Is it OK to Use OEM Windows on Your Own PC? Don't Ask Microsoft

So instead, have your mother/brother/SigOther install it then "sell" you the PC for a buck.

Josh_Miller Pretty Much

This is ridiculous. It's insane how non-transparent and contradictory Microsoft has been with Windows 7 licensing. It really has cast a dark shadow over what otherwise would have been a spectacular product launch. They have got to figure it out before Windows 8 comes around.

Waethorn has been posting this all along. As well as the OEM, you cannot transfer a license to another [different] motherboard if it was installed with a prior purchased retail computer. For example, your motherboard dies or you just want to upgrade. While you probably can replace the mobo with an identical one, upgrading requires a new license. But this may not apply to retail versions of Windows. However, it does apply to installations on retail computers [Dell, HOP, Sony, etc...] I doubt that MS would enforce it at all in the future.

Wow, when I laughed at the upgrade table so many months ago, I really had no idea how funny this would get. The Dead Sea Scrolls is an apt metaphor, because you boys sound like Talmudic scholars trying to parse increasing fine distinctions that don't even matter to anyone else. I am pleased to see Ed, Paul, et al call Microsoft out on this. The whole thing is bizarre and centers on Microsoft's obsessive control reflex....something that goes all the way back to Gates' original screed against pirates (what, a few dozen?) who stole his Basic interpreter circa 1979 (I'm sure Mike can correct me on the exact date.) So, what's the story with an OEM license on a virtual machine? I don't speak EULA either....all I know is that it works...

You are only supposed to use the OEM version if you are actually an OEM. That's too hard to understand?

"You are only supposed to use the OEM version if you are actually an OEM. That's too hard to understand?" Its not a difficult concept, except that many vendors list that version for sale, and end users & salespeople may not know the difference. Go to Amazon and lookup Windows 7, then narrow down to software, OS, Microsoft, and you get about dozen items listed, and the OEM is not even one of them. How would an average user determine the correct one to buy?

Yoshi It sounds like you are saying that Amazon, who sells almost exclusively to retail customers, is right in not selling the OEM version and that the computer parts suppliers who DO sell to both retail and OEM customers should do a better job of explaining and enforcing the OEM wholesale rules. Does that sum it up?

Mike, What I am really getting at is that all the different versions of Windows can really overwhelm most computer users. While retailers should know the difference between them all, that certainly does not happen all the time. Especially with webstores. A user looking to buy Windows 7 can easily choose the wrong version. This is one area where Apple really got it right. One version. If your hardware supports it, that's all you need. No upgrade, OEM, starter, 32 vs 64 bit, Premium, Professional, Enterprise, etc. I helped my assistant a few weeks ago order a new computer. She had no idea which version to get with her new computer and the only decision was professional vs. home and 32 vs 64 bit. She was overwhelmed with 4 choices. Think of how confusing it is when you have 12 types staring you in the face.

Anyway... microsoft is not so stiff... Last years I build a PC and I try to install my OEM copy of Windows, wich came with another machine and the setup tell me to call microsoft to activate it, because he did not recognize the harware, so I call Microsoft and I talk to Microsoft staff dans told the trouth ... I want to use a copy of my OEM version on a new PC, which is suppose to be illegal, and the guy at Microsoft told me it is no problem and give me a key to active the Windows ...So... Microsoft is really dealable when we talk about OEM things...

Yoshi The issue of how many retail versions to have is a very different one than whether to have an OEM channel. As for the "every version of Mac OS X has all the features", that isn't true. There are features on the Server version that are not on the Desktop. While Microsoft could say, "OK, no more multiple versions, everybody can only buy Ultimate", do you really think charging people more money for features they'll never use is really what they want? Personally, I think people like being able to buy a less expensive version that is tuned for home use at a significantly lower price. Of course, when this discussion comes up, it usually ends up that people want Ultimate at the price of Starter which brings us back to people trying to buy an OEM license when they're not actually OEMs.

Erico, I had a similar experience when changing a motherboard. He could not officially tell me to do it, but was helpful.

"As always, it's been fun." I wonder if this time it will be all tears and hugs with your farewell.

Erico, he did not tell me how to do it, but encourage me to search the web and I would definitely find an answer. I was only replacing a motherboard on an eMachine. It was $160 cheaper to buy a better one than pay eMachine for an identical replacement.

Paul, this is NOT the "End User License Agreement", as you incorrectly state (as does Ed). This is called the "System Builder License Agreement", which is not the same. The System Builder License Agreement was changed PRIOR to Windows Vista's launch in January of 2007 BTW (ie. 3 years ago), and was even included in Windows XP System Builder packages from prior to that. You think this is new with Windows 7? It's not. It wasn't even new with Windows Vista. Seems Ed just didn't even think to read the license updates that were posted to the front page of the OEM System Builder wesbite OVER 3 YEARS AGO! Sorry, but this is just EPIC FAIL!

