Tops Microsoft Licensing Myths and Facts


Q:Can I transfer my OEM Operating System license from my old PC to my new PC?
A:No, you can't as OEM license is not transferable. If you have purchased the Full Packaged Product (FPP) software from the retailer, then you may transfer the software from one PC to another as long as you have uninstalled them from the previous PC. In the case you have a Volume License, the desktop operating system upgrade license is tied to the PC, as is the underlying license. The only way to transfer this from one entity to another is to transfer the hardware, along with the base operating system license and the Volume License upgrade license together.

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Q:If I have an Open License Program that covers Office 2003, can I choose to use/downgrade to Office XP? Can I do the same with Full Packaged Product?
A: Yes, you can if it is a volume license.
  • Office 2003 volume license can be downgraded to any prior version. However Microsoft only sells media kits for Office XP and Office 2003.You would need to use your own original genuine media kit (from previous purchase) if you would like to downgrade to Office 2000 or Office 97 - however you must use a legal license copy. A tip is to purchase it from other IT Managers friends who no longer need it.
  • Full Packaged Product (FPP) or OEM License products CANNOT be downgraded for Office.
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Q:Can Windows XP Professional OEM license be downgraded ?
A: Yes, Windows XP Pro can be downgraded to
  • Windows 98 Second Edition
  • Windows 2000 Professional
  • NT Workstation
This also applies to Windows XP Professional Upgrade purchased via Volume License Programs i.e. Open License.

Windows XP Home CANNOT be downgraded.
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Q:What are the minimum number of licenses to purchase under Open License?
A:2 ways:
  • Any 5 licenses of L (any Microsoft product)
  • Any 3 licenses of L + SA (any Microsoft product)
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Q:Can I purchase only 1 Office license and put it on the Server and access the applications remotely from various desktops?
A: No, each desktop requiring usage of Office or any of its components needs one license each on the corresponding desktop.
  • If you have 5 desktops accessing Excel, you require 5 licenses of Office.
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Q:After 24 months (2 years) the Open license reorder option expires, this means I will have to start a new Open license contract to continue using my existing license?
A: No, licenses purchased under volume license is perpetual.
  • You can reorder within the 24 months (2 years) with just a minimum of one license.
Q:What is the difference between Device CALs and User CALs?
A: The difference it:
  • Device CAL allows any number of users accessing server software from a particular device.
    - Most economic and administrative sense for an organization with multiple users for one device, such as shift workers.
  • User CAL allows a user accessing server software from any number of devices.
    - Most sense for an organization with many roaming employees that need access to the corporate network from unknown devices and/or employees who access the network via multiple devices.
  • The price for both the CALs are the same. You can also have a mixed environment of both in your office.
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Q:How do you license Server products?
A:You can purchase Server licenses through 3 methods:
  • Obtain a Server License plus a CAL
    - Device CAL: a CAL for every device, or...
    User CAL: a CAL for every named user
  • Obtain a Server License plus an External Connector
  • Obtain a Per Processor License

*Note: Not all servers can be purchased through all 3 methods i.e. Windows Server cannot be purchased through the "Per Processor" license.
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Q:I have Office 2003 Open License. Can I use a Office 2003 Full Package Product CD media for software installation?
A: No, Open License customers should purchase an Open License media kit for installation as most FPP software (including Office 2003) will have a product activation process for each installation.
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Q:Can I install a copy of Office 2003 on the laptop and also on the desktop PC?
A:Yes, you can if you have a Office volume license i.e. Open license or Full Packaged Product as it includes a secondary use right (portable usage right) with the condition that the Office suite is used by the same user at different times (non-concurrent usage).
  • Office OEM license DOES NOT have portable usage rights.
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Q:Do I need to purchase an OEM license for the Windows operating system if I already have a Select License Agreement license for Windows?
A:Yes, as all volume licenses i.e. Open, Select, Enterprise Agreements, Campus and School Agreements etc only license a company for an UPGRADE version of Windows.
  • Windows desktop volume license it is NOT a full license.
  • Companies still need to purchase Windows OEM licenses when purchasing a new computer as the base license before choosing to upgrade via the Volume License.
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Q:A newly setup company wants to set up a network with file & print and email services. Email services should be accessible to all users via web when they are traveling. What licenses that should this company purchase? Total employees = 60
A. They should buy
  • Windows XP Professional OEM/Open License (with 60 new PCs)
  • Office 2003 Professional Open License (60 license)
  • Windows Small Business Server 2003 Open License (1)
  • Windows Small Business Server 2003 CAL Open License (60)

