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OEM Licenses - updated 30/1 with new Office 2007 rules



I can't post on the for sale forum anymore but I can see there are copies of Office for sale that are OEM. I just wanted to warn people that if you buy one of these be aware you are not licensed to use it and will not get any support from Microsoft. OEM licenses are only valid on the hardware they were sold with.

You may as well just burn a copy.

Mods, if you think this post is out of order then please feel free to delete it but I think people should be aware of what they are buying. Also to the seller, again, sorry if you think this is out of order but you should also be aware you are not allowed to sell OEM licenses without a computer.

http://www.mssmallbiz.com/questions/OEM.aspx
 

Darren S

ClioSport Club Member
Re: OEM Licenses

That is true - good post.

The fact that the DVD packaging on my OEM WinXP-64 said "Only for authorised sale with a new PC" tended to give the game away, a bit! ;)

D.
 
  Better than yours. C*nt.
Re: OEM Licenses

Also to the seller, again, sorry if you think this is out of order but you should also be aware you are not allowed to sell OEM licenses without a computer

Incorrect - you can sell an OEM license as long as if it is bought by a consumer, that they have bought a qualifying piece of computer hardware with it (easy enough, a new mouse suffices) or to a supplier that intends to resell the license with a piece of hardware.
 
Re: OEM Licenses

Also to the seller, again, sorry if you think this is out of order but you should also be aware you are not allowed to sell OEM licenses without a computer

Incorrect - you can sell an OEM license as long as if it is bought by a consumer, that they have bought a qualifying piece of computer hardware with it (easy enough, a new mouse suffices) or to a supplier that intends to resell the license with a piece of hardware.
Incorrect - the EULA has been updated to state "Fully assemled computer system" to close this loophole.

"4.1 We grant you a nonexclusive right to distribute an individual software license only with a fully assembled computer system. A "fully assembled computer system" means a computer system consisting of at least a central processing unit, a motherboard, a hard drive, a power supply, and a case."
 
Re: OEM Licenses

Incorrect - you can sell an OEM license as long as if it is bought by a consumer, that they have bought a qualifying piece of computer hardware with it (easy enough, a new mouse suffices) or to a supplier that intends to resell the license with a piece of hardware.
Incorrect - the EULA has been updated to state "Fully assemled computer system" to close this loophole.

"4.1 We grant you a nonexclusive right to distribute an individual software license only with a fully assembled computer system. A "fully assembled computer system" means a computer system consisting of at least a central processing unit, a motherboard, a hard drive, a power supply, and a case."

but thats not a problem is it if you have just built a new pc :)
 
Re: OEM Licenses

[but thats not a problem is it if you have just built a new pc :)
What do you mean? You can only sell OEM with a PC. If you build a new PC it doesn't mean you can buy OEM to go with it.


yes you can as its the same thing

we buy 3 pk's of office oem to go with new pc's and thats been given the green light by ms

at the end of the day ms cant prove that it didnt come with the pc its the same as with nt4 server your only allowed to install it 4 times i think before needing a new license
 
Re: OEM Licenses

you can allways build the computer install the oem version and sell it to yourself :)
If the OEM copy was supplied with the PC by a system builder or reseller, then yes, you can sell the PC along with the software. You can't transfer OEM softrware between machines though Its tied to the computer it was sold with.
 
  Better than yours. C*nt.
Re: OEM Licenses

[but thats not a problem is it if you have just built a new pc :)
What do you mean? You can only sell OEM with a PC. If you build a new PC it doesn't mean you can buy OEM to go with it.


Microsoft have audited our procedures, and it is acceptable to sell an OEM license with a related piece of hardware - so in terms of Windows and Office, pretty much anything, but as an example you can't sell an OEM CD-Recording license with a hard disk drive - they aren't related.
 
Re: OEM Licenses

What do you mean? You can only sell OEM with a PC. If you build a new PC it doesn't mean you can buy OEM to go with it.


yes you can as its the same thing

we buy 3 pk's of office oem to go with new pc's and thats been given the green light by ms

at the end of the day ms cant prove that it didnt come with the pc its the same as with nt4 server your only allowed to install it 4 times i think before needing a new license
So your telling me Microsoft gave your company the green light to buy OEM software without associated hardware? If they did I'd recommend you contact them again to confirm as it sound slike you were speaking to someone that didn't have a clue.
 
