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Zero Day

Ryan Naraine, Emil Protalinski and Dancho Danchev

Does software piracy lead to higher malware infection rates?

By | October 14, 2009, 4:20pm PDT

Summary: Yes it does, at least according to a recently released report by the Business Software Alliance (BSA) which basically correlates data on the known piracy rates for particular countries and their malware infection rates, using public sources. The rationale behind their claims is fairly simple - users relying on pirated copies of software also do not [...]

Yes it does, at least according to a recently released report by the Business Software Alliance (BSA) which basically correlates data on the known piracy rates for particular countries and their malware infection rates, using public sources.

The rationale behind their claims is fairly simple - users relying on pirated copies of software also do not have access to the latest, often critical from a security perspective, updates issued by the vendors, and are therefore susceptible to client-side vulnerabilities.

How biased are BSA’s claims, or are the report’s claims in fact real, emphasizing on how millions of users relying on pirated Windows copies are usually the first to become part of a botnet?

Infection distribution data for the poster child of patch management failure on a global scale, Conficker, speaks for itself, at least in respect to the report’s claims. At the beginning of the year, Symantec also made a connection between the high piracy rates of the most affected countries, and contributed their high infection rates to the user’s inability to obtain the released patches “:

On October 20, 2008, Microsoft rolled out an updated Windows Genuine Advantage (WGA) system to help combat the high rate of piracy of its Windows platform. One of the side effects of this policy is that people using illegal copies of Windows will be more likely to disable automatic updates from Microsoft. The fear is that a subsequent update may adversely affect their experience with Windows in a similar way the “black screen” that affected many users in China operating illegal copies of Windows. Without automatic updates, it is highly unlikely that many of these users are manually installing critical updates such as MS08-067.

The same infection distribution was confirmed by IBM’s ISS in April, once again highlighting some of the very same countries known to have high software piracy rates as main Conficker targets.

Despite the obvious connections, susceptibility to client-side vulnerabilities isn’t entirely driven by the software piracy rate. For instance, despite that vendors of ubiquitous applications release free patches to everyone, millions of end users are not applying them (Research: 80% of Web users running unpatched versions of Flash/Acrobat), with evidence of the practice streaming on a monthly basis (Secunia: Average insecure program per PC rate remains high) based on data from multiple vendors.

In Adobe’s case for instance, you need the help of a third-party application, in this case the Firefox browser, in order to patch millions of Flash users, despite the fact that Adobe itself has a updater tool, which no one else besides the cybecriminals appear to be using/spoofing.

Why is this “the patch is there, but we don’t care” mentality so common among end users? It’s because end users, next to certain network administrators, are still failing to understand the current threatscape and the simple fact that cybecriminals are more interested in targeting specific client-side vulnerabilities than OS related ones. Combined with the fact that according to Qualys, application patching is much slower than operating system patching, once again demonstrates why are web malware exploitation kits using outdated exploits so successful in general - they’ve found a sweet spot and a window of opportunity to take advantage of.

What do you think? Does software piracy lead to higher malware infection rates, beyond the success of the Conficker botnet? What use are Microsoft’s critical patches to the millions of users relying on pirated Windows copies, which would ironically join a botnet and start attacking those using legitimate Windows versions? Should Microsoft care?

Or is software piracy irrelevant to the infection rates considering the fact that millions of users still haven’t applied the free patches released by their vendors months ago?

Talkback.

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Topics

Dancho Danchev is an independent security consultant and cyber threats analyst, with extensive experience in open source intelligence gathering, malware and cybercrime incident response.

Disclosure

Dancho Danchev

More details on Dancho Danchev's current and past professional affiliations, can be found in his LinkedIn profile.

Biography

Dancho Danchev

Dancho Danchev is an independent security consultant and cyber threats analyst, with extensive experience in open source intelligence gathering, and cybercrime incident response. He's been an active security blogger since 2007, and maintains a popular security blog sharing real-time threats intelligence data with the rest of the community on a daily basis. More details on Dancho Danchev's current and past professional affiliations, can be found in his LinkedIn profile. You can also follow him on Twitter

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First off, MS rips you off
steve_m291 15th Jun
Ok, there are may good points here, dial up is slow, some people have no idea about updates and so on, but the main problem starts with microsoft RIPPING OFF EVERY CUSTOMER TO BEGIN WITH. I don't mind buying software, but paying 10x the worth is not going to happen for many people. No matter what it is, software, food, books, cars, it has been proven, if you charge too much, they will not buy it, or will steal it.
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Dial-up connections and malware?
Tom12Tom 14th Oct 2009
What percentage of the world runs their Windows machines on a dial-up connection? On those machines, it can take HOURS to download routine security patches, and most people aren't that patient.
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Not to mention...
zkiwi 15th Oct 2009
That users don't want their computers to be "busy" doing updates/patches when they want to work/play.

