2. Anti-Piracy
Angela Morrow Anti-Piracy Marketing Manager Allen Nieman Technical Product Manager Microsoft Corporation

3. How does piracy hurt your customer?
Higher total cost of ownership
Lack of technical support
Software incompatibilities
Poor quality software
Damage to reputation
Exposure to liability risk
How does piracy hurt your customer?
Piracy creates a higher total cost of ownership due to:
Lack of technical support
Software incompatibilities
Poor quality software
higher chance of viruses
incomplete code
lower quality CDs, from poor manufacturing process
Damage to reputation
Exposure to liability risk

4. What is Microsoft Doing?
Enterprise
Small/Medium Business
Improved Technology
Enterprise
Direct Contact
ACE Reviews
LPA Program
Software Asset Management Guide
Small/Medium Business
Supporting BSA Truce
Vertical Market Campaign
Improved Technology
Product Activation

5. Enterprise Customers

6. Direct Contact Engage the customer Possible AP involvement
Face to face
/letter/calls
Possible AP involvement
Self Audit/License Analysis

7. ACE Review Program When internal discussions/reviews aren’t working
Friendly “audits”
Independent auditors
Full review/Mini-review
ACE = Awareness, Compliance, Education
5 Day
-Test PC Sample
-Report estimated Non Compliance
-Educate on SAM
-IT/Purchasing/Execs.

8. Small/Medium Customers

9. BSA Truce FY01 Results
Truce market growth 200% greater than control markets
Touched 1.8 million business decision makers
Drove $39 million in incremental revenue in 1st 3 quarters

10. BSA Truce – FY02 Q1 Campaign Timing: July 1-31, 2001
Markets: New York, Portland, Atlanta, Kansas City, and Oklahoma City (~800k)
Q2 Campaign
Timing: October 1-31, 2001
Markets: Cities TBD (~800k)

11. BSA Truce BSA Activities Radio, 2 waves of Direct Mail, PR
BSA End User Settlements
Microsoft Support
Direct Mail, Opt-in Audio and Video , Banner Advertising
Key Influencer Engagement: BBB, SBA, Mayoral Proclamations
Channel Participation

12. Channel Readiness Kit Available mid July Resources
Marketing Templates to Customize
BSA Truce Letter
SAM Guide CD
Product Activation Instructions
CD w/templates
And more…
So, what can you offer?
Many resellers and solution providers are beginning to provide SAM Consulting Services for their customers.
Such as how to analyze and draft SAM Policies, License Reconciliation Services and of course Educating your customers about software and licensing.
Internal auditing services are another benefit to the customer as it is complicated and costly to perform an internal audit and even more costly if a third party such as the BSA, comes in to audit and follows up with potential penalties.
And of course following up with a licensing proposal that both, gets the customer compliant and brings them up to date on technology.

13. BSA Truce - Channel Channel Engagement Direct Mail Template
Templates
Talking Points
PowerPoint Presentation
Suggestions for Tools/Resources/Support?

14. Vertical Campaign Q1 Accounting Hi-Tech
Timing: Q4 Microsoft DM Mailed mid-June
Target: National ~250k
Hi-Tech
Timing: Q4 Microsoft DM to Mail
mid-June
Target: National ~600k

15. Software Asset Management Guide
Write SAM policies and procedures for your customer regarding acquisition and storage of software
Communicate the policy clearly to your customer’s employees who purchase, manage, or use software
Better yet, help your VARs be the software asset manager for their customers
microsoft.com/piracy/samguide/
Microsoft offers various tools to help YOU help your customers.
These tools will help your customers write SAM policies and procedures regarding acquisition and storage of software,
And communicate the policies clearly to employees who purchase, manage, and use the software.
Better yet, you can be the software asset manager for your customers. Keep records of their purchases, develop policies for software use, purchasing, and license management. And, even train employees on these policies.
This website, contains various tools that will help you accomplish the above tasks.

16. Microsoft Software Inventory Analyzer
Available NOW!
microsoft.com/piracy/msia

17. Microsoft Resources microsoft.com/piracy/ Piracy Basics MSIA Tool
SAM guide
How to Tell
Product Activation
News
microsoft.com/partner/licensing/antipiracy
These are several Microsoft website where you can find more information about piracy.
The main Microsoft Piracy site offers you information on the basics of piracy and a gateway to other resources.
The samguide site (as stated earlier) contains several tools that help assess a customers’ risk of being non-compliant, tools on how to conduct a software inventory, extensive licensing information, and policy development.
If you or your customers are wondering if their software is genuine, this site offers descriptions and pictures of what genuine software should look like. And what to look for to make sure the software is properly licensed.
If your wondering what Microsoft is doing to fight piracy, visit
This site contains several press releases on piracy cases that Microsoft if fighting as well as other organizations such as the BSA.
And last, the
site contains tools to help you get involved in the various Microsoft Anti-Piracy Marketing campaigns.

18. Report Piracy (800) RU LEGIT or (800) 785-3448 piracy@microsoft.com
Business Desk
Write “Business Desk” in the subject line
Bid must exceed $20K
The Microsoft's anti-piracy hotline currently receives approximately 7,500 contacts in North America each month.
Microsoft investigates every report of piracy it receives; however, the ability to follow-up on leads varies with the quality and completeness of the information provided. The more information you can provide, the better Microsoft will be able to address the report of piracy.
If requested, Microsoft will keep your identity confidential when investigating reports of piracy but the investigators may need to contact you to obtain additional details about the report. Microsoft also promises never to use your information for any other purposes other than to follow-up on its investigations of software piracy.
The Business Desk is designed specifically for resellers. If you feel you’ve been substantially under bid and suspect that your competitor may be distributing pirated software, and write “Business Desk” in the subject line. Include as much information about your competitor and the customer as possible.
For other manufacturers’ software products contact the BSA at (888) NO PIRACY.

