davehc
Microsoft MVP
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This may help new buyers to travel through the Licensing minefield. If any readers can see any glaring errors, do not hestitate to point them out in a following post. Maybe we can then "sticky" it.
Retail (full):
1. Comes with the full box, manual, holographic discs and licence, usually for one computer. This is obtained by buying the product on its own (without bundled hardware) from a shop or online retailer.
2. Can be activated as many times as required as long as it is not installed on more computers than the licence allows at the same time. The first activation can normally be done using the online service while subsequent ones require you to call thetelephone activation service and confirm that you are not activating on a second PC without having removed it from the first. You do have to tell them that you replaced all of the hardware in your computer over the phone though, and not tell them that it's a different PC. They also don't identify the PC simply by the motherboard, it's a combination of five different things. The motherboard, hard-drive, video-card, CPU. Each item has a score, if your score ends up being above a certain number, even without reinstalling Windows you will be required to reactivate. Microsoft will let you replace a motherboard without buying a new license, There appears to be no limit as to the number of times you can use the telephone procedure, if you follow the above.
Also, you don't have to gradually replace parts, you can replace everything at once and MS still activate it.
3. The same retail key can be used for both x86 and x64 editions. Ultimate is supplied with both DVDs in the box while the other editions come with x86, and the x64 DVD can be ordered, for the cost of shipping/handling
4. Any retail disc/download will work with any product key for the retail edition of the same product.
Retail (upgrade):
1. Same as retail (full), except that a qualifying previous version of the product must be owned for the licence to be valid. The qualifying products will be outlined on the packaging of the upgrade. The older version may not be used at the same time as the product that the upgrade is for, the two licences together make one full licence for the new product.
2. Supplied in the same packaging with the same manual and disc as the retail (full) editions, except with "upgrade" branding
3. No proof of ownership is required for purchase, but the installation will usually require the disc of the older product for checking during the installation. The upgrade must instead be initiated from within a running copy of Windows rather than being able to be installed by booting from the DVD. However, you may still perform a clean installation by starting the installation from here but then installing to a different partition, it does not have to be an "upgrade" installation.
4. The upgrade disc is identical to the retail disc, it is the key that enforce the restriction of not being able to install while booted from the DVD, so it is possible to circumvent this restriction by booting and installing without entering a key, then starting the installation again from within the newly-installed version and entering the upgrade key, as Windows 7 is, it seems, deemed to qualify for an upgrade to Windows 7 (even the same edition). However, it is only legal to do this if you do own a copy of Windows 2000 or XP that qualifies for the upgrade licence.
OEM:
1. These should only be sold bundled with a new PC; however you can usually buy them separately or with a nominal piece of hardware from most online computer parts stores. They cost significantly less than retail editions.
2. Unlike retail editions, these are only to be used on the PC with which they were originally supplied (ie they should only allow you to activate them on the first PC on which they were activated). However, the telephone activation service will sometimes allow activation on a different PC although this does break the lience - you will need to tell them that you have replaced most/all of the parts in the original PC including motherboard, hard drive and graphics card. However, be aware that they can tell that you are activating it on a different PC to the one(s) on which you have previously activated it. The product key is on a COA which must be stuck to the PC for it to be valid; this is also aimed at tying the licence to the original PC. It is legal to re-activate with a different motherboard if the motherboard in the original PC needs to be replaced; normally the motherboard is what they use to identify a PC though ie you can upgrade everything except this without it becoming a different PC that needs a new licence (otherwise there would be nothing to stop you effectively replacing the PC gradually but using the same licence).
3. OEM editions are supplied on Microsoft holographic discs (for 7 these are identical to the retail DVDs and all the DVDs take both OEM and retail keys) if you buy them yourself or they are supplied by a small "system builder", on OEM-branded discs (which range from being the same as the MS ones with just a few OEM branding customisations to BIOS-locked "recovery discs" which will only install on the PC that they came with and contain a lot of non-MS crapware) from larger OEMs (MS only allows the larger OEMs to distribute these now whereas they used to be able to offer either), or simply as "recovery partitions" on new PCs. If you only have a recovery disc/partition, the holographic OEM disc can be used with your key to reinstall the product, while with 7 the retail disc can also be used. The versions that you buy normally come in a standard DVD case rather than the full box of the retail edition.
