Vista Licensing Changes Alienate Tech Enthusiasts

On Friday, I wrote a lengthy article for the SuperSite for Windows in which I communicated Microsoft's licensing changes for Windows Vista. In tech enthusiast circles, these changes--which include limiting the number of times a user can transfer a Vista license from PC to PC--were the source of a lot of controversy. However, it seems to me that the new license, or End-User License Agreement (EULA), was really just a clarification of the Windows XP license, and my original article reflects that. But based on a weekend's worth of email, it's now clear that a large and important group of Windows users will be alienated by the new EULA.

Here's the problem. In the XP EULA, users were granted the right to "move \[XP\] to a different Workstation Computer. After the transfer, \[users had to\] completely remove \[XP\] from the former Workstation Computer." Many people read this clause and assumed they had the right to move a single retail copy of XP from PC to PC as often as they wanted. Not so. "This clause was always aimed at very specific circumstances," Microsoft General Manager Shanen Boettcher told me. "Someone has a hardware failure, but still wants to run that copy of Windows on the new machine, for example." The intention, Boettcher said, was for users to perform such a new installation only in the event of a catastrophic hardware failure. A single copy of Windows is licensed for use on a single PC.

The Vista EULA has been "clarified" to be more explicit. Now, a user can "reassign the \[Vista\] license to another device one time." Microsoft told me that the actual process of transferring Windows from PC to PC hasn't changed since XP: You might be able to electronically activate Windows on the new PC, but if you can't, you can activate Windows over the phone. "\[Now\] we let them move a license, while being clear about what the license is intended for," Boettcher said. "In the past, we haven't been super clear up front."

I've never been a big fan of the Windows EULA, but given the inherent restrictions in the document and the fact that Windows users don't technically own their copy of Windows anyway (according to the terms of the license, you're granted only limited rights to use the product), I felt the Vista license change amounted to a simple clarification. Besides, it would affect a very small group of users. Last weekend, I heard from those users and I'm starting to see a very real problem.

The computer enthusiasts who are most apt to run into problems with the Vista EULA are the people who funnel the most money into the PC industry--the ones who buy expensive gaming PCs and regularly upgrade their systems. These enthusiasts are most likely to gravitate toward the most expensive Vista version, Vista Ultimate. In short, one might argue that Microsoft's new EULA will harm these people quite a bit, especially if their reactivation attempts are thwarted because of licensing problems.

Koroush Ghazi, the owner of TweakGuides.com, argues that if even 5 percent of PC users are affected by this change, we're talking about 50 to 65 million consumers. And again, these are the people spending money on the most expensive PCs and accessories they can get their hands on. These people are enthusiastic about technology and would otherwise be championing Vista. These are the people that Microsoft should be embracing, not alienating. And with mainstream PC makers such as Dell and HP buying boutique gaming-PC companies to find new revenue streams among these increasingly important customers, it's clear that Microsoft should be reaching out to them as well.

If you'd like to read more about this topic, both my original article and the excellent response from Koroush Ghazi are available on the SuperSite for Windows.

Licensing Changes to Windows Vista
http://www.winsupersite.com/article/showcase/licensing-changes-to-windows-vista.aspx

Windows Vista's Enthusiastic Licensing Restrictions
http://www.winsupersite.com/article/showcase/windows-vistas-enthusiastic-licensing-restrictions.aspx

