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What is the difference between OEM and Retail? 1

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KevinAr18

Programmer
Apr 25, 2002
309
US
This question concerns Windows XP Home and Windows XP Pro....

I am trying to understand what the OEM License agreement is. I understand the Retail agreement: you can only install Windows on 1 computer if you have 1 license. To transfer Windows to another computer, you must remove it from the previous computer and then install it on the other computer. This is pretty basic to most software, however, I am confused about the OEM license. Nobody seems to be able to give a clear answer on the issue.

I have heard that the OEM License is different from a Retail version of software in that you cannot transfer OEM Windows to another computer in the manner I described earlier. Instead it must stay with the hardware it came with.

Well, I did some searching on the topic and managed to find the OEM license for Windows XP posted online (whether Pro or Home, I don't know).
It stated something about Windows and the hardware it was bought with going together (and the two could not be seperated). However, the description was quite confusing, as I could not tell what it meant. Did it mean all components had to remain the same? Did it mean I could transfer something as simple as a useless cable between computers in order to be able to transfer Windows to another computer? And... why include such a rediculous statement if it meant that all I had to do was transfer a useless cable from computer to computer; It would have just been easier to leave out the statement if that were true.

I've even asked my computer manufacturer about the issue, however, I have forgotten their response.

Does anyone know for sure what the limitations to OEM are?
Perhaps someone who is able to talk with Microsoft?
Are OEM Windows like you would buy at Newegg vs what came with a pre-built computer different licenses?

BTW, is there also a difference between OEM XP Pro and OEM XP Home's licenses?
 
faq779-4004

I would be happy to answer any other questions.
 
Thank you for the replies. If I may, I have some specific questions related to the OEM License.

1) Are the XP Pro and Home licenses the same?

2) I understand that you cannot transfer OEM Windows to another computer, however, what about upgrades to the current system? Is it just the same to say that none of the parts can be legally changed (ignoring the detection mechanism)? If not, what does the license allow for?
 
1: NO

2: No, you cannot transfer, but you can upgrade an OEM to a higher OS. So an OEM 98 can be upgraded to an XP Retail, not OEM.

Marc
If 'something' 'somewhere' gives 'some' error, expect random guesses or no replies at all. Please specify details.
Free Tip: The F1 Key does NOT destroy your PC!

How Do I Get Great Answers To my Tek-Tips Questions? See faq222-2244
 
marc did a good job above (thanks marcs41)

It seems that only this issue is ambiguos:
KevinAR18 said:
2) I understand that you cannot transfer OEM Windows to another computer, however, what about upgrades to the current system? Is it just the same to say that none of the parts can be legally changed (ignoring the detection mechanism)? If not, what does the license allow for?

The best answer to your question is that an upgrade for an existing system is fine, although you will likely need to use the phone option for acivation.

Microsoft is quite serious about Service Pack 2, and my read is that a lot of SP1 workstations will not pass the Service Pack 2 activation requirments. If you have a legitimate upgrade for one machine, (please do not do a motherboard replacement) you should be fine. Add RAM, change the video adapter, replace the network adapter. You might have to call for re-activation (see Alex Nichols linked above).
But an upgrade to RAM, video, etc. is not an issue.



 
You can't "activate" OEM Windows can you?

Is there a difference in license betwen OEM you buy vs OEM that comes with a computer?
Is there a difference in how activation works betwen OEM you buy vs OEM that comes with a computer?

BTW, what are the differences between the OEM XP Pro and OEM XP Home licenses? Is it not related to this area?
 
My FAQ discusses the various OEM's, your question: "
Is there a difference in license betwen OEM you buy vs OEM that comes with a computer?"

. Under all licenses, Microsoft requires that an OEM provide a means to restore the OS. This can be a System restore CD, and/or a System Restore Partition, or a BIOS locked CD. In nearly all cases the hardware with XP pre-installed chose the the BIOS lock with some nominal form of system restore.

A true OEM license (again, see my FAQ) requires only a hardware purchase. It is tied to that hardware.

