> Is it worse than the data collection recently reported in a test version of Windows? yes, because the 'test' of windows, as you put it a) states that it collects data b) is a test, and you're there to test it - it's not a lot to expect that usage data is collected c) microsoft have said many times that you shouldn't use it as a production or main pc.

and how easy would it be for a malware writer to fool such an application in to thinking its malware was one of these generic and popular net-based applications? The only way to prevent that is to create hashes of each application, which would need re-validating each time it is updated. other than that, a good idea.

having dealt alot with software licensing.. you have three simple options - ignore the problem and hope no one finds out - suggest free software that can replace illegal installs - tackle the problem head on. here in the UK at least the fact is that if your company was found out the guys up the food chain would be held responsible in the eyes of the law. If your company can cope with the financial and legal hit, and continues to exist you may lose your job, but you probably wouldn't be the only one. start any project like this by finding out the scope of the problem. find out, or make rough guesses as to what the damage is, and what would need to be done to rectify it. Get management buy-in, and start fixing it. Acceptance that there is a fault, and getting management buy-in to rectifying the problem is often enough to prevent the likes of FAST and FACT from persuing legal action. if you're up against a financial reason for not buying licenses, make managers realise that you've not been buying them since year dot, and the business simply cannot grow living on the wrong side of the law.