2Anti-PiracyAngela Morrow Anti-Piracy Marketing Manager Allen Nieman Technical Product Manager Microsoft Corporation
3How does piracy hurt your customer? Higher total cost of ownershipLack of technical supportSoftware incompatibilitiesPoor quality softwareDamage to reputationExposure to liability riskHow does piracy hurt your customer?Piracy creates a higher total cost of ownership due to:Lack of technical supportSoftware incompatibilitiesPoor quality softwarehigher chance of virusesincomplete codelower quality CDs, from poor manufacturing processDamage to reputationExposure to liability risk
4What is Microsoft Doing? EnterpriseSmall/Medium BusinessImproved TechnologyEnterpriseDirect ContactACE ReviewsLPA ProgramSoftware Asset Management GuideSmall/Medium BusinessSupporting BSA TruceVertical Market CampaignImproved TechnologyProduct Activation
6Direct Contact Engage the customer Possible AP involvement Face to face/letter/callsPossible AP involvementSelf Audit/License Analysis
7ACE Review Program When internal discussions/reviews aren’t working Friendly “audits”Independent auditorsFull review/Mini-reviewACE = Awareness, Compliance, Education5 Day-Test PC Sample-Report estimated Non Compliance-Educate on SAM-IT/Purchasing/Execs.
9BSA Truce FY01 ResultsTruce market growth 200% greater than control marketsTouched 1.8 million business decision makersDrove $39 million in incremental revenue in 1st 3 quarters
10BSA Truce – FY02 Q1 Campaign Timing: July 1-31, 2001 Markets: New York, Portland, Atlanta, Kansas City, and Oklahoma City (~800k)Q2 CampaignTiming: October 1-31, 2001Markets: Cities TBD (~800k)
11BSA Truce BSA Activities Radio, 2 waves of Direct Mail, PR BSA End User SettlementsMicrosoft SupportDirect Mail, Opt-in Audio and Video , Banner AdvertisingKey Influencer Engagement: BBB, SBA, Mayoral ProclamationsChannel Participation
12Channel Readiness Kit Available mid July Resources Marketing Templates to CustomizeBSA Truce LetterSAM Guide CDProduct Activation InstructionsCD w/templatesAnd 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.
13BSA Truce - Channel Channel Engagement Direct Mail Template TemplatesTalking PointsPowerPoint PresentationSuggestions for Tools/Resources/Support?
14Vertical Campaign Q1 Accounting Hi-Tech Timing: Q4 Microsoft DM Mailed mid-JuneTarget: National ~250kHi-TechTiming: Q4 Microsoft DM to Mailmid-JuneTarget: National ~600k
15Software Asset Management Guide Write SAM policies and procedures for your customer regarding acquisition and storage of softwareCommunicate the policy clearly to your customer’s employees who purchase, manage, or use softwareBetter yet, help your VARs be the software asset manager for their customersmicrosoft.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.
16Microsoft Software Inventory Analyzer Available NOW!microsoft.com/piracy/msia
17Microsoft Resources microsoft.com/piracy/ Piracy Basics MSIA Tool SAM guideHow to TellProduct ActivationNewsmicrosoft.com/partner/licensing/antipiracyThese 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, visitThis site contains several press releases on piracy cases that Microsoft if fighting as well as other organizations such as the BSA.And last, thesite contains tools to help you get involved in the various Microsoft Anti-Piracy Marketing campaigns.
18Report Piracy (800) RU LEGIT or (800) 785-3448 email@example.com Business DeskWrite “Business Desk” in the subject lineBid must exceed $20KThe 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.
19Anti-Piracy and Licensing Technology Allen NiemanTechnical Product ManagerLicensing Technologies
20Agenda Licensing technology overview Microsoft Product Activation for Windows XPDemoCustomer segment details
21Mission To reduce intellectual property abuses Outright PiracyCorporate over-installation and under-purchaseBy aggressively enforcing licensing termsSoftware-based technologiesSeparation of media from license
22Key points Piracy is an industry-wide problem Casual copying is significantActivation targets casual copyingAlso targets cloningProduct Activation is not newPilot in 7 countries with Office 2000WW with Office XP and Visio 2002Activation strikes a balanceKey themesPiracy is an industry problemProduct activation is not “new”Striking a balance between IPR and Fair useCustomer acceptance is keyEnd user privacy is protectedEnd user experience – activation is easyAs much effort to not do it as it is to do itGoal is to reduce casual copying – not stop all forms of piracyLicenses acquired through VL do not require activation
23Key points Microsoft absolutely, 100% respects the end user’s privacy Significant improvement over previous companies’ AP EffortsNo dongles, diskettes requiredAnonymousNatural part of product setupQuick & Easy via Internet – 4 clicks!Little impact on volume licensing customersVL licenses do not require activationVLKs are now required thoughKey themesPiracy is an industry problemProduct activation is not “new”Striking a balance between IPR and Fair useCustomer acceptance is keyEnd user privacy is protectedEnd user experience – activation is easyAs much effort to not do it as it is to do itGoal is to reduce casual copying – not stop all forms of piracyLicenses acquired through VL do not require activation
24Product Activation for Windows Cross-Microsoft technologyCan activate during or after setupCan skip activation for 30 daysReminder at each logon after setupReminder periodically when logged inIf not activated after 30 daysNagging reminder every 15 minutesIf logged out, must activate after logging back inActivation is completely anonymousRetail product allows activation on one PCUnlimited reinstalls on the same PCImplementations across products vary slightlyGoal 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.
25How Does PA Work for End Users? User/Client DeviceClearinghouse UnlockInstall, User enters use product key:GKW9D-8G6XY-6WC3Q-QHV2J-G8DKLLicense Certificate and Product ID(ex ) generatedProcesses Installation IDVerifies business rulesUser prompted to activate,30 day grace period, then required to activateUser Selects Method:InternetTelephoneInstallation 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 ClearinghouseThe 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 TelephoneThe 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
26Demo – Windows XP Activation The hardware ID components are strictly confidential.
27User experienceEase of use and clarity of purpose are required to obtain user acceptanceEase of useStraightforward and easily navigable UIShort and simple activation processClarity of purposeRequired information clearly identifiedEULA and box notificationIn any DRM, user acceptance is key
28Protecting user privacy Protecting user privacy is a design goalActivation is NOT registrationActivation:Required for continued use of the productCompletely anonymousNo personally identifiable information requiredRegistration:NOT required for continued product useFor receiving customized benefitsBy definition requires personal information
29Channel details Retail FPP Activation required Install on one PC allowedEULA unlikely to change from Windows 2000 or ME in this areaCannot be used for volume license bulk deploymentPackaging ChangesBox notificationEULA
30Volume Licensing Customers Can no longer use Retail FPP CDsVolume License Product Keys (VLKs) will not work with Retail FPP CDsMultiple Installs cannot be completedSelect CDs or WWF CDs must be usedSelect CDs not “pre-pid’d”VLK is required and can be automatedVolume licenses do NOT require activationI will break this out Open from Select and EA for purposes of the DISTI deck.
31Open License customers New purchasers obtain VLK from eOpen license confirmationExisting Open license customers with active Windows Upgrade Advantage will be sent lettersLetters to be sent around RTMWill contain instructions on how to get VLK for use with WWF CDs
32Select, EA, Campus and School Agreements New customers get VLK on their acceptance letterExisting customers get VLK by calling MicrosoftLetter will be sent notifying customers of the VLK requirement