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Technibble takes no responsibility about the accuracy of this information. This thread has been stickied to help answer questions that are commonly asked on these forums.
The Microsoft EULA and other licencing documents are usually long and complex where it isnt always 100% clear what the full meaning of it is.
This thread is a short translation of what the original poster believes to be correct at this time as a way to help his fellow forum members. Always consult your own lawyer before making any client facing decisions/consulting regarding the Microsoft licensing.
The questions listed below are asked literally on a weekly basis, here are the official answers in relation to Microsoft Licences.
These mostly relate, to windows installations, can you use your own media, on reinstallations, and questions relating to refurbished computers. Details pertaining to refurbished computers will be in the next thread.
My comments are listed in dark Blue, all bolded. The same applies to the use of installing with Zalman’s, Sardu etc.
What is validation and when do I need to do it?
Validation is an online process that verifies that your copy of Windows is genuine and that critical Windows licensing files have not been damaged, deleted, or removed. It takes only a few moments and lets Microsoft create a match between your PC's hardware profile and your 25-character product key, which is usually located on the Certificate of Authenticity (COA). This match is anonymously archived so it can be checked against future activation and validation attempts and helps make sure that the Windows product key installed on your PC matches the original Windows product key that was purchased. In this way, validation helps ensure that your product key is not used by another person in a malicious manner, such as activating a counterfeit or non-genuine copy of Windows. Microsoft might ask you to validate after Windows activation, when you request a genuine Windows download from the Microsoft Download Center, or when requesting a non-security-related download from Windows Update. No personally identifiable information is collected during validation.
You may notice that some downloads have an icon next to their name in the Download Center. These downloads also have a highlighted section about Windows validation just below the Quick Details box on the download details pages. These downloads require validation of Windows, which helps to ensure that Windows users receive all the benefits of running authentic and fully licensed copies of Windows. To access a download that requires validation, follow the appropriate process:
If you see a Download button or link, click the button or link to download the file.
If you see a Continue button or link, click the button or link and follow the instructions that are provided. After the validation process has completed, you will be returned to the download details page with the Download button displayed. If Windows cannot be validated, you will receive additional instructions.
What is a Certificate of Authenticity (COA) label?
A Certificate of Authenticity (COA) label helps you and your customers identify genuine Microsoft Windows software. Without it, your customers will not have a legal license to run their Windows software.
Each COA label includes advanced anti-counterfeiting features to help verify the software's authenticity. The COA label is included with each individual software license. For preinstalled Microsoft Windows operating systems, the COA label must be affixed by the system builder to the PC chassis. The COA label also includes the product key, which will be needed in the event the operating system needs to be reinstalled. COA labels must be distributed as part of the full System Builder software license, which also includes the hologram CD and documentation. A COA is not a software license. It is a visual aid that helps in determining whether Microsoft software is genuine. A COA should never be purchased, sold, or distributed by itself without the software it authenticates. COA labels cannot be distributed as standalone items.
What are the End User Software License Terms?
An end user who acquires software is acquiring the right to use that software. End users don't "own" the software, which is intellectual property and is generally "owned" by its developers. The right to use the software is governed by the End User Software License Terms—which, in the case of OEM System Builder product, is an agreement between the system builder and the end user. The End User Software License Terms can typically be found within the software product, and an end user must accept the End User Software License Terms before running the software.
The End User Software License Terms defines what end user rights and restrictions apply to the use of the software, and covers topics such as how the software can be used, whether the license can be transferred, etc.
What are the different ways that my customers can get legal licenses for Windows desktop operating systems? What about software applications such as Microsoft Office 2010?
There are only two ways a customer can get a Windows desktop operating system on a new PC:
OEM System Builder software preinstalled on a PC
Retail product (full packaged product)
Please note that full versions of Windows operating systems are not available through any Microsoft Volume Licensing program.
For application software such as Microsoft Office 2010, customers can
acquire licenses through:
OEM System Builder software preinstalled on a new PC sold with either a Product Key Card (PKC) or traditional disc version that corresponds to the desired Office suite
Product Key Card or traditional disc version purchased at retail
I get many email solicitations offering "Microsoft software at cheap prices." Is this software legal?
Most likely no, this is not legal. Several software counterfeiting operations around the globe are marketing their goods through spam email advertisements. In an attempt to mask their location, these organizations change their names and email addresses daily. The basic contents of the spam message remain the same: "Microsoft software offered at cheap prices."
The advertisers use terms like "OEM software" as an attempt to explain why the offered software is so inexpensive. Microsoft is working to educate customers and partners about the risks of getting software from suspicious sources. We're investigating this spam and counterfeiting operations and trying to stop this activity. Purchasing from known and trusted sources and avoiding "too-good-to-be-true" deals are the best ways to avoid wasting valuable money on counterfeit or infringing software.
If you are aware of or have suspicions of piracy concerning Microsoft software, we urge you to contact us by email at piracy@microsoft.com or visit http://www.microsoft.com/piracy/reporting.
Additionally, we recommend acquiring Microsoft OEM System Builder software from an authorized Microsoft OEM distributor or associate—an assured source of genuine Microsoft software.
I see products like Win 7 Professional—COA only—advertised for sale. Is this legal?
Offers to distribute incomplete OEM System Builder software packages are not legal. Under no circumstances are system builders or any other vendors authorized to distribute single OEM System Builder software components such as standalone Certificates of Authenticity (COAs).
Please note that the Certificate of Authenticity included with each OEM System Builder software package authenticates only the software components with which it is legally distributed. As mentioned, any offer to distribute an incomplete Microsoft software package (e.g., COA only) is not authorized, and any individual who was to obtain incomplete Microsoft software components would not be authorized to use the associated software or redistribute the components. For OEM System Builder Windows desktop operating systems, the complete software package must include the COA, hologram CD, and manual(s).
If you are aware of or have suspicions of piracy concerning Microsoft software, we urge you to contact us by email at piracy@microsoft.com or visit http://www.microsoft.com/piracy/reporting.
System Builder Licensing
What are the different ways in which Microsoft OEM System Builder Windows desktop operating system licenses can be distributed?
The current OEM System Builder License allows system builders to distribute Windows desktop operating system licenses in the following ways:
Preinstalled on a new PC.
Unopened OEM System Builder packs (1-, 3-, or 30-packs) can be distributed to other system builders by themselves. Note that they must remain unopened so the receiving system builder can accept and be bound by the break-the-seal license agreement that is affixed to the pack.
Can I provide a computer system to my customer without an operating system (also referred to as a "naked PC")?
Yes. There is nothing illegal about selling a computer system without an operating system. However, getting the operating system preinstalled is your customer's most cost-effective way to acquire a genuine Windows operating system license. A customer who subsequently wants to install a Microsoft Windows desktop operating system on that naked PC will need to acquire it through the retail (full packaged product) channel which is a more costly option. Full Windows operating systems are not available through any Microsoft Volume Licensing program, and an OEM operating system license cannot be transferred from an "old" PC to a new one.
Can I create my own recovery disks and sell these with the computer systems that I build? I have heard that direct OEMs can do this, so why can't I?
No. System builders may not offer a recovery solution with removable media (e.g., a recovery CD) because it is prohibited by the terms of the Microsoft OEM System Builder License. A full version of the Windows operating system is provided on a hologram CD in the Microsoft System Builder pack for each end user, and the CD must be transferred to the end user at the time of distribution. The hologram CD acts as the recovery medi
However, system builders can offer a hard disk recovery solution in addition to, but not as a replacement for, the hologram CD. Third-party software companies can also help system builders do this. See attached for details on exactly how to accomplish this task.
System builders are bound by the Microsoft OEM System Builder License, affixed to the side of the System Builder packs, which is different than the direct agreements utilized by direct OEMs. The licensing terms for system builders and large OEMs are different because they are designed to address the specific needs of each community. The right to create recovery media is limited to the OEMs with direct agreements; however, these OEMs are also bound by other contractual obligations. The OEM System Builder License is designed to make it easy for system builders to acquire and distribute genuine Microsoft software, and accordingly, its terms are different.
Are system builders allowed to create a "ghost image" CD and ship it along with the system for OEM customers?
No. System builders may not offer a recovery solution with removable media (a recovery CD, for example)—it is prohibited by the terms of the Microsoft OEM System Builder License. A full version of the Windows operating system is provided on a CD in the Microsoft System Builder Pack for each end user, and the CD must be transferred to the end user at the time of sale. The hologram CD acts as the system builder recovery medi
What is the OPK and why do I have to use it?
System builders who distribute Windows software on a fully assembled PC must preinstall the software on the PC's hard drive using the OEM Preinstallation Kit (OPK) included in the OEM System Builder Pack.
Preinstallation using the OPK ensures that customers will encounter the Windows Out-of-Box Experience (OOBE) and that they receive the opportunity to accept the End User Software License Terms.
Additionally, the OPK is easy to set up and use, and will save you time versus manual installation. It enables you to add your own shortcuts and branding to the operating system, to test preinstalled PCs without interrupting the preinstallation process, and much more.
Basically this means, that we as technicians are not allowed to accept the EUL Although we may accept it as our clients agent. If permission is given beforehand.
We would like to create a computer system using an OEM Windows operating system that has a dual-boot feature. The single system would use the same version of Windows on both boot images/partitions.
Does this require two different licenses, or can I use the same license and product key for both images/partitions, since they are both on a single system that can use only one operating system at a time?