    OR
  • Windows XP Professional OEM/Open License (with 60 new PCs)
  • Office 2003 Professional Open License (60 license)
  • Windows Server 2003 Open License (1)
  • Windows Server 2003 CAL Open License (60)
  • Exchange Server 2003 Open License (1)
  • Exchange Server 2003 CAL Open License (60)
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Q:If I switch from the device CAL licensing model to the user CAL licensing model, will I receive credit or a refund for any extra CALs that were acquired?
A:No credit or refund is issued upon switching to the user CAL licensing model.
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Q: If I recently upgraded from Microsoft Windows 2000 Server to the latest Microsoft Windows Server 2003, can I re-use my old Microsoft Windows Server 2000 CALs for the new server?
A:No, you would need to purchase Microsoft Windows Server 2003 CALs specifically for their new Microsoft Windows Server 2003 - all CALs must have the same or later version number than the corresponding version number of the server software being used.
Q:If I have a Microsoft Windows Server CAL, do I still need a Microsoft Exchange Server CAL?
A:Microsoft Windows Server CAL and a Microsoft Exchange Server CAL license different server and usage scenarios.
  • Example: If a employee is accessing Microsoft Windows Server 2003 for i.e. authentication, they would require a Microsoft Windows Server 2003 CAL. Additionally, if they are accessing the Microsoft Exchange Server 2003 for email, they would require an additional Microsoft Exchange Server 2003 CAL on top of the Microsoft Windows Server 2003 CAL as they would accessing both the servers.
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Q:What does MDTCA / BSA look for when they raid?
A:These are the components to prove genuine Microsoft license ownership:
OEM license:
  • Microsoft OEM License Edge-to-Edge Hologram CD-ROM Media
  • Certificate of Authenticity (COA) label attached to the chassis
  • Original user manual
  • Dated original purchase invoice or receipt
Open license:
  • Microsoft Volume License Edge-to-Edge Hologram CD-ROM Media
  • License Agreement Authorization Number (from reseller / eOpen web site)
  • Original user manual (not mandatory; purchased separately)
  • Dated original purchase invoice or receipt
FPP license:
  • Microsoft FPP License Edge-to-Edge Hologram CD-ROM Media
  • Certificate of Authenticity (COA) label attached to top of retail box packaging
  • Original user manual
  • Dated original purchase invoice or receipt
Ensure:
  • OEM Office license - NEW PC ONLY
  • Genuine Server license
  • Sufficient Server CALs
Multi National Accounts (MNA) or Named Account License:
  • Certificate of Authenticity (COA) label attached to the chassis
  • Dated original purchase invoice or receipt
  • Microsoft OEM License Edge-to-Edge Hologram CD-ROM Media (optional)
  • Original user manual (optional)
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Q.What if I have lost my license / COA / OEM CD?
A:If you have lost any / all components of your license ownership documentation:
  • Lodge a police report immediately
  • Keep the rest of the license ownership components safe i.e. receipt, user manual etc
  • Fail-proof solution is to re-purchase the necessary component (if applicable) or a new license
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Q.If I have a quote for software from a reseller, will MDTCA / BSA accept that as proof of purchase?
A.A quote may be looked upon only as intent to purchase and NOT proof of purchase - which means you still may run into legal repercussions.
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Q.How do I know if I am running a legal version of Windows operating system?
A.2 ways to check:

Windows Genuine Advantage (WGA)
  • One time online validation process to scan product key to determine whether operating system (Windows 2000 and Windows XP) is genuine.
  • FREE downloads and exclusive software offerings i.e. Microsoft Anti-Spyware software and more.
  • You can print a "Piracy Report" and go back to your dealer to ask for compensation if it is not "valid".
  • Note: During the validation process, Microsoft DOES NOT collect any personal or company related information.