Re: OEM Licenses

What do you mean? You can only sell OEM with a PC. If you build a new PC it doesn't mean you can buy OEM to go with it.


Microsoft have audited our procedures, and it is acceptable to sell an OEM license with a related piece of hardware - so in terms of Windows and Office, pretty much anything, but as an example you can't sell an OEM CD-Recording license with a hard disk drive - they aren't related.
How long ago was this? The change to the EULA I mentioned above occurred 1st September 2005. Take a read of the following:

http://blogs.msdn.com/mssmallbiz/archive/2005/09/07/461961.aspx
 
  Better than yours. C*nt.
Re: OEM Licenses

Microsoft have audited our procedures, and it is acceptable to sell an OEM license with a related piece of hardware - so in terms of Windows and Office, pretty much anything, but as an example you can't sell an OEM CD-Recording license with a hard disk drive - they aren't related.
How long ago was this? The change to the EULA I mentioned above occurred 1st September 2005. Take a read of the following:

http://blogs.msdn.com/mssmallbiz/archive/2005/09/07/461961.aspx

3 Months ago.
 
Re: OEM Licenses

yes you can as its the same thing

we buy 3 pk's of office oem to go with new pc's and thats been given the green light by ms

at the end of the day ms cant prove that it didnt come with the pc its the same as with nt4 server your only allowed to install it 4 times i think before needing a new license
So your telling me Microsoft gave your company the green light to buy OEM software without associated hardware? If they did I'd recommend you contact them again to confirm as it sound slike you were speaking to someone that didn't have a clue.

it has been bought to be used with the associated hardware it comes from the same supplier but comes through our middle man

we buy a pack of office those licenses only get used on a brand new pc as it gets taken out of the box



also you can sell a pc with its oem licenses "OEM licences can be transferred providing they stay with the hardware they were purchased for" thats from some one in ms that works as Software Audit & Asset Management
 
  SLK 350
Re: OEM Licenses

Theres too much piracy on the scene for companies like MS to be chasing people about buying OEM wares.

If you're part of a business/company then sure, stay on the right side of the line where possible, but as a residential user, i'd not be worried about using OEM software.

Lets face it, XX% of XP installs are pirated.

I don't understand why a business would go about something like that though, VAT needs to be added to the seller price, it needs to be transparent for tax reasons. At work we use the MS select agreement, basically we can use what we like when we like, works out pretty good value tbh.
 
Re: OEM Licenses

I'd recommend contacting them again then and question whether its still ok quoting the changes to the EULA as posted above. If they say it is then please drop an update in this thread on under what circumstances the EULA doesn't apply.

End of the day its up to you. There are guidelines out there and if you think I'm talking shite then thats fair enough. This thread was meant as a warning to people on this forum that buying OEM without a PC means its not valid as is the case on the 'For Sale' forum. Again, people can choose to ignore this or not.

I'm just trying to help.
 
Re: OEM Licenses

Theres too much piracy on the scene for companies like MS to be chasing people about buying OEM wares.

If you're part of a business/company then sure, stay on the right side of the line where possible, but as a residential user, i'd not be worried about using OEM software.

Lets face it, XX% of XP installs are pirated.

I don't understand why a business would go about something like that though, VAT needs to be added to the seller price, it needs to be transparent for tax reasons. At work we use the MS select agreement, basically we can use what we like when we like, works out pretty good value tbh.

buying oem has nothing to do with tax its just a different sku thats all. as for select agreements you cant just use what and when you like as they have to be aware of how many pc's you have it can be not bad value if you use alot of ms products
 
  Megane DCi 147bhp/350nwm
Re: OEM Licenses

FYI - these were not bought with a computer - these were all purchased not in association with the PC's
 
  SLK 350
Re: OEM Licenses

Our agreement is basically, we tell them we need 500 licenses of Office, we need 500 W2K, exchange blah blahh...

And that's it, it's cheap in comparison to buying all those licences individually, so how you make it out to be expensive i've no idea. Makes for a damn good deal. Then if we want to upgrade the software we can, without having to buy a load of new licences.

Anything sold in the name of a company has to have VAT applied, be it old PC's, old hardware, software, whatever - VAT is payable, regardless.
 

Lee

  BMW M2C
Re: OEM Licenses

Our agreement is basically, we tell them we need 500 licenses of Office, we need 500 W2K, exchange blah blahh...