A customer who wants Microsoft Windows installed onto two partitions of a computer system will need to obtain two OEM System Builder Windows software licenses. OEM software generally does not permit simultaneous usage of a PC by two end users.
Can a PC with an OEM Windows operating system have its motherboard upgraded and keep the same license? What if it was replaced because it was defective?
Generally, an end user can upgrade or replace all of the hardware components on a computer—except the motherboard—and still retain the license for the original Microsoft OEM operating system software. If the motherboard is upgraded or replaced for reasons other than a defect, then a new computer has been created. Microsoft OEM operating system software cannot be transferred to the new computer, and the license of new operating system software is required. If the motherboard is replaced because it is defective, you do not need to acquire a new operating system license for the PC as long as the replacement motherboard is the same make/model or the same manufacturer's replacement/equivalent, as defined by the manufacturer's warranty.
The reason for this licensing rule primarily relates to the End User Software License Terms and the support of the software covered by that End User Software License Terms. The End User Software License Terms is a set of usage rights granted to the end user by the PC manufacturer and relates only to rights for that software as installed on that particular PC. The system builder is required to support the software on the original PC. Understanding that end users, over time, upgrade their PCs with different components, Microsoft needed to have one base component "left standing" that would still define the original PC. Since the motherboard contains the CPU and is the "heart and soul" of the PC, when the motherboard is replaced (for reasons other than defect) a new PC is essentially created. The original system builder did not manufacture this new PC, and therefore cannot be expected to support it.
If a replacement motherboard is required, what Microsoft are saying, is that an identical board should be installed. Obviously most manufacturers will not keep stock of their old boards for eternity, however if the new motherboard is NOT installed as a upgrade to the existing machine, and is a REPLACEMENT for a FAULTY board a new licence is not required.
The new COA is shaped differently from the previous, rectangular CO How do I apply it for the best coverage?
The new COA is designed to adhere smoothly and securely. For optimal results, see the following recommended COA application technique:
•Begin at the "tab" at the right end of the COA. Remove the COA from the backing liner with minimal touching of the adhesive. (The back of the COA has a 17mm adhesive-free band, which is intended to prevent adhesive from surfacing through the new anti-piracy feature.)
•Attach the COA to the surface with initial pressure applied to the left side of the COA. With a sliding motion left to right across the COA, use the pad of your thumb or finger to apply firm, even pressure. In addition to ensuring even attachment of the COA to the surface, the motion across the COA from left to right will help eliminate any pillowing at the adhesive free area.
•After initial attachment, apply pressure with the back of the hand or pad of the thumb in a sliding motion backward and forward once or twice to fully adhere the COA to the surface.
How does a company qualify to become a direct Microsoft OEM? It seems that the larger companies currently have an unfair advantage compared with smaller OEMs.
Direct OEM licensees do receive a discount compared to buying through the System Builder channel, but that discount is based on the licensee’s commitment to receive ongoing bulk shipments versus purchasing at will. Other elements of the direct licensing agreement require significant initial investment from the OEM. Furthermore, legal and technical requirements are placed on direct OEMs to protect Microsoft intellectual property, and these requirements can add other costs to the production of a PC. The primary difference between the two programs cannot be gauged merely by looking at prices and software licenses. Each program is designed to meet the specific needs of the partner.
I am a reseller of PCs that come preloaded with OEM Windows operating systems. Am I allowed to load Microsoft Office 2010 onto these machines?
Yes, you may install Microsoft Office 2010 software onto the computer systems as long as you do so in compliance with the Microsoft OEM System Builder License.
Please note that the preinstallation and software distribution process for Microsoft Office 2010 makes it easier to buy and sell than prior versions, with a single image to manage for all Office suites and an intuitive SKU line-up.
Can two or more users access and fully utilize OEM Windows operating systems concurrently on the same machine?
No. The End User Software License Terms do not permit two or more users to concurrently use the full feature sets of Windows operating systems.
However, the Windows End User Software License Terms do allow for a limited number of computers or other electronic devices to connect to the computer upon which the software is installed to utilize one or more of the following services: File Services, Print Services, Internet Information Services, and telephony services. The End User Software License Terms also permit limited concurrent use in connection with the Remote Assistance and NetMeeting technologies. Please refer to the applicable End User Software License Terms for detailed information regarding such limited concurrent uses.
What can system builders offer their customers as a "legalization solution" for Windows desktop operating systems?
Microsoft recognizes that end users sometimes acquire non-genuine Windows operating systems for their PCs and may wish to "get legal" by obtaining genuine software.
To obtain genuine Windows software, end users may:
Return to their reseller to resolve the issue;
Go to the Windows Genuine Advantage website at http://www.microsoft.com/genuine/, run the validation wizard, and purchase a download of genuine Windows software;
Acquire a retail ("full packaged product" or "FPP") version of genuine Window software from a reseller; or
If eligible, acquire a Get Genuine Kit for Windows XP Professional from their reseller.
The Get Genuine Kit is available only for use on fully assembled PCs with a previously installed counterfeit, pirated, or otherwise illegal or unlicensed copy of Windows XP Professional software.
How it works:
Resellers can acquire the Get Genuine Kit from authorized Microsoft OEM distributors.
Affix the enclosed Certificate of Authenticity (COA) label to the PC.
Microsoft recommends, but does not require, that on the PC, you either:
Run the Windows Product Key Update Tool;
Perform a reinstall of Windows XP; or
Perform a clean install of Windows XP.
You must do one of the above in order to receive updates, upgrades, and support services.
Other facts:
The Get Genuine Kit is available from your reseller in packs of 1 or 10.
License Pack Contains
1 1 COA label, 1 media, and 1 End User Software License Terms
10 10 COA labels, 1 media, and 1 End User Software License Terms (for legalization of multiple PCs)
10-packs can be used if you have multiple PCs needing legalization.
Microsoft supports this software.
The license is not transferable to another PC.
Transfer of License
Can my customers transfer or sell their OEM software licenses?
After an OEM software license has been installed on a PC, the license may not be installed on or transferred to another PC. However, the entire PC may be transferred to another end user along with the software license rights. When transferring the PC to the new end user, the software media, manuals (if applicable), and Certificate of Authenticity label must be included. It is also advisable to include the original purchase invoice or receipt. The original end user cannot keep any copies of the software.
My customer bought a new PC and wants to move the OEM software from the old PC to the new one. Can't users do whatever they want with their software?
The OEM software is licensed with the computer system on which it was originally installed and is tied to that original machine. OEM licenses are single-use licenses that cannot be installed on more than one computer system, even if the original machine is no longer in use. The End User Software License Terms, which the end user must accept before using the software, states that the license may not be shared, transferred to, or used concurrently on different computers. System builders must provide end-user support for the Windows license on computers they build, but cannot support licenses on computers they didn’t build. This is a fundamental reason why OEM System Builder licenses can't be transferred.
Microsoft on Preinstallation and Software Returns
When selling a PC to my customers, should it be preinstalled with a Microsoft operating system, and if so, must they use the Microsoft operating system purchased with the PC?
Most consumers want PCs which are easy to use and work right out of the box without the need for specific IT expertise or cumbersome and time-consuming installation processes. Microsoft believes that PCs with a preinstalled operating system and optimized for the needs of these consumers provide the best possible computing experience and is an effective mean to reduce software piracy.
Most computing devices, PCs, netbooks, slates, or smart phones, are perceived by consumers as a single product which includes various hardware and software components. Consumers are accustomed to use these devices without any technical knowledge on how to install an operating system or any additional software to ensure that the device is functioning properly.
Accordingly, there is no significant consumer demand for PCs without a preinstalled operating system. Those consumers who ask for PCs without an operating system usually are technical experts or hobbyists.
PC manufacturers, system builders and retailers are free to choose what kind of PC they want to sell to their customers. They decide whether the PC they sell has a preinstalled operating system and what kind of software will be preinstalled. The resulting product offerings are again driven by consumer demand. Microsoft does not oblige its partners to sell PCs with Windows preinstalled, nor does it prevent manufactures, system builders and retailers from selling PCs with competing operating systems or no operating system at all.
All consumers are free to choose between PCs with the Windows operating system, a non-Microsoft operating system, or without any operating system at all. The PC market offers a wide variety of all types of products.
Consumers who purchased a PC with a Microsoft operating system preinstalled do not have to use this operating system. They can choose to reject the terms and conditions of the end-user license agreement and may contact the manufacturer to determine its return policy. The manufacture is free to set its return policy which might require the consumer to return either the operating system software only or the entire system on which the software is installed. Microsoft only requires the manufacturer to put in place a return policy, and does not dictate how the manufacturer deals with returns. That policy is solely determined by the manufacturer.
Refurbished/Used PCs
What is the difference between a refurbished PC and a used PC?
A refurbished PC is a computer system that has had substantial hardware modifications that may require a new operating system license—because the modifications have essentially created a "new" PC.
Generally, an end user can upgrade or replace all of the hardware components on a computer—except the motherboard—and still retain the license for the original Microsoft OEM operating system software. If the motherboard is upgraded or replaced for reasons other than a defect, then a new computer has been created. Microsoft OEM operating system software cannot be transferred to the new computer, and the license of new operating system software is required.
If the motherboard is replaced because it is defective, you do not need to acquire a new operating system license for the PC as long as the replacement motherboard is the same make/model or the same manufacturer's replacement/equivalent, as defined by the manufacturer's warranty.
If a replacement motherboard is required, what Microsoft are saying, is that an identical board should be installed. Obviously most manufacturers will not keep stock of their old boards for eternity, however if the new motherboard is NOT installed as a upgrade to the existing machine, and is a REPLACEMENT for a FAULTY board a new licence is not required.
