Microsoft said its campaign to clamp down on counterfeit copies of its software is working.

The software giant said since the launches of its Windows Genuine Advantage scheme and Keep it Real campaign in the UK earlier this year, the piracy rate of Windows XP has fallen across the country and is now down from 16.7 per cent to 12.4 per cent.

The core part of the Keep It Real campaign launched in February is aimed at raising awareness among businesses such as small independent computer builders, through Microsoft's Feet on the Street team.

Microsoft said that it estimated two-thirds of the 1.5 million computers built and sold to consumers and small businesses by local retailers do not have genuine licensed copies of Microsoft software.

This software includes Windows XP as well as other Microsoft applications such as Office.

This team visits PC builders and traders across the UK to educate them on the terms and conditions of Microsoft licensing agreements.

Microsoft said that while there are cowboys out there who knowingly practise hard disk loading – where either fake copies or more copies of the software than have been licensed are loaded onto hard drives – or who sell consumers fake copies of software, many retailers themselves are victims of the counterfeiters.

Since the team started work, Microsoft has uncovered seven illegal traders. The company is now taking legal action against each one of these, to ensure businesses and consumers are no longer at risk of being duped into purchasing pirated Microsoft software from them.

Microsoft said its WGA scheme has helped raise awareness with the public of the problems piracy can cause; in addition, the company's Software Asset Management (SAM) team works with businesses to audit the software licences they have.

SAM has so far uncovered 13 customers who were found to be using counterfeit Microsoft software, involving more than 5,000 units of pirated Microsoft Office, Windows or Server software.

Microsoft said it is now just 0.7 per cent away from reaching the three-year Keep IT Real goal of bringing the rate to 11.7 per cent.