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>MS didn't really lose any money from this but they claimed that they did.

Users potentially have. End users were deprived of genuine restore cds.

Except he never actually sold the discs, so no one lost any money at all.

Another article said that he sold the discs for a quarter and that he mislabeled them as Dell recovery disks.

That's only because he got caught before he managed to start selling his discs.