Microsoft issues certificates of authenticity (COAs) so its customers know they are receiving genuine Microsoft software. Microsoft had successfully sued Ion Technologies and its owner, Paul Martin, for trademark infringement and copyright infringement for selling false COAs. See 2003 WL 21356084. The parties entered into a settlement agreement in late 2004, but Ion continued to sell COAs.
In December 2004, the Anti-counterfeiting Amendments Act of 2004 took effect. That law makes it illegal in some circumstances to knowingly traffic in an illicit label affixed to a copy of a computer program. See 18 U.S.C. § 2318. On the Section 2318 claim, the court granted partial summary judgment to Microsoft as to Ion but declined to extend personal liability to Martin. The court also granted partial summary judgment to Microsoft against both Ion and Martin for violation of the 2004 settlement agreement.