A used PC is a computer system that has had few or no hardware changes. The license for OEM software on a used PC may not be transferred to a new or different PC. However, the entire used PC, including the software media, manuals, and Certificate of Authenticity, may be transferred to another end user along with the software license rights.
Can I sell second hand computer systems with the original Microsoft software, or will a new license be required before selling?
Please look at the End User Software License Terms to find out which type of license has been issued for the Microsoft software on the computer system and check the provisions relating to transfer. To find and read the End User Software License Terms, click Start on the taskbar, click Help and Support, and do a search for eultxt.
Generally speaking, in the case of OEM or OEM System Builder software, the license may not be transferred to a new or different PC. However, the entire used PC, including the software media, manuals, and Certificate of Authenticity, may be transferred to another end user along with the software license rights.
If my customer asks me to upgrade a PC with new hardware components, when is a new operating system needed? When would the PC be considered "new"?
Generally, an end user can upgrade or replace all of the hardware components on a computer—except the motherboard—and still retain the license for the original Microsoft OEM operating system software. If the motherboard is upgraded or replaced for reasons other than a defect, then a new computer has been created. Microsoft OEM operating system software cannot be transferred to the new computer, and the license of new operating system software is required.
If the motherboard is replaced because it is defective, you do not need to acquire a new operating system license for the PC as long as the replacement motherboard is the same make/model or the same manufacturer's replacement/equivalent, as defined by the manufacturer's warranty.
Can a system builder install Microsoft OEM software on a refurbished computer system, which may include branded PCs (e.g., Hewlett-Packard, Compaq, etc.)?
Yes, as long as the system builder complies with the OEM System Builder License requirements for preinstallation and distribution of the OEM Microsoft software licenses, and the customer accepts the End User Software License Terms. SEE BELOW:
MICROSOFT OEM SYSTEM BUILDER LICENSE
(Visit www.microsoft.com/oem for additional OEM System Builder information)
1: Definitions.
a) “Customer System” means a fully assembled computer system that includes a CPU, a motherboard, a power supply, an internally mounted NAND or revolving magnetic-based hard drive, and a case. For Server products, a hard drive and separate power supply are not required. A Customer System must meet the system requirements of the software as posted on http://www.microsoft.com and must be able to run the Software.
b.) “Distribution” and “distribute” mean the point in time when a Customer System leaves your control.
c) “Hardware” means the Microsoft hardware included in the Pack. A unit of Hardware includes any Software and end user documentation that may be included in the Pack.
d) “OPK” means the OEM preinstallation kit provided by Microsoft that includes installation instructions, utilities and tools for preinstalling the Software.
e). “Pack” means this package of Microsoft Software or Hardware.
f). “Software” means the Microsoft Software inside the Pack. A unit of Software includes any Software media, documentation, certificate of authenticity (“COA”) label, end user license terms and security devices.
2: Authorized Distribution and Acceptance.
To distribute the Software or Hardware in this Pack, you must be a System Builder
And accept this license. “System Builder” means an original equipment manufacturer, an assembler, a refurbisher, or a software pre-installer that sells the Customer System(s) to a third party. You accept this license when you open this Pack. If you choose not to accept this license, promptly return the unopened Pack to your distributor. You may only distribute unopened Packs within your territory. For the territory in which you may distribute, see www.microsoft.com/oem/sblicense/territory. Individual Software or Hardware units may not be returned after the Pack is opened.
3: Parties.
Microsoft Licensing, GP (“MLGP”), a general partnership organized under the laws of the State of Nevada, grants this license to you. However, if you are located in Europe, the Middle East or Africa, then this license is granted by Microsoft Ireland Operations Limited (“MIOL”), a company organized under the laws of Ireland. The terms “we,” “our,” “us” or “Microsoft” mean either MLGP or MIOL.
4: Limited License.
If you comply with the terms of this license, Microsoft grants you a limited license to distribute the Software or Hardware. Except as granted in this license, you may not use, run, copy, modify, display, distribute, repackage or reassemble the Software, Hardware, OPK or any part of them. You may not reverse engineer, decompile, or disassemble the Software, Hardware or OPK, except to the extent expressly permitted by this license or by applicable law notwithstanding this prohibition. All rights not expressly granted are reserved.
5: Distribution.
a). Software Preinstallation.
i) For each unit of Software in the Pack, you must pre-install one copy of the Software on a Customer System prior to distribution. If the Software includes more than one language version, you must install only one language version.
ii) For such pre-installation, you must use the OPK provided in the Pack or otherwise made available by us. You may use the information, tools and materials contained in the OPK solely to preinstall the Software in accordance with the OPK. See www.microsoft.com/oem/sblicense/OPK for additional information about the OPK. You may not distribute the OPK to the end user.
iii). See http://oem.microsoft.com/starter for additional hardware requirements when pre-installing Microsoft Windows Starter Editions.
iv) This preinstallation requirement does not apply to server Software. Instead, server Software may be distributed inside the Customer System package.
b). End User License Terms. You must distribute the Software pursuant to the end user license terms (“License Terms”) that accompany it. Under the License Terms, you are the licensor.
c). Hardware. You must distribute each Hardware unit with either a Customer System, or another non-Microsoft computer hardware component. If you distribute a Hardware unit with a Customer System, you must preinstall any associated Software drivers and programs provided to you in the pack. Before you distribute the Hardware, you must test it to ensure that the Hardware functions properly with the Customer System. Microsoft makes no warranty or representation regarding the Hardware’s compliance with any federal, state or local laws or regulations relating to computing devices or products sold to the public.
d). Alternate versions. The Pack may include more than one platform version of the Software such as 32-bit or 64-bit. You may only preinstall one version but must distribute both versions to the end user.
e). Processor versions. For Server products, you may not preinstall or distribute a processor version of the Software on a Customer System that includes more processors than the highest number of processors listed on the Pack.
f). You must distribute the complete unit of Software, including the CO
6: Certificate of Authenticity (COA) Label.
If this Pack contains a Microsoft operating system and you pre-install it, then you must affix the COA on the front, top, side or back of the Customer System case. If the Customer System is a laptop or tablet PC, the COA must be affixed to the bottom of the Customer System. If a portable Customer System includes a vanity case or “skin” that can be removed and easily replaced with another case or skin by the end user in the normal course of use, then you may affix the COA directly on the bottom of the Customer System under the vanity case or “skin.” In that case, you must print “Microsoft COA and Product Key are located under this removable covering” on the outside of each vanity case or “skin” distributed with the Customer System. You may replace “removable covering” with a more specific word or term that clearly references the vanity case or “skin.”
7: End User Support.
You must provide end user support for the Software or Hardware. You must provide support under terms at least as favourable to the end user as the terms that you provide to support any Customer System. At a minimum, you will provide commercially reasonable telephone support.
8: Disclaimer of All Warranties.
The Software or Hardware is licensed “as-is.” You bear the risk of using and distributing the Software or Hardware. Unless required by applicable law, Microsoft gives no express warranties, guarantees or conditions.
To the extent permitted under applicable laws, Microsoft excludes the implied warranties or conditions of merchantability, fitness for a particular purpose and non-infringement.
9: Limitation of Liability.
Your and our total liability for direct damages under this license is limited to 100% of the amount that you actually paid for the Pack. Microsoft disclaims all liability for lost profits, indirect, consequential, incidental, economic, special or punitive damages. The limitations in this section apply to the Software or Hardware, and claims for breach of contract, breach of warranty or condition, strict liability or negligence or other tort. The limitations also apply even if you are not fully compensated for any losses, or Microsoft knew or should have known about the possibility of damages. You also release Microsoft from all liability in excess of the limits in this provision. This release includes any claim for indemnification or contribution even if such claims arise under local law. The limitations in this section do not apply to your violation of Microsoft intellectual property rights.
10: Export Restrictions.
The Software or Hardware in this Pack is subject to U.S. and international export laws and regulations. You must comply with all domestic and international export laws and regulations that apply to the Software or Hardware. These laws include restrictions on destinations, end users and end use. See http://www.microsoft.com/exporting/ for more information.
11: Anti-Piracy.
You must not engage in the distribution of pirated software or hardware.
12: Activation.
Use of the Software in the Pack may be for a limited time after the end user first launches the Software, unless the end user activates it, as described during the launch of the Software. You must provide the following or substantially similar notice in a clear and conspicuous manner to end users prior to their acquiring this Software:
Certain Microsoft® software products included with this computer system may use technological measures for copy protection. If properly licensed, you have the right to use the version of the software installed during the installation process up to the time permitted for activation. Unless the software is activated, you have no right to use it after the time permitted for activation. This is to prevent its unlicensed use. You are not permitted to bypass or circumvent activation. Product activation procedures and Microsoft’s privacy policy will be detailed during initial launch of the software, or upon certain reinstallations of the software
or reconfigurations of this computer, and may be completed by internet or telephone (toll charges may apply).
13: Geographic Restrictions.
Some Software may be licensed for distribution only to specific countries. Activation of the Software must occur in those certain countries. See http://www.microsoft.com/geo for details.
You must pre-install the Software only within the geographic boundaries of the country or region identified on the Software packaging, if listed; and
b. provide the following or substantially similar notice in a clear and conspicuous manner to end users prior to their acquiring the Software:
You are only permitted to activate this software in the specific geographic region indicated on the software or device packaging. You may not be able to activate the software outside of that region. For further information on geographic restrictions, visit http://www.microsoft.com/geo.
