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DOJ continues its campaign against software piracy

A trio of Texas-based software counterfeiters plead guilty to charges of piracy Friday, for running a handful of pirated software stores that generated more than $1 million in sales.

Their stores, valuesoftwaresales.com, esoftwarevalue.com, allsoftwaredownload.com, and priceslashsoftware.com, reportedly specialized in the distribution of fake Adobe software like Photoshop and Flash – a favorite target of counterfeiters due to the programs’ consistently high price and demand.

Court records indicate that over a 28-month period, Thomas Rushing III, 24; Brian Rue, 29; and William Partridge, 24; generated $1.2 million in revenue over a 28-month period ending in May, 2007. A press release published by the U.S. Department of Justice pegs the value of their sales at $2.5 million, and says the three promoted their business through advertisements on web sites and “major Internet search engines”.

The Justice Department says it has obtained, so far, 32 felony convictions for various piracy charges. The trio’s arrest comes as the result of a Business Software Alliance investigation into their operation, which in turn was prompted by a complaint from Adobe.

Last month, a Portland, Oregon-based man was sentenced to 48 months of federal prison time, plus three years’ probation and the forfeiture of more than $220,000 in cash and computers, for running an eBay-based business that specialized in counterfeit software. Reports indicate he used more than 40 fake accounts, plus a flurry of stolen bank accounts, to conceal his identity.



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Counterfeit software just doesn't pay...
By Some1ne on 8/23/2008 1:55:26 AM , Rating: 2
Seriously, at $1.2 million over a span of 28 months, they only brought in ~$43,000 each month, which split 3 ways gives them each about $14,300 in monthly income. While that's hardly shabby, it's not particularly worth risking getting sent to federal "pound-me-in-the-ass" prison for. Especially since there are legitimate jobs that pay close to that when you have the necessary skills to set up and operate a custom e-commerce website, as these 3 individuals obiously do.




RE: Counterfeit software just doesn't pay...
By GaryJohnson on 8/23/2008 3:55:36 AM , Rating: 2
There are legitimate jobs building custom e-commerce sites that pay close to 171k/year?! You have some contact info? Where do I send my resume?


RE: Counterfeit software just doesn't pay...
By Samus on 8/23/08, Rating: -1
RE: Counterfeit software just doesn't pay...
By GaryJohnson on 8/23/2008 8:39:08 AM , Rating: 5
I declare shenanigans on your entire comment.


RE: Counterfeit software just doesn't pay...
By Regs on 8/23/2008 1:42:19 PM , Rating: 2
lol...that comment about 250k a year reminds me of those info commercials that come on at 2 in the morning that offer you a slice of the pyramid scheme.


RE: Counterfeit software just doesn't pay...
By Viditor on 8/24/2008 4:19:04 AM , Rating: 2
http://content.mycareer.com.au/salary-centre/it-te...

In Oz, average salary max on IT subsectors:
Management - $300k
Sales - $300k
Telecom - $300k

That said, Oz is one of the lowest paying modern western countries, so I expect US rates to be almost double that at the high end...


RE: Counterfeit software just doesn't pay...
By GaryJohnson on 8/24/2008 6:22:44 AM , Rating: 2
Those figures are vague, unfounded, and illogical.


RE: Counterfeit software just doesn't pay...
By Viditor on 8/24/2008 4:08:19 PM , Rating: 2
quote:
Those figures are vague, unfounded, and illogical


So we should believe your intuition rather than what's been researched?


By GaryJohnson on 8/24/2008 9:41:25 PM , Rating: 2
Its not intuition, just observation:

The categories you listed are vague: they could contain everything from a best buy sales associate to a CIO. 'Setting up Windows 2003 servers' would be somewhere in between, not at the max end.

Your assumption that max salaries in the US are double what they are in AU is unfounded. This article shows US IT salaries are only 20% higher than AU IT salaries:
http://www.itwire.com/content/view/14955/50/

You illogically don't account for currency differences or the fact that he doesn't work a full salaried week. 1 Australian dollar = 0.8644 U.S. dollars according to Google. And given his stated yearly income and hourly rate, he only works 12 hours a week, 30% of a normal 40 hour work week in the US.


