Appeals Court Affirms Prison Sentence Over Microsoft 'Restore Disks'

A California man who built a sizable business out of recycling electronic waste is headed to federal prison for 15 months after a federal appeals court in Miami rejected his claim that the “restore disks” he made to extend the lives of computers had no financial value, instead ruling that he had infringed Microsoft’s products to the tune of $700,000. The appeals court upheld a federal district judge’s ruling that the disks made by Eric Lundgren to restore Microsoft operating systems had a value of $25 apiece, even though they could be downloaded free and could be used only on computers with a valid Microsoft license.