Australian online retailer and Microsoft partner PC Case Gear has agreed to pay the software giant $250,000 in damages over a copyright infringement case brought by Microsoft.

PC Case Gear allegedly sourced up to 4000 Microsoft Windows 7 certificates of authenticity (COAs) from an unauthorised third party.

Product keys from the certificates were later used to install Microsoft Windows 7 Home Premium on new personal computers marketed by PC Case Gear.

According to Microsoft Australia, PC Case Gear has cooperated with the case, and remains a Microsoft partner.