Microsoft tackles auction pirates

Many sellers were offering fake versions of Windows XP

Microsoft has launched 63 separate lawsuits against people peddling counterfeit software on auction sites.

The legal action targets sellers in 12 nations including the US, UK, Germany and France.

Most of those Microsoft has targeted have been selling fake "Blue Edition" versions of Windows XP.

Microsoft said the operating system was proving popular on auction sites as it is reaching the end of its commercial sales cycle.

Windows XP stopped being installed on new PCs at the end of June 2008 to make way for the newest version of Windows, Vista.

While Microsoft has claimed strong sales for Vista many businesses and consumers have shunned it in favour of the older software.

Global trade

In a statement David Finn, Microsoft's general counsel on worldwide anti-piracy and anti-counterfeiting, said auction sellers were taking advantage of unsuspecting customers.

"These dealers are peddling bogus products that can put customers and their personal information at serious risk," he said.

Research by Microsoft into the quality of fake software sold on auction sites found that 34% did not install properly and 43% contained tampered code that could expose buyers to identity theft or other attacks.

Many of the fake copies of Windows were being pushed with the help of a bogus marketing campaign based around a so-called Blue Edition of the software.

"Consumers should be aware that the so-called 'Blue Edition' software is nothing more than low-quality counterfeit software burned onto a CD," said Mr Finn.

Mr Finn said Microsoft provided tools and information to help customers spot fake software.

In pursuing auction sellers Microsoft has found that the trade in counterfeit software is now global. One of the cases it is handling spans four continents and involves peddlers in New Zealand selling Chinese copies of XP to customers in the Australia, North America, the Netherlands, New Zealand and the UK.

Internet Explorer gets makeover

It remains unclear when a final version of the program will be shipped, with the test version currently available for download.

IE8 offers a few surprises compared to the initial beta version released in March.

New features will include improved privacy and search functions, and ways to keep track of portions of web pages.

The release debuts two functions that were not available in the March release. However, many in the blogosphere have noted that several of the improvements in IE8 have been available on other browsers for some time.

One feature new to the release is the "smart address bar". Microsoft senior product manager James Pratt pointed out at that 80% of the time, internet users were visiting sites they had been to before.

To address that, the new release archives visited sites based on their titles as well as their addresses. That means a search in the address bar for words and phrases will find previously visited sites, as well as bookmarks.

Another new set of features makes web searching easier; search terms entered in the search bar at the top of the browser now instantly display potential results in real time as the search term is typed. Results are shown from user-defined search engines and websites, with rich visual content.

For websites with changing content, such as items on eBay or status pages on Facebook, IE8's Web Slices allows users to keep up with the content without going to the webpage directly, accessible through the Favourites bar.

Microsoft demos 'touch Windows'

Microsoft's next operating system (OS) will come with multi-touch features as an alternative to the mouse. It is hoped the successor will have a better reception than the much-maligned Vista OS, released last year.

Scheduled for release in 2009 the new fingertip interface lets users enlarge and shrink photos, trace routes on maps, paint pictures or play the piano.

"The way you interact with the system will change dramatically," said Microsoft chairman Bill Gates.

Speaking at the All Things Digital conference in San Diego, the Microsoft Chairman said Windows 7 would incorporate new forms of communication and interaction.

"Today almost all the interaction is keyboard-mouse. Over years to come, the role of speech, vision, ink - all of those things - will be huge."

Chief executive Steve Ballmer described the limited demo of the multi touch screen at the conference as "a small snippet" of the next version of Windows after admitting he wants "to do better" than Vista.

Even though Vista has suffered from a poor public image and a lukewarm welcome from many firms and users, Ballmer said the company has shipped 150 million copies of the programme.

Touch enabled

Industry watchers say Microsoft is hoping that Windows 7 can change the way people interact with PCs in the future.

"Touch is quickly becoming a common way of interacting with software and devices," writes Windows product manager Chris Flores in a blog post.

"Touch-enabled surfaces are popping up everywhere including laptop touch pads, cell phones, remote controls, GPS devices and more."

When challenged as to who will get to market first with a new touch screen device, Microsoft or Apple, Mr Ballmer said it was not much of an issue.

"We'll sell 290 million PCs and Apple will sell 10 million Pcs."

"They're fantastically successful and so are we and our partners. But it's a different job. Steve (Jobs Apple CEO) can flip his hand and sell a few models and I don't take a thing away from him."

Website Beta News reports that "beta testing of the product should begin later this year although a lack of touch-screen devices could slow widespread trials of the new interface".

We walked away

During the conference, CEO Steve Ballmer also talked about the company's failure to buy Yahoo, following its offer of $47.5 billion.

"Look, we made a bid for Yahoo. It was out there for three months and there was a difference between bid and ask."

"We thought we could accelerate our business. We were going to be financially disciplined about it. We walked away. We are talking with them about other ideas but we are not re-bidding on the company. We reserve the right to do so. That's not on the docket."

Gates said: "I've been supportive of everything Steve has done. Totally supportive."

bbc