EBay Pirate Gets 27 Months for Selling $700,000 in Counterfeit Software

Man Made $4000 on EBay for Pirated Software Worth Much More

Coutney Smith, 36, of Anderson, Ind., was sentenced today to 27 months in prison for selling $700,000 worth of counterfeit software on eBay. The sentence was handed down by U.S. District Judge Sarah Barker of the Southern District of Indiana as a result of today's guilty plea concerning criminal copyright infringement laws.

This indictment follows on the heels of public statements made by eBay to crack down on fraud and privacy in 2007. Recently, hundreds of pirated DVDs were seized in the UK. Anti-piracy organization, the Federation Against Copyright Theft (FACT), has teamed up with eBay and warned it will prosecute persistent offenders.

Smith's arrest was a result of a U.S. Department of Justice initiative to combat online auction piracy.

Smith admitted today that he purchased counterfeit Rockwell Automation computer software through eBay and then duplicated and sold the copies to other eBay users. The sales were made on 32 separate auction listings in the spring of 2004.

While Smith received $4,149.97, the actual retail value of the corporate factory management software was in excess of $700,000. The majority of the software programs Smith sold on eBay retail from approximately $900 to $11,325 each.

"Mr. Smith exploited eBay to sell hundreds of thousands of dollars worth of counterfeit software at drastically reduced prices, thereby illegally profiting on the back of the copyright holder," said Assistant Attorney General Fisher. "The Department of Justice is committed to prosecuting individuals who exploit legitimate online auction sites to sell pirated software and commit other acts of fraud."

In December 2004, Smith originally admitted to FBI investigators that he knew it was illegal to sell copyrighted software, and that he not only manufactured and sold the counterfeit software on eBay, but also that he produced his own Rockwell Automation Software labels to affix to the pirated copies.