OEM Licenses
OEM = Original Equipment Manufacturer, such as Dell, IBM, HP/Compaq, etc.
An OEM license is a lower cost license that is obtained when the OS is purchased in conjunction with some hardware. Typically, this hardware is an entire computer, but other qualifying hardware are hard drives, CPUs, motherboards and video cards.
OEM licenses come with no phone support from Microsoft (the web is always an option) and can only be used for clean installations (not upgrades). Furthermore, OEM licenses are bound to the hardware they were purchased with, and cannot be transferred or resold once installed. If you purchase a Gateway system, for example, the operating system license that comes with the computer is forever bound to the computer. You cannot transfer it to another machine, and if you ever choose to obtain and install a retail Windows license on this machine, you will not be able to use the OEM license anywhere else.
NOTE: All individually licensed versions of Windows XP/2003 and Office XP (including OEM) require Product Activation.
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