Microsoft's $5M warchest to fund those who turn in virus/worm writers, the "Anti-Virus Reward Program," will have to be cracked open soon. In November, Microsoft allocated the funds publicly and offered $250,000 rewards for the Sobig or MSBlast.A writers, as well as for the MyDoom writer, all of whom never surfaced.
Today, however, has been very good for Microsoft. The alleged Sasser writer, living in Germany with his parents, was arrested after informants asked Microsoft if they would offer a reward for the Sasser writer. Germany also arrested the suspected Agobot/Phatbot writer. No word on the payouts yet--Microsoft claims to reward after conviction--but it seems that bounties are once again working to police a wild frontier. Since Microsoft can't have its own police and courts, it will just have to depend on its (seemingly effective) band of mercenaries.