Microsoft realized they were losing $2 billion a year due to the piracy of their operating system (among other software). So, Microsoft’s product managers got together and decided they needed to end piracy of their primary operating system once and for all. But how They tried various techniques, all of which inevitably failed. Fast forward a couple of years.  Some brilliant mind at Microsoft decides to write a tool to help determine whether or not a given PC is running a genuine copy of Windows. Windows Genuine Advantage (WGA) was born.
It worked. Sort of.  That is, until it starting disabling PC’s running legitimate copies of Windows XP.
Taken from Groklaw.net:
21. However, WGA can malfunction and mistakenly identify a licensed Windows XP copy as unlicensed when, for example, a user transfers his legitimate Windows XP copy to another system with different hardware or significantly changes the hardware on the original system (e.g. installs a new hard drive). In this way, WGA impinges on users’ fair use rights under 17 U.S.C. Section 117(a)(2) to use legally space-shifted Windows XP copies.
Once I activate Windows XP, I dislike having it audited by the WGA tool repetitively. I understand Microsoft’s concerns, but what about the user. Users have concerns, too. Users don’t enjoy putting up with endless prompts to verify the operating system they paid for. Â Users don’t enjoy knowing that Microsoft could be gathering sensitive information from their computers (although they claim otherwise). If you don’t understand how irritating this can be, read a post I wrote earlier.
Well, to keep it short, I hope Microsoft learns from the recent wave of class action lawsuits against them.? Otherwise, they can slowly watch the market share of their operating system decrease.