Hi Ed

As a builder and supplier of computers I purchase OEM copies of XP etc Office 
etc Nero CorelDraw etc etc.
I can either show it in the price or build it into the price and pretend I am 
giving it away free.  As I build to specification I show each individual 
component and the price I want to sell that component , building in a bit of 
extra profit to cover warranty and cost of delivery and building for example.  
The OEM software is shown at the cost price to me.  I.e. I don't make any 
profit out of the software.  Anyway if I did it would make the final price to 
far away from what can be purchased elsewhere.  The reason I am given for 
supplying the software at a much cheaper price is that this locks the end 
customer into Microsoft etc software.  With the advent of Office 2007 this has 
become more complicated.  We have had to purchase  CD,s/DVD,s with the full 
Office 2007 and the Student and Teacher versions, in the UK this is 
approximately £6.00 each.  We are required to install these on all computers 
sold, giving the end user 60 days to trial the product.  At some time during 
the trial the end user can opt to purchase in which case I purchase a licence 
for the user (in this case OEM) which comes in a DVD case with no CD/DVD in it 
just the product key.  If the product purchased is less than the full version 
the only those programs purchased can be used, the others cease to work 
properly at the end of the trial period.  Incidentally I have had problems with 
this as until I have uninstalled those programs the correctly Licensed programs 
have had hiccups (Keep asking for the product key etc).  All creating extra 
work which comes of my bottom line.

As far as Hardware is concerned  it used to be that purchasing a new 
motherboard or other significant part of the computer entitled you to an OEM 
license.  This changed some time ago.  Now I can only supply OEM with a new 
computer or a complete second hand computer to which I may have replaced with 
new some of the components.   I.E.  I am supplying a computer to a new client.  
However I get computers in for repair every week,  and when I replace a 
significant component or a number of insignificant components then the computer 
will ask to be reactivated.  Also if I am repairing computers where the 
manufacturers have issued a recue disk, not an original CD, I will try and do a 
repair using one of my CD's.  This usually requires a reactivation procedure. 
This consists of ringing an 0800 no and entering numbers from the screen.  
Sometimes I am transferred to a human operator (who because of their 
Nationality I find difficulties in understanding them) sometimes you just key 
in numbers to answer the questions.  One of the questions is "Has a new 
Motherboard been fitted"  I am told by a colleague who also builds computers 
that when he answered yes to a Human operator she said OK and asked why and 
then proceeded to give him a new number.  If I have fitted a motherboard of the 
same type and manufacturer then I am not asked to reactivate.

Hope this explains how OEM works.

In Man-wai's case I think it could be worth going the new motherboard way as 
long as the IBM is a standard case and will take his preferred motherboard.  
Another alternative would be to try and locate a similar motherboard  (perhaps 
pulled from a scrap IBM same model) I have done this often in the past.

If he has already built up a new computer (Case Motherboard Hard Disk etc) then 
he is entitled to an OEM license anyway.

In the past I have purchased second hand Hard Disks where my client's has a 
p.c. board fault, replaced the printed circuit and rescued the clients data.  
And then reversed the procure placing the data onto the new/second hand hard 
disk.  (Using Norton Ghost in both directions).

Cheers

Peter
Peter Hart Computers


-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Ed Leafe
Sent: 22 October 2007 12:46
To: ProFox Email List
Subject: Re: [NF] About OEM WinXP -- continued

On Oct 22, 2007, at 7:40 AM, Man-wai Chang wrote:

>>      They can say whatever they want. If you have the legal firepower to
>> challenge them, be my guest.
>
> So were there court cases related to the OEM license? What are their
> results?

        I don't know; I've never looked into it. All I know is that the law  
is set by who can afford the most attorneys to generate the most  
paperwork, not by who is right or wrong.

> After all these conversation, OEM license is just like renting a
> software ... but the rent is paid once only.

        It's actually a kickback to the manufacturers to get them to pre- 
install Windows exclusively.

-- Ed Leafe
-- http://leafe.com
-- http://dabodev.com




[excessive quoting removed by server]

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