Microsoft Steps Up Anti-Piracy Effort

The software giant did not go so far as to cut off users from its automatic updates, which means that even people using pirated versions can get security patches.

Program Success

Microsoft started the program in September, asking for volunteers to register. The company said of 8 million users, 5 million did so, surpassing its targets.

But the program will continue to expand beyond where it is now, analyst Rob Enderle told TechNewsWorld.

"I believe that by the time Longhorn is released, all of these offerings will be turned off for anyone who doesn't have a registered copy," he said. "Eventually, anyone who sells software and wants to make money will have to have something like this," he added.

Competitive Advantage

Enderle said that there have been cases in Eastern Europe of pirated versions of XP with malware embedded in them. This, he said, is a double-edged sword for Microsoft and one where its Genuine Advantage program will help it prevail.

"The bad thing is that the piracy is obviously a problem," he said, "but the positive thing for Microsoft is that if that happened with open source , there would be no easy way to get around the problem. In this case, a proprietary product has an advantage because it can be authenticated."

Microsoft has also added software incentives to encourage XP users to sign up. They include Microsoft Photo Story 3 for Windows, Winter Fun Pack 2004, a six-month trial of Office OneNote 2003 and discounts on select MSN Games by Zone.com, Windows SharePoint Services, List Builder and Office Outlook Live.

The proliferation of malware makes operating a computer without updates more and more dangerous, Enderle said, but he added that many users of pirated software were already running unpatched systems.

Minimal Security Woes

"I agree with Microsoft that up to now most of the folks knowingly using pirated software were afraid to go to the update site, because they thought Microsoft would catch them," he said, adding that there's no evidence that Microsoft ever tracked who downloaded the patches and updates.

Since many people using counterfeit products already did not patch them, the company said, the new measure is unlikely to cause security problems.

Microsoft's argument is that pirated software makes it difficult for legitimate business to compete on price and harms consumers who unknowingly buy counterfeit, and sometimes inferior, software.

Enderle said the company is going after the pirates themselves, not the individual users. "This is aimed at professionals. The casual user that's doing this is a lower profile problem than the professional who's trying to sell it at a shop," he said.

Microsoft has also begun a program to allow users in China, Norway and the Czech Republic who have counterfeit versions of XP to buy the software at a discount.