AVG had made a major blunder by detecting a critical Windows system file as malware after a signature update. The incorrect virus pattern published few days ago identified user32.dll to contain Trojan horse called PSW.Banker4.APSA or Generic9TBN, and recommended user to delete the file, causing Windows (mostly on XP non-English version) to go into continuous endless reboot cycle or cannot startup.

Although AVG has follow up to rapid distribution of recovery instructions and repair CDs to fix the error, AVG has also announced that it will offer all affected users a free license or license extension.

The offering for a free license or license extension as below:

  1. For affected users of commercial AVG 7.5 products, a one-year license for the equivalent AVG 8.0 product.
  2. For affected users of commercial AVG 8.0 products, a free license extension for one year.
  3. For affected users of AVG Free products, a free one-year license for AVG Anti-Virus 8.0.

According to AVG, they will start contact the affected customers begining Nov 24 and advise them on how to obtain their complimentary license or license extension.