TWO computer retailers caught for peddling counterfeit Microsoft software have agreed to pay $70,000 in damages, and their directors will also do 144 hours of community service as part of an out-of-court settlement with the software giant.

In an April raid on three Sim Lim Square shops, 300 copies of high-end counterfeit Microsoft software, including XP Professional and Office Professional 2003, worth $65,000 were seized from Best Bytes and Powersys - the biggest such haul in Singapore so far.

Another shop, Bizgram, was found with one copy of the China-made counterfeit software, which is so good it is practically indistinguishable from the originals, said Microsoft on Tuesday.

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