"So, if I build a computer for a buddy, can I use the OEM software with kit, or is this a violation? I guess my question is: what qualifies as an OEM?" You probably mean "system builder". An "OEM" is a major manufacturer that buys components directly from the vendors, often custom-built, and has a direct contract to obtain preinstallation licensing from Microsoft. A "system builder" is a smaller organization that builds computers using off-the-shelf parts purchased mainly through the distribution channel (that's what they refer to as just "the channel") and obtain Microsoft System Builder software and preinstallation licensing packs through the channel. "Do I have to have a business set up with the government, or can I just call myself an OEM since I build people computers?" As with their marketing to system builders, Microsoft recommends that system builders by software through an "Authorized Microsoft Distributor" to ensure that it is legitimate software and that it has been obtained by the distributor under Microsoft's rightful distribution policies. Microsoft Authorized Distributors DO NOT sell to the general public. They sell to registered businesses that can provide their supporting tax exemption certificates and government-issued business registrations, as do most major distribution channels for other industries. These are the currently Authorized Distributors for Canada: Ingram Micro Synnex Tech Data Supercom and for the US: Synnex Tech Data ASI D&H Ingram Micro MA Labs SED International Online resellers that sell to the general public are not listed. Funny that.

@whiplash55 way to defend MS and there crazy number of versions. I would love to see a list of how many possible versions you could buy listed on in a number list. On that list I want to see Retail versions, both 32bit, and 64bit. OEM Versions 32bit and 64bit. Upgrade version 32, 64bit, student version 32bit 64bit.....different version for different parts of the world, 32bit/64bit and on and on and on.

"Now let us all stand on our head and sing the Microsoft Corporate Song." Well, Microsoft isn't actively persuing individuals that abuse this option. Not everything is nice and dandy in the news for EULA's though: http://blogs.zdnet.com/hardware/?p=6147

"you cannot transfer a license to another [different] motherboard if it was installed with a prior purchased retail computer. For example, your motherboard dies or you just want to upgrade. While you probably can replace the mobo with an identical one, upgrading requires a new license." If it dies, and the OEM or System Builder replaces it with an identical one, no problem. The point is to keep the platform the same, otherwise the chain of support is broken. No support = not allowable, in these situations. If you upgrade your own OEM PC, the manufacturer can't support a different platform or chipset or required driver set, so that's why Microsoft doesn't allow it. " this may not apply to retail versions of Windows." You're right - it doesn't. Retail versions include transfer rights, and support directly from Microsoft. Those kind of users are installing on many different platforms too. It actually costs Microsoft a lot more to support those versions than some OEM that has locked-down configurations (think about what it would cost for Apple if they released OS X to other OEM's). You can bet that the price of OS X would climb a lot, since they wouldn't be able to subsidize it with the price of hardware. "On the one hand, they don't want to encourage people in general to do this, but they aren't going to stop you if you try and know what to do. Kind of a wink and a handshake kind of thing." That's true. It doesn't make it any less illegal, but yes that is the general consensus from Microsoft support. Microsoft support reps say that Legal doesn't want resellers knowingly selling to customers that are end-users, and their stance has always been for real system builders to buy from authorized distributors, but they currently have their hands full with piracy and counterfeiting. If everything in the piracy realm were cleaned up, license breaches would be the next sight in their crosshairs.

so what you are saying Waethorn is that people who do breach the license by buying the newegg stuff, will never have to worry, because I have yet to see a system that PIraters and leechers can't beat. Piraters being the ones to crack the software then share/sale it to others Leechers being the ones who obtain the software from the Pirate.

"so what you are saying Waethorn is that people who do breach the license by buying the newegg stuff, will never have to worry, because I have yet to see a system that PIraters and leechers can't beat." Never? No. Don't count on it.

@rr0de74 Most people who would be confused by the different versions of Windows just buy new PCs. They get what it comes with and they're happy with it. I was at Best Buy over the weekend all I saw were Netbooks with Starter and everything else with Home Premium, all the full sized notebooks or desktops were running 64 bit. The people who would tend to go to newegg or Amazon to buy it themselves are plenty savvy enough to know what to buy (Home Premium or Pro) and it's not an issue for them either. So its really just an issue for people to talk about on blogs like this who don't have anything else to criticize Microsoft about, at the moment.

And speaking of Windows... Windows Mobile's market share has dropped by some 30% in 2009. http://news.zdnet.co.uk/communications/0,1000000085,39877964,00.htm?tag=... Why? Because it's a turkey.

nvm it was year over year, and look to see Windows Mobile to make an uptick, once Microsoft learns how to market things correctly, like its Zune and Windows Mobile look for those devices to take a sizable piece of the market, not leading it no, just a nice piece that they can make money on.