Pirates have been selling Windows 7 on the black market long before the operating system was officially released on October 22, 2009. That said, as far we can tell, it's a first to see Windows 7 being sold illegally on USB drives, the selling point being that they work much faster than DVDs. In China, Netac U208 8GB USB drives preloaded with Windows 7 are being sold for 98 yuan, or about $14, according to the Chinese website 163 (via the German website WinFuture).

Here are two translations of the Chinese text. First, Google's:

User posted days ago, we received news that bought in Shenzhen, SEG Plaza, a CEO with Microsoft's Steve Ballmer's signature U-disk, in addition to Microsoft CEO's signature in addition, this most daring move U disk is also pre-loaded with Microsoft's flagship operating system, version of Win7, and is 10-in-One version of the. From the packaging point of view, this is a U disk like Windows 7 Ultimate software, packaging, U disk is marked by Netac U208 words, a capacity of 8GB, but obviously it would not be authentic Netac U plate. A net friend to spend 98 yuan to buy the "value" U disk, insert the PC after the U disk is recognized as USB-CDROM, and a 5GB mobile disk, USB-CDROM or a 10-in-One version. Of pirated copies can achieve this, the cottage manufacturers had to admire the bold and creative, but for Microsoft, as well as Netac who simply wish to the anti-piracy really is not easy.

Now here is Bing's:

Some days ago we received news that the Forum users drop in Shenzhen SEG square buy a with Microsoft CEO Steve Ballmer of u-disk signature, the signature in addition to Microsoft's CEO, the u-disk wildest is also preinstalled Microsoft's flagship Edition, Win7 and the operating system or version 10-in-one. From the outer package point of view, it is a u-disk is more like a set of Windows 7 flagship Edition software, and the packaging of u-disk you is the words of U208 Branco has a capacity of 8 GB, but obviously this is not true, genuine u-disk Branco. Firends take 98 buy the Super value ” “ u-disk, insert the PC after the u-disk is recognized as a USB-CDROM and a 5 GB mobile disk, USB-CDROM, or 10-in-one version. This can be done will be pirated, respect the stronghold manufacturer's bold and creative, just for Microsoft and Branco, want to anti-piracy really not easy.

Apparently, the copies of Windows 7 Ultimate that ship on the USB drives are "10-in-One versions" (we're not sure where the 10 comes from, but the additional versions might be N versions or slimmed down versions). Furthermore, the packaging clearly says this is a Signature Edition and proudly displays Microsoft CEO Steve Ballmer's signature. Signature Edition copies of Windows 7 were handed out to Windows 7 Launch Party hosts; an Ars reader was the first person to get one. Any tech-savvy user would quickly dismiss a "10-in-One versions" copy of Windows 7 being sold on a USB drive and realize it is a pirated version. This makes us wonder though; was Steve Ballmer's signature placed there to help convince the average Chinese consumer?

There was a rumor back in June 2009 that said Microsoft was considering selling Windows 7 on a USB drive. Instead, the company offered two ways to sell the operating system to those who did not want to purchase a new computer: via retail or via download from the online Microsoft Store.

The latter option lets you then burn the downloaded Windows 7 bits either onto a DVD or onto a USB drive. You must do this part yourself, though Microsoft offered a tool to do it for you, right up until it had to be pulled over a GPL violation. The tool should be open sourced and rereleased in the coming weeks.

In either case, pirates have (once again) simplified the process of getting a copy of Windows 7 on a USB drive. Still, apart from the whole illegal deal, remember that purchasing pirated copies increases the chances your purchase will include extra unwanted malware preloaded with the installation of the operating system.