Tech Support > Microsoft Windows > Building your own pc - OEM software?
Building your own pc - OEM software?
Posted by Matt Mucklo on March 11th, 2006


I have a question regarding Microsoft Licensing.

Is it legal to purchase and install OEM Windows XP or OEM Microsoft Office
for a PC you are building yourself?

When is it legal to install OEM software?

How about for a PC you have already built, but are refurbishing (installing
new components and fresh software, for example)?



Posted by Rick \Nutcase\ Rogers on March 11th, 2006


Hi Matt Mucklo,

Ok, shoot. These are always fun.

Absolutely, that's what the stand alone, generic OEM versions are for. The
only "technical" requirement is that they be purchased with a piece of
hardware that is used in the building of that machine, but that would be
impossible (and ridiculous) to enforce.

The question should be "When is it illegal to install OEM software?", and
the answer would be that you cannot install it when that particular license
has already been used and activated on another machine. Otherwise, there is
no real restriction on when an OEM version can be used versus a retail
license - the difference being that the latter can be migrated to a new
system, and OEM one cannot.

Sure, nothing wrong with doing that.

--
Best of Luck,

Rick Rogers, aka "Nutcase" - Microsoft MVP
http://mvp.support.microsoft.com/
Windows help - www.rickrogers.org



Posted by Alias on March 11th, 2006


Grok wrote:

The **sellers** of OEM software have certain restrictions. OEM Windows must
be sold with a piece of computer equipment - anything - even something as
small as a cable or floppy drive or somesuch.

That's only true in backwards countries such as the USA. Here in Spain,
no such hardware is required to buy a legit generic OEM copy of XP.

Alias
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Posted by Kerry Brown on March 11th, 2006


Grok wrote:

<snipped>

This is no longer true. OEM XP can only be sold to another "System Builder"
in unopened OEM packs. It's been like this since August 2005. Once the
package is opened it must be installed on a system before it can be sold.
There is a one pack SKU but most OEMs buy three packs or thirty packs which
cannot be broken up into individual units by the new agreement. Many small
OEMs are unaware of this and/or there is still old product in the chain so
it is possible to buy OEM XP. Whoever sells it to you is breaking their
agreement with Microsoft. There is no requirement for hardware if you
purchase a one pack and say you are a system builder.

Kerry




Posted by Alias on March 11th, 2006


Kerry Brown wrote:
Perhaps this is true in whatever country you live in but not in Spain.
All retail computer stores sell single generic XP OEMs with NO hardware
and some of them even sell them in Spanish, German and English. Please
note that this is an international newsgroup and adjust your posts as
necessary to reflect the differences between a backwards country such as
the USA and civilized countries.

Now, before you start ranting and raving about how retail stores are
breaking the law, getting rid of old stock and other such garbage, one
must order the German and English ones as they are not in stock. Guess
where the retail stores order them from? You got it, Microsoft!

Just for grins, however, I went to the Wallmart web site and, lo and
behold, according to your "information", Wallmart is breaking the law!:

http://www.walmart.com/catalog/catal...%3A3951%3A3954

because they sell XP pro and home, one at a time, OEM, with a mouse.

Oops.

Alias

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Posted by Kerry Brown on March 11th, 2006


Alias wrote:
Alias

You continue to flog this dead horse. I never said anything was against the
law. I also allowed that many OEMs don't know the rules and that there is
still old stock in the chain. Obviously the OEM agreement may be different
in different countries. Just because someone does something doesn't make it
right. Personally I stick to my word so I abide by the OEM agreement. Some
people don't. That doesn't negate the fact that their is a new agreement as
of last August.

Kerry



Posted by Alias on March 11th, 2006


Kerry Brown wrote:
Wallmart doesn't know the law or MS' rules? Puhlease. I covered your
lame stock point and you would have known that had you read my post.

My OEM agreements, on three computers, say nothing about buying OEMs one
at a time or in packs. Care you *prove* there is a new agreement? I have
yet to receive my copy so I will go on the one I agreed to, not some
agreement I didn't agree to and allegedly appeared *after* I paid my
hard earned money.

Alias

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Posted by Kerry Brown on March 11th, 2006


Alias wrote:
Do you resell OEM software? No, then you are not an OEM system builder so
there is nothing for you to agree to other than the EULA. The EULA is
irrelevant to this discussion. We are talking about an agreement between OEM
system builders and Microsoft. Once the software is in the hands of the end
user (you), the end user is doing nothing wrong by installing and using it.

As far as Walmart I can think of several likely scenarios. The web site is
in error and the product isn't available. Maybe someone can order it and see
what happens. The buyer for Walmart is not a computer specialist and doesn't
realise the rules have changed. Or most likely as it seems to be a web only
deal: They are getting rid of old stock. Walmart obviously buys in very
large quantities to support their business model. It wouldn't surprise me to
find out they have tens of thousands of old stock on hand.

