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Rosetta Stone Commends Law Enforcement for 31 Piracy Arrests and Announces 119 Civil Settlements for Copyright Violations and Illegal Software Distribution

Company Urges Congress to Pass the Stop Online Piracy Act and the PROTECT-IP Act

ARLINGTON, Va.--(BUSINESS WIRE)--Dec. 19, 2011-- Rosetta Stone Inc. (NYSE:RST), a leading provider of technology-based language learning solutions, today praised U.S. and Canadian law enforcement agencies as well as local law enforcement agencies across 13 states for their work to combat software piracy. The diligent efforts by these agencies have resulted in 31 arrests for the piracy of Rosetta Stone language learning software. As part of a continuing effort to enforce Rosetta Stone’s rights under copyright law, the company continues to cooperate with law enforcement to protect consumers from counterfeit software and other forms of software piracy.

Rosetta Stone recognizes the following law enforcement and other agencies in California, Georgia, Illinois, Louisiana, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, South Carolina, Virginia and Canada for taking action to protect consumers by arresting individuals engaged in the distribution of counterfeit Rosetta Stone software:

  • FBI offices in Manassas, Virginia; North Aurora, Illinois; Roseville, California; Sacramento, California; and Washington, D.C.
  • Internal Revenue Service in California
  • U.S. Immigration and Customs Enforcement Homeland Security Investigations in California
  • Royal Canadian Mounted Police
  • Los Angeles County District Attorney's Office, California
  • Los Angeles Police Department, California
  • Fairfax County Police Department, Virginia
  • Prince William County Police Department SWAT Team, Virginia
  • Horry County Police Department, South Carolina
  • The Silicon Valley’s High Technology Task Force, also known as the Rapid Enforcement Allied Computer Team (REACT), California
  • Marion County Sheriff's Office, Salem, Oregon
  • Boston Police Department, Massachusetts
  • Baldwin County Sheriff’s Office, Louisiana
  • Elizabeth Police Department, New Jersey
  • Nassau County District Attorney's Office, New York
  • New Jersey State Police
  • Mooresville Police Department, North Carolina
  • Alcoholic Beverage Control, Raleigh, North Carolina
  • Dublin Police Department, California

“While these arrests demonstrate the effectiveness of law enforcement in pursuing software piracy in the U.S., Rosetta Stone is confronted with a much more difficult task of pursing software pirates based overseas,” said Michael Wu, general counsel for Rosetta Stone. “Attacking the scourge of pirated products manufactured overseas and sold to American consumers over the Internet will require the passage of legislation based on the proposed Stop Online Piracy Act, now pending in the House of Representatives, and the Protect IP Act, pending in the Senate. This legislation will provide the U.S. Department of Justice with a significant tool in its efforts to protect American consumers from the deceptive and often dangerous practices of these online counterfeiters.”

Rosetta Stone Inc. also announced today that in 2011 the company reached settlements in cases against 119 individuals for copyright and trademark infringement. These individuals pirated software, including the unauthorized copying, downloading, sharing and/or selling of counterfeit Rosetta Stone language-learning software. These settlements include infringers located in the following 104 cities across 29 states in the U.S. as well as in the countries of Canada and Georgia:

     
Birmingham, Ala. Acworth, Ga. Henderson, Nev. Columbia, S.C.
Hoover, Ala. Atlanta, Ga. Las Vegas, Nev. Newberry, S.C.
North Little Rock, Ark. Chatsworth, Ga. Sparks, Nev. Bartlett, Tenn.
Tucson, Ariz. Jonesboro, Ga. Union City, N.J. Knoxville, Tenn.
Brentwood, Calif. Arlington Heights, Ill. Amherst, N.Y. Canyon, Texas
Carmichael, Calif. Carol Stream, Ill. Binghamton, N.Y. Dallas, Texas
Culver City, Calif. Chicago, Ill. Brooklyn, N.Y. Palestine, Texas
Davis, Calif. Mahomet, Ill. Melville, N.Y. Quitman, Texas
Desert Hot Springs, Calif. Northbrook, Ill. New York, N.Y. San Antonio, Texas
Escondido, Calif. Fort Wayne, Ind. Port Washington, N.Y. Sherman, Texas
Glendale, Calif. Lawrenceburg, Ind. Springfield Gardens, N.Y. Mapleton, Utah
Newbury Park, Calif. McCordsville, Ind. Staten Island, N.Y. West Jordan, Utah
Oakland, Calif. Downsville, La. Syracuse, N.Y. Alexandria, Va.
Richmond, Calif. Slidell, La. Delco, N.C. Chantilly, Va.
Visalia, Calif. Boyds, Md. Franklinville, N.C. Norfolk, Va.
Walnut Creek, Calif. Glen Burnie, Md. Greensboro, N.C. Stuart, Va.
Fort Collins, Colo. Lanham, Md. Raleigh, N.C. Williamsburg, Va.
Grand Junction, Colo. Silver Spring, Md. Winterville, N.C. Woodbridge, Va.
Greeley, Colo. Skowhegan, Maine Cleveland, Ohio Brattleboro, Vt.
Brandon, Fla. Grand Rapids, Mich. Lakewood, Ohio Mendon, Vt.
Jacksonville, Fla. Oak Park, Mich. Steubenville, Ohio Silverdale, Wash.
Miami, Fla. Owosso, Mich. Strongsville, Ohio Spokane, Wash.
New Port Richey, Fla. Plymouth, Mich. Moore, Okla. Tacoma, Wash.
Orlando, Fla. Southfield, Mich. Tulsa, Okla. Cudahy, Wis.
Spring Hill, Fla. Minneapolis, Minn. Pottstown, Pa. Greenfield, Wis.
Wauchula, Fla. Princeton, Minn. Bluffton, S.C. Janesville, Wis.
 

"Consumers need to be aware of the dangers of software piracy, including the risks of identity theft, malware, spyware and defective software," said Mr. Wu. "If consumers are unsure about the authenticity of products or whether products are being offered by legitimate distributors or retailers, they should contact Rosetta Stone. Our Customer Care team will assist customers and verify whether genuine products are being purchased from authorized sellers."

The company is committed to ensuring that consumers who purchase Rosetta Stone language-learning products do not fall victim to counterfeit software and are educated on the risks associated with such software. To report piracy of Rosetta Stone products or inquire about the legitimacy of Rosetta Stone products, consumers should send an e-mail to piracy@RosettaStone.com or call 800-788-0822. To receive industry-wide information about software piracy, consumers can call the Business Software Alliance (BSA) Anti-Piracy Hotline at 888-667-4722.

For more information, please visit RosettaStone.com/global/anti-piracy.

For additional media information, please visit pr.RosettaStone.com.

About Rosetta Stone

Rosetta Stone Inc. is changing the way the world learns languages. Rosetta Stone offers an interactive solution that is acclaimed for its speed and power to unlock the natural language-learning ability in everyone. Available in more than 30 languages, the Rosetta Stone language-learning solution is used by schools, organizations and millions of individuals in over 150 countries throughout the world. The company was founded in 1992 on the core beliefs that learning a language should be natural and instinctive and that interactive technology can replicate and activate the immersion method powerfully for learners of any age. The company is based in Arlington, Va. For more information, visit RosettaStone.com.

"Rosetta Stone" is a registered trademark of Rosetta Stone Ltd. in the U.S. and other countries.

Source: Rosetta Stone Inc.

Rosetta Stone Inc.
Media Contact:
Miranda Harper
212-715-1641
harperm@ruderfinn.com
or
Investor Contact:
Steve Somers, CFA
703-387-5876
ssomers@RosettaStone.com

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Rosetta Stone PR's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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