move

 

[theeedude]

Names of the prosecutors for public shaming?

 

[bbhaag]

I need to ask this... a restore disk. Can only be used on the SAME PC hardware it was created for... right?

My Windows 10 license cannot be transferred to another PC without Microsft's blessing. Where is the crime of making a BACKUP copy of my data? They going to sue Acronis and Carbonite next?

Are you going to sell this backup to other entities that then turn a profit by selling the computer your backup was installed on? If so then yes that is a crime. Making a backup of your system for your own personal use is not. Not yet anyway. If Microsoft decides to go the way of the MPAA then yes one day your backup maybe considered illegal and Microsoft might decide to seek legal action against Acronis, Carbonite and other manufacturers of similar software.
I believe the MPAA has taken legal actions against certain software companies such as DVDFab.

 

[Sonikku]

He should bash Hillary Clinton on Fox and get himself a pardon.

 

[Jaskalas]

Are you going to sell this backup to other entities that then turn a profit by selling the computer your backup was installed on?

Selling my old PC should not be illegal.

Yeah, I understand they only care if you make a... restore disk. I do not even come close to respecting that concept as a crime. And it really angers me that others would.

 

[ch33zw1z]

I know I'll sleep better tonight knowing this guy is doing time.

 

[Thebobo]

I know I'll sleep better tonight knowing this guy is doing time.

yea no shit big bad microsoft, meanwhile check to see what illegal coming from overseas.

 

[bbhaag]

Selling my old PC should not be illegal.

Yeah, I understand they only care if you make a... restore disk. I do not even come close to respecting that concept as a crime. And it really angers me that others would.

Selling your old pc is not illegal. Selling the image of the Microsoft Windows Operating System installed on your old pc is. Especially when you sell tens of thousands of copies of it.