Microsoft filed a lawsuit against a do-it-yourself PC vendor Beijing Strong Well Future Technology Development in Zhongguancun, accusing it of using pirated Microsoft software.

It is reported that Microsoft is demanding 500,000 yuan (c.a. US $73,500) in compensation.

The case was recently heard during a court session at the First Intermediate People's Court in Beijing.

Microsoft said that it commissioned an intellectual property agency, accompanied by notary office personnel, to buy computers from Strong Well on 16 October. The personnel sent by Microsoft purchased four computers from the vendor's four outlets. According to Microsoft, the personnel monitored by the notary office staff members bought another eight computers on 27 October and 6 November. Microsoft aserts that all Windows XP and Office 2003 software programs installed on the 12 computers were counterfeit.

Microsoft requested that the court order Strong Well to immediately stop the infringement of its rights and compensate the US-based company 500,000 yuan for its economic losses.

Strong Well's attorney accused Microsoft of engaging in coercive purchases. He said Strong Well only sells computer accessories, not whole computers, and prohibits employees from pre-installing software for customers. In addition, the attorney said the investigators hired by Microsoft threatened the company's salesman by saying that they would return the products if the software was not pre-installed. To close the deal and earn a sales commission, the salesman purchased pirated software on his own and installed it, the attorney said, describing it as the action of one salesman. The case is still pending.