An e-waste recycler from California has been jailed for 15 months and handed a $50,000 fine after being found guilty of burning tens of thousands of Windows restore discs.
Eric Lundgren is now facing prison after a federal appeals court in Miami upheld a verdict that he infringed on $700,000 worth of Microsoft products,
Lundgren created 28,000 Windows XP and 7 restore discs, which he had planned to sell to PC refurbishers for 25 cents each.
He claimed he burned the discs to extend the lives of used computers and had not intended to gain financially from his activities, noting that the software is available for Microsoft licence holders to download for free.
An appeals court judge has upheld an original ruling that Lundgren had in fact infringed Microsoft’s products, and that the discs he created had a value of $25 each, despite the fact the software they contained was available for free online.
The 33-year-old intended to sell the discs to computer refurbishing businesses, allowing them to pass them on to customers.
This would have provided computer users with an opportunity to repair corrupted versions of Windows, thereby preventing the creation of e-waste by stopping them from throwing their inoperable devices away.
Lundgren was charged with conspiracy to traffic in counterfeit goods and criminal copyright infringement after US Customs officers seized some of his discs in 2012.
Microsoft claimed the discs effectively contained counterfeit versions of its operating systems, which it said had the potential to damage sales.
Prosecutors had originally argued that the discs were worth $299 each, claiming that Lundgren had robbed Microsoft of $8.3 million of revenue.
That figure was later revised down to $25 each, based on what Microsoft charges refurbishers for similar discs.
Speaking with the Washington Post, Lundgren said: “I am going to prison, and I’ve accepted it.
“What I’m not okay with is people not understanding why I’m going to prison.
“Hopefully my story can shine some light on the e-waste epidemic we have in the United States, how wasteful we are. At what point do people stand up and say something? I didn’t say something, I just did it.”
In a statement, the software giant said: “Microsoft actively supports efforts to address e-waste and has worked with responsible e-recyclers to recycle more than 11 million kilograms of e-waste since 2006.
“Unlike most e-recyclers, Mr Lundgren sought out counterfeit software which he disguised as legitimate and sold to other refurbishers.
“This counterfeit software exposes people who purchase recycled PCs to malware and other forms of cybercrime, which puts their security at risk and ultimately hurts the market for recycled products.”
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