Yep, that’s the current price for a pirated Windows 7 copy in the Philippines.
Of course Microsoft knows about pirated copies, but there is not much they can do about it. If they would sell Windows 7 for a fair individual price for low-wages countries, people would probably start importing Windows 7 because it would be a legal copy. That’s why they simply ignore low-wages countries and do not try to stop software pirates.
They still managed to sell more than 140,000,000 legal copies of Windows Vista!