Question about OEM WinXP

[rdukeman]

I am going to be making a computer and if I were to buy the HD and Winxp now, could I use it with my current set up, and THEN get new hardware? Or should it be the last thing I get?

What is the major difference between OEM and retail? Will the activation be locked only to my IP, unallowing my brother to activate it from his house if he ever had to?

Basically I want to get the new HD and OS right now, and use it with my current machine. Then I will be giving this machine to my brother, and making a new one for myself. I just don't want to run into any problems..

As far as I know OEM means it can only be used for one computer. But how does it determine the computer? The HD? The IP? The hardware set up?

/confused

 

[Lord Evermore]

On the technical side, Microsoft doesn't track where you've installed it, they don't keep a record of your IP or anything like that. When you activate Windows, it generates a hash sequence (code) that it sends to Microsoft, which is based on certain types of hardware you have installed and identifies the computer (only for use with Activation of course). All Microsoft keeps a record of is that your CD key was activated already, and I think a copy of that hash code.

According to the license terms for OEM Windows, you can only install it on one complete computer system, and you cannot transfer it to another system once it's installed. If you upgrade your system by changing out a mainboard, your license is also no longer valid, unless the change was because the hardware failed and the new board was the closest equivalent the OEM could supply. Since you are effectively your own OEM (the terms of the license are somewhat vague and can be read to say anybody who builds a computer is an OEM), you could replace a mainboard with a better one IF the old one died, but you can't just upgrade for the hell of it.

The only difference between OEM and Retail are the license terms; the OEM license is more restrictive because it's intended to be included with pre-built systems, and is sold at a cheaper price than retail so that OEMs can sell machines with Windows pre-installed without it increasing the cost of the machine as much. The trade-off for the cheaper price is the terms such as not allowing you to use the license on any other machine.

Probably the majority of people who buy Windows OEM versions from places like Newegg violate the exact terms of this buy continuing to use their OEM license when they build a new machine. Microsoft does not bother with trying to track that sort of thing, yet, as it would mean a tremendous amount of time and money finding people who do it, and trying to prosecute them, and would result in the terms of their license agreements being tried in court and possibly being invalidated.

Installing an OEM or retail version on more than one machine is just plain against the license terms and there is nothing that could be argued against that.

If you gave your machine to your brother, and didn't wipe the OS, then activation wouldn't be needed again, and that's completely within the license terms. If you wipe the OS and reinstall, activation will be needed again, but it doesn't matter where it's located when you activate, and again it's still legal. Depending on when it's activated, you may have to make a phone call to Microsoft to give them a code generated by Windows, as the automatic activation may detect that it was activated before. It's a simple process and they rarely hassle anybody about it.

You cannot legally give your brother the computer with the OEM license and also install with the same license on your own new machine.

More information:

http://forums.anandtech.com/messageview...atid=34&threadid=1904966&enterthread=y
http://forums.anandtech.com/messageview...atid=33&threadid=1876863&enterthread=y

 

[rdukeman]

Thanks. I will end up going OEM for my brothers rig and probably retail for mine... although Vista is coming out soon so maybe I will go OEM with mine as well.

One thing I want to clarify is that you can't have two copies of the same software, oem or retail, on different computers right? One of the computers will not be able to update, correct?

 

[Lord Evermore]

Actually they'll both work just fine, and it's unlikely Microsoft will ever come knocking at your door. At worst, they might one day disable every license key that they think was used more than once and make it so those machines aren't allowed to get updates anymore, however that will result in a LOT of false positives and piss off a lot of people so it's not going to happen anytime soon.

Whether you use it on more than one machine is a moral decision you have to make, although Microsoft COULD technically sue you for violating what they consider a contract.

Not all OEM or retail software is limited to a single machine. There are many software makers (such as Stardock) who are closer to being just plain old people than to being large corporations concerned primarily with profit. Stardock for instance allows you to install their games on as many computers you own or use as you want. Microsoft Office Student and Teacher Edition can be installed on up to 3 computers in your household. Other things can be installed on multiple machines as long as only one at a time is being used.

 

[Jeff7]

Originally posted by: Lord Evermore
Probably the majority of people who buy Windows OEM versions from places like Newegg violate the exact terms of this buy continuing to use their OEM license when they build a new machine. Microsoft does not bother with trying to track that sort of thing, yet, as it would mean a tremendous amount of time and money finding people who do it, and trying to prosecute them, and would result in the terms of their license agreements being tried in court and possibly being invalidated.

Not to mention that Microsoft still receives revenue from these transactions, which is preferable to receiving no revenue at all from outright pirated copies.

 

[Lord Evermore]

Microsoft receives revenue from sales of OEM copies, yes, but they certainly don't get anything more when you violate the license and re-use it when you build a new machine. That was what I was referring to about the possibility of Microsoft coming after users.

 

[Raduque]

Windows licensing is a pain..... Evermore, got a question for you, can I PM you?

 

[Lord Evermore]

Easier to just PM somebody and let them ignore you than to ask and wait and hope they answer. But sure go ahead.

 

[cubby1223]

I've called and talked to many reps at Microsoft when reactivating oem licenses, usually on store bought machines that either had the motherboard go bad, or after cleaning up spyware I did a repair install. My impression with when I have called up and chatted with the reps, is that Microsoft is fine will allowing the bending of rules on oem licenses, instead of the alternative of going with a pirated copy of XP, which they too know very well it's not that difficult to get ahold of one. And so far, I have not heard of a single person who has been denied activation of a paid copy of XP as long as the copy is only running on one computer.

If you want to buy a retail copy and have more flexability with not having to call MS when hardware changes, the retail upgrade version of XP Home is usually no more than $10 more than the OEM copy, and on occasion there are rebates bringing the retail upgrade version down to $50.

 

[Lord Evermore]

Having retail or OEM copy of XP has nothing to do with whether you have to call Microsoft when you change hardware. If you change enough parts, or change certain critical parts, XP has to be reactivated no matter what, and if it's being activated within a certain period after the previous activation, you'll likely be prompted to call. Having the retail version does nothing but make it so you are in fact totally legitimate if you install it on a new computer or after a mainboard upgraded.

The retail upgrade version of course requires that you already have a previous version of Windows which is eligible for the upgrade pricing, and that you never use the license for that previous version ever again. Whether the terms of the OEM version or the upgrade version suit you best is a personal thing.

 

[SoundTheSurrender]

OEM means it can be installed on one machine and not be able to transfer it to a different machine. I don't follow that rule and I've actived it on many machines that I change from. I just went from my pc to a laptop with the same OEM XP Cd. All I had to do is tell them its only installed on one machine (and it is) and they don't question any further.

 

[SoundTheSurrender]

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