The case against Chinese insurer Dazhong Insurance mirrors similar moves made by Microsoft and the Business Software Alliance (BSA) in the UK taking those not paying for their software to court.
But the decision by a Shanghai district court to offer Microsoft damages of $318,000 after finding the insurer guilty of infringing intellectual property rights marks a turning point with that level of payout never before seen with an indication that perhaps Chinese authorities will defend IP more vigorously.
From a UK channel perspective the rampant piracy in China has been a threat as it provides illegal traders with a source of products that can find their way into the British market.
Julian Swan, director, compliance marketing, BSA EMEA, said that the case showed that China was doing more to reduce piracy.
"The Chinese authorities have continued efforts to reduce piracy in the country and settlements of this size and nature are testament to their hard work," he said.