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MS, PC room owners in licensing dispute
Software giant claims at least 700 shops are using illegal copies from overseas
By Korea HeraldPublished : Dec. 18, 2012 - 18:53
Conflict between Microsoft Korea and the owners of PC rooms nationwide continued to escalate on Tuesday as both sides argued over the illegal use of the latest Windows 8 software.
Microsoft claims that at least 700 PC room operators, which are also known as “PC bang” in Korea, are using its recently released operating system without paying the necessary fees.
However, an association of PC room owners called the Korea Internet Cultural Contents Service Association rejected the charge claiming that Microsoft was attempting to use its monopolistic position to make them purchase the “overly expensive” Windows 8 software.
The dispute is a major issue for the country’s PC room operators since they will need to pay heavy fines, depending on the number of PCs they own.
The nation’s PC rooms have been struggling with low pricing and the emerging popularity of wireless gadgets like smartphones and tablet PCs.
In order to get the appropriate license, a PC room owner with 50 PCs would need at least 14 million won just for the Microsoft software licensing costs if they purchased each software pack for 280,000 won.
The market price of Windows 8 is currently 220,000 won to 280,000 won.
The U.S.-based software giant has delivered an official document to those PC rooms which were identified as using an illegal version of its Windows platform.
The new Windows 8 is Microsoft’s ambitious project dubbed a “no-compromise operating system,” which enables easy searching and sharing, by the company’s chief executive Steve Ballmer.
“We sent the official statement to the PC room owners involved with the matter in November and December because it has been identified that at least 700 stores are under illegal licensing, using an illegally copied license from overseas,” said a Microsoft Korea official.
In response, the group of PC room owners went ahead with staging a rally of about 1,000 members at Seoul Station Plaza on Monday. They shaved their heads to publicize their determination to fight what they call “Microsoft’s high-pressure selling method.”
“The price of Microsoft’s latest Windows 8 operating system is way too expensive and it makes no sense for the company to say it will be deemed illegal if we don’t buy its latest software,” said Chung Joon-ho, an executive of the association.
By Cho Ji-hyun (sharon@heraldcorp.com)
Microsoft claims that at least 700 PC room operators, which are also known as “PC bang” in Korea, are using its recently released operating system without paying the necessary fees.
However, an association of PC room owners called the Korea Internet Cultural Contents Service Association rejected the charge claiming that Microsoft was attempting to use its monopolistic position to make them purchase the “overly expensive” Windows 8 software.
The dispute is a major issue for the country’s PC room operators since they will need to pay heavy fines, depending on the number of PCs they own.
The nation’s PC rooms have been struggling with low pricing and the emerging popularity of wireless gadgets like smartphones and tablet PCs.
In order to get the appropriate license, a PC room owner with 50 PCs would need at least 14 million won just for the Microsoft software licensing costs if they purchased each software pack for 280,000 won.
The market price of Windows 8 is currently 220,000 won to 280,000 won.
The U.S.-based software giant has delivered an official document to those PC rooms which were identified as using an illegal version of its Windows platform.
The new Windows 8 is Microsoft’s ambitious project dubbed a “no-compromise operating system,” which enables easy searching and sharing, by the company’s chief executive Steve Ballmer.
“We sent the official statement to the PC room owners involved with the matter in November and December because it has been identified that at least 700 stores are under illegal licensing, using an illegally copied license from overseas,” said a Microsoft Korea official.
In response, the group of PC room owners went ahead with staging a rally of about 1,000 members at Seoul Station Plaza on Monday. They shaved their heads to publicize their determination to fight what they call “Microsoft’s high-pressure selling method.”
“The price of Microsoft’s latest Windows 8 operating system is way too expensive and it makes no sense for the company to say it will be deemed illegal if we don’t buy its latest software,” said Chung Joon-ho, an executive of the association.
By Cho Ji-hyun (sharon@heraldcorp.com)
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Articles by Korea Herald