4. OEM Windows versions are supplied as either x86 or x64. However, keys will work with both editions if you can obtain the disc/download, though your OEM or MS will not supply you with that disc. Windows7 professional x64 Edition uses its own set of keys.
5. Most new PCs are installed with Windows by the manufacturer from one image to thousands of machines and therefore have a "multiple activation key" in them. This is a pre-activated key locked to that OEM and the recovery discs will also often include this key. The key on the COA is therefore just proof of licence, or you can use it if you reinstall from a different disc or from an MS holographic one that has no keys integrated. As this is a "virgin" (never activated) key, it should be possible to activate on any other PC at least once, as MS will have no way of knowing that it is not the PC that it originally came with.
6. The COA is the proof of licence and must be supplied with any OEM copy of Windows, even if no disc is included.
Volume Licensing:
1. Available to organisations which need five or more licences for a product.
2. One product key is used for all of the installations.
3. Usually supplied as a download or on Volume Licensing-branded discs.
4. Identical to the retail versions except that the set of keys taken is different and they do not usually need activation with Microsoft. Sometimes the disc is the same disc and the key determines the installation type.
5. Windows uses VLK 2.0 which does require activation. This can be done online in the same way as the retail version of the product or against a Key management Server (KMS), usually located on the organisation's network. A KMS must first be activated itself with Microsoft, then PCs can activate with it rather than MS. VLK copies need to check in with the KMS at least every 180 days to remain activated. Business and Enterprise are available as VLK versions and separate discs are required for the
installation; Enterprise is only available as VLK.
6. Software Assurance is a subscription-based scheme where large organisations can subscribe and always receive the latest versions of Windows etc.
MSDN/TechNet/Partner Action Pack:
1. These subscriptions provide the subscriber with most of Microsoft's software, although most of it is only for "evaluation" (ie non-commercial) use, albeit not time-restricted like a trial. It is many times cheaper to buy the software this way than as retail or OEM.
2. Usually supplied as a download or on non-holographic discs branded with the type of subscription.
Trial:
1. Similar to subscription licences, except a time limit is hard-coded into the software. Evaluation software is usually identical to the full product except for the time limit, and can usually be upgraded to the full version by purchasing and entering a retail product key.
2. Some evaluation editions, eg Windows Server 2008 are identical to the retail DVD and are simply installed without a product key, using the grace period for activation as the trial period. A retail key can then be entered and activated as normal.
3. Generally not for commercial use other than for evaluation purposes.
Not for resale:
1. You will sometimes see discs that are "genuine" but say something like "not for retail or OEM distribution" or "unlicensed software: illegal without separate licence from Microsoft" on them - these are "fulfilment" discs that contain the full version of the product and often include a product key for installation, but they are to provide discs for customers such as those with VL agreements and so they should not be sold or used without such a licence. Likewise, discs to provide other editions of the same product eg the CD and 64-bit versions of Windows, are marked as not for resale as they should not be used as a separate copy of the product, they belong with the original disc and licence with which they are ordered.
2. Promotional copies given out at Microsoft events will also be marked as "not for resale" - these are usually the full retail product and may or may not be licences for commercial use, but do not usually have the full packaging.
Academic Retail
1. These can be bought for Full or Upgrades. Sometimes academic licenses entitle users to less functionality or more specific functionality then the regular product (such as Microsoft Office), or they can be exactly the same product as the usual retail version (such as Microsoft Vista).
2.Academic licenses are considerably cheaper than the usual retail versions.
3.Academic licenses are only available to Students studying at primary, secondary and tertiary institutions. The license also applies to parents/guardians of qualifying students and, in some circumstances, teachers and academic staff.
