"At the Morgan Stanley Technology conference last week in San Francisco, Microsoft business group president Jeff Raikes commented on the benefits of software counterfeiting. 'If they're going to pirate somebody, we want it to be us rather than somebody else,' he said. 'We understand that in the long run the fundamental asset is the installed base of people who are using our products. What you hope to do over time is convert them to licensing the software.'"
Obviously Microsoft prefers the market to use their software even if it's pirated rather than the alternative to occur: the use of free software which threatens their dominance in the software market."