This was true of all software they used, but MSDN was the most expensive and blatant. If it didn't have copy protection, they weren't buying more than one copy.
We were a software company. Our own software shipped with a Sentinel SuperPro protection dongle. I guess they assumed their customers were just as unscrupulous as them. Probably right.
Every employer I've worked for since then has actually purchased the proper licenses. Is it because the industry started using online activation and it wasn't so easy to copy any more? I've got a sneaky feeling.