A hosted Windows and Microsoft Office service for the iPad and Android tablets that violated Microsoft’s software licensing rules has apparently gone legitimate, with a new structure that complies with Microsoft guidelines for providing virtual desktops.

As we reported a month ago, the gaming company OnLive has been providing a virtualized instance of Windows 7, complete with Microsoft Office 2010, without properly licensing the service. The service is available to any user for free, with the option for a a $5-per-month paid upgrade, a pricing scheme that had virtual desktop competitors crying foul. The competitors said it’s impossible to offer a properly licensed virtual desktop service at such low prices without taking a loss.

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Windows-on-iPad service goes legit as Microsoft licensing demands are met