The association plans to file lawsuits against three other people who sold software to SIIA officials during the sting.

CNN: Technology - New online software piracy emerges

During the sting, SIIA officials scanned Web sites of eBay, Yahoo, Microsoft's MSNBC.com and smaller auction sites for software sales.

CNN: Technology - New online software piracy emerges

After the SIIA official was outbid, he would receive an e-mail from a seller offering software for less than his lowest bid.

CNN: Technology - New online software piracy emerges

In addition, SIIA has information about other cases that it plans to turn over to the FBI for possible criminal charges, Beruk said.

CNN: Technology - New online software piracy emerges

Denver-based Quality Education Data prepared statistics used in the SIIA report.

CNN: Most K-12 schools spend less than $5 per student on software

The SIIA white paper says software sellers manipulate the rules of Internet auction sites to obtain e-mail addresses of bidders on software, creating a direct-marketing channel.

CNN: Technology - New online software piracy emerges

In its definition of illegal, SIIA officials counted backup copies of software, as well as CD-RW software, regardless of whether the owner had a license or not.

CNN: Technology - New online software piracy emerges

The lawsuits against Chu and Kish are the first civil cases filed by SIIA against suspected pirates who find customers by sending e-mail to people who bid on software at Web auction sites.

CNN: Technology - New online software piracy emerges

The SIIA white paper also shows how suspected pirates are using Internet auctions to turn better than a 90 percent profit from sales of illegal software products, and how they are reaching thousands of new customers with little effort or cost.

CNN: Technology - New online software piracy emerges