OnLive DesktopThe great thing about OnLive Desktop is, in essence, it offers a virtual Windows 7 and Microsoft Office experience in a tablet form factor. In the "post-PC" era, OnLive demonstrates the potential of cloud services and how consumers might transition with devices like the iPad or Galaxy Tab. But it sounds like before that potential can be fully realized, licensing terms will need to be fleshed out for the OnLive Desktop to continue.

According to multiple reports sweeping across the Internet, OnLive Desktop may be in violation of Microsoft's licensing terms, putting the future of the service in doubt.

"We are actively engaged with OnLive with the hope of bringing them into a properly licensed scenario, and we are committed to seeing this issue is resolved," Joe Matz, corporate vice president of worldwide Licensing and pricing at Microsoft, said in a blog post on Wednesday.

OnLive has not responded to Microsoft's "issue." Once we hear more we'll update. For now, it looks like Online Desktop's future might be in jeopardy.

[via Wired]