THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, January 5, 1996 TAG: 9601050444
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY JAMES SCHULTZ, STAFF WRITER
DATELINE: NORFOLK LENGTH: Medium: 69 lines
On Tuesday, U.S. District Judge Raymond A. Jackson could have sent Hampton businessman Roger Brehm to prison for five years and made him pay a fine of up to $250,000 for software piracy.
But Jackson believes that five years' probation, 300 hours of community service and thousands of dollars in restitution will send a vivid enough message to other would-be offenders.
``There's collateral damage you've done to your family and yourself,'' Jackson scolded Brehm. ``The court hopes it will never see you again. You understand that?''
To which the stocky, bearded Brehm replied: ``Yes, your honor.''
In late September, Brehm pleaded guilty to felony copyright infringement. According to court papers, Brehm made illegal copies of software created by Novell Corp. and Microsoft, and then sold them to three Peninsula businesses. The company Brehm owns, PC Doctor, pocketed nearly $13,500 as a result of the illegal transactions.
While admitting partial responsibility, Brehm, in a post-sentence telephone interview, said that a disgruntled employee who wanted to organize a rival computer services firm improperly installed the software. Then, Brehm claimed, the worker alerted the authorities.
``I knew some of this was going on,'' Brehm conceded. ``But sometimes you get blamed for something you had nothing to do with. Beyond that, I can't say much more because of the plea bargain.''
Those familiar with the case applauded the judgment.
``There aren't too many criminal convictions for software copyright infringement. We welcome this conviction and this sentence,'' said Bob Kruger, director of the Business Software Alliance's anti-piracy efforts in North America. ``Mr. Brehm has himself a felony conviction. He has to pay restitution. All of it adds up to a pretty strong message.''
The seven-member alliance, which includes Microsoft and Novell, hopes that the outcome of the Brehm case will prevent future thievery. According to 1994 figures compiled by the group, losses from software piracy amounted to $15.2 billion worldwide and $2.9 billion in the United States. That's up from $12.5 billion and $2.2 billion, respectively, in 1993.
``Those are huge losses,'' said Jim Lowe, corporate attorney for Microsoft Corp. in Redmond, Wash. ``We're talking about Microsoft losing tens of millions each year. It's a major revenue hit not just to us but to the entire industry.''
Most cases are handled quietly. Once tipped off to illegal software installation, manufacturers contact scofflaws directly, in an attempt to force them to pay for and install individual programs. Most cases, though, don't end up in criminal court, as did Brehm's.
``If someone is incorrigible, throwing away the key is fine with me,'' Lowe said. ``But we do want people to operate legally. We'd rather see them reform if that's a possibility.''
Reform he has, Brehm asserts. PC Doctor is still in business and will remain so, he says.
Brehm already has paid Novell more than $11,000 and will pay Microsoft nearly $2,400 in the coming year. And he vows to personally guarantee that software leaving his office is properly trademarked and registered. ILLUSTRATION: Graphic
LOSSES FROM SOFTWARE PIRACY
SOURCE: Business Software Alliance
[For complete graphic, please see microfilm]
by CNB