(from DK)

http://story.news.yahoo.com/news?tmpl=story&cid=562&ncid=738&e=1&u=/ap/20050
126/ap_on_hi_te/microsoft_piracy

Microsoft Plans Restrictions on Fixes


By ALLISON LINN, AP Business Writer

SEATTLE - Microsoft Corp. plans to severely curtail the ways in which
people running pirated copies of its dominant Windows operating system can
receive software updates, including security fixes.


The new authentication system, announced Tuesday and due to arrive by
midyear, will still allow people with pirated copies of Windows to obtain
security fixes, but their options will be limited. The move allows
Microsoft to use one of its sharpest weapons � access to security patches
that can prevent viruses, worms and other crippling attacks � to thwart a
costly and meddlesome piracy problem.


But some security experts said the crackdown also could increase Internet
security problems in general, if there is a spike in unsecured computers
open to attack, which then could be used to attack others.


David Lazar, a director of the effort, said Microsoft would monitor that
potential problem closely. But the company actually considers its
authentication requirement one possible way to boost Internet security �
countering the idea it may increase threats. That's because pirated copies
of Windows could contain viruses or other security threats, he said.


Over the next few months, the software behemoth will begin to more broadly
adopt the program, called Windows Genuine Advantage, that urges users to
provide proof their Windows copy is authentic before receiving some
software updates. 


By mid-2005, the program will become mandatory for Windows users to get
virtually all updates, including security fixes available through the
company's Windows Update Web site. But users who have pirated copies of
Windows will be able to continue to get security fixes if they sign up to
automatically receive security updates.


Russ Cooper, a senior scientist with Cybertrust Inc., said completely
cutting off access to security fixes for pirated machines could cause a
spike in malicious, Internet-based attacks. He lauded Microsoft for
mitigating that problem by continuing to allow all users to get the
automatic updates, regardless of whether they're running pirated versions.


Still, Cooper said he expected Microsoft to eventually cut off that
security update avenue for pirated copies. He said the company may feel it
has few other options as it tries to stop the millions of users who are
running pirated copes of Windows.


The operating system is one of the company's major cash cows, and the move
comes as Microsoft is moving aggressively into emerging markets where
piracy is thought to be more common.


"The reality is that shareholders of Microsoft would like to see them get
all the money they are owed," Cooper said.


Microsoft said the company has no current plans to require users running
automatic updates to provide proof that their copies of Windows are genuine.


Lazar said piracy has cost the Redmond-based company "billions of dollars
over the past 10 years," but he would not be more specific.


"Our desire is to enhance the value of genuine Windows, to create a
differentiation (and) to add more value in the form of greater security and
reliability," Lazar said.


Customers who visit the manual Windows Update site will be asked to prove
that their copies of Windows are legitimate by allowing Microsoft's system
to automatically run a check, or by providing a product identification
number. Users who have lost that number will be asked three basic
questions, and if they are deemed to be acting in good faith they will be
given a free replacement key.


The company also said it will begin providing discounted versions of
Windows to users in China, Norway and the Czech Republic who discover they
have a counterfeit version of Windows XP (news - web sites).


Rob Enderle, principal analyst with the Enderle Group, is expecting the
more stringent authentication system to be successful, as Internet attacks
become ever more sophisticated and users with pirated copies of Windows
become helpless to stop them.


"It will create an environment where the pirated machines, if they're
connected to the Internet, won't really work," he said. 



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