Discuss this Article 36

Vandil (not verified)
on Oct 16, 2006
@jersey72 "I can't seem to figure out how to set up my MacOSX virtual system. How do I get OSX installed? Can you help me?" Sure thing: http://pearpc.sourceforge.net/ http://wiki.pearpc.net/index.php?title=Main_Page Hear that? It's the sound of PWNAGE.
Vandil (not verified)
on Oct 16, 2006
One of the best ways to learn an OS is to "play" with it, knowing that if all goes to heck, you can re-roll the OS and restore any data from a backup. This is how I've learned every version of Windows, DOS, Mac OS Classic, Mac OS X, and several flavors of Linux. For tech enthusiasts, the ability to reroll your machine at any time, with no hassle other than the actual work, is the cornerstone to our interest and growth in the field. With XP's product activation, some of that fun went away whenever you had to call up MS for an activation code. With Vista, it looks like we're going to have practically no flexibility. Why would I want to "play" with Vista now when I might not be able to reinstall my OS? Why would I want to run Vista when I buy new hardware upgrades from NewEgg verey few months? Vista will be the end of Windows-based Tech Enthusiasts who "play" at home. I'm sure corporate test labs will be fine so long as they're running Longhorn Server's licensing app, so my comments are geared at enthusiasts with a small "lab" at home, which, at some point of the other (or currently), many of us here do. Obligatory Pro-Mac Comment: At least Mac OS doesn't nag for a product key or require any form of activation.
guruguru
on Oct 16, 2006
these "enthusiasts" will probably download one of the many hacks to skip the activation. they are enthusiasts after all.
Dave (not verified)
on Oct 16, 2006
I'm switching to Linux!!!! Nah, just kidding...I'm microsoft's b:tch.
Waethorn
on Oct 17, 2006
will: My statement was generalizing, but you have to go on what the manufacturer's license or usage agreement states. If a piece of hardware is built in a closed system, and a company says you're not allowed to reverse engineer it, then you can't legally emulate it in software and they can sue you for intellectual property damages as hardware makers maintain patent rights on the hardware. I don't know what kind of usage guidelines you had for that particular part, but if the company gave you (or the public) rights to do that then, yes its legal. Did you disassemble an NES to get at a CPU or were you using a generic part? Check you Nintendo manual as I'm sure it states that you can't disassemble or reverse engineer it in any way. Also, be aware that even if Nintendo didn't make the part, but if it was made by one of their partners as a custom part for Nintendo, it would fall under that ruling too. Most pieces of hardware have lines like that in their manual unless they were designed to be user accessible or are in the public domain.
Preseton
on Oct 16, 2006
You guys are like young Republicans, I swear.
jersey72
on Oct 16, 2006
Sorry, I just can't resist this one: "One of the best ways to learn an OS is to "play" with it, knowing that if all goes to heck, you can re-roll the OS and restore any data from a backup. This is how I've learned every version of Windows, DOS, Mac OS Classic, Mac OS X, and several flavors of Linux." I agree with you completely. So I went out, got a PC with a lot of RAM, installed Virtual PC (or VMWare), and I've set up a Linux virtual system, a Windows 2003 virtual system, and a Vista virtual system. I can't seem to figure out how to set up my MacOSX virtual system. How do I get OSX installed? Can you help me?
jersey72
on Oct 18, 2006
Waethorn- I know that. You know that. Vandil knows that. I just want to see him type it.
Will (not verified)
on Oct 16, 2006
"One of the advantages of being a monopoly is that it makes absolutely no difference how many of your customers you pi55 off. What are these "tech enthusiasts" going to do except loudly complain? Switch to Linux? The Mac? Heil no. They'll either find a way around the activiation, or they'll "write a strongly worded letter to Microsoft". And Microsoft will do nothing, because they don't have to. " I'll just stick with my current OS, Windows XP. DX 9.0L will run DX10 games for vista on windows XP. Thanks you Microsoft.
jersey72
on Oct 16, 2006
vandil- Thank you for your links. Those were very helpful. But I'm still confused. 1- I'm not 14 anymore. What does PWNAGE mean anyway? 2- Mac OSX's license says: "This License allows you to install and use one copy of the Apple Software on a single Apple-labeled computer at a time." Wouldn't me installing it onto PearPC be a violation of the EULA?
Stephen (not verified)
on Oct 17, 2006