Manual Check (OEM license):
  • Microsoft OEM License Edge-to-Edge Hologram CD-ROM Media
  • Certificate of Authenticity (COA) label attached to the chassis
  • Original user manual
  • Dated original purchase invoice or receipt
Remember, a volume license version of Windows is merely an upgrade license - you will need a base OEM / FPP license to be compliant.
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Q.How do I know if a web site / email offer selling really cheap OEM / FPP licenses are genuine?
A. When the offer is "too good to be true", then it probably is. It probably is not genuine and you should be wary. Here are some suspect signs to look for:
  • Beware of spam emails
  • Beware of offers requesting the wiring of money to foreign banking institutions
  • Beware of software shipping from outside the country
  • Beware of counterfeit software that may contain hidden viruses, worms, and trojans that a hacker could use to take control of your customers' computer or steal their personal information.
Report them to the BSA Anti Piracy Hotline at 1-800-887-800 or go to www.bsa.org/malaysia/report
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Q.Can I buy Office 2003 OEM license for my existing PC?
A. OEM license for Office can only come pre-installed with a NEW PC and cannot be transferred. You would need to purchase Office 2003 through Open License if you already have existing PCs.
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Q. Why should I buy genuine software / take the trouble to ensure that I am license compliant?
A.Genuine software come with a lot of benefits:
  • Protection against viruses and worms
  • Access to Microsoft product support
  • Access to latest Microsoft updates
  • Access to upgrade options at a discount
  • Worry-free from legal action
Additionally, it is very easy now to ensure you are compliant with the free downloadable Software Inventory Analyzer at www.microsoft.com/malaysia/genuine.
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Q.Will BSA / MDTCA know if a customer swaps the CPU chassis (cover) with an old COA to a new PC - with technically no new operating system license?
A. BSA / MDTCA will be looking for 4 components to establish genuine OEM license ownership:
  • Microsoft OEM License Edge-to-Edge Hologram CD-ROM Media
  • Certificate of Authenticity (COA) label attached to the chassis
  • Original user manual
  • Dated original purchase invoice or receipt
The COA is just one of the components.
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Q.Who do I report piracy to?
A.You can report piracy to anyone of these organisations:
BSA MalaysiaMicrosoft Malaysia

- Customer Contact Centre for Microsoft: 1-800-88-6295
- URL: www.microsoft.com/malaysia/genuine

