Microsoft’s deal with Indonesian government for pirated copy is slashdotted. I think it is a very wise and realistic move too. I think Microsoft prices it’s software based on US currency (in short it’s just too expensive). It just’s too expensive for common people and people who do not use computer so much to justify spending the dollar on Microsoft Operating Systems and applications.
Microsoft make a similar move in India and rate it at 1 rupees and see how much money you can get in India rupees, the money you would have not expected into your accounts. Have a similar deal in US too (keep the price at $5) 🙂 and you will be surprised to see how many people will spend that price to have their copy legalised.
I really don’t think that people are ready to spend money on Software as easily they can do it for hardware. They know hardware cannot be pirated whereas software can be. I was talking to my friends and their friends last weekend on piracy and telling them that buying licensed copy is a good thing to do. They laughed at me and said licenses are for office and not for home purpose ( Ofcourse I disagree).