Microsoft discovered that the defendants were illegally using its software products, including Microsoft Windows, Microsoft Office, and Windows Server. Upon investigation, it was found that the defendants had 130 computer systems, most of which had Microsoft’s software installed on them, but the licenses held by the defendants did not match their usage. This indicated that the defendants were engaging in the unlicensed use of Microsoft’s software products. Despite repeated requests from Microsoft, the defendant refused to conduct a Software Management Assessment Review Program to evaluate the extent of piracy of Microsoft’s software by the defendants.

The court granted an ad-interim ex-parte order of injunction in favour of Microsoft and against the defendants, restraining the defendants from infringing Microsoft’s software programs. The parties were then referred to the Delhi High Court Mediation and Conciliation Centre to try to resolve their disputes, but they were unable to come to an amicable settlement.

The court found that Microsoft was the owner of the copyright in its computer programs and supplementary user instructions and manuals and was entitled to the exclusive rights flowing from such ownership as set out in the Copyright Act, 1957. The court also found that the defendants had failed to provide proof of genuine use of Microsoft’s software programs for all the installations that were in use at their organizations. Therefore, the court held that the defendants had infringed upon Microsoft’s copyright and were liable for damages. The court ordered the defendants to pay damages of Rs.20,00,000 (approximately US$ 25,000) to Microsoft and directed the defendants to immediately cease and desist from infringing Microsoft’s copyright.

#CopyrightInfringement #SoftwarePiracy #Damages