Prison is to harsh but...
....he did copy free cds, which is fine, but then printed Dell labels on the CDs so they looked like the originals. There was no need for that. And if he really did charge others for the CDs then he's fucked up there as well. Should of just given Linux away. Probably would of saved hassle and prison.
Microsoft still dicks though. As the saying goes "Microsoft, that was a dick move".