And, it should be noted that an awful lot of computers are being run by people (home, small business) who have no concept that software will need updates/patches. Note that they are never told (in any manner that will ever make a difference) that this is important.
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Dial Up Users
fatman65535 15th Oct 2009
Quote: On those machines, it can take HOURS to download routine security patches, and most people aren't that patient.

Yesterday, I downloaded these M$ patches (listed by KB number, and size):

PATCH KB SIZE (in KB)
KB 974417 - 11,192
KB 953297 - 13,790
KB 969059 - 1,038
KB 974571 - 510
KB 975467 - 733
KB 971486 - 2,638
KB 958869 - 1,275
KB 973525 - 487
KB 974455 - 4,861
KB 854155 - 1,077

I still have to download a 5+ MB .NET fix.

ALL OF THIS DOWNLOADED BY DIAL UP

I had plenty of time to go out and cut the grass, while the modem was getting choked by this. After a couple of hours doing yard chores, it still was not done.

For me, cable broadband is out of my budget, thanks to an economy that plainly sucks.
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It sure does . . .
CobraA1 14th Oct 2009
"The rationale behind their claims is fairly simple - users relying on pirated copies of software also do not have access to the latest, often critical from a security perspective, updates issued by the vendors, and are therefore susceptible to client-side vulnerabilities."

OH it is more than just that. There is NOTHING preventing somebody from dropping a trojan or five into an illegal download. And if somebody has no qualms about copyright law - how much do you expect them to care about the user's computer?

It's not just the update policy, it's often questionable behavior, especially behavior where the user is doing something that is a known security risk.

I know somebody who did a lot of software downloading - his computer was, honestly, malware city. I remember a USB stick used in his computer would drive the antivirus crazy - with a legit trojan. Obviously, that got pulled quickly and I did a complete check to make sure the thing hadn't jumped off the stick.

That was many years ago. I *hope* he's learned a bit since then.

Now - my mother doesn't do that kind of stuff, and even though she doesn't know much about computers, a combination of basic precautions and using automatic updates means she's pretty safe. She has AV, but it's been years since I've caught her computer with anything on it.

IMHO the difference between no security and even basic, common sense security is big.

Despite claims to the contrary, it doesn't take much to secure a Windows system. I'd say the vast, vast majority of infections are from people who are doing not just stupid things, but often things that are legally questionable.

One thing I do recommend for Windows systems is to get Secunia's PSI, which keeps an eye on software updates.
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If Microsoft would implement some sort of repository and package management system for Windows similar to Linux, many of the malware problems associated with people using outdated versions of programs would simply disappear. Imagine an app built into Windows Update that would automatically tell you that updates are available for Firefox, Java, Flash, Adobe Reader, QuickTime, and iTunes, then automatically install them without (1) each program having its own update service running 24/7 and (2) installing extra "bonus" crapware that the program's maker throws at you (I'm calling you out here, Apple!)

Secunia's PSI looks like a good program for people that are halfways computer literate, but it still requires way more interaction than should be necessary. For people like my dad, who knows little more about computers than how to click a mouse on an icon, even this is waaaay too complicated. For him, the only way updates are getting installed is if the computer does it automatically every morning at 3:00 a.m.

I recall reading something about MS looking into the possibility of such a service, but haven't heard if they plan to implement it.
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I agree
tbensen@... 15th Oct 2009
Windows should come out with an all inclusive
program that detects what apps you have
installed on your computer and notifies you of
any impending updates. True it would probably
be somewhat difficult to do but I think it
would greatly improve security on a persons
computer. People wouldn't have to worry about
opening up each app on it's own and try to
figure out how and where to go for these
updates.

