"Some of it has to do with intellectual property protection," Obama said, according to the White House transcript. "So we were just in a meeting with business leaders, and Steve Ballmer of Microsoft pointed out that their estimate is that only one customer in every 10 of their products is actually paying for it in China. And so can we get better enforcement, since that is an area where America excels -- intellectual property and high-value added products and services."
Obama also hinted that Hu had agreed to take action. This doesn't really mean much: China has been known for prevalent software piracy and many times those in power have said they will take action. While we don't doubt steps have been taken, the results still speak for themselves.