Keeping an eye on things

Unlike Windows XP, Vista will monitor the activation status of the computer even after the initial 30-day period. If the technology later decides that a key is no longer valid, through either a software update or via some other means, it will give the user another 30-day period to rectify the situation. This is where Windows Genuine Advantage comes in. WGA will not throw the machine into full reduced-functionality mode if activation has been completed once. Instead it will disable Aero, ReadyBoost, and Windows Defender, and it will display a persistent notice in the lower right-hand corner of the desktop that reads: "This copy of Windows is not genuine."
WGA is intended to monitor systems for evidence of tampering post-activation. In our estimation, this is in large part because Windows Anytime Upgrade will allow users to add new features to the OS on the fly, Microsoft is keen to protect this feature by watching for post-activation hacks on the system, and the OS will reportedly perform occasional internal checks on itself to search for evidence of tampering.
Cori Hartje, director of Microsoft’s Genuine Software Initiative, made it clear that Microsoft intends to use this technology in additional Microsoft products at a later time. Hartje cited a Business Software Alliance report on piracy which claims that there were losses of $35 billion across the software industry due to piracy.
As we have reported before, Microsoft's primary concern at this point is stopping both casual piracy and counterfeiters. I know from conversations with people inside the company that there are conflicting approaches to how to deal with this problem, but no one is under the illusion that that SPP, WPA, or WGA is going to completely eliminate piracy. The company is interested in continuing to build tools that make it difficult and inconvenience to be a pirate, however.