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DMCA conviction for seller of bogus Microsoft product keys
Federal authorities accused Adonis Gladney of selling counterfeit Microsoft product keys, and on Thursday he was convicted of violating the Digital Millennium Copyright Act.
Gladney, 24, is believed to be the first person convicted for DMCA violations dealing with the circumvention of security protections on software, according to Assistant U.S. Attorney Craig Missakian. Typically, product keys are used to activate software and are printed on Certificate of Authenticity labels that accompany legitimate products.
Missakian, who prosecuted the case in Los Angeles along with Assistant U.S. Attorney Wendy Wu, said the conviction is a sign that administrators at the U.S. Justice Department plan to take these kinds of DMCA violations "more seriously."
"The defendant couldn't have executed his scheme without counterfeit access keys," Missakian said. "(The keys) allowed purchasers to load software on multiple computers."
Among those who unwittingly purchased phony keys from Gladney is the United States Marine Corp. Gladney's attorney, Frank Sanes Jr., declined to comment.
Convicted of one count of violating the DMCA and three counts of mail fraud, Gladney could face several years in prison, Missakian said, adding that Gladney's prison term will likely be based on the amount of monetary damage he caused.
"At this point we're still counting," Missakian said.
Gladney, who resides in Los Angeles, would advertise software licenses in large volume on his Web sites, abovegroundsolutions.com or agsolutionsspc.com. Customers paid their money and received licenses, which prosecutors say Gladney claimed legally covered between 25 and 750 users. Gladney would then ship them a CD loaded with software that authorities say was not designated as a retail product for sale to the general public, such as software that typically comes bundled in PCs.
"The licenses were essentially thin air," Missakian said.
The FBI, which spearheaded the investigation on behalf of the Electronic Crimes Task Force, a group that includes several law enforcement agencies, said that Gladney would obtain key codes and then tweak them so he could use them over and over.
"By repeatedly using and distributing the same key codes on multiple products," an FBI agent wrote in court documents, "Gladney is circumventing one of Microsoft's primary security features for legitimate product activation in violation of (trafficking in unauthorized access devices)."
According to the FBI, Gladney managed to turn his illegal enterprise into a cash cow while he was barely 20. Gladney told agents he had earned more than $3 million. Following his arrest, officials seized $74,038 and two custom-built Lamborghinis.
Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET. 
He's 21, has a couple of years of the good life, now he's had his assets siezed, and is maybe looking at 2-5 years of anal-rape, and record when he gets out. I don't pity him, but I don't think he's got away with much either.
MS isn't laying them off because they can't pay them, they are doing it because they are bracing to lose billions in the near future.
$10 million is chump change to MS.
Nice try on the outrage.
"Theft is theft, regardless if you think it is a harmless crime. It doesn't really matter how big or evil you think the corporation is, they still have the right to protect their product."
Then MS can sue him into oblivion. It should not be a criminal matter.
Yeah, and poor Bernie Madoff was simply misunderstood and shouldn't have been prosecuted either. Let those stupid investors sue him instead and lessen the burden on our overcrowded prisons.
@monekyfun14: this kid was advertising online and accepting cc payments. It's not like he was based in Antigua.
Seriously, he should have moved off shore when he made his first 100K. Kids are dumb. Instead of buying fancy cars he could have kept his good name and made money for a few years then came back to the US and used the money to run for Congress.
Certainly a waste of my tax dollars to apprehend, prosecute and jail that luser. M$ should bear the costs, not the taxpayers. Let M$ get restitution out of his enterprising little tuchus, not the taxpayer funded inmates. And before the fanbois start caterwauling, I think macs are a big cash scam too!
You know with a name like "Adonis" he's gonna be the belle of the ball in prison. His dance card is sure to be filled.
- by wontonbob May 18, 2009 11:47 AM PDT
- So am I to understand there are folks here that believe it is OK to walk into a store and take out $3M of software and resell it, because dislike the software company in question?
- Reply to this comment
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(24 Comments)What is the difference when it comes down to this vs. selling via web? Would you to expect the police to let this happen?
Silly comments here...Let him go? don't prosecute? Are you all high?
$187,500 in sales tax just went bye bye. With all the state employees being layed off in my area, I'm sure there was no harm!