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Technology Stocks : How high will Microsoft fly?
MSFT 450.57-0.9%10:12 AM EST

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To: Timetobuy who wrote (62490)11/1/2001 5:31:00 PM
From: FR1  Read Replies (1) of 74651
 
Interesting view. Time will tell. Oh yeah, there is one more area I forgot to mention.

Counterfeit copies.

I remember a year or two ago when Microsoft caught a boat coming out of Taiwan (originated in mainland China) with containers full of counterfeit Win9x boxes - right down to the counterfeit holograms. I can't remember the exact number but it was enough to really shock me. All they had to do was figure out how to make the holograms, come up with a valid key, and they were done.

All those units would have been sold to good buying customers but microsoft would never see the money. I wonder how many got away compared to the ones they caught.

That's not going to be true any more.

Incidentally this is nothing new. It happens all the time in publishing. Mass paper distributors with criminal intent see a book selling real well and they print up a X thousand copies themselves. That's part of the reason why you see the die cut and blind embossed hologram stickered covers.

A guy in security once told me about this. The idea is to constantly raise the cost on counterfeit so all the small guys give up. Microsoft just raised the bar.

Incidentally, if your analysis is correct then Microsoft just made a real blunder spending all that money.

Do you really think Microsoft did not do their research on this one and simply added a tremendous amount of cost and bad press with no major revenue benefit?
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