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Microsoft, Everex File Suits Alleging Counterfeiting

June 12, 1990

REDMOND, Wash. (AP) _ Microsoft Corp. and Everex Corp. say they have filed lawsuits alleging that 16 individuals and companies have made or sold a counterfeit version of Microsoft’s popular MS-DOS computer operating system.

The lawsuits, the first of which was filed under seal April 6, allege a counterfeiting ring introduced more than 30,000 bogus copies of MS-DOS into the United States. Microsoft estimated the counterfeits displaced legitimate sales valued at more than $1.5 million.

MS-DOS, which stands for Microsoft disk operating system, is the most widely used operating system for personal computers made by International Business Machines Corp. and IBM-compatible computers. The operating system is the basic software that allows the computer to perform such functions as opening files and responding to the keyboard.

The copies were counterfeits of MS-DOS marketed by Everex under the trade name ParCorp, the companies said Monday. Everex, of Fremont, Calif., is licensed by Microsoft to produce the operating system for its private-label computers.

Seizure orders issued with the lawsuits were executed at six locations in New Jersey and California between April 10 and May 8, with U.S. marhsals participating in some of the raids, Microsoft said. More than 1,000 counterfeit copies were seized, and several thousand more were subsequently surrendered by four of the defendants under an order issued by U.S. District Judge Charles A. Legge, the companies said.

Named as defendants are J&S International, JIP Design and Joe Fok, all of San Jose, Calif.; American MultiSource Inc., Manufacturing Services Inc., Benny S. Lee, Norman Chan and Susan Chan, all of Fremont, Calif.; Micro- Generation, a division of Continental Technology Inc., in Edison, N.J., and its corporate officers Thomas Wu, Michael Wu and Frank Ho; and Asia Source Inc. of San Jose, Calif., and its corporate officers Tai Yen Chu, Robert Young and Christi Liang. Asia Source was a customer of Micro-Generation.