This is information is a private guide only, and there may be errors - please check the license before buying academic software
Have fun and stay legal
The different types of Microsoft licences.
Retail (full):
1. Comes with the full box, manual, holographic discs and licence, usually for one computer. This is obtained by buying the product on its own (without bundled hardware) from a shop or online retailer.
2. Can be activated as many times as required as long as it is not installed on more computers than the licence allows at the same time. The first activation can normally be done using the online service while subsequent ones require you to call thetelephone activation service and confirm that you are not activating on a second PC without having removed it from the first. You do have to tell them that you replaced all of the hardware in your computer over the phone though, and not tell them that it's a different PC. They also don't identify the PC simply by the motherboard, it's a combination of five different things. The motherboard, hard-drive, video-card, CPU. Each item has a score, if your score ends up being above a certain number, even without reinstalling Windows you will be required to reactivate. Microsoft will let you replace a motherboard without buying a new license, There appears to be no limit as to the number of times you can use the telephone procedure, if you follow the above.
Also, you don't have to gradually replace parts, you can replace everything at once and MS still activate it.
3. The same retail key can be used for both x86 and x64 editions. Ultimate is supplied with both DVDs in the box while the other editions come with x86, and the x64 DVD can be ordered, for the cost of shipping/handling
4. Any retail disc/download will work with any product key for the retail edition of the same product.
Retail (upgrade):
1. Same as retail (full), except that a qualifying previous version of the product must be owned for the licence to be valid. The qualifying products will be outlined on the packaging of the upgrade. The older version may not be used at the same time as the product that the upgrade is for, the two licences together make one full licence for the new product.
2. Supplied in the same packaging with the same manual and disc as the retail (full) editions, except with "upgrade" branding
3. No proof of ownership is required for purchase, but the installation will usually require the disc of the older product for checking during the installation. The upgrade must instead be initiated from within a running copy of Windows rather than being able to be installed by booting from the DVD. However, you may still perform a clean installation by starting the installation from here but then installing to a different partition, it does not have to be an "upgrade" installation.
4. The upgrade disc is identical to the retail disc, it is the key that enforce the restriction of not being able to install while booted from the DVD, so it is possible to circumvent this restriction by booting and installing without entering a key, then starting the installation again from within the newly-installed version and entering the upgrade key, as Windows 7 is, it seems, deemed to qualify for an upgrade to Windows 7 (even the same edition). However, it is only legal to do this if you do own a copy of Windows 2000 or XP that qualifies for the upgrade licence.
OEM:
1. These should only be sold bundled with a new PC; however you can usually buy them separately or with a nominal piece of hardware from most online computer parts stores. They cost significantly less than retail editions.
2. Unlike retail editions, these are only to be used on the PC with which they were originally supplied (ie they should only allow you to activate them on the first PC on which they were activated). However, the telephone activation service will sometimes allow activation on a different PC although this does break the lience - you will need to tell them that you have replaced most/all of the parts in the original PC including motherboard, hard drive and graphics card. However, be aware that they can tell that you are activating it on a different PC to the one(s) on which you have previously activated it. The product key is on a COA which must be stuck to the PC for it to be valid; this is also aimed at tying the licence to the original PC. It is legal to re-activate with a different motherboard if the motherboard in the original PC needs to be replaced; normally the motherboard is what they use to identify a PC though ie you can upgrade everything except this without it becoming a different PC that needs a new licence (otherwise there would be nothing to stop you effectively replacing the PC gradually but using the same licence).
3. OEM editions are supplied on Microsoft holographic discs (for 7 these are identical to the retail DVDs and all the DVDs take both OEM and retail keys) if you buy them yourself or they are supplied by a small "system builder", on OEM-branded discs (which range from being the same as the MS ones with just a few OEM branding customisations to BIOS-locked "recovery discs" which will only install on the PC that they came with and contain a lot of non-MS crapware) from larger OEMs (MS only allows the larger OEMs to distribute these now whereas they used to be able to offer either), or simply as "recovery partitions" on new PCs. If you only have a recovery disc/partition, the holographic OEM disc can be used with your key to reinstall the product, while with 7 the retail disc can also be used. The versions that you buy normally come in a standard DVD case rather than the full box of the retail edition.