I also agree with the Convenience Rules post
and that most people don't apply updates b/c of
the steps involved, even though it is extremely
simple. We've gotten lazy and too accompanied
to things being instant and the mentality that,
well it's a computer shouldn't it do it by
itself, I don't get it. One of the biggest
security threats is the End-User and their
unwillingness to try and stay protected.
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Linux package management
fatman65535 15th Oct 2009
I have had a dual boot machine (Ubuntu 8.10 and Windoze XP) for some time. The Ubuntu install came from a Live CD.

Unfortunately, this machine has a "winmodem" (a 'software' modem) and I never was able to successfully get it working under Ubuntu.

Finally, I obtained a cheap external 56K serial modem; connected it to a serial port. Then I followed the instructions on the Ubuntu web site, and got the modem installed.

I then opened up a terminal prompt, and issued a 'sudo wvdial' command. That modem dialed out, connected, and authenticated my to my ISP.

The first thing I did was update the package manager. I was suddenly greeted by an updated list of available packages. About the same time, Ubuntu's update manager informed me that there were over 300 updates available, that list totaled more than 280 MB. That is one way to choke a modem.

After pairing it down to something more that 27 MB (I downloaded the essentials FIRST); the update manager went to work.

Since I clicked to see the details of which files were downloaded, I had a running track of what was already downloaded at any one point in time. Periodically, i would check, and note that it was downloading file xx of (in my case) 116 files.

I was able to do other things while the files were downloaded.

Once they all were downloaded, the package manager went off installing the updates. I wanted to see the details, and I watched it as it stopped a service, replaced the required files, and then restarted the service. Very slick!

M$ should take note, Linux has updating all figured out.
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well..
Ceridan Updated - 15th Oct 2009
I tought about it alot and in apparance it's a wonderfull idea. Infact In windows Vista/7 they have an out of browser updater. However it would have 3 problems:

First: It's a techsupport nightmare, the random joe user wont think that the 3rd party has to support his software but instead random joe would think that MS must support all software.

Second: How manny software exists for windows? Will all third party would need to certify their system(hence paying a liscence to use MS's service).

Third: As I said earlier, they have a package manager allready, it's called Windows Update. It manages updates for ms software. If 3rd parties where to use it also... who would pay for the bandwidth.


PS: Linux does not have those problems for various reasons(OpenLiscences, using school networks... etc).
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What's causing Japan's variance?
rpmyers1 14th Oct 2009
They have a higher piracy rate, yet a lower malware rate. Why?
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Japan's rate among the lowest
Alzie 15th Oct 2009
According to the Business Software Alliance (bsa.org) Japan ranks #104 in their 2007 piracy rankings. The US ranks #107.

http://global.bsa.org/idcglobalstudy2007/studies/2007_global_piracy_study.pdf

Using the same link shows that the highest $ losses due to piracy is in the US (over $8 billion) followed by China and Russia.
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If you have to use a dial up service, the updates take a lot more time AND you will have to PAY for that time.

I think you will find that in Japan most PCs has a broadband connection.
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and then maybe these data might be interesting.
You don't need a correlation coefficient to know that a game downloaded from some guy in Russia is more likely to have malware than one bought in the store.
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All downloaded software carries risk
terry flores 15th Oct 2009
I detected a virus in a software download from a "reputable" software vendor's site, which had been attacked and hacked. So in the end, any software download and install carries risk above that of installing from physical media.

But all the other points raised are valid. When one or both parties are willing to break the law, then that extends to other acts (like malware) as well. And lawbreakers are less likely to request help from legitimate sources in preventing or fixing malware problems.

Normally, I think that everything said by shills like the BSA should be taken with a metric ton of salt, but they are actually telling the truth for once.
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Remove "downloaded"
rpmyers1 15th Oct 2009
There's been instances of viruses released on media too.
Photoshop from Russia is far more likely to have a virus than Photoshop from Amazon.
People that download pirated software are easy targets for people that create trojans.
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Duh!

You download pirated software, you you gets what
you paid for.
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Some problems with your statement
Third of Five 17th Oct 2009
1) What if the people didn't download the
software, but purchased software that they
believed to be legitimate?

