A man posing as an employee of Microsoft from Maryland, USA and selling counterfeit Microsoft software to unwary customers was arrested on 25 May 2010 in Quezon City, Metro Manila, by the Criminal Investigation and Detection Group (CIDG) of the Philippine National Police (PNP).   The man, who was using the alias “Charles Famisaran”, was later identified to be Graciano Bolonia, Jr.  He was arrested after a buy-bust operation conducted by the CIDG which acted on a complaint filed by Microsoft.  Microsoft was represented by Taw & Associates, the correspondent firm of Rouse in the Philippines. 

During its investigation, the CIDG learned that Bolonia had been pretending to be a Microsoft employee assigned to the Philippines to promote Microsoft’s new software products.  Bolonia gained the trust and confidence of his customers by giving them technical advice and offering lower-priced Microsoft software.  This software was later discovered by the customers to be unlicensed, prompting them to report the matter to Microsoft.  It is estimated that Bolonia victimised about 40 to 50 customers from Metro Manila, Iloilo, Cebu and Boracay.  His victims were not only individuals but also commercial businesses, such as internet shop owners. 

As part of his scam, Bolonia was also found to be posing as an employee of a company named “Ultimate IT Solutions” based in Maryland, USA, which claims on its website to be a Microsoft Gold Certified Partner.  Microsoft however confirmed that Bolonia was and has never been an employee of the company and that there is no Microsoft Gold Certified Partner existing under the name of Ultimate IT Solutions in the State of Maryland, USA.  It was also found that Bolonia used other names apart from “Charles Famisaran” in carrying out his illegal activities.  The names uncovered by the CIDG include Jun Bolonia, Jun Alvarez, Graciano Dapar Bolonia Jr., and Marvin Divinagracia.

Bolonia has been criminally charged before the Philippine courts for copyright infringement and unfair competition.  He is also being investigated for trade mark infringement. For selling counterfeit software, he may face up to three years imprisonment, which is the maximum penalty for first-time copyright infringers.  Bolonia’s unauthorised use of Microsoft’s trade marks may also make him liable for trade mark infringement and unfair competition, which carries a maximum sentence of five years.

Brand owners, particularly of software products, should be on the alert for this kind of scam and must take steps to stop it when it comes to their attention.