Microsoft to Tighten the Genuine Advantage Screws
Mary Jo Foley - Microsoft Watch

http://news.yahoo.com/s/zd/20060809/tc_zd/185663

To date, with its Genuine Advantage anti-piracy programs, Microsoft has 
targeted consumers. Windows and Office users have been required to 
validate their products as "genuine" before being able to obtain many 
downloads and add-ons.

Come this fall, however, the Redmond software maker is planning to turn 
up the Genuine Advantage heat in two ways: By baking more Genuine 
Advantage checks directly into Windows Vista, and by taking aim at PC 
makers, system builders, Internet cafes and other sources of potentially 
pirated software.

Microsoft officials – whose Genuine Advantage Notification strategy came 
under fire earlier this summer -- declined to share specifics about its 
new Genuine Advantage plans. But executives already have been setting 
the stage for the upcoming changes in recent keynote addresses.

"We expect to do more to make Windows more differentiated when it's 
genuine, and so genuine customers get a truly different experience than 
non-genuine customers, as well as to make piracy harder, so that our 
genuine partners can do a better job competing with those that don't 
play by the rules," Windows Client Marketing Chief Michael Sievert told 
attendees of Microsoft's Worldwide Partner Conference in July.

Microsoft Platforms and Services Co-President Kevin Johnson was more 
specific about Microsoft's plans, in his remarks to Wall Street analysts 
at Microsoft's Financial Analyst Meeting in late July.

"We built a set of features and a set of functionality that is only 
available to genuine Windows customers," Johnson said. "Windows 
Defender, for example, the anti-spyware for
Windows XP and Windows Vista, is available to genuine Windows customers. 
Windows Media Player 11.0, Internet Explorer 7.0, will be available for 
download for Windows XP customers who are genuine, and of course those 
are built into Windows Vista. Future updates to Internet Explorer and 
Windows Media Player for Windows Vista will require them to be genuine. 
And certainly there's some premium features built into the Windows Vista 
operating system that will require genuine validation as well. So we're 
really trying to amplify the fact that being genuine enables the set of 
benefits and value to access these types of features and capabilities."

Johnson did not single out which premium features in Vista will require 
validation before use. There are a number of new Vista features which 
Microsoft is making available only to users of its consumer- and 
small-business-focused "premium" Vista editions -- Vista Home Premium 
and Vista Ultimate.

Examples of premium features which Microsoft potentially could lock down 
under Genuine Advantage include Windows Photo Gallery; Windows Media 
Center; Windows DVD Maker; and games like Texas Hold 'Em Poker that are 
part of the downloadable Vista Ultimate Extras products and services.

At the same time as it is baking into Vista more 
Genuine-Advantage-required features, Microsoft is stepping up elements 
of its Genuine Advantage program aimed at the reseller channel.

"We expect to do much more as a Windows business to help our partners to 
sell products based on Genuine Windows to compete with pirates. This is 
a major opportunity both for Microsoft and our partners, " Windows 
Client Marketing Chief Sievert told channel partners in July.

Platforms and Services Co-President Johnson had the same message for 
financial analysts later that month.

"There's a higher level of genuine Windows attached to PC shipments in 
developed markets than emerging markets, which means, if we want to 
continue to drive growth of Windows client OEM units faster than PC 
shipments, we've got to have a great compelling value proposition for 
the user for genuine Windows software and for the channel," Johnson said.

One element of Microsoft's OEM-focused Genuine Advantage strategy could 
be increasing the number of copies of Microsoft Office that are 
preloaded on new PCs. Under an internal Microsoft program known as the 
Unlicensed PC Initiative, the company is working to reduce piracy by 
curbing the number of new PCs sold without Windows – and, increasingly, 
Office -- preloaded on them.

Microsoft announced on July 11 that it has decided to allow PC 
makers/system builders to pre-install Microsoft Office Home and Student 
2007 edition on new PCs. Previously that version of Office was sold only 
are retail. Microsoft officials at the Worldwide partner Conference also 
announced they will allow system builders to provide customers with a 
free 60-day trial of Office on new PCs, allowing them to sell the Office 
license after the PC purchase via a program called "Office-Ready PC."

Outside the U.S., Microsoft has begun distributing stickers to partners 
selling software to Internet Café operators that read "This Internet 
Café uses genuine Microsoft software." In order to obtain the stickers, 
the cafes must validate their software through Genuine Advantage.

Roger Kay, president with Endpoint Technologies Associates, said he had 
no doubts that the channel would be a big Genuine Advantage focus for 
the Microsoft, going forward.

"For the channel, which is in general more complicit than end users, 
Microsoft will pursue a combination of education, engineering, and 
enforcement," Kay said. "Education is telling people how to figure out 
whether they have bogus copies and warn them of the dangers and is aimed 
at those trying to do right. Engineering covers technologies put into 
Windows to prevent counterfeiting and alert customers to the fact that 
they have a bad copy. Enforcement is aimed at the people who know 
they're wearing black hats and involves working with law enforcement and 
other measures to bring installations into compliance."


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