Angela MorrowAngela MorrowAnti-Piracy Marketing ManagerAnti-Piracy Marketing Manager

Allen NiemanAllen NiemanTechnical Product ManagerTechnical Product ManagerMicrosoft CorporationMicrosoft Corporation

Anti-PiracyAnti-Piracy

How does piracy hurt How does piracy hurt your customer?your customer?

Higher total cost of ownershipHigher total cost of ownership Lack of technical supportLack of technical support Software incompatibilitiesSoftware incompatibilities Poor quality softwarePoor quality software Damage to reputationDamage to reputation Exposure to liability riskExposure to liability risk

What is Microsoft What is Microsoft Doing?Doing?

EnterpriseEnterprise Small/Medium BusinessSmall/Medium Business Improved TechnologyImproved Technology

Enterprise Enterprise CustomersCustomers

Direct ContactDirect Contact

Engage the customerEngage the customer Face to faceFace to face Email/letter/callsEmail/letter/calls

Possible AP involvementPossible AP involvement Self Audit/License AnalysisSelf Audit/License Analysis

ACE Review ProgramACE Review Program

When internal discussions/reviews When internal discussions/reviews aren’t workingaren’t working

Friendly “audits”Friendly “audits” Independent auditorsIndependent auditors Full review/Mini-reviewFull review/Mini-review

Small/Medium Small/Medium CustomersCustomers

BSA Truce FY01 ResultsBSA Truce FY01 Results

Truce market growth 200% Truce market growth 200% greater than control marketsgreater than control markets

Touched 1.8 million business Touched 1.8 million business decision makersdecision makers

Drove $39 million in incremental Drove $39 million in incremental revenue in 1revenue in 1stst 3 quarters 3 quarters

BSA Truce – FY02BSA Truce – FY02

Q1 CampaignQ1 Campaign

Timing:Timing: July 1-31, 2001July 1-31, 2001

Markets:Markets: New York, Portland, New York, Portland, Atlanta, Kansas City, Atlanta, Kansas City,

and and Oklahoma City (~800k)Oklahoma City (~800k)

Q2 CampaignQ2 Campaign Timing: Timing: October 1-31, 2001October 1-31, 2001

Markets:Markets: Cities TBD (~800k)Cities TBD (~800k)

BSA Truce BSA Truce BSA ActivitiesBSA Activities

Radio, 2 waves of Direct Mail, PRRadio, 2 waves of Direct Mail, PR BSA End User SettlementsBSA End User Settlements

Microsoft SupportMicrosoft Support Direct Mail, Opt-in Audio and Video Direct Mail, Opt-in Audio and Video

Email, Banner AdvertisingEmail, Banner Advertising Key Influencer Engagement: BBB, Key Influencer Engagement: BBB,

SBA, Mayoral ProclamationsSBA, Mayoral Proclamations Channel ParticipationChannel Participation

Channel Readiness KitChannel Readiness Kit

Available mid JulyAvailable mid July ResourcesResources

Marketing Templates to CustomizeMarketing Templates to Customize BSA Truce LetterBSA Truce Letter SAM Guide CDSAM Guide CD Product Activation InstructionsProduct Activation Instructions CD w/templatesCD w/templates And more…And more…

BSA Truce - ChannelBSA Truce - Channel

Channel EngagementChannel Engagement Direct Mail TemplateDirect Mail Template Email TemplatesEmail Templates Talking PointsTalking Points PowerPoint PresentationPowerPoint Presentation Suggestions for Suggestions for

Tools/Resources/Support?Tools/Resources/Support?

