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Microsoft, eBay vs. pirates
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February 26, 1999: 2:12 p.m. ET
Software giant says it works with auction site to combat illegal sales
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NEW YORK (CNNfn) - Microsoft and eBay said Friday that they are working together -- and not against each other -- in combating the illegal sale of Microsoft Office software on the auction site.
The companies reacted strongly to a story in Friday's Financial Times implying that they are at loggerheads over the issue, with Microsoft (MSFT) denying it is contemplating legal action against eBay (EBAY).
"We've been working cooperatively with eBay," said Microsoft senior corporate attorney Nancy Anderson. "I think the story is that we're trying to target the people who misuse eBay; we're not targeting eBay itself."
Anderson said the Redmond, Wash.-based software company is "definitely keeping our legal options open regarding the entities who use Internet sites" to sell illegal software.
"Absolutely," said eBay spokeswoman Jennifer Chu when asked if she agreed with Anderson that the Financial Times story misrepresented the state of affairs between the companies. Chu said the companies planned to issue a joint statement later Friday.
Microsoft is concerned about scores of individuals attempting to sell pirated versions of Office on eBay. The program is selling on the site for as little as $16.99, a sliver of the $500 price for a legal copy.
Chu said San Jose, Calif.-based eBay has instituted a "buddy system" program designed to help companies such as Microsoft root out those who violate its copyrights and patents.
Both companies said they have been working together on this issue since last year.
Microsoft's Anderson said the company has been looking at illegal software sales on other auction sites, but that it is concentrating for now on eBay. "We're watching the effort being made by the market leader, the company that has been proactive to reaching out to software companies," she said.
eBay stock was up 22-1/2 to 322 in Friday afternoon trading. Microsoft stock was down 3 to 150-1/2. 
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Microsoft
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