Microsoft: Using Vista Loophole Is Cheating

Care to comment on Newegg's availability of OEM versions for the public Paul?

"There doesn't appear to be any hardware requirements for oem Vista." the license agreement states that an OEM copy is for resale, to an end-user *preinstalled with the OPK* on a completely assembled, fully functional PC (but doesn't require peripheral devices such as a keyboard, mouse, or even a monitor). "fully functional" means that the user should only need to connect peripheral devices for the console (keyboard, mouse, monitor, etc.), and as soon as the system is turned on, it should boot immediately into the Windows OOBE - the "Out of Box Experience", which is the first-time bootup screens that let the user choose the language settings, set up user accounts, set the computer name, turn on Automatic Updates, etc. If you've ever installed Windows yourself, you've seen this before, just before getting to the deskop. a system builder can resell OEM System Builder packs to another system builder, so long as the original seal was left intact on the 3-pack or 10-pack. 1-packs were only introduced in the last few years, and don't include the OPK (OEM Preinstallation Kit) in the box. 3-packs and 10-packs ship in boxes, while 1-packs ship individually in bubble envelopes. it's not legal to sell the individual software packages from the original box or envelope, because by opening it, you agree not to resell it without following the system builder license, which also says it is for resale to an end-user only once the seal is broken. previously, a distributor could sell it with hardware required for the proper operation of a computer, which could include something like a motherboard, hard drive, cpu, etc., but never an optional component such as a CD/DVD burner (an OPK-built OEM System Builder installation can be installed via network, so an optical drive is considered optional) or a peripheral device, such as a mouse, keyboard, or monitor. the wording has changed in the last couple of years to say "a fully assembled computer system", so would-be DIY "system builders" are already ruled out. secondly, because of the restriction of having to be installed with the OPK, and that Microsoft doesn't support end-users with OEM System Builder copies, that also means DIY'er's don't apply. lastly, it is very clear that those copies are for resale only, and that the system builder does not equal an end-user. with the prior wording before the recent changes, Microsoft would let an end-user claim that they themselves were also a system builder, because they could get the sealed OEM System Builder software from another system builder and install it themself on a computer they build themself, but then, Microsoft would not support them in any way in those scenarios. they don't allow that option anymore. because of the new license wording, DIY'er's need to purchase retail copies, or else get a real system builder to build their system for them. for most DIY'er's, where they would build and upgrade their own system, they need to have license transferability, because when they change the motherboard, Microsoft counts that as a new computer system, and a new motherboard is the key component that will void an activation. OEM System Builder copies are not transferable anyway, so retail full versions are the only option for them. Microsoft is also pushing legitimate system builders (ie. local computer shops, not DIY'ers) to purchase from Authorized Microsoft Distributors too. Newegg is not one of them. usually "distributors" (note the quotes), and other wholesalers, will sell OEM System Builder software packages that are broken up from a 10-pack or a much larger 30-pack (I don't know how those ship because I've never seen one, but i suspect it is a VERY big box). this means that those distributors are not obligating themselves to Microsoft's distributor licensing, which is what also happens to be a practise of counterfeit, pirated, and stolen software distributors. Ya ya, i know that's a rash generalization, but it's entirely true too. If you're wondering: I'm a system builder and also a Microsoft partner, so i have to know this stuff, and it's my customers that benefit from it.

"That's interesting in that at least some of the local computer stores are quite happy to sell OEM Vista to anyone, even if they just walk in and that's all they intend to purchase, without any motherboards or HDs, etc. And OEM Vista Ultimate is less than half the price of the full version of Ultimate." With standard markup, it should be about the same price as a retail upgrade copy. If a computer store or online reseller sells it for less, I'd say they aren't getting copies from authorized distributors (or they're counterfeit). In any case, they aren't allowed to be selling them outright. Microsoft also says publicly that pricing of [Direct] OEM versions is between Microsoft and the OEM (or in the case of OEM System Builder versions, between the Authorized Microsoft Distributor and the System Builder), so end-users aren't supposed to really know what the cost of an OEM copy is within the price of a new computer. Many name-brand manufacturers, in fact, pay Microsoft based on a predicted royalty basis. They buy Gold Master copies from Microsoft directly and have to print their own media and documentation according to Microsoft's design guidelines. This is why when you buy an HP or Dell computer, you get the same kind of Windows XP or Windows Vista booklet that you would get in a generic OEM System Builder copy, only with the manufacturer's name already pre-printed on the front. Direct OEM's can also provide a recovery partition on the hard drive instead of physical media too. OEM System Builder's don't have that option. That said, all Authorized Microsoft Distributors sell OEM System Builder software for about the same price, with only a dollar or two variance. Retail upgrade copies sell for the identical price as its OEM System Builder full-version equivalent.