RE: Counterfeit software just doesn't pay...
By Samus on 8/24/2008 5:57:56 AM , Rating: 1
Since nobody believes the function and success of my job, I'll add insult to injury and inform you I have a two-year college degree in electronics and very few certifications.

However, I think I am very good at what I do. The last few years I've been doing this on my own I've turned in 6 figures, and this year I'm on my way to breaking 200k. My statement about making what I do stands. I didn't get it from some infomercial, I built my business from the ground up over a few years, never advertised, and over time word spread. There is so much demand and business's simply want someone responsible and capable.

Cost, historically, hasn't been a big issue when it comes to getting shit done in business. With the coming economy I'm sure that will change but I plan to retire from this in the next 5 years and sell my business so I can start up something else. Nobody wants to do the same thing forever.


By 67STANG on 8/25/2008 3:02:39 AM , Rating: 2
Enjoy finding suckers whilst you can. In California, MCSE's top out at $200/hr. Anyone paying more is retarded. I can pay pimple-faced geek squad kid with 1 month's on the job training $20/hr. to setup a Win2k3 server...


By JustTom on 8/25/2008 10:08:48 PM , Rating: 2
quote:
I work 2 days a week and charge $400 an hour to setup small business windows 2003 servers. I make $250,000 a year. It's pretty easy. Welcome to America, land of opportunity.


quote:
The last few years I've been doing this on my own I've turned in 6 figures, and this year I'm on my way to breaking 200k.


I'd be more likely to believe you if you had a better grasp of what you make. Is it 6 figures, 250K or around 200K? This is a pretty damn big spread.


RE: Counterfeit software just doesn't pay...
By Oobu on 8/24/2008 3:44:48 PM , Rating: 1
-sniff, sniff- I think I smell some BS.


By Samus on 8/25/2008 3:01:31 AM , Rating: 1
heh, that's ok, appearantly a lot of DT readers aren't the work for themselves types and prefer to be bossed around making money for someone else. Not everybody's cut out for it. It's hard work. I guess most people like easy work that pays closer to minimum wage. Responsibility's a bitch!


RE: Counterfeit software just doesn't pay...
By SiN on 8/23/08, Rating: 0
RE: Counterfeit software just doesn't pay...
By Targon on 8/23/2008 6:56:19 AM , Rating: 5
You obviously missed the movie "Office Space". If you have ever worked for a tech company in a corporate environment, it is worth checking out.

Oh, and don't forget the cover letter on your TPS reports...


By ajvitaly on 8/23/2008 3:52:36 PM , Rating: 3
Michael Bolton? You mean that no talent a$$-clown?


By Aloonatic on 8/24/2008 3:03:13 AM , Rating: 2
The first thing that seems to pop into many people's minds is being "pounded in the ass" at the slightest mention of potential jail time.

I think there are a lot of latent feelings being expressed in here.

It's OK people, you are amongst friends and no one really knows your name.

If you have something to tell everyone, let it out. You will feel better and few will judge you.

Those that do are probably just jealous as they are too cowardly to admit anything themselves.

Be free and be fabulous DT readers.


By marvdmartian on 8/25/2008 10:18:25 AM , Rating: 2
Non-violent crime and first time offenders? Chances are they'll end up in medium security, with a good chance at going to "Club FED" minimum security. This is a white collar crime, no reason to put them in with murderers and rapists, ya know?


still ahead
By headbox on 8/23/2008 1:46:54 AM , Rating: 1
The might do some time and pay some fines, but in the end will still come out with a million dollars. Would you sit in jail for $250,000 a year? Many people would.




RE: still ahead
By GaryJohnson on 8/23/2008 7:46:44 AM , Rating: 2
They agreed to give up the proceeds of their criminal activities as part of their guilty pleas.


