Microsoft

(Credit: Dong Ngo/CNET)

Alex Kochis, Microsoft's director of Genuine Windows, posted a blog late Thursday addressing the "leak of a special product key" of Windows 7 RTM (release to manufacturers). This confirmed the rumor on Tuesday that an ISO file of Windows 7 RTM sent to Lenovo that contains a master key--a number used to verify the authenticity of the software--was leaked to the Internet.

According to the blog, "The key is for use with Windows 7 Ultimate RTM product that is meant to be preinstalled by the OEM (original equipment manufacturer) on new PCs to be shipped later this year. As such, the use of this key requires having a PC from the manufacturer it was issued to. We've worked with that manufacturer so that customers who purchase genuine copies of Windows 7 from this manufacturer will experience no issues validating their copy of Windows 7. At the same time we will seek to alert customers who are using the leaked key that they are running a non-genuine copy of Windows. It's important to note that no PCs will be sold that will use this key."

This means the hacked key will still work, though it will likely be identified, presumably when the computer with this version of the hacked Windows 7 OS installed connects to download updates from Microsoft.

Kochis said Windows 7 includes an improved capability to detect activation exploits and it should be able to alert the customer when the leaked version or other hacks are used to install Windows 7 on a PC.

He added, "Our primary goal is to protect users from becoming unknowing victims, because customers who use pirated software are at greater risk of being exposed to malware as well as identity theft. Someone asked me recently--and I think it's worth noting here--whether we treat all exploits equally in responding to new ones we see. Our objective isn't to stop every "mad scientist" that's out there from dabbling; our aim is to protect our customers from commercialized counterfeit software that impacts our customers' confidence in knowing they got what they paid for."

Personally, I don't see what Microsoft can do now that the key and the ISO is out in the wild, other than wait for a system installed with that copy of Windows 7 to connect to its update servers. In the meantime, it can issue another key to OEMs to make sure they don't use they leaked key and hope that consumers will buy its genuine product and, of course, pay the full price for it.

It's safe to say that we probably have to wait for a service pack of the operating system to be sure that this leak is fully addressed. In the meantime, this leaked key could still pose a big problem if the hackers are able to alter the ISO and sell it as counterfeit retailed package of the OS. In this case, customers will only find out that they don't have an genuine copy, if they ever do, when it's too late.

Microsoft appears likely to offer a "Family Pack" version of Windows 7, according to language in a leaked test version of the operating system.

This week enthusiasts started buzzing over wording in the license agreement in the test build that suggests Microsoft will have an option to buy a license for Windows 7 that covers up to three PCs in the same household.

Wording in a leaked test version of Windows 7 suggests that a long-anticipated Family Pack option may become reality.

(Credit: Microsoft)

According to blogger Kristan Kenney, the license agreement included with the recently leaked version states that "if you are a 'Qualified Family Pack User', you may install one copy of the software marked as 'Family Pack' on three computers in your household for use by people who reside there."

Microsoft would neither confirm nor deny that it plans to offer the family pack.

"We will continue to work with our partners and expect to have other great offers in the future as we lead up to and beyond general availability," a representative said. "We have nothing to announce at this time."

Since 2002, Apple has offered a Mac OS X family pack that covers up to five Macs in the same house. Microsoft briefly offered a deal with Windows Vista that allowed Vista Ultimate buyers to purchase discounted copies of Vista Home Premium for additional PCs, but discontinued that offer after just a few months.

Vista Ultimate users are already upset that Microsoft's first discount offer for Windows 7 allows for discounted upgrades to Windows 7 Home Premium and Professional, but offers no upgrade options for them. Microsoft said it may have more offers, but users will have to gamble if they want to skip the current pre-order program.

That option allows $49 upgrades to Windows 7 Home Premium and $99 upgrades to Windows 7 Professional. Microsoft said that those deals will be offered only until July 11.

Windows 7 is slated to arrive on store shelves and new PCs on Oct. 22.