HP's ad, which is airing across the States, uses Glitter's 1973 hit 'Do You Wanna Touch Me'.
The song featured in the ad is actually a cover version performed by US singer Joan Jett in 1982. However, because the song was originally written by Glitter he collects all the royalties.
Glitter, whose real name is Paul Gadd, is expected to receive up to £100,000 in royalties but could earn more if the ad becomes a popular internet download.
Child Abusewatch.net, a US child abuse prevention group, said the choice of song "shows a distinct lack of sensitivity".
Glitter returned to the UK in August this year after spending 27 months in a Vietnamese jail for abusing two young girls.
He was previously convicted for possession of indecent images of children in 1997. Despite this, Lastminute.com featured him in its email marketing in 2006, prior to his second conviction.
In the email, which offered theatre tickets in London's West End, a section on children's theatre and plays was headed with two young boys' faces and titled "Doing it for the kids".
The Advertising Standards Authority banned the ad, saying it breached decency rules and played on "contemporary, tasteless humour".