19. Anti-Piracy and Licensing Technology
Allen Nieman
Technical Product Manager
Licensing Technologies

20. Agenda Licensing technology overview
Microsoft Product Activation for Windows XP
Demo
Customer segment details

21. Mission To reduce intellectual property abuses
Outright Piracy
Corporate over-installation and under-purchase
By aggressively enforcing licensing terms
Software-based technologies
Separation of media from license

22. Key points Piracy is an industry-wide problem
Casual copying is significant
Activation targets casual copying
Also targets cloning
Product Activation is not new
Pilot in 7 countries with Office 2000
WW with Office XP and Visio 2002
Activation strikes a balance
Key themes
Piracy is an industry problem
Product activation is not “new”
Striking a balance between IPR and Fair use
Customer acceptance is key
End user privacy is protected
End user experience – activation is easy
As much effort to not do it as it is to do it
Goal is to reduce casual copying – not stop all forms of piracy
Licenses acquired through VL do not require activation

23. Key points Microsoft absolutely, 100% respects the end user’s privacy
Significant improvement over previous companies’ AP Efforts
No dongles, diskettes required
Anonymous
Natural part of product setup
Quick & Easy via Internet – 4 clicks!
Little impact on volume licensing customers
VL licenses do not require activation
VLKs are now required though
Key themes
Piracy is an industry problem
Product activation is not “new”
Striking a balance between IPR and Fair use
Customer acceptance is key
End user privacy is protected
End user experience – activation is easy
As much effort to not do it as it is to do it
Goal is to reduce casual copying – not stop all forms of piracy
Licenses acquired through VL do not require activation

24. Product Activation for Windows
Cross-Microsoft technology
Can activate during or after setup
Can skip activation for 30 days
Reminder at each logon after setup
Reminder periodically when logged in
If not activated after 30 days
Nagging reminder every 15 minutes
If logged out, must activate after logging back in
Activation is completely anonymous
Retail product allows activation on one PC
Unlimited reinstalls on the same PC
Implementations across products vary slightly
Goal is to reduce piracy while making the user experience as simple and straightforward, and neutral as possible. A response of “that’s it?” is what we’re looking for here.
Product activation strikes a balance between Microsoft’s desire to protect its IP and an acceptable user scenario. We believe we have achieved that balance with our implementation.
Office 2000 pilot in seven countries (Australia, Brazil, Canada, Hong Kong, New Zealand, PRC, USA). Over 7 million activations to date in the pilot countries.
Office XP an Office XP family products (visio, project, FP 2002) will require activation as will Windows XP Home Edition and Professional Edition.
Due to their unique deployment requirements, customers acquiring their licenses through one of Microsoft’s volume licensing programs will not be required to activate their licenses.

25. How Does PA Work for End Users?
User/Client Device
Clearinghouse Unlock
Install, User enters use product key:
GKW9D-8G6XY-6WC3Q-QHV2J-G8DKL
License Certificate and Product ID
(ex ) generated
Processes Installation ID
Verifies business rules
User prompted to activate,
30 day grace period, then required to activate
User Selects Method:
Internet
Telephone
Installation ID (PID + HW Hash) created and sent (50 digits):
Returns Confirmation
(42 digits):
This slide builds through the discussion to accent the process.
There are two important sides to the equation; the user with the client device and the Microsoft Clearinghouse
The customer first enters the product key during product installation.
During activation or use, the product will ask the customer to activate. For applications like Office, the customer has up to the 51st launch to use the product before activation will be required before further use. For Windows, the customer is provided a 30 day grace period to activate.
The customer selects a method to activate from; either Internet or Telephone
The Installation ID plus any registration information is sent to the Microsoft License Clearinghouse and processed. A check is done against the product ID to ensure that it hasn’t been used against more pieces of hardware than defined by the EULA>
If all is good, confirmation is sent back to the client device and the user is set to use the product indefinitely.
Confirmation Received
(42 digits):
Content activated, License Certificate updated

26. Demo – Windows XP Activation
The hardware ID components are strictly confidential.

27. User experience
Ease of use and clarity of purpose are required to obtain user acceptance
Ease of use
Straightforward and easily navigable UI
Short and simple activation process
Clarity of purpose
Required information clearly identified
EULA and box notification
In any DRM, user acceptance is key

28. Protecting user privacy
Protecting user privacy is a design goal
Activation is NOT registration
Activation:
Required for continued use of the product
Completely anonymous
No personally identifiable information required
Registration:
NOT required for continued product use
For receiving customized benefits
By definition requires personal information

29. Channel details Retail FPP Activation required
Install on one PC allowed
EULA unlikely to change from Windows 2000 or ME in this area
Cannot be used for volume license bulk deployment
Packaging Changes
Box notification
EULA

30. Volume Licensing Customers
Can no longer use Retail FPP CDs
Volume License Product Keys (VLKs) will not work with Retail FPP CDs
Multiple Installs cannot be completed
Select CDs or WWF CDs must be used
Select CDs not “pre-pid’d”
VLK is required and can be automated
Volume licenses do NOT require activation
I will break this out Open from Select and EA for purposes of the DISTI deck.

31. Open License customers
New purchasers obtain VLK from eOpen license confirmation
Existing Open license customers with active Windows Upgrade Advantage will be sent letters
Letters to be sent around RTM
Will contain instructions on how to get VLK for use with WWF CDs

32. Select, EA, Campus and School Agreements
New customers get VLK on their acceptance letter
Existing customers get VLK by calling Microsoft
Letter will be sent notifying customers of the VLK requirement