An increase in software piracy could cost Microsoft in China this year, according to a new report. 

From Bloomberg News:

Microsoft Corp.’s profit growth may be stunted this year by a resurgence of software piracy in China, the second-biggest personal-computer market after the U.S.

More than 8 out of 10 pieces of software in use are copied illegally in China, and money lost to piracy worldwide will increase this year, IDC, the Framingham, Massachusetts-based technology researcher, said. Efforts to combat the distribution of unauthorized applications had a setback this year, Microsoft said in April.