Microsoft: Windows XP Underscores Piracy Concerns

Microsoft Intel

The feature, implemented in the company's Windows XP operating system as well as applications including Office XP, Project and Visio, forces users to register their software within 30 days--or it will stop working.

Approximately 17 million copies of Windows XP have shipped since the release last fall. Since then, users have attempted to complete second--unauthorized--installs of about 4 million copies, said Bob Clough, vice president of broad channel sales and marketing for Microsoft. When someone attempts a second install, they are prompted to call Microsoft for help, he said.

Clough's remarks came after his keynote presentation Tuesday during Intel's Solutions Summit here, attended by approximately 350 Intel premier providers, including systems builders and resellers of Intel's wireless and converged communications products.

Clough said Microsoft hasn't tracked how many of those installation attempts were legitimate in nature, attempted by users that had somehow corrupted their software. Nor would he provide statistics on how many instances could be attributed to channel sources vs. end users.

The phenomenon proves once again that Microsoft and other software developers need to simplify their licensing strategies, something that should be made easier by the evolution of software as a service, said Clough. Many pirates are unintentional pirates, he acknowledged. "Most of the channel is as much a victim of it as we are," Clough said.

Microsoft's licensing policies came under fire during a panel discussion among distribution representatives earlier in the conference. Many attendees said Microsoft's policies for small-business customers are simply too complicated, and the vendor was criticized for volume licensing strategies that favor OEMs--particularly Dell Computer--over the channel.