SAN DIEGO -- An Oceanside man accused, along with an Illinois resident, of conspiring to buy $500,000 worth of counterfeit Microsoft software and then selling it over the Internet pleaded not guilty Tuesday to federal charges.

U.S. Magistrate Cathy Ann Bencivengo set bail at $75,000 for Steven Stoyanoff and ordered him to return to court next Monday.

A 22-count indictment charging Stoyanoff with conspiracy, sale of merchandise imported contrary to law, trafficking in counterfeit goods and mail fraud was unsealed Tuesday before the defendant's arraignment in federal court.

According to the indictment, Stoyanoff, 41, and co-defendant Michael Swedlow, of Northfield, Ill., sold counterfeit Microsoft software from July 2005 to March 2009.

The indictment alleges that the defendants wired money to China for counterfeit Microsoft software -- including Microsoft Windows XP and Microsoft Office 2003 -- and then sold it over the Internet, using the company names Wireless Now Computers and Whitebox Computers.

The defendants allegedly mailed the software to customers throughout the United States, falsely representing that the software was genuine.

Swedlow, also 41, made his initial court appearance last week in Illinois and was ordered to appear in a San Diego courtroom on June 3.