The Washington Post said the lawsuit was unsealed recently after being filed in October. Dell believes the three registrars and a host of shell companies made millions off web traffic misdirected by wrongly spelled domains.

Unlike similar lawsuits, Dell’s action has a couple of unique points. The report cited Dell’s accusation that the companies engaged in a round-robin of domain tasting, passing domains from one company to the next, in a rapid succession that enabled them to keep performing domains available indefinitely without ever paying for them.

The other point comes from Dell’s contention that the actions of the defendants amounted to counterfeiting. University of Miami professor Michael Froomkin, publisher of ICANN Watch, said in the report this charge was a first in domain squatting cases.

A successful counterfeiting charge would entitle Dell to claim damages of up to a million dollars per violation, a substantial increase over the federal limit of $100,000 per domain infringement.

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Microsoft filed these lawsuits in California, Florida, Texas, New Jersey, Alabama, Maryland and Rhode Island. They are a result of Microsoft’s test purchase program, which strives to ensure the software being sold and distributed actually holds a the appropriate software license.

“Our partners are coming to us and asking for our help,” said Bonnie MacNaughton, senior attorney at Microsoft.

“They are being undercut and forced out of business by having to compete with dishonest PC manufacturers and resellers who continue to sell illegitimate software. That isn’t fair to our partners or to the customers who depend on them.”

Microsoft’s release concerning the lawsuits reveals they were filed against the following companies:

“Resellers who sell counterfeit software and components at a supposed ‘discount’ are certainly undercutting honest businesses and creating a competitive disadvantage in the marketplace,” said Sean Dion, education sales director for TKO EDucation in Westlake Village, Calif.

“The really sad thing is they are putting consumers and businesses at risk because, ultimately, the buyer is buying illegitimate product. The lure of cheap software is real, but the risk is far too great not to be 100 percent legal. TKO EDucation fully supports Microsoft’s continued action to level the playing field for honest businesses.”

To ensure you don’t fall under Microsoft’s criteria for lawsuit action, be sure the software being sold is legitimate and displays Certificate of Authenticity (COA) labels.

Chris Richardson is a search engine writer and editor for WebProNews. Visit WebProNews for the latest search news.