4. OEM Windows versions are supplied as either x86 or x64. However, keys will work with both editions if you can obtain the disc/download, though your OEM or MS will not supply you with that disc. Windows7 professional x64 Edition uses its own set of keys.
5. Most new PCs are installed with Windows by the manufacturer from one image to thousands of machines and therefore have a "multiple activation key" in them. This is a pre-activated key locked to that OEM and the recovery discs will also often include this key. The key on the COA is therefore just proof of licence, or you can use it if you reinstall from a different disc or from an MS holographic one that has no keys integrated. As this is a "virgin" (never activated) key, it should be possible to activate on any other PC at least once, as MS will have no way of knowing that it is not the PC that it originally came with.
6. The COA is the proof of licence and must be supplied with any OEM copy of Windows, even if no disc is included.
Volume Licensing:
1. Available to organisations which need five or more licences for a product.
2. One product key is used for all of the installations.
3. Usually supplied as a download or on Volume Licensing-branded discs.
4. Identical to the retail versions except that the set of keys taken is different and they do not usually need activation with Microsoft. Sometimes the disc is the same disc and the key determines the installation type.
5. Windows uses VLK 2.0 which does require activation. This can be done online in the same way as the retail version of the product or against a Key management Server (KMS), usually located on the organisation's network. A KMS must first be activated itself with Microsoft, then PCs can activate with it rather than MS. VLK copies need to check in with the KMS at least every 180 days to remain activated. Business and Enterprise are available as VLK versions and separate discs are required for the
installation; Enterprise is only available as VLK.
6. Software Assurance is a subscription-based scheme where large organisations can subscribe and always receive the latest versions of Windows etc.
MSDN/TechNet/Partner Action Pack:
1. These subscriptions provide the subscriber with most of Microsoft's software, although most of it is only for "evaluation" (ie non-commercial) use, albeit not time-restricted like a trial. It is many times cheaper to buy the software this way than as retail or OEM.
2. Usually supplied as a download or on non-holographic discs branded with the type of subscription.
Trial:
1. Similar to subscription licences, except a time limit is hard-coded into the software. Evaluation software is usually identical to the full product except for the time limit, and can usually be upgraded to the full version by purchasing and entering a retail product key.
2. Some evaluation editions, eg Windows Server 2008 are identical to the retail DVD and are simply installed without a product key, using the grace period for activation as the trial period. A retail key can then be entered and activated as normal.
3. Generally not for commercial use other than for evaluation purposes.
Not for resale:
1. You will sometimes see discs that are "genuine" but say something like "not for retail or OEM distribution" or "unlicensed software: illegal without separate licence from Microsoft" on them - these are "fulfilment" discs that contain the full version of the product and often include a product key for installation, but they are to provide discs for customers such as those with VL agreements and so they should not be sold or used without such a licence. Likewise, discs to provide other editions of the same product eg the CD and 64-bit versions of Windows, are marked as not for resale as they should not be used as a separate copy of the product, they belong with the original disc and licence with which they are ordered.
2. Promotional copies given out at Microsoft events will also be marked as "not for resale" - these are usually the full retail product and may or may not be licences for commercial use, but do not usually have the full packaging.
Academic Retail
1. These can be bought for Full or Upgrades. Sometimes academic licenses entitle users to less functionality or more specific functionality then the regular product (such as Microsoft Office), or they can be exactly the same product as the usual retail version (such as Microsoft Vista).
2.Academic licenses are considerably cheaper than the usual retail versions.
3.Academic licenses are only available to Students studying at primary, secondary and tertiary institutions. The license also applies to parents/guardians of qualifying students and, in some circumstances, teachers and academic staff.
This is information is a private guide only, and there may be errors - please check the license before buying academic software
Have fun and stay legal
Last edited:
