PM reads data at a very low level, so to hide from it, you must actually take on certain structures and methods of the NT kernel to report other PM information than what Windows itself sees. It depends on the platform and version (i.e., Windows XP SP1 is different from Windows XP SP2 is different from Vista x64, etc.). It is almost impossible to do it right without creating an incredible amount of problems with system instability.
While this is not strictly illegal, every company that did this and was discovered (that you will) enjoyed a lot of backlash and criticism from users and security experts. Again, the implicitly illegal, required kinds of changes can open up serious security holes on end-user computers. If they have serious system malfunctions or they may be exposed to hackers / viruses, you can be legally liable for the damage.
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