2) They are not the only ones who "get"
viruses/malware/etc.--having anyone as an
unanswered vector for malicious code is not in
anybody's interest, even if said vector comprises
people who pirate software.
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Convenience Rules
johnfenjackson@... Updated - 15th Oct 2009
The principal reason for consumer tardiness in applying patches is inconvenience. We have grown used to things like central locking where one click does the whole job. Not so on the most advanced of our purchases: PC's require constant monitoring and maintenance to keep them secure. Consumers just won't put up with this.

Don't believe me? One of the nails in Vista's coffin was UAC. Here the vendor went out of its way to annoy users in the name of security. We know how well that was received. Not.

It's gotta be convenient or it's not going to happen.

I agree completely with AKH that, pirated or not, security fixes for all software is in the public interest. Ironically I suspect that the vendors' policies .... have forced pirates to take the strongest security measures ... and for all others to abandon the updating process.

Have we failed to learn that security is not primarily a technology issue? It appears so.
It's not just the inability or unwillingness to apply patches. In most developing countries, the price of legal software is ridiculously expensive considering the income of the average user in these countries. Combine this with the fact that cheap, pirated software is available on every corner, and the choice is an easy one for users in these countries.

I recently returned from three years in Afghaninstan spent as IT manager for a US contractor. I can't count how many machines I had to reimage due to our Afghan interpreters use of bootleg software. Most of the stuff there comes from China or Iran, and the majority of it carries a malicious payload.

Regardless of the source, however, the problem just seems to get worse.
I using Linux on a professional basis, so I spend relatively little time on the technical details of Windows. I do have to have a Windows box of two for support purposes etc.

When I get the little systray popup that says an update is ready from say Sun or Adobe I do not install it. Why? I do not know any mechanism to verify that the patch came from those sources.

So if I hear about a critical patch, I download it from the providers website only.
THE BSA HAS a VESTED FINANCIAL INTEREST of reward income
from Microsoft; etc.... for ' getting pirates'.

Their 'research studies ' are NOT UNBIASED !

They are self-serving ; instances of Conflict of Interest Publishings!

No Matter how the complete their 'research' was; they ONLY PUBLISH FINDINGS that serve their OWN FINANCIAL self interests
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For all practical purposes
Ole Man 16th Oct 2009
The BSA "IS" Microsoft, or Microsoft IS the BSA.

Any other members are just "water boys" for Microsoft.

The Boy Scouts Of America share the title of "BSA", so the Business Software Alliance must be typed in full to get ANY information on them.

http://www.bsa.org/country/News%20and%20Events/News%20Archives/en/2009/en-09222009-ctoprocurement.aspx

Each year, BSA brings CTOs together with senior Administration officials, Members of Congress, and other policymakers to discuss key issues affecting the industry.

And you can bet there's plenty of "lobbying" going on.

http://www.bsa.org/country/News%20and%20Events/News%20Archives/en/2009/en-06032009-ceoforum.aspx

During the BSA CEO Forum, the executives will meet with top policy makers including:

* Hon. Janet Napolitano, Secretary of Homeland Security;
* Hon. Ron Kirk, US Trade Representative;
* Hon. Dr. John Holdren, Director, White House Office of Science and Technology Policy;
* Sen. Max Baucus (D-MT), Chairman of the Senate Finance Committee;
* Sen. John Cornyn (R-TX), one of BSA?s 2008 Cyber Champions;
* Rep. Bennie Thompson (D-MS), Chairman of the House Homeland Security Committee;
* Rep. John Conyers (D-MI), Chairman of the House Judiciary Committee and another of BSA?s 2008 Cyber Champions;
* Rep. Henry Waxman (D-CA), Chairman of the House Energy and Commerce Committee;
* Rep. Bart Gordon (D-TN), Chairman of the House Science and Technology Committee; and
* Rep. Edolphus Towns (D-NY), Chairman of the House Oversight and Government Reform Committee.