And that's it, it's cheap in comparison to buying all those licences individually, so how you make it out to be expensive i've no idea. Makes for a damn good deal. Then if we want to upgrade the software we can, without having to buy a load of new licences.

Anything sold in the name of a company has to have VAT applied, be it old PC's, old hardware, software, whatever - VAT is payable, regardless.

We just install what we want as many times as we want, keep a log of how many licenses we've used, then once a year hand over a massive amount of cash to MS. Money makes licensing easy.
 
Re: OEM Licenses

Our agreement is basically, we tell them we need 500 licenses of Office, we need 500 W2K, exchange blah blahh...

And that's it, it's cheap in comparison to buying all those licences individually, so how you make it out to be expensive i've no idea. Makes for a damn good deal. Then if we want to upgrade the software we can, without having to buy a load of new licences.

Anything sold in the name of a company has to have VAT applied, be it old PC's, old hardware, software, whatever - VAT is payable, regardless.

im still not sure why your talking about vat we arnt talking about vat ! you pay vat on oem software too so im really not sure where your coming from


also the agreements are only beneficial to companies of a certain size and those that have no real it infrastructure at the moment. some companies dont upgrade their software every time ms does so dont need the functionality that the agreements provide
 

Darren S

ClioSport Club Member
Re: OEM Licenses

Our agreement is basically, we tell them we need 500 licenses of Office, we need 500 W2K, exchange blah blahh...

And that's it, it's cheap in comparison to buying all those licences individually, so how you make it out to be expensive i've no idea. Makes for a damn good deal. Then if we want to upgrade the software we can, without having to buy a load of new licences.

Anything sold in the name of a company has to have VAT applied, be it old PC's, old hardware, software, whatever - VAT is payable, regardless.

We just install what we want as many times as we want, keep a log of how many licenses we've used, then once a year hand over a massive amount of cash to MS. Money makes licensing easy.

Yep - it was much easier when we were in the 3-year term of the OSL. When we bought out, it was far cheaper, but no it's a pain in the ricker in terms of keeping on top of things. :(

D.
 
  SLK 350
Re: OEM Licenses

im still not sure why your talking about vat we arnt talking about vat ! you pay vat on oem software too so im really not sure where your coming from

It's not to hard to comprehend.

As a VAT registered company you don't pay VAT on goods, when you sell them to someone who isn't VAT registered, the VAT has to be paid on top of the sale cost, and that VAT then passed on in the form of Tax to Mr Taxman.

Failure to do that is actually fraud, which can lead to hefty fines. Simple eh?
 
  Better than yours. C*nt.
Re: OEM Licenses

im still not sure why your talking about vat we arnt talking about vat ! you pay vat on oem software too so im really not sure where your coming from

It's not to hard to comprehend.

As a VAT registered company you don't pay VAT on goods, when you sell them to someone who isn't VAT registered, the VAT has to be paid on top of the sale cost, and that VAT then passed on in the form of Tax to Mr Taxman.

Failure to do that is actually fraud, which can lead to hefty fines. Simple eh?

But selling anything you need to charge VAT? If he sold it to Dick Whittington, he'd charge vat, if he sold it to Dick Whittington Incorporated, he'd charge vat - the difference is in that Dick Whittington Incorporated can claim it back.

Easy, see? STFU.

As for Spoonie, I think you've obviously read one too many scare stories about licensing - I know McBunny knows his stuff, as do I, my colleagues and various other people trolling around on here. This is common practise, he can sell the OEM licenses as he has advertised them as such. If anyone were to get fussy about it then it would come down to the buyer to prove he has kept to the license HE agreed to by opening and using the software rather than the seller who sold him an OEM license. End.
 
Re: OEM Licenses

Yeah, end it here, I've put the facts up, people can choose what to do with them...
 
Last edited:

dk

  911 GTS Cab
Re: OEM Licenses

right, now, this has made interesting reading, and there is a lot of mis-information in this thread.

I actually work for the No.1 Open License MS reseller (7 years in a row) and one of 17 (i think) Large account resellers in the UK allowing us to sell from MS direct without buying from a distributor.

I have been in licensing for 5 years now and am a Microsoft Licensing Sales Expert requiring me to take around 15 exams each year to get accredited, so I think I am actually quite qualified in this area.

We also do SAM (software asset management) on behalve of MS to educate customers and solve their licensing issues.

ozzy, you can't just install what you want without paying for it first or annually in retrospect, there are lots of agreements and depending on which you are on will depend whether you forecast upfront and declare on the anniversary or purchase upfront and then add desktops through the year and pay the extras each year etc.

