After purchasing 12 computers installed with pirated Microsoft software, Microsoft lodged an appeal against a DIY PC vendor in Zhongguancun, Beijing Strong Well Future Technology Development, and demanded 500,000 yuan compensation. 

The case was heard during a court session at Beijing First Intermediate People's Court on June 16. 

Microsoft claimed that on October 16 last year, it commissioned an intellectual property agency, accompanied by notary office personnel, to buy computers from Strong Well in order to crack down on counterfeit software. The personnel sent by Microsoft purchased four computers from the vendor's four outlets in the Hilon Building and the Top Electronics City. On October 27 and November 6, monitored by the notary office, the personnel bought another eight computers.

Microsoft's investigation concluded that all the Windows XP and Office 2003 software programs installed on the 12 computers were counterfeit.

Microsoft claimed that these computers installed with pirated software have caused it significant economic losses, and therefore requested that the court order Strong Well to immediately stop the infringement of its rights and compensate 500,000 yuan for its economic losses. 

During the court session on June 16, Strong Well's attorney said, "Microsoft was allegedly involved in malicious coercive purchase."

He said the company only sells computer accessories, and not whole computers, and prohibits employees from pre-installing software for customers. However, investigators hired by Microsoft threatened the company's salesman by saying that they would return the products if the software is not pre-installed. To close the deal and earn sales commission, the salesman thus purchased pirated software on his own and installed it. This was an entirely individual action by the salesman. 

The courts judgment will be announced in the future.