14: Compensation.
Unless otherwise authorized by Microsoft, you will not advertise, give a separate price for, or otherwise market or distribute the Software as separate from a Customer System. However, you may compensate end users for Software or Hardware
returned to you under the License Terms.
15: Taxes and Other Charges Excluded.
You are responsible for any taxes, duties, fees, excises or tariffs imposed on any of your activities in connection with this license. You must pay these charges, taxes and other fees.
16: Severability.
If a court of competent jurisdiction finds any provision of this license to be illegal, invalid or unenforceable, the remaining terms will remain in full force and effect.
17: Governing Law.
If MLGP grants this license to you (see section 3 above), this license is governed by the laws of the State of Washington, U.S. If MIOL grants this license to you, this license is governed by the laws of Ireland.
18: UN Convention.
The United Nations Convention on Contracts for the International Sale of Goods does not apply to this license.
19: Non-exclusivity. Nothing in this license restricts you from supporting, promoting, distributing, or using non-Microsoft software or hardware.
20: Assignment.
Microsoft may assign this license to an affiliated company at any time.
21. Technology Transfer.
This license does not create a “technology transfer” agreement, as defined by applicable law because
(a) the technology (including any Software) made available under this license is not an integrated part of a technology chain for production
or management purposes and
(b) The technology (including any Software) will have its own technology license. You will not hold yourself out as our technology recipient and will not attempt to identify us as a technology provider under this license.
If I need to reinstall the operating system on a machine from a direct OEM (e.g., Dell) that my customer has brought in, how should I do this?
A customer who wants you to reinstall Windows must provide recovery media from the direct OEM, because the software is licensed to the customer for use on that PC by that OEM. You cannot use your own OEM System Builder media to reinstall the operating system, or any other version of media (e.g., TechNet, MSDN, Action Pack, etc.), because these versions differ from the original OEM Windows license your customer acquired from the direct OEM. A customer who doesn't have a backup copy of the software for reinstallation will need to contact the original OEM and request replacement recovery media; you can use that media to reinstall the operating system on that machine.
If the manufacturer no longer supports any particular model or laptop, or desktop, then in certain circumstances, it is possible to contact Microsoft Licencing department direct, and they will then provide (read sell), you a copy of the recovery media for installing windows on this machine.
After considerable conversations with the Microsoft Licencing department, and asking what the differences are between OEM windows media, and our own media, I have been told it is to do with the hardware requirements on OEM machines, i.e. drivers. Also the fact that OEM’s always include their own configured programs (bloat ware).
With XP soon to be no longer supported, this will then force us to supply and install Windows 7 onto our clients machines. In a lot of cases, this will force our clients to purchase replacement machines instead, as the cost of the licence for Windows 7 will outweigh the value of the machines. In which case a installation of your favourite Linux distro could be the way forward.
Downgrade Rights
What are downgrade rights and how would my customer benefit from them?
Downgrade rights refer to the ability of your customers to acquire the most recent version of Microsoft software but continue to run a previous version until they are ready to upgrade. Downgrade rights are an end-user right and are documented in the product End User Software License Terms.
Where can I find out more about downgrade rights?
Please visit /oem/en/licensing/sblicensing/pages/downgrade_rights.aspx for more information.
Who can install the downgrade software or reinstall the original software?
A system builder (when authorized by the end user) or the end user. Because downgrade rights are an end-user right granted in the End User Software License Terms, the end user must first be able to accept the End User Software License Terms associated with Windows Vista Business, Windows Vista Ultimate, Windows XP Professional, Windows Server 2003, or Windows Small Business Server 2003 software. Therefore, this software must be installed first before the downgrade software is installed.
Where do end users get the CD/media to install the downgrade software?
End users must install the downgrade software using a legally licensed copy of the specified previous version of the Windows desktop or server operating system. The downgrade software may be from the retail, OEM System Builder, or Volume Licensing channels.
Can end users use both the latest version and the downgrade software at the same time?
No. End users may install and use only one Microsoft operating system (either the downgrade software or the applicable Windows Vista Business, Vista Ultimate, Windows XP Professional, Windows Server 2003, or Windows Small Business Server software) at any given time.
Can end users return to Windows Vista Business, Vista Ultimate, Windows XP Professional, Windows Server 2003, or Windows Small Business Server 2003 software after they downgrade?
Yes. End users who downgrade may reinstall the original software when they are ready to migrate. For example, an end user who downgrades to Windows XP Professional may later return to Windows Vista Business software, provided that the end user deletes the Windows XP Professional software from the PC.
How do end users reinstall the original software after downgrading?
End users must use the original System Builder media that was included with the PC or server for reinstallation. The downgrade software must be deleted from the hard drive before the original software is reinstalled.
Does Microsoft Office 2010 contain downgrade rights to a previous version?
No, downgrade rights are not available for Office 2010 Product Key Cards or traditional disc versions.
Activation
What is product activation?
Product activation technology is aimed at reducing software piracy as well as ensuring that Microsoft customers receive the product quality that they expect.
Which customers and products are required to activate?
All customers who acquire retail packaged products or OEM System Builder products are required to activate the software. The software on a new PC from a system builder may be activated by the system builder. Product activation will not be required for licenses acquired by a customer through a Microsoft Volume Licensing program, such as Open License or Select License. Under these Volume Licensing programs, customers will be given a Volume License Key that will bypass activation.
How does Microsoft product activation work?
Product activation works by validating that the software's product key, required as part of product installation, has not been used on more PCs than is allowed by the software's license. The product key and the product ID (created from the product key used during installation) are sent along with a "hardware hash" (a non-unique number generated from the PC's hardware configuration) to the Microsoft activation system during activation. Activation is completed either directly via the Internet or by a telephone call to a customer service representative. Most customer service centers are open 24 hours.
What do I do if a customer returns a computer system that I sold, but the customer has activated the OEM System Builder Windows XP Professional software?
In this situation, we recommend:
1: If the returned PC can be resold to another end user without any changes to the hardware components, you may resell it to another end user. You will need to remove the activated software and install it again, as the "new" end user must see and accept the End User Software License Terms as well as experience Windows Welcome. The end user should not have any problems using the same product key to activate the software again, because the computer system configuration hasn't changed.
2: If significant changes have occurred to the computer system's hardware components, you should remove the activated software and reinstall it. The "new" end user must see and accept the End User Software License Terms and experience Windows Welcome. You will also need to inform the "new" end user that the Windows XP software program was activated by the original purchaser. Microsoft also recommends that you instruct the end user to use the telephone call center activation method rather than the Internet method, so the user can talk to the customer service agent and explain what happened. The call center personnel have been notified that this may happen and can reactivate the software using the new PC hardware configuration dat
There is a 30-day grace period before a Microsoft OEM System Builder Windows desktop operating system needs to be activated. Additionally, if you wish to sell the returned computer, you will need to "roll back" the system so that the customer can accept the End User Software License Terms and activate the software. Please refer to the OEM Preinstallation Kit (OPK) for information on preinstallation and what can be done to "roll back" the computer system.
Volume Licensing
Where do I get more information on Microsoft Volume Licensing programs?
Microsoft Volume Licensing programs are designed for organizations that need multiple copies of Microsoft software and are economical ways to acquire anywhere from five to thousands of software licenses. Microsoft Volume Licensing programs include Open License, Select License, Enterprise Agreement, and Enterprise Subscription Agreement.
What is Software Assurance (SA)?
Software Assurance is an offering for Microsoft Volume Licensing customers that provides customers with benefits such as the ability to spread payments over three years, new version rights, support, tools, and training. (Software Assurance availability and benefits vary by Volume Licensing program and region.)
Do I need to register as a Volume Licensing reseller to offer Software Assurance to my customers?
That depends on the Volume Licensing program. In regions where Open License is offered, any reseller can work through an authorized Microsoft distributor to offer Software Assurance to customers through the Open License program. To offer Open License Value (available in the United States, Canada, and Japan only), you need to register as a Microsoft Software Advisor.
I don't currently offer volume licenses. How do I become registered to offer Open License Business, Open License Volume, or Open License Value?
In order to offer Open License Business, Open License Volume, and Multi-Year Open Volume agreements, you can order directly from a distributor. Please see http://www.microsoft.com/licensing/programs/open/ for more details.
My customer wants to purchase a "naked" PC from me and acquire the Windows license through a Volume Licensing agreement. Is this OK?
No. Full Windows licenses are not available through any Microsoft Volume Licensing program, including academic volume licenses. The customer must first acquire a Windows operating system license via OEM software included with a new PC from an OEM or system builder, or via the retail channel.
If a school enters into a Microsoft Academic Volume Licensing Agreement (Campus, School, Open, Select); does that mean it is licensed for a full Microsoft operating system, such as Windows?
No. Microsoft Volume Licensing agreements license a school or institution only for an upgrade of Windows. No Academic Volume License covers the full Windows operating system.
If a school has an Academic Volume Licensing agreement, such as Campus, that currently covers a Windows upgrade; does it still need a license that covers the full Windows operating system as well?
Yes. Academic agreements, including Campus, cover only the upgrade—not the full Windows operating system. Schools are required to have a separate license that covers the initial full Windows operating system license.
If a school has an Academic Volume Licensing agreement and purchases a new PC, is it legal for the school to purchase a "naked" PC and use its Academic Volume License to install the full operating system license?
No. Microsoft Academic Volume Licensing agreements license a school or institution only to upgrade a previously acquired full version of a Windows operating system license. No academic volume license allows a school to install the full initial operating system on a new computer.
