it is bad here it is
December 11, 2001
TECHNOLOGY
In 27 Cities, U.S. Carries Out Raids in Software
Piracy Case
By DAVID STOUT
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ASHINGTON, Dec. 11 Federal agents carried out dozens
of raids today against a far-flung network suspected
of pirating billions of dollars worth of computer
software ranging from operating systems to the
latest music videos and movies over the Internet.
Agents seized computers and hard drives in at least 27
cities in 21 states in raids on businesses, university
computer centers, Internet service providers and many
residences. Foreign law enforcement people staged
about 20 similar raids in Australia, Britain, Finland
and Norway.
Treasury and Commerce department officials said more
raids will be conducted in the weeks ahead. No arrests
were made in the United States, partly because today's
operations were aimed at gathering evidence. Some of
the people implicated, aware that they could face
charges of conspiracy or theft of intellectual
property, are already cooperating with the
authorities, department officials said.
The operation that culminated in today's raids, after
a 15-month inquiry, is part of "the largest and most
extensive investigation of its kind," Customs
Commissioner Robert C. Bonner said.
The kind of goods stolen has included costly business
programs, computer-security software, copyrighted
games, music and digital videos "everything from the
movie `Harry Potter' to the Windows operating
systems," in the words of John C. Varrone, assistant
commissioner in the Customs Service's Office of
Investigations.
"This is a new frontier for crime," Kenneth W. Dam,
deputy secretary of the Treasury, said at a news
briefing. "The costs are enormous to both industry and
consumers."
Philip Bond, the Commerce Department's under secretary
for technological policy, said cyber-pirates steal an
estimated $12 billion worth of technology and goods a
year, according to the Business Software Alliance.
American leadership in computers and software is "very
much at stake" because of piracy, he said.
Officials said pirates of the ilk who were the targets
of today's operation are not teen-age hackers but
rather highly skilled computer professionals motivated
more by challenge than greed.
"The money is made farther down the food chain," Mr.
Varrone said. The pirated software soon reaches
distributors who find a ready market, the officials
said.
Officials said offenders could face up to three years
in prison, upon conviction, and depending on their
willingness to cooperate. By midday, the authorities
said, more than 60 people in the United States had
been identified as being involved in the pirating
operation. Several suspects have already been charged
overseas.
The target of the raids was the "Warez" group, a
loosely affiliated network of software-piracy gangs
that duplicate and reproduce copyrighted software over
the Internet. Of special interest today was a Warez
unit known as "DrinkOrDie," probably the oldest and
best known in the Warez network, officials said,
adding that DrinkOrDie members take special pride in
having cracked and pirated the Windows 95 operating
system three days before its release to the public.
Members of Warez includes corporate executives,
computer-network administrators and students at major
universities, government workers and employees of
technology and computer firms, the Customs Service
said today. The agency said the piracy ring is aided
by insiders in stealing the software and that the ring
relies on elaborate computer-security devices to
minimize risk of detection.
Raids were carried out today at the University of
California at Los Angeles, the Massachusetts Institute
of Technology, Purdue University, Duke University and
the University of Oregon, officials said. They said
the universities themselves, like the various
companies raided today, were not involved in the
wrongdoing by their employees and were cooperating in
the inquiry.
Cities where raids were staged included New York,
Washington, Houston, Indianapolis, San Francisco,
Boston, Philadelphia, Miami, Atlanta and Chicago, the
government said.
Officials said some pirates have been remarkably
brazen, some even boasting of their feats on their own
Web sites. "They also view themselves as Robin Hood
figures," the Customs agency said. "They seek an
Internet devoid of rules or law."
This afternoon, government officials said they hope to
change that perception. "This is not a sport, this is
a crime," Mr. Bond said, adding that punishment could
be "serious hard time" in prison.
December 11, 2001
TECHNOLOGY
In 27 Cities, U.S. Carries Out Raids in Software
Piracy Case
By DAVID STOUT
Get Stock Quotes
Look Up Symbols
Portfolio | Company Research
U.S. Markets | Int. Markets
Mutual Funds | Bank Rates
Commodities & Currencies
ASHINGTON, Dec. 11 Federal agents carried out dozens
of raids today against a far-flung network suspected
of pirating billions of dollars worth of computer
software ranging from operating systems to the
latest music videos and movies over the Internet.
Agents seized computers and hard drives in at least 27
cities in 21 states in raids on businesses, university
computer centers, Internet service providers and many
residences. Foreign law enforcement people staged
about 20 similar raids in Australia, Britain, Finland
and Norway.
Treasury and Commerce department officials said more
raids will be conducted in the weeks ahead. No arrests
were made in the United States, partly because today's
operations were aimed at gathering evidence. Some of
the people implicated, aware that they could face
charges of conspiracy or theft of intellectual
property, are already cooperating with the
authorities, department officials said.
The operation that culminated in today's raids, after
a 15-month inquiry, is part of "the largest and most
extensive investigation of its kind," Customs
Commissioner Robert C. Bonner said.
The kind of goods stolen has included costly business
programs, computer-security software, copyrighted
games, music and digital videos "everything from the
movie `Harry Potter' to the Windows operating
systems," in the words of John C. Varrone, assistant
commissioner in the Customs Service's Office of
Investigations.
"This is a new frontier for crime," Kenneth W. Dam,
deputy secretary of the Treasury, said at a news
briefing. "The costs are enormous to both industry and
consumers."
Philip Bond, the Commerce Department's under secretary
for technological policy, said cyber-pirates steal an
estimated $12 billion worth of technology and goods a
year, according to the Business Software Alliance.
American leadership in computers and software is "very
much at stake" because of piracy, he said.
Officials said pirates of the ilk who were the targets
of today's operation are not teen-age hackers but
rather highly skilled computer professionals motivated
more by challenge than greed.
"The money is made farther down the food chain," Mr.
Varrone said. The pirated software soon reaches
distributors who find a ready market, the officials
said.
Officials said offenders could face up to three years
in prison, upon conviction, and depending on their
willingness to cooperate. By midday, the authorities
said, more than 60 people in the United States had
been identified as being involved in the pirating
operation. Several suspects have already been charged
overseas.
The target of the raids was the "Warez" group, a
loosely affiliated network of software-piracy gangs
that duplicate and reproduce copyrighted software over
the Internet. Of special interest today was a Warez
unit known as "DrinkOrDie," probably the oldest and
best known in the Warez network, officials said,
adding that DrinkOrDie members take special pride in
having cracked and pirated the Windows 95 operating
system three days before its release to the public.
Members of Warez includes corporate executives,
computer-network administrators and students at major
universities, government workers and employees of
technology and computer firms, the Customs Service
said today. The agency said the piracy ring is aided
by insiders in stealing the software and that the ring
relies on elaborate computer-security devices to
minimize risk of detection.
Raids were carried out today at the University of
California at Los Angeles, the Massachusetts Institute
of Technology, Purdue University, Duke University and
the University of Oregon, officials said. They said
the universities themselves, like the various
companies raided today, were not involved in the
wrongdoing by their employees and were cooperating in
the inquiry.
Cities where raids were staged included New York,
Washington, Houston, Indianapolis, San Francisco,
Boston, Philadelphia, Miami, Atlanta and Chicago, the
government said.
Officials said some pirates have been remarkably
brazen, some even boasting of their feats on their own
Web sites. "They also view themselves as Robin Hood
figures," the Customs agency said. "They seek an
Internet devoid of rules or law."
This afternoon, government officials said they hope to
change that perception. "This is not a sport, this is
a crime," Mr. Bond said, adding that punishment could
be "serious hard time" in prison.
