Microsoft Licensing Explained
No one can buy a copy of Windows. When you pay for Windows, you are simply paying for a license that says you can use Windows. While this may seem like a technicality, it means you never own the operating system you use—Microsoft grants you a right with certain limitations. You cannot, for example, install Windows on more computers than the license allows for. Some may be confused by this, but it’s not too hard to grasp if you understand certain key concepts.
Where to Get Licenses
-
There are two main ways for a consumer, like you, to acquire a Windows license. The first is to simply buy a computer with Windows included—this is called an OEM (stands for “original equipment manufacturer”) license. The second way is to go to the store and buy a CD with Windows on it—this is called a retail license. The version of Windows you get either way is identical in terms of functionality, but there are differences in terms of what the license allows.
OEM Licenses
-
Most people never go to the store and buy a copy of Windows; rather, most people install the version of Windows that comes with their computer. These computers typically come with an OEM license, the price of which is typically built into the price of the computer. These licenses are cheaper than retail licenses, but are limited: you are only allowed to install them onto the computer they came with. This means if you throw away your computer, and your computer has an OEM license, you are legally required to throw away your copy of Windows as well.
Retail Licenses
-
Retail licenses allow you to move a copy of Windows from computer to computer as much as you desire, but typically cost more than an OEM license.
Upgrades
-
If you already have an older version of Windows—say, Windows XP—and you wish to switch to a new version of Windows—say, Windows 7—you don’t have to purchase a full retail copy of Windows 7. If you prefer, you can purchase what is called an upgrade license. These licenses upgrade your previous license to enable you to use the newer version. Typically cheaper than a full retail copy, an upgrade license retains the limitations of previous licenses; if you upgrade an OEM license, you cannot move the upgrade Windows to another computer.
Finding What’s Right for You
-
Which kind of license works best for you is a matter of what you’re looking for. If you usually use the operating system that comes with a computer without thinking about it, then sticking with an OEM license is simplest. If you’re the type that constantly upgrades and custom builds your own computers, then there are real advantages to using a retail license.