The Microsoft EULA and other licencing documents are usually long and complex where it isnt always 100% clear what the full meaning of it is.
This thread is a short translation of what the original poster believes to be correct at this time as a way to help his fellow forum members. Always consult your own lawyer before making any client facing decisions/consulting regarding the Microsoft licensing.
The questions listed below are asked literally on a weekly basis, here are the official answers in relation to Microsoft Licences.
These mostly relate, to windows installations, can you use your own media, on reinstallations, and questions relating to refurbished computers. Details pertaining to refurbished computers will be in the next thread.
My comments are listed in dark Blue, all bolded. The same applies to the use of installing with Zalman’s, Sardu etc.
What is validation and when do I need to do it?
Validation is an online process that verifies that your copy of Windows is genuine and that critical Windows licensing files have not been damaged, deleted, or removed. It takes only a few moments and lets Microsoft create a match between your PC's hardware profile and your 25-character product key, which is usually located on the Certificate of Authenticity (COA). This match is anonymously archived so it can be checked against future activation and validation attempts and helps make sure that the Windows product key installed on your PC matches the original Windows product key that was purchased. In this way, validation helps ensure that your product key is not used by another person in a malicious manner, such as activating a counterfeit or non-genuine copy of Windows. Microsoft might ask you to validate after Windows activation, when you request a genuine Windows download from the Microsoft Download Center, or when requesting a non-security-related download from Windows Update. No personally identifiable information is collected during validation.
You may notice that some downloads have an icon next to their name in the Download Center. These downloads also have a highlighted section about Windows validation just below the Quick Details box on the download details pages. These downloads require validation of Windows, which helps to ensure that Windows users receive all the benefits of running authentic and fully licensed copies of Windows. To access a download that requires validation, follow the appropriate process:
If you see a Download button or link, click the button or link to download the file.
If you see a Continue button or link, click the button or link and follow the instructions that are provided. After the validation process has completed, you will be returned to the download details page with the Download button displayed. If Windows cannot be validated, you will receive additional instructions.
What is a Certificate of Authenticity (COA) label?
A Certificate of Authenticity (COA) label helps you and your customers identify genuine Microsoft Windows software. Without it, your customers will not have a legal license to run their Windows software.
Each COA label includes advanced anti-counterfeiting features to help verify the software's authenticity. The COA label is included with each individual software license. For preinstalled Microsoft Windows operating systems, the COA label must be affixed by the system builder to the PC chassis. The COA label also includes the product key, which will be needed in the event the operating system needs to be reinstalled. COA labels must be distributed as part of the full System Builder software license, which also includes the hologram CD and documentation. A COA is not a software license. It is a visual aid that helps in determining whether Microsoft software is genuine. A COA should never be purchased, sold, or distributed by itself without the software it authenticates. COA labels cannot be distributed as standalone items.
What are the End User Software License Terms?
An end user who acquires software is acquiring the right to use that software. End users don't "own" the software, which is intellectual property and is generally "owned" by its developers. The right to use the software is governed by the End User Software License Terms—which, in the case of OEM System Builder product, is an agreement between the system builder and the end user. The End User Software License Terms can typically be found within the software product, and an end user must accept the End User Software License Terms before running the software.
The End User Software License Terms defines what end user rights and restrictions apply to the use of the software, and covers topics such as how the software can be used, whether the license can be transferred, etc.
What are the different ways that my customers can get legal licenses for Windows desktop operating systems? What about software applications such as Microsoft Office 2010?
There are only two ways a customer can get a Windows desktop operating system on a new PC:
OEM System Builder software preinstalled on a PC
Retail product (full packaged product)
Please note that full versions of Windows operating systems are not available through any Microsoft Volume Licensing program.
For application software such as Microsoft Office 2010, customers can
acquire licenses through:
OEM System Builder software preinstalled on a new PC sold with either a Product Key Card (PKC) or traditional disc version that corresponds to the desired Office suite
Product Key Card or traditional disc version purchased at retail
I get many email solicitations offering "Microsoft software at cheap prices." Is this software legal?
Most likely no, this is not legal. Several software counterfeiting operations around the globe are marketing their goods through spam email advertisements. In an attempt to mask their location, these organizations change their names and email addresses daily. The basic contents of the spam message remain the same: "Microsoft software offered at cheap prices."
The advertisers use terms like "OEM software" as an attempt to explain why the offered software is so inexpensive. Microsoft is working to educate customers and partners about the risks of getting software from suspicious sources. We're investigating this spam and counterfeiting operations and trying to stop this activity. Purchasing from known and trusted sources and avoiding "too-good-to-be-true" deals are the best ways to avoid wasting valuable money on counterfeit or infringing software.
If you are aware of or have suspicions of piracy concerning Microsoft software, we urge you to contact us by email at piracy@microsoft.com or visit http://www.microsoft.com/piracy/reporting.
Additionally, we recommend acquiring Microsoft OEM System Builder software from an authorized Microsoft OEM distributor or associate—an assured source of genuine Microsoft software.
I see products like Win 7 Professional—COA only—advertised for sale. Is this legal?
Offers to distribute incomplete OEM System Builder software packages are not legal. Under no circumstances are system builders or any other vendors authorized to distribute single OEM System Builder software components such as standalone Certificates of Authenticity (COAs).
Please note that the Certificate of Authenticity included with each OEM System Builder software package authenticates only the software components with which it is legally distributed. As mentioned, any offer to distribute an incomplete Microsoft software package (e.g., COA only) is not authorized, and any individual who was to obtain incomplete Microsoft software components would not be authorized to use the associated software or redistribute the components. For OEM System Builder Windows desktop operating systems, the complete software package must include the COA, hologram CD, and manual(s).
If you are aware of or have suspicions of piracy concerning Microsoft software, we urge you to contact us by email at piracy@microsoft.com or visit http://www.microsoft.com/piracy/reporting.
System Builder Licensing
What are the different ways in which Microsoft OEM System Builder Windows desktop operating system licenses can be distributed?
The current OEM System Builder License allows system builders to distribute Windows desktop operating system licenses in the following ways:
Preinstalled on a new PC.
Unopened OEM System Builder packs (1-, 3-, or 30-packs) can be distributed to other system builders by themselves. Note that they must remain unopened so the receiving system builder can accept and be bound by the break-the-seal license agreement that is affixed to the pack.
Can I provide a computer system to my customer without an operating system (also referred to as a "naked PC")?
Yes. There is nothing illegal about selling a computer system without an operating system. However, getting the operating system preinstalled is your customer's most cost-effective way to acquire a genuine Windows operating system license. A customer who subsequently wants to install a Microsoft Windows desktop operating system on that naked PC will need to acquire it through the retail (full packaged product) channel which is a more costly option. Full Windows operating systems are not available through any Microsoft Volume Licensing program, and an OEM operating system license cannot be transferred from an "old" PC to a new one.
Can I create my own recovery disks and sell these with the computer systems that I build? I have heard that direct OEMs can do this, so why can't I?
No. System builders may not offer a recovery solution with removable media (e.g., a recovery CD) because it is prohibited by the terms of the Microsoft OEM System Builder License. A full version of the Windows operating system is provided on a hologram CD in the Microsoft System Builder pack for each end user, and the CD must be transferred to the end user at the time of distribution. The hologram CD acts as the recovery medi
However, system builders can offer a hard disk recovery solution in addition to, but not as a replacement for, the hologram CD. Third-party software companies can also help system builders do this. See attached for details on exactly how to accomplish this task.
System builders are bound by the Microsoft OEM System Builder License, affixed to the side of the System Builder packs, which is different than the direct agreements utilized by direct OEMs. The licensing terms for system builders and large OEMs are different because they are designed to address the specific needs of each community. The right to create recovery media is limited to the OEMs with direct agreements; however, these OEMs are also bound by other contractual obligations. The OEM System Builder License is designed to make it easy for system builders to acquire and distribute genuine Microsoft software, and accordingly, its terms are different.
Are system builders allowed to create a "ghost image" CD and ship it along with the system for OEM customers?
No. System builders may not offer a recovery solution with removable media (a recovery CD, for example)—it is prohibited by the terms of the Microsoft OEM System Builder License. A full version of the Windows operating system is provided on a CD in the Microsoft System Builder Pack for each end user, and the CD must be transferred to the end user at the time of sale. The hologram CD acts as the system builder recovery medi
What is the OPK and why do I have to use it?
System builders who distribute Windows software on a fully assembled PC must preinstall the software on the PC's hard drive using the OEM Preinstallation Kit (OPK) included in the OEM System Builder Pack.
Preinstallation using the OPK ensures that customers will encounter the Windows Out-of-Box Experience (OOBE) and that they receive the opportunity to accept the End User Software License Terms.
Additionally, the OPK is easy to set up and use, and will save you time versus manual installation. It enables you to add your own shortcuts and branding to the operating system, to test preinstalled PCs without interrupting the preinstallation process, and much more.
Basically this means, that we as technicians are not allowed to accept the EUL Although we may accept it as our clients agent. If permission is given beforehand.
We would like to create a computer system using an OEM Windows operating system that has a dual-boot feature. The single system would use the same version of Windows on both boot images/partitions.
Does this require two different licenses, or can I use the same license and product key for both images/partitions, since they are both on a single system that can use only one operating system at a time?
A customer who wants Microsoft Windows installed onto two partitions of a computer system will need to obtain two OEM System Builder Windows software licenses. OEM software generally does not permit simultaneous usage of a PC by two end users.
Can a PC with an OEM Windows operating system have its motherboard upgraded and keep the same license? What if it was replaced because it was defective?
Generally, an end user can upgrade or replace all of the hardware components on a computer—except the motherboard—and still retain the license for the original Microsoft OEM operating system software. If the motherboard is upgraded or replaced for reasons other than a defect, then a new computer has been created. Microsoft OEM operating system software cannot be transferred to the new computer, and the license of new operating system software is required. If the motherboard is replaced because it is defective, you do not need to acquire a new operating system license for the PC as long as the replacement motherboard is the same make/model or the same manufacturer's replacement/equivalent, as defined by the manufacturer's warranty.
The reason for this licensing rule primarily relates to the End User Software License Terms and the support of the software covered by that End User Software License Terms. The End User Software License Terms is a set of usage rights granted to the end user by the PC manufacturer and relates only to rights for that software as installed on that particular PC. The system builder is required to support the software on the original PC. Understanding that end users, over time, upgrade their PCs with different components, Microsoft needed to have one base component "left standing" that would still define the original PC. Since the motherboard contains the CPU and is the "heart and soul" of the PC, when the motherboard is replaced (for reasons other than defect) a new PC is essentially created. The original system builder did not manufacture this new PC, and therefore cannot be expected to support it.
If a replacement motherboard is required, what Microsoft are saying, is that an identical board should be installed. Obviously most manufacturers will not keep stock of their old boards for eternity, however if the new motherboard is NOT installed as a upgrade to the existing machine, and is a REPLACEMENT for a FAULTY board a new licence is not required.
The new COA is shaped differently from the previous, rectangular CO How do I apply it for the best coverage?
The new COA is designed to adhere smoothly and securely. For optimal results, see the following recommended COA application technique:
•Begin at the "tab" at the right end of the COA. Remove the COA from the backing liner with minimal touching of the adhesive. (The back of the COA has a 17mm adhesive-free band, which is intended to prevent adhesive from surfacing through the new anti-piracy feature.)
•Attach the COA to the surface with initial pressure applied to the left side of the COA. With a sliding motion left to right across the COA, use the pad of your thumb or finger to apply firm, even pressure. In addition to ensuring even attachment of the COA to the surface, the motion across the COA from left to right will help eliminate any pillowing at the adhesive free area.
•After initial attachment, apply pressure with the back of the hand or pad of the thumb in a sliding motion backward and forward once or twice to fully adhere the COA to the surface.
How does a company qualify to become a direct Microsoft OEM? It seems that the larger companies currently have an unfair advantage compared with smaller OEMs.
Direct OEM licensees do receive a discount compared to buying through the System Builder channel, but that discount is based on the licensee’s commitment to receive ongoing bulk shipments versus purchasing at will. Other elements of the direct licensing agreement require significant initial investment from the OEM. Furthermore, legal and technical requirements are placed on direct OEMs to protect Microsoft intellectual property, and these requirements can add other costs to the production of a PC. The primary difference between the two programs cannot be gauged merely by looking at prices and software licenses. Each program is designed to meet the specific needs of the partner.
I am a reseller of PCs that come preloaded with OEM Windows operating systems. Am I allowed to load Microsoft Office 2010 onto these machines?
Yes, you may install Microsoft Office 2010 software onto the computer systems as long as you do so in compliance with the Microsoft OEM System Builder License.
Please note that the preinstallation and software distribution process for Microsoft Office 2010 makes it easier to buy and sell than prior versions, with a single image to manage for all Office suites and an intuitive SKU line-up.
Can two or more users access and fully utilize OEM Windows operating systems concurrently on the same machine?
No. The End User Software License Terms do not permit two or more users to concurrently use the full feature sets of Windows operating systems.
However, the Windows End User Software License Terms do allow for a limited number of computers or other electronic devices to connect to the computer upon which the software is installed to utilize one or more of the following services: File Services, Print Services, Internet Information Services, and telephony services. The End User Software License Terms also permit limited concurrent use in connection with the Remote Assistance and NetMeeting technologies. Please refer to the applicable End User Software License Terms for detailed information regarding such limited concurrent uses.
What can system builders offer their customers as a "legalization solution" for Windows desktop operating systems?
Microsoft recognizes that end users sometimes acquire non-genuine Windows operating systems for their PCs and may wish to "get legal" by obtaining genuine software.
To obtain genuine Windows software, end users may:
Return to their reseller to resolve the issue;
Go to the Windows Genuine Advantage website at http://www.microsoft.com/genuine/, run the validation wizard, and purchase a download of genuine Windows software;
Acquire a retail ("full packaged product" or "FPP") version of genuine Window software from a reseller; or
If eligible, acquire a Get Genuine Kit for Windows XP Professional from their reseller.
The Get Genuine Kit is available only for use on fully assembled PCs with a previously installed counterfeit, pirated, or otherwise illegal or unlicensed copy of Windows XP Professional software.
How it works:
Resellers can acquire the Get Genuine Kit from authorized Microsoft OEM distributors.
Affix the enclosed Certificate of Authenticity (COA) label to the PC.
Microsoft recommends, but does not require, that on the PC, you either:
Run the Windows Product Key Update Tool;
Perform a reinstall of Windows XP; or
Perform a clean install of Windows XP.
You must do one of the above in order to receive updates, upgrades, and support services.
Other facts:
The Get Genuine Kit is available from your reseller in packs of 1 or 10.
License Pack Contains
1 1 COA label, 1 media, and 1 End User Software License Terms
10 10 COA labels, 1 media, and 1 End User Software License Terms (for legalization of multiple PCs)
10-packs can be used if you have multiple PCs needing legalization.
Microsoft supports this software.
The license is not transferable to another PC.
Transfer of License
Can my customers transfer or sell their OEM software licenses?
After an OEM software license has been installed on a PC, the license may not be installed on or transferred to another PC. However, the entire PC may be transferred to another end user along with the software license rights. When transferring the PC to the new end user, the software media, manuals (if applicable), and Certificate of Authenticity label must be included. It is also advisable to include the original purchase invoice or receipt. The original end user cannot keep any copies of the software.
My customer bought a new PC and wants to move the OEM software from the old PC to the new one. Can't users do whatever they want with their software?
The OEM software is licensed with the computer system on which it was originally installed and is tied to that original machine. OEM licenses are single-use licenses that cannot be installed on more than one computer system, even if the original machine is no longer in use. The End User Software License Terms, which the end user must accept before using the software, states that the license may not be shared, transferred to, or used concurrently on different computers. System builders must provide end-user support for the Windows license on computers they build, but cannot support licenses on computers they didn’t build. This is a fundamental reason why OEM System Builder licenses can't be transferred.
Microsoft on Preinstallation and Software Returns
When selling a PC to my customers, should it be preinstalled with a Microsoft operating system, and if so, must they use the Microsoft operating system purchased with the PC?
Most consumers want PCs which are easy to use and work right out of the box without the need for specific IT expertise or cumbersome and time-consuming installation processes. Microsoft believes that PCs with a preinstalled operating system and optimized for the needs of these consumers provide the best possible computing experience and is an effective mean to reduce software piracy.
Most computing devices, PCs, netbooks, slates, or smart phones, are perceived by consumers as a single product which includes various hardware and software components. Consumers are accustomed to use these devices without any technical knowledge on how to install an operating system or any additional software to ensure that the device is functioning properly.
Accordingly, there is no significant consumer demand for PCs without a preinstalled operating system. Those consumers who ask for PCs without an operating system usually are technical experts or hobbyists.
PC manufacturers, system builders and retailers are free to choose what kind of PC they want to sell to their customers. They decide whether the PC they sell has a preinstalled operating system and what kind of software will be preinstalled. The resulting product offerings are again driven by consumer demand. Microsoft does not oblige its partners to sell PCs with Windows preinstalled, nor does it prevent manufactures, system builders and retailers from selling PCs with competing operating systems or no operating system at all.
All consumers are free to choose between PCs with the Windows operating system, a non-Microsoft operating system, or without any operating system at all. The PC market offers a wide variety of all types of products.
Consumers who purchased a PC with a Microsoft operating system preinstalled do not have to use this operating system. They can choose to reject the terms and conditions of the end-user license agreement and may contact the manufacturer to determine its return policy. The manufacture is free to set its return policy which might require the consumer to return either the operating system software only or the entire system on which the software is installed. Microsoft only requires the manufacturer to put in place a return policy, and does not dictate how the manufacturer deals with returns. That policy is solely determined by the manufacturer.
Refurbished/Used PCs
What is the difference between a refurbished PC and a used PC?
A refurbished PC is a computer system that has had substantial hardware modifications that may require a new operating system license—because the modifications have essentially created a "new" PC.
Generally, an end user can upgrade or replace all of the hardware components on a computer—except the motherboard—and still retain the license for the original Microsoft OEM operating system software. If the motherboard is upgraded or replaced for reasons other than a defect, then a new computer has been created. Microsoft OEM operating system software cannot be transferred to the new computer, and the license of new operating system software is required.
If the motherboard is replaced because it is defective, you do not need to acquire a new operating system license for the PC as long as the replacement motherboard is the same make/model or the same manufacturer's replacement/equivalent, as defined by the manufacturer's warranty.
If a replacement motherboard is required, what Microsoft are saying, is that an identical board should be installed. Obviously most manufacturers will not keep stock of their old boards for eternity, however if the new motherboard is NOT installed as a upgrade to the existing machine, and is a REPLACEMENT for a FAULTY board a new licence is not required.
