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Interesting comments on software and piracy from Steve Ballmer in Information Week relative to piracy and marketing:

In fact, our market share relative to Linux is better in China than almost any other country in the world. It might be our strongest country. You might say, hmm, that's odd. But countries that have high piracy, you could say in a country like that, our acquisition cost is the same as Linux. I don't mean to sound facetious, that's not where we want to be, but really, for most people in China, Windows and Linux cost the same amount of money. I was in a book store when I was in Beijing last time, and I see all these copies of Windows in a funny-looking package for $2.50. Then, way in the back, behind a lock and key, I actually found a Microsoft Windows for $99. It was our copyright--you couldn't see it, it was collecting dust, it was behind lock and key. The $2.50 version was the popular version.

Now that's fascinating. Ballmer has seen piracy first hand - of Windows - and seems to recognize that it helps his company in China in the short term. Eventually, there will be better IP control in China - but in the meantime, the market is figuring out what it likes. Attempting to shut that down will only hurt them. There's a lesson in that...