The chief executives attending the forum represent some of the world?s leading software companies:

* Shantanu Narayen, President and Chief Executive Officer, Adobe Systems, San Jose, Calif.;
* Greg Bentley, Chairman of the Board and Chief Executive Officer, Bentley Systems, Exton, Penn.;
* Jeff Ray, Chief Executive Officer, Dassault Systemes Solidworks Corporation, Concord, Mass.;
* Steven A. Ballmer, Chief Executive Officer, Microsoft Corporation, Redmond, Wash.;
* Ray Schiavone, President and CEO, Quark Inc., Denver, Colo.;
* Tom Adams, President and Chief Executive Officer, Rosetta Stone Ltd., Arlington, Va.;
* Anthony Affuso, Chairman of the Board and Chief Executive Officer, Siemens PLM Software, Plano, Texas;
* John Chen, Chairman, Chief Executive Officer, and President, Sybase, Inc., Dublin, Calif.;
* John W. Thompson, Chairman of the Board of Directors, Symantec Corporation, Cupertino, Calif.; and
* Jack Little, President and Chief Executive Officer, The MathWorks, Inc., Natick, Mass.
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I do believe that high piracy rates correlate with
high virus/malware rates. I don't think it is
just lack of access to security updates. I think
high piracy rates are found in groups that are
typically not very sophisticated users and don't
appreciate the risks of pirated software. They
probably invite some malware in with their
software. These same users probably don't even
update even legit software.
Some of these software hacks and pirated software are really really complex. It takes much knowledge and time to crack some of these software packages. Why would people pirate software if there wasn't something more in it for them? I know some people like to break security measures for the fun of it. But cracking and reselling is totally different. If a person is smart enough to crack some of these security schemes then they are probably smart enough to get a well paying job legitimately. It only seems logical that if they are letting cracked products into the free and open then there is an alternative motive, and it's probably not nice.
I'm inclined to say that there's some correlation. On the other hand, many people that go to the trouble of pirating software are reasonably technically savvy (though that may be different now relative to, say, 8 years ago), so I find it hard to believe that they'd leave themselves wide open to attack...
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No
wizardb@... 15th Oct 2009
Stupid users with proprietary (dell,hp,gateway etc) computers lead to higher malware infections these users have absolutely no idea what is needed to protect them selves!
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I seriously doubt it
Ole Man Updated - 16th Oct 2009
Anyone savvy enough to pirate (and actually employ) software certainly is smart enough to avoid malware.

I think the "average user" and newbies are responsible for most, if not all malware. Of course there are exceptions to all rules. There must be a few people out there smart enough to pirate software, yet too stupid to block malware.
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Windows software & Operating Systems do..
Christian_<>< 16th Oct 2009
Windows Operating Systems have clogged the entire backbone
full of spam/zombie machines.

Just when you thought Windows was losing popularity...

wink
I think that the BSA's article is self serving. Most of us understand the inherent risks that come with pirate software, but you can pick up most virii, spyware, adware, ect.. from surfing the wrong website.

I can take the same angle about surfing the web.
Anytime you download anything it leads to malware being a possibility. People willing to take the gamble on pirated software won't change so what's the point? Programs that construct a sandbox and virtual drives encourage piracy and give the downloader a test buffer for malware, these programs will be around forever and so will malware. It's all just part of the world we live in. You can't change moral conviction
Any pirated software worth its salt is accompanied by a patch key that in effect makes the software recognized as legit, allowing auto updates. The software vendor then tries to delegitimize the pirated software through a program update, patch keys become available etc, etc, etc. Breakers say blame the code, not the hack. A far greater problem is that malware is often embedded in the pirated application, finding its way to the operating system through an application install. A good real time scanner often detects it. I would question any self-serving report by a industry sponsored group. They can blame their peers for that.
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keygens often contain viruses
vaporland 16th Oct 2009
many times the pirated application is clean but the serial number key
generator application is not. wise pirates use virtual machines and IP
traffic filters (zone alarm, little snitch) to detect and remove or block
these...
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The software Alliance would lead you to believe that. No worse that downloading other stuff off the net.

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Planning for the prom starts weeks in advance with a search for the dress, taking into account material, color and of course, the shoes. These days, it is not enough to be just beautiful. The final effect has to be as stunning and even as sexy as possible. The most popular sexy Prom Dresses are satin, sequined, vintage and the little black dress as well as the hanky hem, the short and spicy prom dress and the classic Cinderella ball gown.

For sexy Prom Dresses, it is very important to determine the exact kind of dress that would suit you. The dress may look great on a model but it is necessary that it looks great on you too. To that end, take accurate hip, waist and bust measurements. Next, determine the kind of body you have-an A or H type, round or hourglass body-before you ship for a dress to die for.
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The BSA is full of it
billjacobus1 17th Oct 2009
The acronym BSA should mean the Bull $h1t Artists

The main cause of malware is Windows XP's inherent vulnerabilities, Music downloads via Limewire and other P2P clients, lack of anti-virus software, and downloading stuff like "Paris Hilton Secret Sex Video", which usually has 5 or 6 viruses attached to them.

