THE HOTTEST SOFTWARE IN TOWN

TRACKING AN ASIAN DRUG GANG, POLICE UNCOVER A RECORD CACHE OF FAKE FLOPPIES

The beige ranch house was in a hushed cul-de-sac on the eastern edge of Los Angeles -- not exactly where you would expect to see half a dozen sheriff's deputies in bulletproof vests, pistols at the ready. The gray-haired Chinese man who answered the door last Tuesday soon found himself handcuffed next to an associate, facedown on the floor, while the police searched the sparsely furnished home.

As it turned out, it wasn't a home at all, but a software counterfeiting factory known in the digital underground as a "warez house." In one bedroom police found eight copying machines that could...

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