Software Buying FAQ from Microsoft Small Business

A software license is an agreement that gives you the right to use software. You are not buying the software program itself, and you do not own it. The benefit of a license is that it clarifies your rights and your software supplier's rights.

Like any major purchase, it is important to compare competitors' prices. Always bear in mind that if the price sounds too good to be true, it probably is.

Microsoft software is sold by partners who provide advice and support. Microsoft does not sell software directly.

Counterfeit software has been illegally manufactured or copied. It can be very hard to recognize, but a missing key code or components can signal a lack of authenticity. Counterfeit software comes without warranty protection, and you cannot upgrade the software. You also might have a hard time downloading updates the software vendors provide over the Internet.

Proof of licensing will depend on the type of license you buy.

For a Full Packaged Product, you should keep:

For OEM licenses (already on a new PC), you should keep:

For volume licenses, you should keep:

With software already loaded on your new PC, you will probably find a sticker known as the Certificate of Authenticity (COA) attached to the bottom of the PC, on the chassis. For PCs older than three years, look for COAs on the cover of the manual or as separate documents.

With Full Packaged Products, you will find a COA on the top or side of the retail box. For many products, you will find an End User License Agreement (EULA) inside the box.

Volume licensing purchases are handled almost entirely online. Your reseller should also provide the legal documentation of your purchases, such as invoices.

If you bought your computer from a large original equipment manufacturer (OEM), such as Dell or Hewlett-Packard, you may have received:

If you purchased your PC from reseller or smaller manufacturer, they will have supplied a CD with a Microsoft operating system. A manual should always be supplied with recovery disks. If you never received a recovery CD, your system might not be legally licensed.

Because resellers and manufacturers often customize Microsoft software for the computer systems they sell, the responsibility to offer support lies with the system builder. If they go out of business, Microsoft is not legally obliged to offer support. However, there are some options you can pursue if you find yourself in this situation.

The Business Software Alliance (BSA) is a nonprofit organization committed to educating the public about software copyrights and cyber security, and combating software piracy. Microsoft is a member of the BSA.

If the software came pre-installed, the license is attached to that PC and your only recourse is to file an insurance claim to replace the PC and software.

If you have a Full Packaged Product license and still have all the original documentation and CDs proving legal ownership, you have the right to reinstall the software on a new PC. If you have lost the documentation or CDs or if these have been stolen, you will need to file an insurance claim.

If the license was purchased through a volume licensing agreement, you can reinstall the software onto a new PC.

You will need to ask your reseller or manufacturer for a new COA. The old certificate will be peeled off the PC and returned to Microsoft. A replacement COA will be sent to the reseller or manufacturer, who will then affix it to your PC's chassis.

Secondary-use rights allow you to use software on two devices, like a home PC ("Home-Use Rights") or a notebook PC ("Portable-Use Rights"). Secondary-use rights only exist for specific Microsoft applications such as Microsoft Office 2003. Secondary-use rights do not exist for operating systems or server products.¹

Software installed on a new PC can't be transferred to another PC. If you bought the program at a retailer or have a volume license, you may transfer the software from one PC to another as long as you have uninstalled it from the previous PC.

Microsoft Product Activation is an anti-piracy technology designed to verify that a product has been legitimately licensed. Product Activation works by validating that the software's product key has not been used on more PCs than your end user license agreement (EULA) allows. If you buy Full Packaged Product or a new PC from an original equipment manufacturer (OEM) with pre-installed software, you will need to activate the software. Product activation is not required for licenses acquired through one of Microsoft's volume licensing programs.