WGA is a non-vital Windows component, which means that without it your copy of Windows XP will continue to work.If you’re using something like VLC, this might be another reason to ditch WGA.WGA consists of two components: an installable component called WGA Notifications that hooks into Winlogon and validates the Windows license upon each logon and an Active X control that checks the validity of the Windows license when downloading certain updates from the Microsoft Download Center or Windows Update.
It is obvious that the Redmond giant does not accept anymore its products to be counterfeited and used with the same features as the original copies.
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Therefore they found a middle way to stop and prevent illegal use of Microsoft products.
Because educating users all over the world that illegal copies are an act of theft seemed to be an impossible challenge mainly due to the economical background of many countries, they chose to bait people with the genuine product advantages.