Microsoft said it is cutting the price of Windows Vista in China to combat piracy in the country. The price of Windows Vista Home Basic, beginning Aug. 1, is 499 yuan, or about $66. That compares to a suggested retail price in the U.S. of $199. We had an item (scroll down) in today's paper.

Our own Kristi Heim traveled to China for this two-part report on the market for fake goods there, including a close look at Microsoft's anti-piracy efforts.