Siliguri partners caught in piracy net

Dealers across Siliguri are accusing Microsoft of using unethical marketing
techniques to sell its products and threating dealers across the region with
dire consequences.

In a similar situation in Jamshedpur just two months back, Microsoft had
allegedly raided the offices of channel partners. Now the software major has
taken its anti-piracy drive to Siliguri where it is allegedly forcing partners
to sell unrealistic targets. Dealers say that if they were refusing to meet the
specified targets Microsoft was threatening them with legal action.

“For the past two months, Microsoft has started conducting raids on our
premises and if caught with pirated OS, the company is forcing the dealer to
sell impossible targets. Already, Siliguri is a small market and sale of
original software and OS is very low. It has become very tough for us to conduct
business here with pressure mounting from Microsoft,” said Siliguri-based Manish
Agarwal of Placewell Retail.

In its anti-piracy drive and to popularize the use of original softwares,
Microsoft has appointed Logic Fusion and Universal Computer as its local
sub-distributors. According to the local dealers, Microsoft is pushing them to
buy products from these two distributors at a price higher than that in Kolkata.
The major has already filed a legal suit amounting to Rs 21 lakh against Tejpal
and Sons after catching them using pirated software. One case against a channel
partner was withdrawn after the partner agreed to Microsoft's terms regarding
sales targets.

Throwing light on the situation in Siliguri, Debjyoti Gupta, CEO of Universal
Computer said, “Microsoft has conducted many raids and a lot of channel partners
were caught selling pirated software. Several times, the company let off the
accused after they agreed to set outrageous sales targets.”

The software problem for the local channel goes beyond the raids and sales
targets. Dealers are also complaining about a software price difference in the
Kolkata and Siliguri market. Purchasing software from Kolkata would mean a price
difference of Rs 700 for the local channel. Microsoft is apparently forcing
partners in Siliguri to buy from local sub-distributors and is annulling the
purchases made from sub-distributors in Kolkata. Also, sources suggested that
the rift between the two rival associations in the region-IT Forum of North
Bengal and IT Dealers Association is further aggravating the situation as
dealers are not able to unite and raise their voice.

Refuting the charges that dealers in Siliguri have made on Microsoft, Vipul
Sant, Director-Original Software Initiative, Microsoft said, “We have had good
engagements with the local channel associations in Siliguri on anti-piracy and
therefore, we do not believe such allegations are true. Our primary focus is on
preventing our software from being pirated so that the honest reseller community
remains protected and that the respect for our intellectual property is
maintained. We have taken civil actions against the erring channel partners and
are happy with the support we have received from the channel association in
Siliguri and are confident that the association will not support the erring
channel partners.”

Commenting on Microsoft's anti-piracy drive, Sant said, “From an overall
perspective, Microsoft has a focused approach on education and enablement to
help consumers and channel partners understand the business, economic and moral
benefits of original software. We have undertaken various long-term, sustained
initiatives for channels to bring about a change in perception, which include
regular updates on products, monthly newsletters, a partner resource center that
contains all the collateral on original software that our partners can use as
well as an e-commerce platform where our partners can set up their own e-store
with absolutely no investment and expand their geographic reach. Additionally,
we also work actively with the local IT association to educate them on the value
that original software brings to their business.”