Windows XP Home License Agreement Translated

Many technicians in the computer industry install copies of WindowXP Home onto systems multiple times a week and everytime you do, you are agreeing to the Windows XP EULA (End User License Agreement). Most people just click the “I Agree” and accept it as the usual legal mumbo-jumbo. Since you are agreeing to be bound by it (even if you don’t read it you are still bound by it) you might as well know what you are being bound to.

By no means does this article explain the EULA in full, just the information that computer technicians need to know. The full Windows XP home EULA can be found at:

1.1 Installation and use. You may install, use, access, display and run one copy of the Software on a single computer, such as a workstation, terminal or other device (“Workstation Computer”). The Software may not be used by more than one processor at any one time on any single Workstation Computer.

This section says that you can only install a single copy of Windows XP Home on only one computer. If you had 2 computers with XP Home installed from the same disk. This is not allowed.

1.2 Mandatory Activation. The license rights granted under this EULA are limited to the first thirty (30) days after you first install the Software unless you supply information required to activate your licensed copy in the manner described during the setup sequence of the Software. You can activate the Software through the use of the Internet or telephone; toll charges may apply. You may also need to reactivate the Software if you modify your computer hardware or alter the Software. There are technological measures in this Software that are designed to prevent unlicensed use of the Software. Microsoft will use those measures to confirm you have a legally licensed copy of the Software.

You must activate Windows XP Home either by phone or internet. You also may have to reactive XP Home when you upgrade your computers hardware. More information on the amount of hardware changes allowed before you have to reactivate can be found here.

1.3 Device Connections. You may permit a maximum of five (5) computers or other electronic devices (each a “Device”) to connect to the Workstation Computer to utilize one or more of the following services of the Software: File Services, Print Services, Internet Information Services, and remote access (including connection sharing and telephony services). The five connection maximum includes any indirect connections made through “multiplexing” or other software or hardware which pools or aggregates connections. This five connection maximum does not apply to any other uses of the Software.

This section says that if you share printers or files with other computers inside your house, you are not allowed to share these files and printers with more than 5 other computers. However, the EULA later say that the Remote Assistance and Netmeeting applications are not bound by this rule.

1.5 Storage/Network Use. You may also store or install a copy of the Software on a storage device, such as a network server, used only to install or run the Software on your other Workstation Computers over an internal network; however, you must acquire and dedicate an additional license for each separate Workstation Computer on or from which the Software is installed, used, accessed, displayed or run. Except as otherwise permitted by the NetMeeting and Remote Assistance features described above, a license for the Software may not be shared or used concurrently on different Workstation Computers.

You need to buy another licenses for every computer you install Windows XP on regardless of their purpose. For example, if you had a firewall PC and a File Server, both with Windows XP Home on them, then they would require licenses for each of them.

2.3 Internet-Based Services Components. The Software contains components that enable and facilitate the use of certain Internet-based services. You acknowledge and agree that Microsoft may automatically check the version of the Software and/or its components that you are utilizing and may provide upgrades or fixes to the Software that will be automatically downloaded to your Workstation Computer.

You agree that Microsoft can automatically install new software on your PC without your consent. Examples of Microsoft installing additional software on your PC in the past are objects such as the GDI Detection Tool and the Windows Genuine Advantage checker.

3. RESERVATION OF RIGHTS AND OWNERSHIP. Microsoft reserves all rights not expressly granted to you in this EULA. The Software is protected by copyright and other intellectual property laws and treaties. Microsoft or its suppliers own the title, copyright, and other intellectual property rights in the Software. The Software is licensed, not sold.

This means you only have rights to do what is covered in the EULA, anything that is not covered in the EULA you do not have rights to.

4. LIMITATIONS ON REVERSE ENGINEERING, DECOMPILATION, AND DISASSEMBLY. You may not reverse engineer, decompile, or disassemble the Software, except and only to the extent that such activity is expressly permitted by applicable law notwithstanding this limitation.

Software developers are not allowed to attempt to figure out how Windows XP Home works for any reason

8. ADDITIONAL SOFTWARE/SERVICES. This EULA applies to updates, supplements, add-on components, or Internet-based services components, of the Software that Microsoft may provide to you or make available to you after the date you obtain your initial copy of the Software, unless we provide other terms along with the update, supplement, add-on component, or Internet-based services component. Microsoft reserves the right to discontinue any Internet-based services provided to you or made available to you through the use of the Software.

The restrictions mentioned in the EULA apply to all future Microsoft software you purchase and future software may contain further restrictions. Microsoft may also cancel any service that they provide to you for any reason at any time.

9. UPGRADES. To use Software identified as an upgrade, you must first be licensed for the software identified by Microsoft as eligible for the upgrade. After upgrading, you may no longer use the software that formed the basis for your upgrade eligibility.

Microsoft are allowed check to see if you are a licensed user of XP Home before allowing you to update it. After you upgrade you are no longer allowed to use of older version of XP Home.

10. NOT FOR RESALE SOFTWARE. Software identified as “Not For Resale” or “NFR,” may not be sold or otherwise transferred for value, or used for any purpose other than demonstration, test or evaluation.

This one is pretty self explanatory, You are not allowed to resell your copy of Windows XP Home if it is marked as “Not for Resale”. These non-resale copies of XP Home are typically bundled with laptops and other hardware.

11. ACADEMIC EDITION SOFTWARE. To use Software identified as “Academic Edition” or “AE,” you must be a “Qualified Educational User.” For qualification-related questions, please contact the Microsoft Sales Information Center/One Microsoft Way/Redmond, WA 98052-6399 or the Microsoft subsidiary serving your country.

In order for you to use a Acedemic Version of XP Home (which are typically cheaper than the regular ones) you must meet a certain criteria.

13. SOFTWARE TRANSFER. Internal. You may move the Software to a different Workstation Computer. After the transfer, you must completely remove the Software from the former Workstation Computer. Transfer to Third Party. The initial user of the Software may make a one-time permanent transfer of this EULA and Software to another end user, provided the initial user retains no copies of the Software. This transfer must include all of the Software (including all component parts, the media and printed materials, any upgrades, this EULA, and, if applicable, the Certificate of Authenticity). The transfer may not be an indirect transfer, such as a consignment. Prior to the transfer, the end user receiving the Software must agree to all the EULA terms.

You are allowed to install Windows XP Home on another computer, however you must completely erase XP Home from the first computer. You are also allowed to sell your copy of XP Home, however it is your responsibility to make sure that the buyer agrees to all the rules in the EULA.

14. TERMINATION. Without prejudice to any other rights, Microsoft may terminate this EULA if you fail to comply with the terms and conditions of this EULA. In such event, you must destroy all copies of the Software and all of its component parts.

If you breach any of these rules. Microsoft may instruct you to remove your copy of Windows XP home and you are legally bound to comply to these instructions.

LIMITATION ON REMEDIES; NO CONSEQUENTIAL OR OTHER DAMAGES. Your exclusive remedy for any breach of this Limited Warranty is as set forth below. Except for any refund elected by Microsoft, YOU ARE NOT ENTITLED TO ANY DAMAGES, INCLUDING BUT NOT LIMITED TO CONSEQUENTIAL DAMAGES, if the Software does not meet Microsoft’s Limited Warranty, and, to the maximum extent allowed by applicable law, even if any remedy fails of its essential purpose. The terms of Section 17 (“Exclusion of Incidental, Consequential and Certain Other Damages”) are also incorporated into this Limited Warranty. Some states /jurisdictions do not allow the exclusion or limitation of incidental or consequential damages, so the above limitation or exclusion may not apply to you. This Limited Warranty gives you specific legal rights. You may have other rights which vary from state/jurisdiction to state/jurisdiction. YOUR EXCLUSIVE REMEDY. Microsoft’s and its suppliers’ entire liability and your exclusive remedy for any breach of this Limited Warranty or for any other breach of this EULA or for any other liability relating to the Software shall be, at Microsoft’s option from time to time exercised subject to applicable law, (a) return of the amount paid (if any) for the Software, or (b) repair or replacement of the Software, that does not meet this Limited Warranty and that is returned to Microsoft with a copy of your receipt. You will receive the remedy elected by Microsoft without charge, except that you are responsible for any expenses you may incur (e.g. cost of shipping the Software to Microsoft). This Limited Warranty is void if failure of the Software has resulted from accident, abuse, misapplication, abnormal use or a virus. Any replacement Software will be warranted for the remainder of the original warranty period or thirty (30) days, whichever is longer, and Microsoft will use commercially reasonable efforts to provide your remedy within a commercially reasonable time of your compliance with Microsoft’s warranty remedy procedures. Outside the United States or Canada, neither these remedies nor any product support services offered by Microsoft are available without proof of purchase from an authorized international source. To exercise your remedy, contact: Microsoft, Attn. Microsoft Sales Information Center/One Microsoft Way/Redmond, WA 98052-6399, or the Microsoft subsidiary serving your country.

Microsoft are not responsible for anything that happens to your computer, any lost time, lost documents etc.. which occurs as a result of you using XP Home.

If your copy of XP acts up and misbehaves, Microsoft may choose to refund the price you paid for XP Home or replace it. No matter what the case is you are responsible for all shipping charges.

In regards to the above lines, Microsoft will never have to pay you more than you paid for XP Home.

Microsoft are not liable for any damages caused by viruses even if those viruses result from security problems in Windows XP Home.

21. ENTIRE AGREEMENT; SEVERABILITY. This EULA (including any addendum or amendment to this EULA which is included with the Software) is the entire agreement between you and Microsoft relating to the Software and the support services (if any) and they supersede all prior or contemporaneous oral or written communications, proposals and representations with respect to the Software or any other subject matter covered by this EULA. To the extent the terms of any Microsoft policies or programs for support services conflict with the terms of this EULA, the terms of this EULA shall control. If any provision of this EULA is held to be void, invalid, unenforceable or illegal, the other provisions shall continue in full force and effect.

This EULA takes the place of all previous agreements you may have had with Microsoft. For example, if you were previously running Windows 98 before installing XP Home, then the Windows 98 agreement no longer applies.

If any part of this EULA agreement is found to be illegal (and therefore it would become void) the rest of the agreement remains in place rather than canceling the whole agreement.

Bryce Whitty

About the Author

Bryce Whitty
More articles by me...
Bryce is an Australian computer technician and the founder of Technibble. He started his computer repair business when he was 17 years old and is still running it 9 years later. He is an avid traveller and spends at least a month of the year in another country.

Comments (3)

  • Memo Memovic,CA says:

    I buy WINXP Home edition,and mein computer no work with dis softwer.
    Please send mi answer for returns softwer.Thank you

  • gadgetman98 says:

    I have a new business for repairing computers, I could use all of the help that I can get. I know that I need licenses for different software.

    Could you send me any information on getting started. I may need to install OSes on other computers, is there away to use the same disk and have a licenses to cover?

    I also would need licenses for office?

    Please help.

    Thank you

  • Kevin says:

    This was such an informative, relevant answer. It was exactly what I was looking for. I’m so happy to know I’ll be getting something out of you posts.