The leaked code appears to be from a Microsoft corporate customer that subscribes to one of the company's volume-licensing programs. The Microsoft representative made clear that the company will scour the Internet looking for the leaked code. "Our legal department works aggressively on that kind of thing," the representative said.

In a more planned and controlled release, Microsoft plans to let device makers modify more of the source code of its specialized Windows CE operating system. But some say the company's licensing terms could kill interest in the plan.

The expanded "shared source" program will give manufacturers access to the operating system's source code and an opportunity to modify it. But analysts argue that manufacturers already had access to the source code and the ability to modify it. Under the terms, manufacturers could be compelled to license some changes back to Microsoft, which would get those changes without paying royalties.

Read More . . .