ROANOKE TIMES 
                      Copyright (c) 1997, Roanoke Times

DATE: Thursday, January 30, 1997             TAG: 9701300020
SECTION: BUSINESS                 PAGE: B-6  EDITION: METRO 
DATELINE: SAN FRANCISCO
SOURCE: Associated Press


FBI TARGETS COMPUTER PIRATES IN INVESTIGATION

FBI agents confiscated computers and searched homes and businesses in eight cities in a crackdown on software pirates who have cost game and program makers millions of dollars.

The FBI, which began operation ``Cyber Strike'' this week, also interviewed potential suspects. Agents did not immediately make any arrests.

The FBI listed nine companies as software piracy victims, including Microsoft Corp., Sony Computer Entertainment and game makers Sega of America Inc. and Nintendo of America.

Nintendo has lost ``millions and millions and millions upon millions'' to pirates, especially from its Donkey Kong and Mario series games, said company spokesman Perrin Kaplan.

``Whatever's popular - that's what they want,'' Kaplan said.

Sega has had as many as 12 people working with the FBI, said Chris Berg, director of security and safety for the company.

The FBI said it was seizing computer hardware, documents and records in Atlanta; Columbus, Ohio; Miami; Oklahoma City; Des Moines, Iowa; Pittsburgh; and San Leandro and Cedar Ridge in California.

Software piracy cost the industry an estimated $13.1 billion worldwide in 1995, according to a survey by the Business Software Alliance and Software Publishers Association. In the United States, the losses were $2.9 billion.

``It is absolutely a daunting challenge,'' said Diane Smiroldo, a spokeswoman for the Washington-based Business Software Alliance.

Despite safeguards against copying, pirates obtain legitimate software and manage to copy it. They make it available to other computer users through Internet web sites or computer bulletin boards.

Pirates give it away, trade for other software, or sell it - asking for a credit card number or payment in advance. Often, it is sold for substantially less than market value.

Kaplan called the software piracy business ``very healthy.''

``But we are making dents,'' she said, pointing to the FBI's latest efforts.


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