What is the difference between Windows OEM key and Retail key? Why is OEM key so cheap?
- Thread starter Alex Rico
- Start date
Big computer makers buy OEM in bulk. Call it a quantity discount. OEM is only good on the original computer. Retail can be transferred but must first be removed from original computer.
There are many differences with the licenses - but the program itself is the same.
Anyone can buy an OEM key. If you build your own computer, you can buy an individual license. If you build a computer for someone else, you can buy an OEM license. In fact, they really are known as OEM/System Builders licenses.
OEM licenses tie the license to the "O"riginal "E"quipment. It should be noted this typically means the motherboard. That means you can swap out the drives, graphics card, CPU, RAM, even the case and still use that same OEM license. But as soon as you swap out the motherboard, that constitutes a new computer and thus requires a new license. The only exception to that stipulation is if the original motherboard is being replaced with an identical board as part of a repair action.
Should you sell or give away that computer, the license can be transferred to the new owner. HOWEVER the OS and license needs to go with the computer to the new owner and any copies of the program must be deleted (or go to new owner too).
One of the important things to remember with a new computer is when you make the decision to keep using the computer after first boot, you agree to abide by the terms of the EULA (end user license agreement). And so those terms become a legally binding contract.
Another important thing to remember with OEM licenses (and a key reason OEM license are cheaper) is the system builder (Dell, HP, or you if you built it yourself) are responsible for Windows support for one year - NOT Microsoft!
Full retail licenses, which also anyone can buy, can be transferred to a new computer/motherboard - as long as all other installations have been deleted. Also, Microsoft is responsible for Windows support for one year.
I recommend anyone building their own computer (or upgrading the motherboard that had an OEM license) buy a full Retail license. Yes, it costs more initially, but you can transfer it over and over again as you upgrade your computer through the coming years.
Anyone can buy an OEM key. If you build your own computer, you can buy an individual license. If you build a computer for someone else, you can buy an OEM license. In fact, they really are known as OEM/System Builders licenses.
OEM licenses tie the license to the "O"riginal "E"quipment. It should be noted this typically means the motherboard. That means you can swap out the drives, graphics card, CPU, RAM, even the case and still use that same OEM license. But as soon as you swap out the motherboard, that constitutes a new computer and thus requires a new license. The only exception to that stipulation is if the original motherboard is being replaced with an identical board as part of a repair action.
Should you sell or give away that computer, the license can be transferred to the new owner. HOWEVER the OS and license needs to go with the computer to the new owner and any copies of the program must be deleted (or go to new owner too).
One of the important things to remember with a new computer is when you make the decision to keep using the computer after first boot, you agree to abide by the terms of the EULA (end user license agreement). And so those terms become a legally binding contract.
Another important thing to remember with OEM licenses (and a key reason OEM license are cheaper) is the system builder (Dell, HP, or you if you built it yourself) are responsible for Windows support for one year - NOT Microsoft!
Full retail licenses, which also anyone can buy, can be transferred to a new computer/motherboard - as long as all other installations have been deleted. Also, Microsoft is responsible for Windows support for one year.
I recommend anyone building their own computer (or upgrading the motherboard that had an OEM license) buy a full Retail license. Yes, it costs more initially, but you can transfer it over and over again as you upgrade your computer through the coming years.
One small addition to what Bill said. If replacing the MOBO on an OEM OS, it usually takes a phone call to Microsoft for authorization.
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