It true, but it is in fact, designed to stop CD-sharing amongst friends/neighbours etc, it is quite easy to get around it if you really want to. I have the corporate release version that does not require product activation at all. So rather than being a water-tight measure to stop piracy, all it does is discourage those who aren't really in the know about it.
Anyone experienced in registry editing can also change the registry to make it think it is indeed activated if needs be anyway