Ministry of Domestic trade and Consumer Affairs (MDTCA)
- MDTCA Anti-Piracy Hotline: 1-800-886-800
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Q. What are the main differences between Open License and OEM License?
A.
Open LicenseOEM License
What is itVolume license program (perpetual) with savings for as few as 5 licenses that continues for 2 years
Pre-installed license (non-perpetual) with machines:
Microsoft Office suites: ONLY available with a NEW PC
Microsoft Windows PC operating system: ONLY available with purchase of a new system
Ease
Does NOT require Product ActivationRequires Product Activation
FlexibilityAbility to transfer licenses (one PC to another / one company to another)CANNOT transfer licenses (expires with machine - tied to original hardware)
ManageabilityAbility to downgrade to any prior version (Microsoft Office suites ONLY)CANNOT downgrade Microsoft Office suites
Worry-freeAbility to track licenses onlineRequires manual individual tracking
SavingsFREE 2nd desktop license to install on notebook for non-concurrent usage (Microsoft Office suites ONLY)NO secondary usage rights for notebooks
SupportProvided directly by Microsoft through hotlineProvided by system builder who built the machine
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Q.Can a wholly owned subsidiary, associate company and/or partnership company purchase Open License under a parent company that already has an existing Open License contract?
A.If the parent company has 51% ownership of the subsidiary company, the subsidiary can enjoy the same pricing level as the parent company.
  • Ensure the subsidiary reorders using the same License Authorization Number (LAN), that is issued when the parent made the first initial Open License purchase.
  • Ensure the subsidiary keeps a copy of the Open License agreement.
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Q.If I purchased a PC pre-installed with Windows XP Professional but require Windows 98, can I use a copy of Windows 98 (Full Packaged / OEM) from another PC?
A.Yes, you have the right to downgrade from Windows XP Professional to Windows 98 SE.
  • You can use a genuine Full Packaged, OEM CD or volume license from another PC to install - however it must be a legal license copy. You can also purchase the genuine CE from other IT Managers friends who no longer need it.
Q.If I have a licensed copy of Office 2003 Professional, can I load Word in one PC & Excel in another PC?
A.No.
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Q.How can I activate my software license?
A. When you activate your product, no personably identifiable information is collected. The activation code does not change when you make minor modifications to your systems (i.e. changing of hard disk).
  • However, if you face problems in activating your product over the Internet, Microsoft provides a toll-free number (1-800-88-6295) that you can call.
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Q. Is Product Activation required when restoring a stable ghost image?
A.Yes, but it uses the same activation ID. Hence, if you are activating it over the Internet, it will proceed smoothly. The activation code does not change when you are ghosting.
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Q.Must I activate my software immediately?
A.No,
  • Operating systems require activation after 30 days then it will go into a 'Safe' like mode.
  • Office software programs require activation after 50 launches and will then behave like a file viewer.
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Q.I hear that Product Activation is an invasion of privacy.
A.Microsoft absolutely respects the privacy of its customers and does not ask for any personally identifiable information to activate a product. Product Activation is completely anonymous.
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Q. What are the Windows Server 2003 downgrade options?
A.Column highlighted in blue ("left") can be downgraded to the 2 columns on its right:

Windows Server 2003
Windows 2000 Server
Windows NT Server
Windows Server 2003, Standard Edition
Windows® 2000 Server
Windows NT® Server 4.0 and/or Windows NT Server 4.0, Terminal Server Edition
Windows Server 2003, Enterprise Edition
Windows 2000 Advanced Server
Windows NT Server 4.0, Enterprise Edition and/or Windows NT Server 4.0, Terminal Server Edition
Windows Server 2003, Data"center" EditionWindows 2000 Data"center" ServerNo equivalent
Windows Server 2003, Web EditionNo equivalent
No equivalent
Windows Server 2003 CAL (Device)Windows 2000 CAL
Windows NT 4.0 CAL
Windows Server 2003 CAL (User)Windows 2000 CAL
Windows NT 4.0 CAL
Windows Server 2003 External ConnectorWindows 2000 Internet ConnectorNo equivalent
Windows Server 2003 Terminal Server CAL (Device)Windows 2000 Terminal Services CAL Windows NT 4.0 Terminal Services CAL
Windows Server 2003 Terminal Server CAL (User)Windows 2000 Terminal Services CALWindows NT 4.0 Terminal Services CAL
Windows Server 2003 Terminal Server External ConnectorWindows Terminal Services Internet ConnectorNo equivalent
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Q. Can I purchase Windows OEM license for my existing PCs as I wish to upgrade them?
A. If the pack is opened, the enclosed individual software license(s)
  • must be distributed with a fully assembled computer system and
  • must be preinstalled.
The individual software license(s) inside the pack can no longer be distributed with a non-peripheral computer hardware component.

