Windows Activation Technologies (WAT) will be the new system that will allow windows7 detect if it was activated by exploits (exploits currently are around 70).
Unlike the Windows Genuine Advantage (WGA) that was a masked self-install update and It sent in crisis in some cases the originals copies too.
WAT should be less invasive and the installation of this tool should be voluntary request by the user(available from February 17 2010 at download center). Once installed It check the authenticity of windows periodically (weekly?) and it will also have a database of exploits that will be update periodically as an antivirus dictionary.
What happens if your copy of Windows7 is not genuine
not 100% safe information!
It will notify you that Windows is not genuine and it alert the use to resolve the problem (buy the license). 
The system of wallpaper will be partially disabled.
Periodically the user is notified with a watermark on the desktop that the copy is not genuine.
In no way it will be denied access to data and all functionality will remain unchanged.
Probably a certified copy will no longer be updating your version of Windows and this will make your machine more insecure.
Source
Microsoft Blog
PuntoInformatico
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