Siliguri partners caught in piracy net

KOLKATA, INDIA: 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 One case against a channel partner was withdrawn after the partner agreed to Microsoft’s terms regarding sales targets.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.”