With the new 1-pack, the unopenedpackage can be distributed to another system builder by itself, without any hardware requirement.
Q.What if I have an existing Open license agreement but I have lost/forgotten my administrator user ID and password?
A.You can emaileopenap@microsoft.com to have your administrator user ID and password re-set. We then advise you to keep your user ID and password in a safe place that you can remember.
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Q.What if I would like a consolidated view of all my Open license purchases even if I have purchased from different resellers?
A.You can log ontohttps://eopen.microsoft.com to view your entire effective Open License Purchase history purchased from all resellers.
  • If you have lost/forgotten your user ID and password, you can emaileopenap@microsoft.com to have your administrator user ID and password re-set. We then advise you to keep your user ID and password in a safe place that you can remember.
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Q.If I have purchased Windows Server 2003 CALs, can I use it to connect to my Windows 2000 Server?
A.Yes, you can use it to connect to your Windows Server 2003 and your Windows 2000 Server if you have a mixed server environment.
  • Since we also don't sell Windows 2000 CALs anymore, you can also purchase Windows Server 2003 CALs to connect to your Windows 2000 Server.
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Q.What is the difference between per user/per device and per server license mode for Windows Server 2003?
A.Per User/per Device mode is defined as follows:
  • A separate Windows CAL for each user or device that accesses or uses the server software on any servers.
  • The number of Windows CALs required equals the number of users or devices accessing the server software.
  • If you choose this licensing mode, your choice is permanent. You can, however, reassign a Windows CAL from one device to another device or from one user to another user.
  • This tends to be the most economical in a multiple server environment.
Per Server mode is defined as follows:
  • A separate Windows CAL for each user or device that accesses or uses the server software on any servers.
  • The number of Windows CALs required equals the maximum number of users or devices that may simultaneously access or use the server software installed on a particular server.
  • The Windows CALs are designated for use exclusively with a particular server.
  • If you choose this licensing mode, you have a one-time right to switch to the other licensing mode-Per User/per Device mode. Your Windows CALs would then be used in Per User/per Device mode instead.
  • Per Server mode tends to be the most economical in computing environments where a small number of servers have limited access requirements.
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Q.Can I downgrade Full Packaged Product licenses?
A.For most products this is not possible with 1 exception:
- Windows desktop operating system - No
- Office suites - No
- Windows server operating system - Yes
Q.What if Dell/HP did not give me a Windows OEM CD when I purchased a brand new PC for recovery? Is this legal? How do I recover if anything goes wrong?
A.If you click on "Start" button then right click on "My Computer" to view the "Properties", you will notice the name of the computer manufacturer under "Manufactured and Supported". This means they provide support for the PC and the software as it has been customized and optimized by them to fit their hardware specifications - you can even click on the "Support Information" for more details.
  • For most branded notebooks and PCs i.e. HP/Dell/acer/IBM etc, the recovery CD is loaded into a hidden partition drive of the machine. If anything goes wrong, you can call up the HP/Dell/acer/IBM etc call centre to ask for support assistance to recover it.
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Q.If I have a thin client connected to the Windows Server, do I still require a CAL?
A.Every user and device (notebook, PC, PDA, mobile phone etc) connecting, accessing and/or using the server is required to have a CAL. This includes thin clients as well.
Q.If I have Lotus Notes (other than Exchange email servers) accessing Windows Server, do I still require a CAL for every user and device connection?
A.Yes, as the Lotus Notes would not be able to run without the Windows Server.
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Q.If I only access Windows Server 2003 for Internet access (IIS etc), do I still require a CAL?
A.Yes, for every device and user connected to it.
  • However you can also choose to purchase the Windows Server 2003 Web Edition instead of the normal Windows Server 2003, which is almost half the price.
  • The Windows Server 2003 Web Edition does not require CALs. This server is dedicated for Web serving and hosting and delivers a single-purpose solution for Internet service providers, application developers, and others who use or deploy specific Web functionality.
Q.If I don't authenticate my users i.e. only have 1 user name and password ID for all my employees or no named user in Windows Server 2003, do I still require CALs?
A.Yes, for every device and user connected to it.
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Q.How would the authorities know if I purchase an Office OEM license WITHOUT a new PC?
