Is OnLive Violating Microsoft's Licensing Agreements?

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Though you might expect a company whose business model is based around sharing installations of Windows via the web to have thought about licensing... you'd be wrong. Microsoft is claiming that OnLive—the company intent on delivering Windows to your iPad—violates its Windows 7 licensing agreements.

Writing on Microsoft's Volume Licensing blog, Joe Matz, VP of worldwide licensing, said the company is "actively engaged with OnLive" in an attempt to bring them "into a properly licensed scenario." While OnLive declined to comment when approached by ZDNet, it certainly sounds like Microsoft won't let the problem lie. [Microsoft via ZDNet]