An “OEM” license is a license distributed by an Original Equipment Manufacturer, or an “OEM.” An OEM is a person or company who builds and sells computers. Some OEMs also distribute software, especially operating systems such as Microsoft® Windows. OEM licensing is cheaper than FPP but has more restrictions on its use and transfer.
When software is pre-installed on a new desktop PC the End User Licence Agreement (EULA) must be accepted when you first turn on the desktop PC. This type of licence is an agreement between the PC manufacturer and the end user. Legal and genuine software that has been pre-installed will also have a Certificate of Authenticity (COA) attached to the chassis and will include the media (software discs) and manuals.
An OEM product is “married” to the original PC on which it was installed. Current OEM licenses are not transferable from one machine to another. The software cannot be moved from PC to PC, even if the original PC it was installed on is no longer in use. This is true for all OEM software – operating systems and applications.
Examples of OEM products are below:
Microsoft Office 2003 Professional
Microsoft Works Version 8
Please Note: OEM products are intended to be preinstalled on hardware before the end user purchases the product. They are “shrink wrapped” and do not come in a box like the retail products do. One main difference from the FPP is that an OEM operating system license (such as the license for Windows) cannot be transferred from its original PC to another PC. Also, when a customer purchases an OEM product, the OEM license requires the OEM to provide support for the product.
Generally, you may upgrade or replace all of the hardware components on your computer and maintain the license for the original Microsoft OEM operating system software, with the exception of an upgrade or replacement of the motherboard. An upgrade of the motherboard is considered to result in a "new personal computer." Microsoft OEM operating system software cannot be transferred from one computer to another. Therefore, if the motherboard is upgraded or replaced for reasons other than a defect then a new computer has been created, the original license expires, and a new full operating system license (not upgrade) is required. This is true even if the computer is covered under Software Assurance or other Volume License programs.
End User License Agreements (EULAs) vary among products and you should check the EULA for each product before installing them. In general, OEM server and OEM desktop operating systems have similar EULAs, e.g., they are generally non-transferable and there are normally no downgrade rights.
