After all, although Microsoft rakes in billions, piracy of its flagship products remains a huge, costly problem, particularly in developing countries such as China and Russia. The Business Software Alliance estimates that 35 percent of software installed on PCs worldwide is pirated.

Nevertheless, 18 months after announcing the Windows Genuine Advantage piracy check, Microsoft faces controversy and backlash, including two lawsuits. Some say the company clumsily handled several elements of the program, including a key privacy issue.

"They have a right to say, `If you want patches from Microsoft, you know, you should let us make sure you're not running a pirated copy of Windows,'" said Gartner analyst John Pescatore. "That's a valid claim, and with the Windows Genuine Advantage tool, I think, they tried to go a little too far."

Microsoft introduced the piracy check in mid-2005 as a condition for downloading security fixes and other software, such as anti-spyware technology, from its Web site.

News source: seattlepi.com