A used PC is a computer system that has had few or no hardware changes. The license for OEM software on a used PC may not be transferred to a new or different PC. However, the entire used PC, including the software media, manuals, and Certificate of Authenticity, may be transferred to another end user along with the software license rights.
Can I sell second hand computer systems with the original Microsoft software, or will a new license be required before selling?
Please look at the End User Software License Terms to find out which type of license has been issued for the Microsoft software on the computer system and check the provisions relating to transfer. To find and read the End User Software License Terms, click Start on the taskbar, click Help and Support, and do a search for eultxt.
Generally speaking, in the case of OEM or OEM System Builder software, the license may not be transferred to a new or different PC. However, the entire used PC, including the software media, manuals, and Certificate of Authenticity, may be transferred to another end user along with the software license rights.
If my customer asks me to upgrade a PC with new hardware components, when is a new operating system needed? When would the PC be considered "new"?
Generally, an end user can upgrade or replace all of the hardware components on a computer—except the motherboard—and still retain the license for the original Microsoft OEM operating system software. If the motherboard is upgraded or replaced for reasons other than a defect, then a new computer has been created. Microsoft OEM operating system software cannot be transferred to the new computer, and the license of new operating system software is required.
If the motherboard is replaced because it is defective, you do not need to acquire a new operating system license for the PC as long as the replacement motherboard is the same make/model or the same manufacturer's replacement/equivalent, as defined by the manufacturer's warranty.
Can a system builder install Microsoft OEM software on a refurbished computer system, which may include branded PCs (e.g., Hewlett-Packard, Compaq, etc.)?
Yes, as long as the system builder complies with the OEM System Builder License requirements for preinstallation and distribution of the OEM Microsoft software licenses, and the customer accepts the End User Software License Terms. SEE BELOW:
MICROSOFT OEM SYSTEM BUILDER LICENSE
(Visit www.microsoft.com/oem for additional OEM System Builder information)
1: Definitions.
a) “Customer System” means a fully assembled computer system that includes a CPU, a motherboard, a power supply, an internally mounted NAND or revolving magnetic-based hard drive, and a case. For Server products, a hard drive and separate power supply are not required. A Customer System must meet the system requirements of the software as posted on http://www.microsoft.com and must be able to run the Software.
b.) “Distribution” and “distribute” mean the point in time when a Customer System leaves your control.
c) “Hardware” means the Microsoft hardware included in the Pack. A unit of Hardware includes any Software and end user documentation that may be included in the Pack.
d) “OPK” means the OEM preinstallation kit provided by Microsoft that includes installation instructions, utilities and tools for preinstalling the Software.
e). “Pack” means this package of Microsoft Software or Hardware.
f). “Software” means the Microsoft Software inside the Pack. A unit of Software includes any Software media, documentation, certificate of authenticity (“COA”) label, end user license terms and security devices.
2: Authorized Distribution and Acceptance.
To distribute the Software or Hardware in this Pack, you must be a System Builder
And accept this license. “System Builder” means an original equipment manufacturer, an assembler, a refurbisher, or a software pre-installer that sells the Customer System(s) to a third party. You accept this license when you open this Pack. If you choose not to accept this license, promptly return the unopened Pack to your distributor. You may only distribute unopened Packs within your territory. For the territory in which you may distribute, see www.microsoft.com/oem/sblicense/territory. Individual Software or Hardware units may not be returned after the Pack is opened.
3: Parties.
Microsoft Licensing, GP (“MLGP”), a general partnership organized under the laws of the State of Nevada, grants this license to you. However, if you are located in Europe, the Middle East or Africa, then this license is granted by Microsoft Ireland Operations Limited (“MIOL”), a company organized under the laws of Ireland. The terms “we,” “our,” “us” or “Microsoft” mean either MLGP or MIOL.
4: Limited License.
If you comply with the terms of this license, Microsoft grants you a limited license to distribute the Software or Hardware. Except as granted in this license, you may not use, run, copy, modify, display, distribute, repackage or reassemble the Software, Hardware, OPK or any part of them. You may not reverse engineer, decompile, or disassemble the Software, Hardware or OPK, except to the extent expressly permitted by this license or by applicable law notwithstanding this prohibition. All rights not expressly granted are reserved.
5: Distribution.
a). Software Preinstallation.
i) For each unit of Software in the Pack, you must pre-install one copy of the Software on a Customer System prior to distribution. If the Software includes more than one language version, you must install only one language version.
ii) For such pre-installation, you must use the OPK provided in the Pack or otherwise made available by us. You may use the information, tools and materials contained in the OPK solely to preinstall the Software in accordance with the OPK. See www.microsoft.com/oem/sblicense/OPK for additional information about the OPK. You may not distribute the OPK to the end user.
iii). See http://oem.microsoft.com/starter for additional hardware requirements when pre-installing Microsoft Windows Starter Editions.
iv) This preinstallation requirement does not apply to server Software. Instead, server Software may be distributed inside the Customer System package.
b). End User License Terms. You must distribute the Software pursuant to the end user license terms (“License Terms”) that accompany it. Under the License Terms, you are the licensor.
c). Hardware. You must distribute each Hardware unit with either a Customer System, or another non-Microsoft computer hardware component. If you distribute a Hardware unit with a Customer System, you must preinstall any associated Software drivers and programs provided to you in the pack. Before you distribute the Hardware, you must test it to ensure that the Hardware functions properly with the Customer System. Microsoft makes no warranty or representation regarding the Hardware’s compliance with any federal, state or local laws or regulations relating to computing devices or products sold to the public.
d). Alternate versions. The Pack may include more than one platform version of the Software such as 32-bit or 64-bit. You may only preinstall one version but must distribute both versions to the end user.
e). Processor versions. For Server products, you may not preinstall or distribute a processor version of the Software on a Customer System that includes more processors than the highest number of processors listed on the Pack.
f). You must distribute the complete unit of Software, including the CO
6: Certificate of Authenticity (COA) Label.
If this Pack contains a Microsoft operating system and you pre-install it, then you must affix the COA on the front, top, side or back of the Customer System case. If the Customer System is a laptop or tablet PC, the COA must be affixed to the bottom of the Customer System. If a portable Customer System includes a vanity case or “skin” that can be removed and easily replaced with another case or skin by the end user in the normal course of use, then you may affix the COA directly on the bottom of the Customer System under the vanity case or “skin.” In that case, you must print “Microsoft COA and Product Key are located under this removable covering” on the outside of each vanity case or “skin” distributed with the Customer System. You may replace “removable covering” with a more specific word or term that clearly references the vanity case or “skin.”
7: End User Support.
You must provide end user support for the Software or Hardware. You must provide support under terms at least as favourable to the end user as the terms that you provide to support any Customer System. At a minimum, you will provide commercially reasonable telephone support.
8: Disclaimer of All Warranties.
The Software or Hardware is licensed “as-is.” You bear the risk of using and distributing the Software or Hardware. Unless required by applicable law, Microsoft gives no express warranties, guarantees or conditions.
To the extent permitted under applicable laws, Microsoft excludes the implied warranties or conditions of merchantability, fitness for a particular purpose and non-infringement.
9: Limitation of Liability.
Your and our total liability for direct damages under this license is limited to 100% of the amount that you actually paid for the Pack. Microsoft disclaims all liability for lost profits, indirect, consequential, incidental, economic, special or punitive damages. The limitations in this section apply to the Software or Hardware, and claims for breach of contract, breach of warranty or condition, strict liability or negligence or other tort. The limitations also apply even if you are not fully compensated for any losses, or Microsoft knew or should have known about the possibility of damages. You also release Microsoft from all liability in excess of the limits in this provision. This release includes any claim for indemnification or contribution even if such claims arise under local law. The limitations in this section do not apply to your violation of Microsoft intellectual property rights.
10: Export Restrictions.
The Software or Hardware in this Pack is subject to U.S. and international export laws and regulations. You must comply with all domestic and international export laws and regulations that apply to the Software or Hardware. These laws include restrictions on destinations, end users and end use. See http://www.microsoft.com/exporting/ for more information.
11: Anti-Piracy.
You must not engage in the distribution of pirated software or hardware.
12: Activation.
Use of the Software in the Pack may be for a limited time after the end user first launches the Software, unless the end user activates it, as described during the launch of the Software. You must provide the following or substantially similar notice in a clear and conspicuous manner to end users prior to their acquiring this Software:
Certain Microsoft® software products included with this computer system may use technological measures for copy protection. If properly licensed, you have the right to use the version of the software installed during the installation process up to the time permitted for activation. Unless the software is activated, you have no right to use it after the time permitted for activation. This is to prevent its unlicensed use. You are not permitted to bypass or circumvent activation. Product activation procedures and Microsoft’s privacy policy will be detailed during initial launch of the software, or upon certain reinstallations of the software
or reconfigurations of this computer, and may be completed by internet or telephone (toll charges may apply).
13: Geographic Restrictions.
Some Software may be licensed for distribution only to specific countries. Activation of the Software must occur in those certain countries. See http://www.microsoft.com/geo for details.
You must pre-install the Software only within the geographic boundaries of the country or region identified on the Software packaging, if listed; and
b. provide the following or substantially similar notice in a clear and conspicuous manner to end users prior to their acquiring the Software:
You are only permitted to activate this software in the specific geographic region indicated on the software or device packaging. You may not be able to activate the software outside of that region. For further information on geographic restrictions, visit http://www.microsoft.com/geo.
14: Compensation.