Vertical Campaign Q1Vertical Campaign Q1AccountingAccountingTiming:Timing: Q4 Microsoft DM Mailed Q4 Microsoft DM Mailed

mid-Junemid-June

Target:Target: National ~250kNational ~250k

Hi-TechHi-TechTiming:Timing: Q4 Microsoft DM to Mail Q4 Microsoft DM to Mail

mid-June mid-June

Target:Target: National ~600kNational ~600k

Write SAM policies and procedures for Write SAM policies and procedures for your customer regarding acquisition your customer regarding acquisition and storage of softwareand storage of software

Communicate the policy clearly to your Communicate the policy clearly to your customer’s employees who purchase, customer’s employees who purchase, manage, or use softwaremanage, or use software

Better yet, help your VARs be the Better yet, help your VARs be the software asset manager for their software asset manager for their customerscustomers

microsoft.com/piracy/microsoft.com/piracy/samguidesamguide//

SSoftware oftware AAsset sset MManagementanagement Guide Guide

Microsoft Software Microsoft Software Inventory AnalyzerInventory Analyzer

Available NOW!Available NOW!

microsoft.com/piracy/microsoft.com/piracy/msiamsia

Microsoft ResourcesMicrosoft ResourcesMicrosoft ResourcesMicrosoft Resources microsoft.com/piracy/microsoft.com/piracy/

Piracy BasicsPiracy Basics MSIA ToolMSIA Tool SAM guideSAM guide How to TellHow to Tell Product ActivationProduct Activation NewsNews

microsoft.com/partner/licensing/microsoft.com/partner/licensing/antipiracyantipiracy

Report PiracyReport Piracy

(800) RU LEGIT or (800) RU LEGIT or

(800) 785-3448(800) 785-3448 piracy@microsoft.compiracy@microsoft.com Business Desk Business Desk

Email Email piracy@microsoft.compiracy@microsoft.com Write “Business Desk” in the subject Write “Business Desk” in the subject

lineline Bid must exceed $20KBid must exceed $20K

Anti-PiracyAnti-Piracyand Licensing Technologyand Licensing Technology

Allen NiemanAllen Nieman

Technical Product ManagerTechnical Product Manager

Licensing TechnologiesLicensing Technologies

AgendaAgenda

Licensing technology overviewLicensing technology overview Microsoft Product Activation for Microsoft Product Activation for

Windows XPWindows XP DemoDemo

Customer segment detailsCustomer segment details

MissionMissionTo reduce intellectual property To reduce intellectual property

abusesabuses Outright PiracyOutright Piracy Corporate over-installation and Corporate over-installation and

under-purchaseunder-purchase

By aggressively enforcing licensing By aggressively enforcing licensing termsterms Software-based technologiesSoftware-based technologies Separation of media from licenseSeparation of media from license

Key pointsKey points Piracy is an industry-wide Piracy is an industry-wide

problemproblem Casual copying is significantCasual copying is significant

Activation targets casual copyingActivation targets casual copying Also targets cloningAlso targets cloning

Product Activation is not newProduct Activation is not new Pilot in 7 countries with Office 2000Pilot in 7 countries with Office 2000 WW with Office XP and Visio 2002 WW with Office XP and Visio 2002

Activation strikes a balanceActivation strikes a balance

Key pointsKey points Microsoft absolutely, 100% respects Microsoft absolutely, 100% respects

the end user’s privacy the end user’s privacy Significant improvement over Significant improvement over

previous companies’ AP Effortsprevious companies’ AP Efforts No dongles, diskettes requiredNo dongles, diskettes required AnonymousAnonymous Natural part of product setupNatural part of product setup Quick & Easy via Internet – 4 clicks!Quick & Easy via Internet – 4 clicks!

Little impact on volume licensing Little impact on volume licensing customerscustomers VL licenses do not require activationVL licenses do not require activation VLKs are now required thoughVLKs are now required though

Product Activation for Product Activation for Windows Windows Cross-Microsoft technologyCross-Microsoft technology

Can activate during or after setupCan activate during or after setup Can skip activation for 30 daysCan skip activation for 30 days

Reminder at each logon after setupReminder at each logon after setup Reminder periodically when logged inReminder periodically when logged in If not activated after 30 daysIf not activated after 30 days

Nagging reminder every 15 minutesNagging reminder every 15 minutes If logged out, must activate after logging back in If logged out, must activate after logging back in

Activation is completely anonymousActivation is completely anonymous Retail product allows activation on one Retail product allows activation on one

PCPC Unlimited reinstalls on the same PCUnlimited reinstalls on the same PC

How Does PA Work for End How Does PA Work for End Users?Users?

