Via Delimiter, and it's on the Microsoft News Centre — Laptop Factory Outlet agrees to pay $50,000 compensation for infringing Microsoft copyright:
Following Microsoft’s investigations, the company’s directors admitted to purchasing second-hand PCs, pulling the COAs off them and reusing them on new PCs loaded with counterfeit software, which were then sold on to their customers.
Laptop Factory Outlet on OzBargain has posted a few okay deals (mostly laptops), and I wonder whether anyone is affected? Most laptops would come with genuine Windows license anyway so might only apply to their beige box desktops.
However it does raise concern on the license keys you get with the desktops you buy from small builders, as I won't be surprised that LFO is not the only one tampering with the license.
Interesting story. Thanks for posting it.