Most anti-virus software reports key generators as a virus, so the number of false positives are going to go through the roof and give the BSA plenty of ammo, which is likely inaccurate.

Hey folks, I don't condone it, but I'm also no fan a paramilitary software squad with hot lines to the White House.
OK... does the person who does your e-mail alerts know he/she used the symbol of the famous and sinister Skull and Bones society at Yale (the Jolly Roger with "322" undeneath)?

Or is part of some creepy conspiracy...?
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Actually the main problem is...
lehnerus2000 Updated - 18th Oct 2009
The main vector for malware is....The Internet!

But seriously, as far as I am concerned the main problems are Flash and JavaScript.

For example, why does my online email provider's site need 200 scripts running (reported by NoScript)?

What are all these scripts actually doing?

How many are installing malware on my PC, whilst I am trying to read my email?

lehnerus2000
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GROUPAMA (a large French insurer) was caught in a $200m PIRACY case where it used "bank secrecy" to ask Police not to investigate its computers...

The fun part of the story is that the (Paris) General Prosecuter found no infraction in this (illegal) agreement!

See the whole story on:

http://remoteanything.com/archives/groupama.pdf
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Application softwre companies have a bad reputation for using so called "patches" to deliver marketing materials, rather than application code. This produces irate customers

Unless a specific feature is needed, and known to be in a particular application update, most developers and administrators I know do NOT seek out applications updates. They don't want to deal with dozens of unhappy customers.

Here is an area where Microsoft generally shines. Their OS patches generally run cleanly, without raising user hackles. So - we are much more likely to patch the OS regularly.

MAybe you should hold a survey of user experiences with duplicitous material delivered by software application "patches".
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RE: Does software piracy lead to higher malware infection rates?
barneyfokingrubble Updated - 19th Oct 2009
The truly annoying part about Microsofts whole attitude towards piracy is still part of the problem , i reformat not only mine but friends pc's on a regular basis either because they have an infection that no a/v can remove or because the whole system is grinding to a halt , unfortuanately my xp pro disc was damaged during a house move , how i dont know , anyway i made a back -up copy off a recently fixed one at work , which had a vlk in it ( volume licence key ) which is now blocked , so although i have a key i have the wrong cd in most cases , some people have one, many never had one when they bought there pc . Now microsoft have stopped manufacteurs from installing xp pro as they wanted to sell vista which is just plain crap , so if you want a copy to downgrade your vista ( in reality upgrading the system ) you cant officially , as the wga will say your using pirated software but and its a good BUT they will sell you a key for ?96.37p (sterling) for an o/s they no longer allow the pc manufacteurs to install , which is ?60 more than buying windows 7 or if you buy a vista pc now they will give you windows 7 free , so you see its all just a marketing scam , they want you to buy there latest o/s , that the public don't want , we want to stay with xp pro until they bring out something that is truly better and to do so people are turning to pirated copies and leaving themselves vunerable to botnets and online fraud on a huge scale , why cant people have what they want ? and how can you charge for an o/s you no longer supposedly sell , oddly enough you have to use xp home in a netbook as its not powerfull enough to take pro or even crappy vista , thats why there is an increase in pirating , simple is it not ? So if microsoft allowed people to install xp pro espically in 3rd world countries , most botnets and online fraud would stop overnight and they know it , its just down to there corporate greed and nothing more .
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Conficker=Microsoft
erikswanson 5th Nov 2009
I know i sound like a crackpot, but who else has the resources? And who has more to gain?
Well done! Thank you very much for professional templates and community edition
seslisohbet seslichat
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First off, MS rips you off
steve_m291 15th Jun
Ok, there are may good points here, dial up is slow, some people have no idea about updates and so on, but the main problem starts with microsoft RIPPING OFF EVERY CUSTOMER TO BEGIN WITH. I don't mind buying software, but paying 10x the worth is not going to happen for many people. No matter what it is, software, food, books, cars, it has been proven, if you charge too much, they will not buy it, or will steal it.

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