. "Is there a difference in how activation works betwen OEM you buy vs OEM that comes with a computer?"

Yes, and I suspect this question is now answered.

Microsoft is actually good about this issue. They, for example, have two current server add-ons to track licensing.
For smaller sites they offer several toos to ensure that your licenses are current.
To me the key question is how solid are the authenication credentials for your machines? You really do want to rol out Service Pack 2 for XP. And anything troublesome for the original license should be sorted now.
 
So you can't call in and activate Windows XP OEM (whether you buy an OEM CD and install it) or whether you bought it pre-installed on a system?
 
... looked over the FAQ again...
or does and OEM CD you buy allow you to activate 1 time, then you can't activate again? while the OEM that comes with a pre-built computer cannot be activated again by you the consumer?
 
Will they speak to me if I don't have any products that I have free support on?
 
A pre-installed OEM and one you buy (only if you buy a PC as well) is the same.
The difference is that most PC suppliers will pre-install AND activate for you.

If you build your own, you have (can) activate your own OEM, as many times as needed, on the SAME PC!

And yes, they will speak to you, you are not calling for support, but for a licensing issue.

Marc
If 'something' 'somewhere' gives 'some' error, expect random guesses or no replies at all. Please specify details.
Free Tip: The F1 Key does NOT destroy your PC!

How Do I Get Great Answers To my Tek-Tips Questions? See faq222-2244
 
I asked this question of my MS consultant approx a year ago.... Specifically whats happens if a machine "dies"...

The reply was this:

I believe the answer is that the OS is tied to that hard drive and can not be swapped in an out of machines. It has to stay loaded only on that hard drive and can not be moved from machine to machine. If it is a faulty hard drive then it can be replaced, but if the hard drive dies out of warranty then the OS cannot be reloaded on a new hard drive and put back into the same machine.
 
The reply was this:

I believe the answer is that the OS is tied to that hard drive and can not be swapped in an out of machines. It has to stay loaded only on that hard drive and can not be moved from machine to machine. If it is a faulty hard drive then it can be replaced, but if the hard drive dies out of warranty then the OS cannot be reloaded on a new hard drive and put back into the same machine."



Puckey



The software is licensed to the machine, not the harddrive. One license to one machine; the replacement of a dead hdd does not violate that license nor does the replacement of the entire machine violate that license agreement.

Skip

 
Skip.. I just copied the email from MS...
Licence against the machine makes more sense than against the HDD..., your last comment tho...replacement of the entire machine doesnt violate the agreement???...you are saying if the machine dies out right, you can transfer the oem os onto another machine?
 
The part of the entire machine is NOT applicable!

Marc
If 'something' 'somewhere' gives 'some' error, expect random guesses or no replies at all. Please specify details.
Free Tip: The F1 Key does NOT destroy your PC!

How Do I Get Great Answers To my Tek-Tips Questions? See faq222-2244
 
What about OEM DSP licenses? I have a Win 2000 Pro PC where the hard drive just died. I understand I can't reuse the existing OEM license. However, Can I purchase a new OEM DSP license after installing a new hard drive and install it on this machine? Will I have any problems activating the product? I have seen information that says the DSP version of an OEM license is designed to be sold seperate from any hardware and can be installed on any machine. Once you install it however you are then subject to all OEM restrictions.

Thanks
 
Hold on!
Yes you can reuse the license.
And yes, you can get a new OEM with a new disk IF you use the OEM on THAT disk.
Either option is valid.



Marc
If 'something' 'somewhere' gives 'some' error, expect random guesses or no replies at all. Please specify details.
Free Tip: The F1 Key does NOT destroy your PC!
How Do I Get Great Answers To my Tek-Tips Questions?
See faq222-2244
 
birdman1972,

Perhaps time to move to XP?

If you have a Win2k DSP OEM license, reinstall on your new hard drive. This is allowable under your license, with the single exception that if you purchased the original hard disk and the OEM DSP license as a package.

If so, buy XP as there Win2k is no longer a retail product.


 
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