Unless otherwise authorized by Microsoft, you will not advertise, give a separate price for, or otherwise market or distribute the Software as separate from a Customer System. However, you may compensate end users for Software or Hardware
returned to you under the License Terms.
15: Taxes and Other Charges Excluded.
You are responsible for any taxes, duties, fees, excises or tariffs imposed on any of your activities in connection with this license. You must pay these charges, taxes and other fees.
16: Severability.
If a court of competent jurisdiction finds any provision of this license to be illegal, invalid or unenforceable, the remaining terms will remain in full force and effect.
17: Governing Law.
If MLGP grants this license to you (see section 3 above), this license is governed by the laws of the State of Washington, U.S. If MIOL grants this license to you, this license is governed by the laws of Ireland.
18: UN Convention.
The United Nations Convention on Contracts for the International Sale of Goods does not apply to this license.
19: Non-exclusivity. Nothing in this license restricts you from supporting, promoting, distributing, or using non-Microsoft software or hardware.
20: Assignment.
Microsoft may assign this license to an affiliated company at any time.
21. Technology Transfer.
This license does not create a “technology transfer” agreement, as defined by applicable law because
(a) the technology (including any Software) made available under this license is not an integrated part of a technology chain for production
or management purposes and
(b) The technology (including any Software) will have its own technology license. You will not hold yourself out as our technology recipient and will not attempt to identify us as a technology provider under this license.
If I need to reinstall the operating system on a machine from a direct OEM (e.g., Dell) that my customer has brought in, how should I do this?
A customer who wants you to reinstall Windows must provide recovery media from the direct OEM, because the software is licensed to the customer for use on that PC by that OEM. You cannot use your own OEM System Builder media to reinstall the operating system, or any other version of media (e.g., TechNet, MSDN, Action Pack, etc.), because these versions differ from the original OEM Windows license your customer acquired from the direct OEM. A customer who doesn't have a backup copy of the software for reinstallation will need to contact the original OEM and request replacement recovery media; you can use that media to reinstall the operating system on that machine.
If the manufacturer no longer supports any particular model or laptop, or desktop, then in certain circumstances, it is possible to contact Microsoft Licencing department direct, and they will then provide (read sell), you a copy of the recovery media for installing windows on this machine.
After considerable conversations with the Microsoft Licencing department, and asking what the differences are between OEM windows media, and our own media, I have been told it is to do with the hardware requirements on OEM machines, i.e. drivers. Also the fact that OEM’s always include their own configured programs (bloat ware).
With XP soon to be no longer supported, this will then force us to supply and install Windows 7 onto our clients machines. In a lot of cases, this will force our clients to purchase replacement machines instead, as the cost of the licence for Windows 7 will outweigh the value of the machines. In which case a installation of your favourite Linux distro could be the way forward.
Downgrade Rights
What are downgrade rights and how would my customer benefit from them?
Downgrade rights refer to the ability of your customers to acquire the most recent version of Microsoft software but continue to run a previous version until they are ready to upgrade. Downgrade rights are an end-user right and are documented in the product End User Software License Terms.
Where can I find out more about downgrade rights?
Please visit /oem/en/licensing/sblicensing/pages/downgrade_rights.aspx for more information.
Who can install the downgrade software or reinstall the original software?
A system builder (when authorized by the end user) or the end user. Because downgrade rights are an end-user right granted in the End User Software License Terms, the end user must first be able to accept the End User Software License Terms associated with Windows Vista Business, Windows Vista Ultimate, Windows XP Professional, Windows Server 2003, or Windows Small Business Server 2003 software. Therefore, this software must be installed first before the downgrade software is installed.
Where do end users get the CD/media to install the downgrade software?
End users must install the downgrade software using a legally licensed copy of the specified previous version of the Windows desktop or server operating system. The downgrade software may be from the retail, OEM System Builder, or Volume Licensing channels.
Can end users use both the latest version and the downgrade software at the same time?
No. End users may install and use only one Microsoft operating system (either the downgrade software or the applicable Windows Vista Business, Vista Ultimate, Windows XP Professional, Windows Server 2003, or Windows Small Business Server software) at any given time.
Can end users return to Windows Vista Business, Vista Ultimate, Windows XP Professional, Windows Server 2003, or Windows Small Business Server 2003 software after they downgrade?
Yes. End users who downgrade may reinstall the original software when they are ready to migrate. For example, an end user who downgrades to Windows XP Professional may later return to Windows Vista Business software, provided that the end user deletes the Windows XP Professional software from the PC.
How do end users reinstall the original software after downgrading?
End users must use the original System Builder media that was included with the PC or server for reinstallation. The downgrade software must be deleted from the hard drive before the original software is reinstalled.
Does Microsoft Office 2010 contain downgrade rights to a previous version?
No, downgrade rights are not available for Office 2010 Product Key Cards or traditional disc versions.
Activation
What is product activation?
Product activation technology is aimed at reducing software piracy as well as ensuring that Microsoft customers receive the product quality that they expect.
Which customers and products are required to activate?
All customers who acquire retail packaged products or OEM System Builder products are required to activate the software. The software on a new PC from a system builder may be activated by the system builder. Product activation will not be required for licenses acquired by a customer through a Microsoft Volume Licensing program, such as Open License or Select License. Under these Volume Licensing programs, customers will be given a Volume License Key that will bypass activation.
How does Microsoft product activation work?
Product activation works by validating that the software's product key, required as part of product installation, has not been used on more PCs than is allowed by the software's license. The product key and the product ID (created from the product key used during installation) are sent along with a "hardware hash" (a non-unique number generated from the PC's hardware configuration) to the Microsoft activation system during activation. Activation is completed either directly via the Internet or by a telephone call to a customer service representative. Most customer service centers are open 24 hours.
What do I do if a customer returns a computer system that I sold, but the customer has activated the OEM System Builder Windows XP Professional software?
In this situation, we recommend:
1: If the returned PC can be resold to another end user without any changes to the hardware components, you may resell it to another end user. You will need to remove the activated software and install it again, as the "new" end user must see and accept the End User Software License Terms as well as experience Windows Welcome. The end user should not have any problems using the same product key to activate the software again, because the computer system configuration hasn't changed.
2: If significant changes have occurred to the computer system's hardware components, you should remove the activated software and reinstall it. The "new" end user must see and accept the End User Software License Terms and experience Windows Welcome. You will also need to inform the "new" end user that the Windows XP software program was activated by the original purchaser. Microsoft also recommends that you instruct the end user to use the telephone call center activation method rather than the Internet method, so the user can talk to the customer service agent and explain what happened. The call center personnel have been notified that this may happen and can reactivate the software using the new PC hardware configuration dat
There is a 30-day grace period before a Microsoft OEM System Builder Windows desktop operating system needs to be activated. Additionally, if you wish to sell the returned computer, you will need to "roll back" the system so that the customer can accept the End User Software License Terms and activate the software. Please refer to the OEM Preinstallation Kit (OPK) for information on preinstallation and what can be done to "roll back" the computer system.
Volume Licensing
Where do I get more information on Microsoft Volume Licensing programs?
Microsoft Volume Licensing programs are designed for organizations that need multiple copies of Microsoft software and are economical ways to acquire anywhere from five to thousands of software licenses. Microsoft Volume Licensing programs include Open License, Select License, Enterprise Agreement, and Enterprise Subscription Agreement.
What is Software Assurance (SA)?
Software Assurance is an offering for Microsoft Volume Licensing customers that provides customers with benefits such as the ability to spread payments over three years, new version rights, support, tools, and training. (Software Assurance availability and benefits vary by Volume Licensing program and region.)
Do I need to register as a Volume Licensing reseller to offer Software Assurance to my customers?
That depends on the Volume Licensing program. In regions where Open License is offered, any reseller can work through an authorized Microsoft distributor to offer Software Assurance to customers through the Open License program. To offer Open License Value (available in the United States, Canada, and Japan only), you need to register as a Microsoft Software Advisor.
I don't currently offer volume licenses. How do I become registered to offer Open License Business, Open License Volume, or Open License Value?
In order to offer Open License Business, Open License Volume, and Multi-Year Open Volume agreements, you can order directly from a distributor. Please see http://www.microsoft.com/licensing/programs/open/ for more details.
My customer wants to purchase a "naked" PC from me and acquire the Windows license through a Volume Licensing agreement. Is this OK?
No. Full Windows licenses are not available through any Microsoft Volume Licensing program, including academic volume licenses. The customer must first acquire a Windows operating system license via OEM software included with a new PC from an OEM or system builder, or via the retail channel.
If a school enters into a Microsoft Academic Volume Licensing Agreement (Campus, School, Open, Select); does that mean it is licensed for a full Microsoft operating system, such as Windows?
No. Microsoft Volume Licensing agreements license a school or institution only for an upgrade of Windows. No Academic Volume License covers the full Windows operating system.
If a school has an Academic Volume Licensing agreement, such as Campus, that currently covers a Windows upgrade; does it still need a license that covers the full Windows operating system as well?
Yes. Academic agreements, including Campus, cover only the upgrade—not the full Windows operating system. Schools are required to have a separate license that covers the initial full Windows operating system license.
If a school has an Academic Volume Licensing agreement and purchases a new PC, is it legal for the school to purchase a "naked" PC and use its Academic Volume License to install the full operating system license?
No. Microsoft Academic Volume Licensing agreements license a school or institution only to upgrade a previously acquired full version of a Windows operating system license. No academic volume license allows a school to install the full initial operating system on a new computer.
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