Re: (clug-talk) Windows on use computers, is that legal?

[Kevin Anderson]

 http://www.microsoft.com/canada/licensing/refurbished.mspx   Kev.   Refurbished and Used PCs After an OEM software program has been installed on a PC, the software may not be installed on another PC. However, the entire PC may be transferred to another end user along with the software license rights. To put it simply, OEM software is "married" to the original computer system on which it was installed. When transferring the PC to the new end user the original software media, manuals (if applicable) and Certificate of Authenticity (COA) must be included. It is also advisable to include the original purchase invoice or receipt. The original end user cannot keep any copies of the software. A refurbished PC is a computer system that has had substantial hardware modifications and a new operating system license installed. The original operating system software cannot be installed on another computer system because the modifications have essentially created a "new" PC. A used PC is a computer system that has had no hardware changes, or limited hardware changes. The license for OEM software on a used PC may be transferred provided everything that came with the original license is also transferred to the new end user (including original media, COA, manuals {if applicable}, and EULA.) Whether you are distributing a refurbished PC with a new license or a used PC with the original OEM software license, you should include all applicable materials to maintain proof of license rights (including original software media, COA, manuals {if applicable}, and EULA.) What hardware modifications may be made before a PC is considered to be "new" and a new operating system license is required? The OEM operating system must remain with the device that retains the motherboard. Other PC components (such as RAM and hard drive) may be upgraded without requiring a new operating system license. The operating system may be installed on a new/replacement hard drive as long as the operating system is first removed from the old hard drive. The right to legally transfer OEM software with a used PC is derived from the EULA. It is an end user right and must be transferred with the original software media, COA, Media, and manuals (if any) and EULA. The end user does not keep copies of the software. If the PC is sold (i.e. transferred) to a system builder (with the original software media, manuals {if applicable}, COA, and EULA), system builders may redistribute them since the end-user transferability right is perpetual. My business already has a computer system licensed with Microsoft OEM software. Can the software license(s) be transferred from the old computer system to a new computer system? No. To put it simply, OEM software is "married" to the original computer system on which it was installed. OEM software cannot be installed on another computer system other than the one on which it was originally installed, even if the original computer system is no longer in use. This is true for all OEM software - operating systems and applications. If my business wants to upgrade a PC with new hardware components, when does a new operating system need to be acquired? When would the PC be considered to be "new"? In general, OEM software cannot be separated from the computer system on which the software was originally installed. The OEM operating system must remain with the device that retains the motherboard. Other PC components (such as RAM and hard drive) may be upgraded without requiring a new operating system license. The operating system may be installed on a new/replacement hard drive as long as the operating system is first removed from the old hard drive. Scenario: A used computer is purchased that includes the original OEM operating system that was installed (Windows 98). The COA label is included and provided upon purchase, but the PC does not include media or documentation. Is the software on the machine legally licensed? If the PC manufacturer was a system builder, the original software media should have been transferred with the used computer in order for the new owner to be properly licensed. The Microsoft OEM System Builder License Requires system builders to provide the end user with a full version of the Windows operating system via a hologram CD which is transferred to the end user at the time of sale. The hologram CD acts as the System Builder recovery media. This not only streamlines the distribution process, it also helps fight piracy. Larger OEMs, such as Compaq, have direct license agreements with Microsoft. For PCs shipped after April 1, 2000, they do not have to include software media with their PCs to the end user, though they may choose to make recovery media for the purpose of distribution to end users only. They are also required to bear the cost of replication, and are responsible for any piracy that occurs as a result of replication. The larger OEM may have offered a hard drive based recovery solution, rather than distributing software media, which is why the caller may not have any media. A suggestion would be to check with the PC manufacturer. If the PC manufacturer distributed software media and manuals with that PC when it was acquired by the original end user, then those materials need to be included as part of the complete software package in order for the owner of this used PC to be compliant. If the PC manufacturer was a system builder-the hologram CD must be distributed with the PC; even if a hard drive based recovery solution was also provided. Also, the Windows desktop COA is now required by all OEMs/PC manufacturers to be adhered to the PC chassis during the pre-installation process. Please note that end users are only licensed if they were granted a legal license at the time the software was distributed to them. In order to be sure that end users can establish a legal license, we strongly recommend they keep the following: All software and applicable software components, including the original software media and manual (if applicable), COA, EULA, and Proof of purchase. Why should I acquire another operating system when there is one already installed on the system of the used PC I have acquired? It is not always necessary to acquire a new operating system. Please check what kind of license is installed on the PC and read the EULA. In regards to an OEM operating system software program, a new license is not required unless the computer hardware has been changed so that it would be considered to be a "new" PC. The operating system must remain with the device that retains the motherboard. Other PC components (such as RAM and hard drive) may be upgraded without requiring a new operating system license. The operating system may be installed on a new/replacement hard drive as long as the operating system is first removed from the old hard drive. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. © 2003 Microsoft Corporation. All rights reserved. Microsoft, Visio, Windows and Windows NT are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.