Microsoft Steps Up Anti-Piracy Effort in China

Microsoft is trying to fight piracy in China by ensuring that more new computers in the region come with genuine copies of Windows pre-installed at the factory.

The Redmond company said Wednesday that it had come to an agreement with the nation's second largest computer manufacturer, Founder, which includes a deal to resell Microsoft hardware as well.

Wednesday's agreement follows a similar one with Lenovo, where the #1 computer maker agreed to preload the Windows OS and other Microsoft products.

As part of the agreement -- which Microsoft chairman Steve Ballmer called an "essential part" of its Chinese strategy -- Windows will be installed on nearly every personal computer sold, and on about 40 percent of all business computers.

Founder declined to provide any details on the amount it paid Microsoft to close the deal. It did say that the deal also allows it to place Windows Live software on the machines for a period of two years.

Ballmer did not directly mention piracy in his comments to the press following the signing of the agreement, however it is all but certain to be at the heart of the deal. China has a huge piracy problem: up to 82 percent of all software used is illegally obtained, according to the Business Software Alliance.