A.We can only advise you on what's within the End User License Agreement that you have agreed to when you click "Yes, I agree to the license terms" when installing the product. We can do our best to advise you to remain compliant to this and on the right side of the law of this country.
  • Additionally, the authorities will be checking the receipts and invoices to ensure the right hardware components were sold with the OEM license (Office = new PC, Windows = non peripheral / new PC) and ensure they tie that back with the hardware they find in your office.
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Q.How would the authorities know if I installed my Office volume license "portable usage rights" on more than the allowed 2 non-concurrent PC and notebook?
A.We can only advise you on what's within the End User License Agreement that you have agreed to when you click "Yes, I agree to the license terms" when installing the product. We can do our best to advise you to remain compliant to this and on the right side of the law of this country.
  • Additionally, the authorities will also be checking the total number of licenses you have versus the number of desktops and notebooks. If it does not tally and there is mention of "portable usage rights", they will be checking back with us on the End User License Agreement.
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Q.What is a used PC?
A.A used PC is a computer system that has had few or no hardware changes. The license for OEM software on a used PC may not be transferred to a new or different PC. However, the entire used PC, including the software media, manuals, and Certificate of Authenticity, may be transferred to another end user along with the software license rights.
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Q.What is a refurbished PC?
A.Computer system that has had substantial hardware modifications that may require a new operating system license - because the modifications have essentially created a "new" PC.
  • Generally, you can upgrade/replace all of the hardware components on the PC and maintain the original Windows desktop operating system OEM license with the exception of an upgrade or replacement of the motherboard (an upgrade/replacement of the motherboard is considered a new PC).
Q.Can I transfer my Open License agreement to another company in any part of the world outside of Malaysia?
A.Yes, you can.
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Q.Can a wholly owned subsidiary, associate company and/or partnership company in any part of the world aside from Malaysia purchase Open License under a parent company that already has an existing Open License contract in Malaysia and vise versa?
A.Yes, they can if the parent company has 51% ownership of the subsidiary company, the subsidiary can enjoy the same pricing level as the parent company.
  • Ensure the subsidiary reorders using the same License Authorization Number (LAN), that is issued when the parent made the first initial Open License purchase.
  • Ensure the subsidiary keeps a copy of the Open License agreement.
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Q.Can I run my Windows Server 2003 in an active/passive (back-up) mode where I install it on 2 servers but only have 1 license?
A.No, there must be a license for each installed copy of Windows Server 2003.
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Q.Can I run my Exchange Server 2003 in an active/passive (back-up or fail over) mode where I install it on 2 servers but only have 1 license?
A.No, there must be a license for each installed copy of Exchange Server 2003.
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Q.What do I require an Exchange CAL for?
A.You require an Exchange CAL for every Outlook, Outlook Web Access (OWA), Outlook Express, Office (with Outlook) or third party email client access.
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Q.What is the difference between SQL Standard and SQL Enterprise?
A.For SQL
  • SQL Server Standard = One license for every instance
  • SQL Server Enterprise = Multiple instances allowed
    - Clustering: no need for licenses for secondary server in active/passive setup (only 1 license require for 2 installations in an active/passive mode)
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Q.What is the best license to purchase for SQL if I am looking for Internet usage and better management?
A.SQL Per Processor licensing as it is the
- Only solution for Internet usage
- Easier to manage
- Often more cost-effective
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Q.What is the difference between Windows Small Business Server 2003 Standard and Premium?
A.
  • Windows Small Business Server 2003
    Standard Edition includes:
    Windows Server 2003 (limited functionality)
    Exchange Server 2003
    Health Monitor
    Fax sharing and modem sharing
  • Premium Edition adds:
    SQL Server 2000
    ISA Server 2000
    FrontPage 2003 (one client)
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Q.What is the maximum number of users/devices that I can purchase Windows Small Business Server CALs for?
A.You can purchase Windows Small Business Server 2003 CALs up to a maximum of 75 CALs. The server itself usually comes with 5 CALs. Anything more than 75 users would require a Windows Server 2003 scenario etc.
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