Software Phoning Home?

I had an interesting conversation with a co-worker this morning about computer problems that had been plaguing him for about two years. He was using an illegal install of Photoshop on his Win 98 system (he didn't want to risk corruption on his Win XP system) and was having to reinstall Photoshop every three months. He asked me if I have a firewall, which I do, and which I'd suggested to him two years past. He didn't want the expense of buying one and the inconvenience of installing a software firewall but, with his software failing almost every other month, he was desperate to stabilize his system.

Well, he said that early 2004 he suspected someone had hacked his system. So, after speaking with his cousin and being told again to install a firewall, he finally installed a software one. It immediately showed him that there was ongoing outbound attempts and that Adobe kept trying to enter his system. He immediately uninstalled the pirated Photoshop and other miscellaneous software and the attempts stopped. Now he's worried that the software companies will come after him for using illegal copies, which is highly probable in today's climate.

What I'm wondering is has anyone else heard of or experienced this? I was telling him that it's been rumored for several years that software companies have this capability. This is partly why so many people abstain from registering, especially online, but his is the first that I've personally heard about it. Quite chilling conversation too, as several of us were by now gathered and listening intently. Another person commented about a similar experience involving his entire music directory being corrupted. He admitted to having pirated music intermixed with legit copies, but all of his music was corrupted and unlistenable.

I am so glad that I don't do this activity and have not installed any kind of file sharing programs on my new or old system. I would be very concerned about being unable to completely irradicate all remnants of malware or spyware. I suggested to both that they completely reformat their drives and start over from scratch. Very eye opening conversation on a Monday morn. The last thing I need is an unstable or corrupted system. I have enough problems when it's operating fine! LOL