Software piracy in China is a huge problem for Microsoft. In 2008 Microsoft went on the offensive by sending a software update that could turn the desktop wallpaper black when a pirated Windows XP operating system was being used ( www.youtube.com/watch?v=xRsFvmo72_A). Not surprisingly, this move stirred much controversy in China. Is this the right approach to combat piracy? What are the possible risks? Are there better ways to fight the problem, if so, how?