Oh, but it does...

Q. My customer wants to purchase a "naked" PC from me and acquire the Windows license through a Volume Licensing agreement. Is this OK? A. No. Full Windows licenses are not available through any Microsoft Volume Licensing program, including academic volume licenses. The customer must first acquire a Windows operating system license via OEM software included with a new PC from an OEM or system builder, or via the retail channel.

Q. Can my customers transfer or sell their OEM software licenses? A. After an OEM software license has been installed on a PC, the license may not be installed on or transferred to another PC. However, the entire PC may be transferred to another end user along with the software license rights. When transferring the PC to the new end user, the software media, manuals (if applicable), and Certificate of Authenticity label must be included. It is also advisable to include the original purchase invoice or receipt. The original end user cannot keep any copies of the software.

Q. Can two or more users access and fully utilize OEM Windows operating systems concurrently on the same machine? A. No. The End User Software License Terms do not permit two or more users to concurrently use the full feature sets of Windows operating systems. However, the Windows End User Software License Terms do allow for a limited number of computers or other electronic devices to connect to the computer upon which the software is installed to utilize one or more of the following services: File Services, Print Services, Internet Information Services, and telephony services. The End User Software License Terms also permit limited concurrent use in connection with the Remote Assistance and NetMeeting technologies. Please refer to the applicable End User Software License Terms for detailed information regarding such limited concurrent uses.

Q. How does a company qualify to become a direct Microsoft OEM? It seems that the larger companies currently have an unfair advantage compared with smaller OEMs. A. Direct OEM licensees do receive a discount compared to buying through the System Builder channel, but that discount is based on the licensee’s commitment to receive ongoing bulk shipments versus purchasing at will. Other elements of the direct licensing agreement require significant initial investment from the OEM. Furthermore, legal and technical requirements are placed on direct OEMs to protect Microsoft intellectual property, and these requirements can add other costs to the production of a PC. The primary difference between the two programs cannot be gauged merely by looking at prices and software licenses. Each program is designed to meet the specific needs of the partner.

Q. Can a PC with an OEM Windows operating system have its motherboard upgraded and keep the same license? What if it was replaced because it was defective? A. Generally, an end user can upgrade or replace all of the hardware components on a computer—except the motherboard—and still retain the license for the original Microsoft OEM operating system software. If the motherboard is upgraded or replaced for reasons other than a defect, then a new computer has been created. Microsoft OEM operating system software cannot be transferred to the new computer, and the license of new operating system software is required. If the motherboard is replaced because it is defective, you do not need to acquire a new operating system license for the PC as long as the replacement motherboard is the same make/model or the same manufacturer's replacement/equivalent, as defined by the manufacturer's warranty. The reason for this licensing rule primarily relates to the End User Software License Terms and the support of the software covered by that End User Software License Terms. The End User Software License Terms is a set of usage rights granted to the end user by the PC manufacturer and relates only to rights for that software as installed on that particular PC. The system builder is required to support the software on the original PC. Understanding that end users, over time, upgrade their PCs with different components, Microsoft needed to have one base component "left standing" that would still define the original PC. Since the motherboard contains the CPU and is the "heart and soul" of the PC, when the motherboard is replaced (for reasons other than defect) a new PC is essentially created. The original system builder did not manufacture this new PC, and therefore cannot be expected to support it.

Q. Can I create my own recovery disks and sell these with the computer systems that I build? I have heard that direct OEMs can do this, so why can't I? A. No. System builders may not offer a recovery solution with removable media (e.g., a recovery CD) because it is prohibited by the terms of the Microsoft OEM System Builder License. A full version of the Windows operating system is provided on a hologram CD in the Microsoft System Builder pack for each end user, and the CD must be transferred to the end user at the time of distribution. The hologram CD acts as the recovery media. However, system builders can offer a hard disk recovery solution in addition to, but not as a replacement for, the hologram CD. Third-party software companies can also help system builders do this. Learn more about the legal, licensing, and technical requirements for this type of hard disk-based recovery solution. System builders are bound by the Microsoft OEM System Builder License, affixed to the side of the System Builder packs, which is different than the direct agreements utilized by direct OEMs. The licensing terms for system builders and large OEMs are different because they are designed to address the specific needs of each community. The right to create recovery media is limited to the OEMs with direct agreements; however, these OEMs are also bound by other contractual obligations. The OEM System Builder License is designed to make it easy for system builders to acquire and distribute genuine Microsoft software, and accordingly, its terms are different.

Q. Can I provide a computer system to my customer without an operating system (also referred to as a "naked PC")? A. Yes. There is nothing illegal about selling a computer system without an operating system. However, getting the operating system preinstalled is your customer's most cost-effective way to acquire a genuine Windows operating system license. A customer who subsequently wants to install a Microsoft Windows desktop operating system on that naked PC will need to acquire it through the retail (full packaged product) channel which is a more costly option. Full Windows operating systems are not available through any Microsoft Volume Licensing program, and an OEM operating system license cannot be transferred from an "old" PC to a new one.

Q. What are the different ways in which Microsoft OEM System Builder Windows desktop operating system licenses can be distributed? A. The current OEM System Builder License allows system builders to distribute Windows desktop operating system licenses in the following ways: 1. Preinstalled on a new PC. 2. Unopened OEM System Builder packs (1-, 3-, or 30-packs) can be distributed to other system builders by themselves. Note that they must remain unopened so the receiving system builder can accept and be bound by the break-the-seal license agreement that is affixed to the pack.

OEM System Builder Software[...]Must be preinstalled on a PC and sold to another unrelated party.

OEM System Builder Software[...]System builder that preinstalled the software must provide support for the software.

Q. I would like to build PCs for my company and use OEM System Builder software for the operating system. Can I do this? A. OEM System Builder software must be preinstalled and then resold to another party. If you are using the PC within your organization, this "resale" requirement will not be met. In addition, as a system builder preinstalling OEM System Builder software onto new PCs, this requires that you grant the end user license terms to the third party acquiring the PCs from you. If you are distributing the PCs within your organization, you can’t grant the end user license terms to yourself.