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"Dishonest auctioneers are too often using these online auction sites to sell counterfeit and illegal copies of Microsoft software, taking advantage of unsuspecting customers around the world," says David Finn, associate general counsel for Worldwide Anti-Piracy and Anti-Counterfeiting at Microsoft.

"These dealers are peddling bogus products that can put customers and their personal information

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at serious risk."

Microsoft says it's targeting sellers of so-called Blue Edition software. This scam sees counterfeiters offer a special edition version of the software very cheaply, claiming it is part of a supplier surplus.

A quick search for Blue Edition software brings up a number of sites, with one claiming: "There's quite a big chance that you've never heard of this Blue Edition, because it is only available to equipment manufacturers and not to the general public."

However, Microsoft has warned customers not to be fooled: "Consumers should be aware that the so-called Blue Edition software is nothing more than low-quality counterfeit software burned on to a CD," adds Finn.

The company says Windows XP has become its most pirated piece of software as it's nearing the end of life.

The company has not revealed which sites have been hit with suits, but says they are distributed across 12 countries including the UK, US and Japan.