RE: still ahead
By dever on 8/23/2008 12:30:59 PM , Rating: 3
Do the math, that was about 150K gross, per year per person. Since it's not exactly a corporate job, they didn't have extras like pension benefits, health insurance, etc. etc. I'm sure it was even less after expenses, plus you're dealing with other criminals who are likely to steal from you at any moment.

It sounds like they worked pretty hard (multiple false accounts and such). With that amount of thought and work, they could've had a real job that made almost as much without running the risk of landing in jail and losing the last 2+ years and the next xx number of years of work.


RE: still ahead
By GaryJohnson on 8/23/2008 9:59:40 PM , Rating: 2
Once they had the site set up, all they had to do was process orders. And they didn't have to process as many orders as a legitimate company would to make the same amount of money because they were operating with a near 100% profit margin.


RE: still ahead
By Aloonatic on 8/24/2008 3:11:44 AM , Rating: 2
You still have to handle all that money though.

Try walking into a bank with that much money and see what happens. You may be dashed cunning and use a normal bag, rather than one with swag or a $ sign on it, but the system has a way of spotting money moving around which seems to have appeared by magic.

They will probably have had to have created false identities and false bank accounts. A major pain in the ass and an added risk.

Talking of risks, I'm not really sure how they didn't know that they were going to get caught?


RE: still ahead
By GaryJohnson on 8/24/2008 4:14:11 AM , Rating: 2
E-commerce transactions are generally processed electronically: straight from a customer's credit/debit card account to a seller's bank account, via a payment gateway. Nondescript bag not required.


Bravo
By NullSubroutine on 8/23/2008 4:48:26 AM , Rating: 5
Finally nice to see the law out there getting the real pirates hurting the software industry. Not these grannies and average Joe's being sued up the ying yang.

RIAA/MPAA/Software Industry please take note, these are pirates costing you revenue. These are thieves, not the average Joe that's downloading your 'precious' content.




RE: Bravo
By JonnyDough on 8/23/08, Rating: -1
RE: Bravo
By Aloonatic on 8/24/2008 3:18:45 AM , Rating: 2
joking

With those proven pirates in these jails they will have to cut of the prisons internet connection for everyone as they all share the same address, prison staff included.

Or maybe they will just get one warning letter because of their piracy naughtiness?

/joking

* I'm assuming US jails are as silly as those in the UK where the rights of prisoners often exceed those of hard working law abiding people so they must have satellite/cable TV, internet access, xBoxes and the like else they are being "abused" by the authorities.


RE: Bravo
By kelmon on 8/26/2008 4:14:44 AM , Rating: 2
To a large degree, I agree with you that these are the sorts of people that should be targeted. That said, I also don't see a reason not to prosecute those people who are providing the demand for pirated material. Everyone is guilty in this context and therefore everyone is fair game. Reducing both the supply and the demand will achieve the goal of reducing piracy in general.


Screw Jail...
By feraltoad on 8/23/2008 1:25:59 AM , Rating: 2
Make them work in a library 80 hours a week without pay for 4 years. That sound unfair?




RE: Screw Jail...
By JustTom on 8/23/2008 9:50:04 AM , Rating: 2
Yes, it does.


RE: Screw Jail...
By onwisconsin on 8/23/2008 10:40:19 AM , Rating: 2
Good idea...we pay $20k a year to incarcerate them in jail, so why not have them give back? :D


By Frazzle on 8/24/2008 10:53:29 PM , Rating: 3
...people wouldn't have to pirate it.

My comment will probably be downrated by those who don't get the sarcasm or make profuse, pitiful excuses for pirating software, but I just don't care.




Department of Redundancy Department
By DKWinsor on 8/23/08, Rating: -1
By mindless1 on 8/25/2008 9:25:02 AM , Rating: 1
What an ignorant thing to think. With prison time for every copy they'll never get out, never be able to pay anything more than their seized assets can offset, and we'll all be funding this through our taxes just so you can have your short-sighted hate trip.

Yes they should sit in a cell for awhile, but extreme punishment of these types of non-violent offenders just causes others to be released from prison early, and still an ever-growing prison population.


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