Kerry




Posted by Kerry Brown on March 11th, 2006


Grok wrote:
You can sell unopened packages of OEM software (not unopened individual
items from within a package) to System Builders. If you can find the elusive
one pack of OEM XP it is actually easier to sell it retail now. All some one
has to say is they are building a pc and they are a System Builder. I think
the whole point of this new procedure is make sure that everyone who ends up
with OEM software gets a copy of the OEM agreement. This way there is no
confusion over who is responsible for support and how OEM software is
licensed. Note this only applies to some OEM software. Per the agreement OEM
Office and server OS's have different rules.

Kerry



Posted by Steve N. on March 11th, 2006


Kerry Brown wrote:

From what I see on their website OEM XP (home or pro) can only be
ordered online and the buyer is supposed to read and agree to the System
Builders license, which they have a link to. Looks to me that they've
covered their butts.

Steve N.


Posted by Kerry Brown on March 11th, 2006


Grok wrote:
Technically according to the OEM agreement they would have to use the OPK
kit to install the OS and create their own branding. How many legitimate
OEM's do this though :-)

Kerry





Posted by Michael Stevens on March 12th, 2006



"Kerry Brown" <kerry@kdbNOSPAMsys-tems.c*a*m> wrote in message
news:eNxEyrSRGHA.1160@TK2MSFTNGP09.phx.gbl...
You would be wrong, they sell OEM versions of XP all the time. So do Fry's a
large electronics chain located in California. I was just there and they
sell generic OEM versions of XP with qualifying hardware. I am sure
Microsoft is well aware of this and would not allow sales if they did not
approve of it.

The buyer for Walmart is not a computer specialist and doesn't
You would be wrong on all counts. Same applies as stated above. I saw OEM XP
versions in a Texas Walmart in November of last year, and I doubt it was old
stock given the volume of sales Walmart generates.

--
Michael Stevens MS-MVP XP
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Posted by Kerry Brown on March 12th, 2006


Michael Stevens wrote:
Then either they have a different OEM agreement with Microsoft or they are
ignoring the current agreement. The only way to tell would be to see the
master package that the OEM software came in and which OEM agreement was on
it.

Kerry



Posted by Michael Stevens on March 13th, 2006


I would tend to go with they have a different agreement from a small system
builder. They are selling's in the thousands as opposed to 10 to 100
licenses a year for the small system builder. They still make a profit on
each unit sold, so marketing will negotiate deals that generate big profits
for volume sellers. The bottom line is if the purchase is made from a
certified seller and the product key is valid. There is no way MS would turn
a blind eye to a big company like Wal-Mart selling unauthorized versions of
their software. The thing about OEM versions is MS has no obligation to
provide support, and that is one of the biggest expenses incurred on
software providers.
Basically I see when MS sells a generic OEM version with qualifying
hardware, that makes the purchaser the OEM builder. They then have the right
to determine what upgrades determines a system being a new system. This is
totally different from a system purchased from a branded OEM. The Branded
OEM is responsible for the support and they would have the say so on what
hardware it can be transferred to. Usually this would be a non-approved
motherboard.
Any OEM version cannot be sold and/or installed, transferred to a completely
different computer.
--
Michael Stevens MS-MVP XP
xpnews@bogusmichaelstevenstech.com
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"Kerry Brown" <kerry@kdbNOSPAMsys-tems.c*a*m> wrote in message
news:eqBxmvfRGHA.2156@tk2msftngp13.phx.gbl...


Posted by Kerry Brown on March 13th, 2006


Time will tell. Personally I much prefer the new OEM agreement and hope that
eventually it will be applied to everyone. It will eliminate a lot of
confusion. If the new rules are applied no one will end up with OEM software
without also getting a copy of the OEM agreement. No one will be able to say
that they didn't know the restrictions on OEM software.

Kerry

Michael Stevens wrote:



Posted by Alias on March 13th, 2006


Kerry Brown wrote:
Um, please see the subject of the thread. Carey changed the subject and
you jumped on it.

No, it isn't.

No, we're not.

No shit.

You obviously don't know what you're talking about regarding Walmart and
are just guessing.

Alias


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Posted by Kerry Brown on March 13th, 2006


Alias wrote:
Actually I was replying to Grok to clear up a misconception regarding the
current English language OEM agreement.

Grok and I were. Possibly we were off topic and should have started a new
thread.

We are all guessing about Walmart. I was postulating some scenarios and
stipulated that they were just that "likely scenarios". You are arguing with
someone (me) who mostly agrees with you. Once OEM software gets in the hands
of the end user the EULA applies. The OEM agreement has nothing to do with
the end user directly. The new OEM agreement if enforced will actually make
the rules and restrictions regarding OEM software clearer to an end user who
ends up with OEM software.

Kerry




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