There are lots of licensing schemes and it takes a LOT of training to understand them all, but its what we do so we get all the necessary training.

As for OEM, thats a very cloudy subject, different people interpret the rules in different ways, there is also come conflicting info out there. Technically, what spoonie is saying is the most accurate account so far.

When selling a PC, as a systems builder you can provide a preinstalled version of an OEM piece of software, as part of the agreement you agree to support the end user on behalf of MS.

I think McBunny said they buy in packs of three, this is so that system builders can buy them in bulk, some companies (distributors) used to split the packs meaning they were selling single packs, in the end I think MS created a single pack.

An OEM piece of software is non transferrable to another pc, it dies with it, you are also not licenses without the sticker on the machine with the license number on it, no sticker, no license.

You can buy Bios locked versions of office now with HP machines, this is not OEM but is a special version of the software that will only install on a HP pc and is discounted as such, but is not OEM that i know of.

The main problem is that who is classed as a system builder? If someone is building pc's and selling them on, they can sell it with an OEM piece of software but it needs to be pre-installed and also be supported by that person/company as part of the agreement.

Apparently, MS have now changed the rules for all the new FPP (fully packaged product i.e.retail boxed) and those licenses also cannot be transferred like they used to be, don't think its quite as restrictive as OEM but its got a whole lot worse.

Anyway, just thought I would add to the debate as i seemed to miss the boat on this today, but its interesting to see what peoples views are on licensing, if it was easy and everyone could understand it, we wouldn't make a shed load of money out of consulting people and asset managing them, its very complicated and as such, there is a lot of mis-information about.

The reality though is, as was mentioned above, that this is small fish to MS, they couldn't be bothered with bill buying an oem license and installing it, hell, at least he is paying for a license, i doubt many people on here have bought a full retail copy of office!!!!!!! They are after the companies that owe a lot of money, just like peer to peer, they go after the uploaders, not the downloaders as a rule, too many of them and not worth as much to them.
 

dk

  911 GTS Cab
Re: OEM Licenses

if anyone is interested, these are the new Office 2007 OEM rules from Microsoft, I got sent them today.

The rules around the sale of OEM Office now that 2007 is here have changed:



What is the same:

- OEM Office MUST ship pre-installed on a fully assembled PC. It CANNOT arrive separately

- We can only sell OEM Office to System Builders who are building new PCs from components

- There are no downgrade rights

- Customers may re-image OEM Office with the same volume licence product. This is important, as OEM Office 2007 Professional is not the same product as Office 2007 Professional Plus volume licence product, for example

- System Builders do not need any specific certification to declare themselves a System Builder. I am a System Builder, there, I said it so I am



What is different:

- OEM kits no longer contain media, they are licence only

- System builders must install Office OEM from Office Pre-installation Kits (OPKs) only

- We can sell OPKs from distribution to System Builders, but they can only buy the one per company

- A call will be made by Distribution/Microsoft to the person buying the OPK to verify that they are who they say they are, and that they are building a distributing PCs



If customers are buying OEMs and they are not entitled to them they will get busted for it sooner or later is the message we got.
 

Cookie

ClioSport Club Member
We have a Select agreement at work (goes through Software Spectrum, do you work for them Dave by any chance?) and as such we get sent thousands of disks to keep hold of incase we need to install em on machines..

Think we then get 30 day leeway to get the licences bought, which is nice.
 

dk

  911 GTS Cab
We have a Select agreement at work (goes through Software Spectrum, do you work for them Dave by any chance?) and as such we get sent thousands of disks to keep hold of incase we need to install em on machines..

Think we then get 30 day leeway to get the licences bought, which is nice.
Hiya, I don't work for Software Spectrum, they are a competitor of ours, there are 18 resellers in the UK that can sell select agreements and we are one of them, when you sign up to a select there are three pools and depending on which ones you sign up for you do get every product MS sell in those groups and it is a lot of disks, think you get them every month too.
 
So, stripping this back to a personal/home level...

My Sister wants me to build her a PC as cheaply as possible, as I have a conscience I won't just be sticking an illegal copy of XP on it. What are my options? Can I buy the OEM version (available on Amazon, Ebuyer etc for around £55) and use that for her machine?
 

dk

  911 GTS Cab
whos going to stop you is the question?

the answer, nobody probably, small fish/big pond.
 


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