Microsoft is suffering some setbacks with its lawsuit against Utah based company MBC Enterprises. Microsoft have alleged that MBC bought bootleg versions of Windows and Office software from a Texas company called Bantech and resold them for profit. However, a federal appeals court last week dismissed an earlier ruling in Microsoft's favour. It has been declared that more hearings will be necessary before MBC could be found liable for copyright infringement.

The 10th Circuit Court of Appeals has reversed the lower court's decision, saying that MBC had raised enough questions about what took place that it deserved a chance to argue its case completely.

There's no smoke without fire though, in MBC's case, who in the year 2000 agreed to pay $93,000 to Novell to settle a case concerning similar allegations to those brought by Microsoft.