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Here’s Why Microsoft Is Giving Pirates the Next Windows for Free


Bill Gates was famously sanguine about the rampant theft of Microsoft’s intellectual property in China. “As long as they’re going to steal” software, he said during a 1998 town hall at the University of Washington, “we want them to steal ours.” He predicted that Microsoft would convert the free riders into paying customers within a decade.

Not quite. By 2011, Chinese software piracy had so thoroughly undermined Microsoft’s sales that former chief executive Steve Ballmer revealed that the Netherlands, population 17 million, was a greater source of revenue than China, population 1.3 billion, the Wall Street Journal reported at the time.

Ballmer has since stepped aside, and now it’s CEO Satya Nadella’s turn to take a whack at the piracy problem. His strategy is an offer bootleggers can’t refuse: The chance to upgrade from an unlicensed, outdated version of Windows to the latest version for free.

“We are upgrading all…

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