What Microsoft won't tell you about Windows 7 licensing. Microsoft offers many ways to buy Windows 7.

You can buy the operating system preinstalled on a new PC, upgrade an existing PC using a shrink- wrapped retail package, purchase an upgrade online, or build a PC from scratch and install Windows yourself. In each of these cases, you can also take your pick of multiple Windows editions The price you pay will vary, depending on the edition and the sales channel. There are different license agreements associated with each such combination. Those license agreements are contracts that give you specific rights and also include specific limitations. This might sound arbitrary.

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Indeed, a common complaint I hear is that Microsoft should simply sell one version of its OS at one price to every customer. That ignores the reality of multiple sales channels, and the fact that some people want the option to pay a lower price if they don't plan to use some features and are willing to pay a higher price for features like Bit.

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Locker file encryption. If you're not a lawyer, the subject of Windows licensing can be overwhelmingly confusing. The good news is that for most circumstances you are likely to encounter as a consumer or small business buyer, the licensing rules are fairly simple and controversy never arises. But for IT pros, enthusiasts, and large enterprises knowing these rules can save a lot of money and prevent legal hassles.

I have been studying the topic of Windows licensing for many years. As I have discovered, Microsoft does not have all of this information organized in one convenient location. Much of it, in fact, is buried in long, dry license agreements and on sites that are available only to partners. I couldn't find this information in one convenient place, so I decided to do the job myself. I gathered details from many public and private sources and summarized the various types of Windows 7 license agreements available to consumers and business customers.

Note that this table and the accompanying descriptions deliberately exclude a small number of license types: for example, I have omitted academic and government licenses, as well as those provided as part of MSDN and Tech. Net subscriptions and those included with Action Pack subscriptions for Microsoft partners.

With those exceptions, I believe this list includes every license situation that the overwhelming majority of Windows customers will encounter in the real world. The table below is your starting point. The license types listed in the columns of this table are arranged in rough order of price, from least expensive to most expensive. For a detailed discussion of each license type, see the following pages, which explain some of the subtleties and exceptions to these rules. And a final, very important note: I am not a lawyer.

This post is not legal advice. I have provided an important disclaimer on the final page of this post. Please read it. Please click through to the following pages for detailed explanations. Page 2: OEM versions. Page 3: Upgrade versions. Page 4: Full and Volume License versions. Next page: All about Windows OEM versions - -> < -- See introduction and full table on previous page.

Windows 7 OEM versions. According to Microsoft, roughly 9. Windows are purchased with new PCs, preinstalled by Original Equipment Manufacturers that build the PC and sell Windows as part of the package. That will certainly be true with Windows 7. OEM (major PC manufacturer) This is, by far, the cheapest way to purchase Windows 7. The top 2. 0 or so PC makers (sometimes called .

When you start up that PC for the first time, you accept two license agreements, one with the manufacturer and one with Microsoft. Here's what you need to know about this type of license agreement: Your Windows license agreement is between you and the PC maker, not between you and Microsoft. The OEM uses special imaging tools to install Windows on PCs they manufacture. When you first turn on the PC, you accept a license agreement with the OEM and with Microsoft. The PC maker is required to provide support for Windows. Except for security issues, Microsoft will not provide free support for any issues you have with Windows purchased from an OEM. Your copy of Windows is locked to the PC on which you purchased it.

You cannot transfer that license to another PC. You can upgrade any components or peripherals on your PC and keep your license intact. Alcohol 120 7 Serial Retail Lighting. You can replace the motherboard with an identical model or an equivalent model from the OEM if it fails.

However, if you personally replace or upgrade the motherboard, your OEM Windows license is null and void. Windows activation is typically not required when Windows is preinstalled by a royalty OEM. Instead, these copies are pre- activated at the factory. Your copy of Windows will be automatically reactivated if you reinstall it using the media or recovery partition from the PC maker, it will not require activation. At the time you purchase an OEM copy of Windows 7 to be preinstalled on a new PC, you must choose either 3. Windows. Your agreement with the OEM determines whether you can switch to a different version; some PC makers support only a single version with specific PC models and will not allow you to switch from 3. OEM (System Builder) If you buy a new computer from a local PC builder (sometimes called a .

This type of OEM license differs in a few crucial details from the version the big PC makers sell: As with the royalty OEM versions, your copy of Windows is locked to the PC on which it is installed and cannot be transferred to a PC, nor can the motherboard be upgraded. Under the terms of its agreement with Microsoft, the OEM must use the Windows OEM Preinstallation Kit (OPK) to install Windows.

When you first turn on the PC, you accept a license agreement with the OEM and with Microsoft. The OEM is required to provide support for your copy of Windows. Activation of your new PC is required within 3. The product key should already have been entered as part of the OPK installation and activation should be automatic and transparent to you. Although it is possible for an individual to buy a System Builder copy of Windows 7 and install it on a new PC, that scenario is specifically prohibited by the license agreement, which requires that the software be installed using the OPK and then resold to a non- related third party. The package you receive includes reinstallation media and a product key that is similar to a full packaged product but cannot be used for an in- place upgrade.

You may or may not receive both 3. If you receive both types of media, you can switch from 3. Windows or vice versa by performing a custom reinstall using your product key. Technically, you're not supposed to use those copies unless you're building a PC for resal to a third party. But Microsoft's own employees and retail partners, and even its own . For a detailed discussion, see Is it OK to use OEM Windows on your own PC?

Even Microsoft's not sure.? Now let's move on to the next category: upgrades. Next page: All about upgrades - -> < -- Back to previous page. Upgrade versions.

Let's assume you have a machine with Windows installed on it. Maybe you bought it preinstalled from a PC maker. Maybe you upgraded a previous version (like XP to Vista or Vista to Windows 7). Maybe you built it yourself with a full retail license.

Now you want to upgrade. You have two options. Windows Anytime Upgrade This option is exclusively for people who already have Windows 7 Starter, Home Basic, Home Premium, or Professional installed. This might be the case if you get a great deal on a new PC with a specific edition of Windows 7, such as a netbook running Windows 7 Starter or a notebook running Windows 7 Home Premium. You now you actually want a more advanced version, but the PC is preconfigured and can't be customized. That's where Windows Anytime Upgrade comes in.

You can use this option to replace your edition with the one you really want, with the features you need.

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