Install, User enters use product key:

GKW9D-8G6XY-6WC3Q-QHV2J-G8DKL

License Certificate and Product ID (ex 98765-123-7654321-12345)

generated

User/Client Device Clearinghouse Unlock

Content activated, License Certificate

updated

Confirmation Received (42 digits):123874-567318-524495-847384-394839-948392-938293

Returns Confirmation(42 digits):123874-567318-524495-847384-394839-948392-938293

User prompted to activate,

30 day grace period, then required to

activate

User Selects Method:• Internet• Telephone

Installation ID (PID + HW Hash) created and sent (50 digits):

114236-445649-527565-495949-094832-394857-142943-298474-76

Processes Installation ID114236-445649-527...

Verifies business rules

Demo – Windows XP Demo – Windows XP ActivationActivation

User experienceUser experience

Ease of use and clarity of purpose are Ease of use and clarity of purpose are required to obtain user acceptancerequired to obtain user acceptance Ease of useEase of use

Straightforward and easily navigable UIStraightforward and easily navigable UI Short and simple activation processShort and simple activation process

Clarity of purposeClarity of purpose Required information clearly identifiedRequired information clearly identified EULA and box notificationEULA and box notification

In any DRM, user acceptance is keyIn any DRM, user acceptance is key

Protecting user privacyProtecting user privacy

Protecting user privacy is a design goalProtecting user privacy is a design goal Activation is NOT registrationActivation is NOT registration

Activation:Activation: Required for continued use of the productRequired for continued use of the product Completely anonymousCompletely anonymous NoNo personally identifiable information required personally identifiable information required

Registration:Registration: NOT required for continued product useNOT required for continued product use For receiving customized benefitsFor receiving customized benefits By definition requires personal informationBy definition requires personal information

Channel detailsChannel details

Retail FPPRetail FPP Activation requiredActivation required Install on one PC allowedInstall on one PC allowed

EULA unlikely to change from EULA unlikely to change from Windows 2000 or ME in this areaWindows 2000 or ME in this area

Cannot be used for volume license Cannot be used for volume license bulk deploymentbulk deployment

Packaging ChangesPackaging Changes Box notificationBox notification EULAEULA

Volume Licensing Volume Licensing CustomersCustomers Can no longer use Retail FPP CDsCan no longer use Retail FPP CDs

Volume License Product Keys (VLKs) will not Volume License Product Keys (VLKs) will not work with Retail FPP CDswork with Retail FPP CDs

Multiple Installs cannot be completedMultiple Installs cannot be completed Select CDs or WWF CDs must be usedSelect CDs or WWF CDs must be used

Select CDs not “pre-pid’d”Select CDs not “pre-pid’d” VLK is required and can be automatedVLK is required and can be automated

Volume licenses do NOT require Volume licenses do NOT require activationactivation

Open License customersOpen License customers New purchasers obtain VLK from New purchasers obtain VLK from

eOpen license confirmationeOpen license confirmation Existing Open license customers Existing Open license customers

with active Windows Upgrade with active Windows Upgrade Advantage will be sent lettersAdvantage will be sent letters Letters to be sent around RTMLetters to be sent around RTM Will contain instructions on how to get Will contain instructions on how to get

VLK for use with WWF CDsVLK for use with WWF CDs

Select, EA, Campus and Select, EA, Campus and School AgreementsSchool Agreements New customers get VLK on their New customers get VLK on their

acceptance letteracceptance letter Existing customers get VLK by Existing customers get VLK by

calling Microsoftcalling Microsoft Letter will be sent notifying Letter will be sent notifying

customers of the VLK requirementcustomers of the VLK requirement