Msft certainly don't turn a blind eye. I know this first-hand. It was part of my job as Sales and Marketing Director at Microsoft to actively pursue illegal and unauthorised channels and shut them down. In South Africa I personally founded and launched the local chapter of the BSA in 1992, along with Autodesk. We worked assiduously to go after and close illegal and unauthorized channels to a) protect IP and copyright, and b) support authorised distributors and their dealers. Unlike say Google, which makes >90% of its money selling your eyeballs to advertisers, Microsoft makes its money selling software and related services through the authorised channels. It would be utterly idiotic for Msft to turn a blind eye to illegal and unauthorised resellers who undermine its channel-centric business model. Every single IHV, OEM, aggregator, distributor and VAD on the planet knows that.