OEM-license misrepresentation
Microsoft's "Licensing for Hobbyists" web page attempts to explain the Windows 7 OEM license to people who build their own PCs. But the page falsely asserts that the software "must be preinstalled on a PC and sold to another unrelated party". Aside from the question of what "unrelated" even means (Does your second cousin count? How about the folks on your bowling team?), the OEM license itself says nothing whatsoever about only selling to "unrelated" parties. A license is binding in both directions. You can't sell a product under a license and then try to make up extra restrictions. That's piracy, stealing back from customers certain rights that you've already sold to them. Similar remarks apply to the web page's claim that you can't sell an OEM-licensed Windows PC to a company you work for. Yes, you can--there's no such restriction in the license. The company you sell to is a third party, legally separate from yourself. The overwhelming message of this web page is that Microsoft doesn't take its own license seriously enough to adhere to its terms. Why then should anyone else? Licensing for Hobbyists page: http://www.microsoft.com/oem/en/licensing/sblicensing/pages/licensing_for_hobbyists.aspx actual OEM license: http://oem.microsoft.com/public/sblicense/2008_sb_licenses/fy08_sb_license_english.pdf
December 22nd, 2010 8:48am

On Wed, 22 Dec 2010 13:40:22 +0000, Gary02139 wrote: >Microsoft's "Licensing for Hobbyists" web page attempts to explain the Windows 7 OEM license to people who build their own PCs. But the page falsely asserts that the software "must be preinstalled on a PC and sold to another unrelated party". Aside from the question of what "unrelated" even means (Does your second cousin count? How about the folks on your bowling team?), the OEM license itself says nothing whatsoever about only selling to "unrelated" parties. >A license is binding in both directions. You can't sell a product under a license and then try to make up extra restrictions. That's piracy, stealing back from customers certain rights that you've already sold to them. >Similar remarks apply to the web page's claim that you can't sell an OEM-licensed Windows PC to a company you work for. Yes, you can--there's no such restriction in the license. The company you sell to is a third party, legally separate from yourself. >The overwhelming message of this web page is that Microsoft doesn't take its own license seriously enough to adhere to its terms. Why then should anyone else? > >Licensing for Hobbyists page: http://www.microsoft.com/oem/en/licensing/sblicensing/pages/licensing_for_hobbyists.aspx >actual OEM license: http://oem.microsoft.com/public/sblicense/2008_sb_licenses/fy08_sb_license_english.pdf I didn't see anything in the OEM License stating you *must* *sell* to anyone. Ron
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December 22nd, 2010 9:21am

I didn't see anything in the OEM License stating you *must* *sell* to anyone. See section 4. The license grants you no right to use the software. The only thing you're licensed to do is to sell it to a third party.
December 22nd, 2010 9:26am

In my opinion, you are putting words into the OEM license that do not exist there. Where is the wording that requires you to *sell* the software? It is NOT in the section 4 you mention. There is a requirement that you "distribute" the system, and "distribute" is defined in section 1. There is a definition of a System Builder in section 2: "To distribute the Software or Hardware in this Pack, you must be a System Builder and accept this license. “System Builder” means an original equipment manufacturer, an assembler, a refurbisher, or a software pre-installer that sells the Customer System(s) to a third party. " but it is not clear that the phrase, "... that sells the Customer System(s) to a third party" applies to more than the "software pre-installer", as might be the case when a company IT professional assembles systems for use in his/her company. He would then be an "assembler" who "distributes" the system.Ron
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December 22nd, 2010 10:32am

In my opinion, you are putting words into the OEM license that do not exist there. Where is the wording that requires you to *sell* the software? It is NOT in the section 4 you mention. There is a requirement that you "distribute" the system, and "distribute" is defined in section 1. There is a definition of a System Builder in section 2: "To distribute the Software or Hardware in this Pack, you must be a System Builder and accept this license. “System Builder” means an original equipment manufacturer, an assembler, a refurbisher, or a software pre-installer that sells the Customer System(s) to a third party. " but it is not clear that the phrase, "... that sells the Customer System(s) to a third party" applies to more than the "software pre-installer", as might be the case when a company IT professional assembles systems for use in his/her company. He would then be an "assembler" who "distributes" the system. Ron Thanks, I see your point about the arguable ambiguity of the scope of the "sells" clause in section 2. MS could argue that there's no evident reason to construe that scope narrowly, but you're right that it's not clear. But since selling can be for a nominal amount (as far as the license specifies), there's virtually no difference between distributing and selling anyway. And distributing--where the system "leaves your control"--is indeed a requirement (as opposed to keeping it yourself). Perhaps it could return to your control shortly thereafter, but I don't know how well such a ploy would stand up. (As far as I'm aware, though, MS has never shown interest in trying to enforce the "distribution" requirement.) Anyway, the whole OEM license is convoluted and obscure. And when MS tries to explain it plainly (on the Hobbyists page), they themselves get it totally wrong.
December 22nd, 2010 11:01am

It gets worse. I just discovered that the kit (OPK) that the OEM license requires you to use for Windows installation is only available from MS's web site, and only if you first register as a Microsoft Partner. But that registration has extra eligibility requirements that are not stated in the OEM license, and requires signing an extra agreement that goes beyond the terms of the OEM license. Only the OEM license is printed on the outside of the Windows 7 OEM box; these additional requirements are left for you to discover after you have purchased and opened the product. I don't think it's lawful for MS to spring such surprise requirements on its customers, so I conclude that the OPK can be ignored. (From a technological standpoint, there is no need to use the OPK rather than installing directly from the OEM disc.)
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December 23rd, 2010 9:41am

I noted that. But I did find a link that enabled download of the W7 OPK without registering as a Microsoft Partner.Ron
December 23rd, 2010 10:11am

I tried the same link a second time (after declining the Partner agreement) and it worked that time, without asking me to register as a Partner. Weird.
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December 23rd, 2010 10:19am

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