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How does OEM Licensing Work ?

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How does OEM Licensing Work ?

2018-06-30 13:21:06

By Admin

28

Allright..So we are talking about OEM Licensing in Softwares. OEM stands for Original Equipment Manufacturer. An OEM License of any software is provided by a hardware manufacturer along with its hardware product.

For e.g. – We generally find Windows OEM License ( A green sticker rectangular in shape) when a laptop is procured. When it comes to Microsoft Softwares, only below products are provided in OEM.

  • Windows Server OS Licenses.
  • Windows Desktop OS Licenses.
  • MS Office Licenses.

So the question is “What is so weird about OEM Licensing?? OR How does it actually work??”

ANSWER – OEM Licenses are generally cheaper as compared to same product license in different mode of purchase because of the restrictions it has. For e.g. – Windows XP Pro OEM license would be 20-25% cheaper than the Windows XP Pro Box Pack License. Reasons are as below: Microsoft wishes to encourage people to use genuine software. Hence if you choose to buy OEM software while procuring the hardware then its a reward that you are getting….Sounds difficult to believe huh?;-) Kidding folks..from when did business people get so foolish..!!!:-) OEM licenses are cheaper because THESE LICENSES ARE TIED TO THE HARDWARE. People usually term it as “Preloaded OS or Software”.

The process works like this. You cannot get an OEM license without purchasing a hardware (PC/Laptop/Server). Its up to you choose whether you want the OEM license or Box Pack License of the product depending on your requirement type. If you place an order for PC with Windows OEM License then the hardware manufacturer would have to do this-

  • Install Windows OS license on the hardware.
  • Use the SERIAL mentioned on the OEM Sticker.
  • Stick the OEM Sticker license on the hardware such that it is easily visible in case of any audit/inspection.
  • After installing the OS with SERIAL key, vendor has to ACTIVATE the software.
    • Once the software is activated then he can make the delivery of order placed to you. (Any vendor not doing above is violating systems builder agreement)

      The point to notice is that vendor has to activate the software and then give to buyer. Why is this required?? When activation is done, the SERIAL Key used gets locked to the MAC ID of the motherboard of the hardware (PC/Laptop/Server). So no one else can use that SERIAL Key on any other hardware across the globe. If you have been provided preloaded software please make sure you have the below documenst as proof of licensing. 1. Sticker stuck on to the machine. If it is not stuck then you will require invoice of the hardware purchase which mentions software purchased along with the hardware. This is because if sticker is not stuck on your machine then you will be required to prove that you own that sticker license. 2. Invoice of purchase 3. EULA/Media Pls feel free to comment if I have missed out anything..


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