Having to buy all new software when one gets a new computer [and strips and donates the old one] is like having to buy all new books when one buys a new reading chair. Retail sold software is NOT bound to a particular device. Sure, it is generally understood one does not put a copy on everything that can run it. But if I should say throw out an old computer, I have absolutely no qualms about putting any of my software packages on the new one. Retail Corel Office is like that .. so is retail Windows or Red Alert or Nero Burning ROM and so on. Microsoft wants to change the retail rules. They want to change retail rates on essentially an OEM package. They want OEM restrictions on retail packages. That the copy is "bound" to the hardware. Becomes 'one' with the hardware. Fine, but then Windows should come under product laws and not copyright laws. They should become liable for performance and damages just like any other hardware product under the law just like a dishwasher or dryer or automobile. Put that in your pipes and smoke it .. where it is legal of course.
Vandil (not verified)
on Oct 17, 2006
@jersey72 "But you still didn't answer my question about the Apple EULA. Wouldn't me installing OS X on PearPC be a violation?" Certainly. But you asked for a technical means of running OSX in emulation, and I gave you one. Running OSX on PearPC is about as legal as the people here who run WinXP at home using their company's MSDN/VL media and product key.
Ben (not verified)
on Oct 16, 2006
You can still "play" with the OS. You'll be reinstalling your OS on the same machine, so that doesn't involve transferring the license at any point. The number of times I've installed/reinstalled windows is huge (used to be tech support and of course I "play" with my own machine) and not once have I had to phone up MS for activation. I'll ignore your last comment. It's been shot down many times before.
T (not verified)
on Oct 16, 2006
I am unintereseted in bashing or praising Microsoft. But I feel strongly that Mr Thurrott is missing a point here. Reading the XP licence as quoted in the main article, I am left in no doubt that it authorises the installation of one copy of XP on any single PC. Microsoft now argues that this was not the effect of the XP licence. With respect, this argument is simply wrong. The law gives effect to the words actually used in a contract, not to Microsoft's (or anyone else's) un-expressed intention. This is obvious to anyone with any legal training. Presumably Microsoft's lawyers have had lots of legal training. I am therefore left asking why, despite the clear legal position, Microsoft has put it about that the XP licence meant something wholly different from what, in fact, it plainly achieved. The only answer occurring to me, is that Microsoft means to persuade consumers and businesses that it has not changed the Vista licence from the XP version. In fact, of course, it is a very profound change; and one which, if implemented successfully, may be expected to generate significantly higher returns for Microsoft. As long as it is understood that Microsoft is "spinning" the position to suit its marketing requirements, then so be it: people can make up their own minds. But what I find a little disquieting, is Microsoft's apparent willingness to re-write history to suit its current commercial interests. More disquieting, is the apparent reticence of "industry insiders" to question - or even notice - that a manufacturer's version of events may simply be self-serving and wrong. I hope that Microsoft re-thinks its proposals. Ifnot, I hope that "industry insiders" give to this issue the scrutiny which it deserves. For example, what if my PC breaks down? What if I simply want to upgrade? Must I buy a fresh copy of Vista for the replacement? No well advised consumer, or business, would knowingly buy Vista on this basis: the licence would be a mere trap for the unwary.
ellohell (not verified)
on Feb 15, 2007
jersey72 - Vandil has already said that you can't do it legally. ==QUOTE== @jersey72 "But you still didn't answer my question about the Apple EULA. Wouldn't me installing OS X on PearPC be a violation?" Certainly. But you asked for a technical means of running OSX in emulation, and I gave you one. ==END QUOTE== I however know how you could. To quote you; ==QUOTE== 2- Mac OSX's license says: "This License allows you to install and use one copy of the Apple Software on a single Apple-labeled computer at a time." ==END QUOTE== A friend bought an iPod recently. Included in the box were two Apple stickers, or labels. Stick one of these on your machine, and you have an Apple-labled computer. That meets the EULA. Now THAT is pwnage. On many levels. FYI, seeing as you are a little behind with the talk of the Internets, and yes, it *is* 'Internets' now, my response is not in the least leet, or 1337. It is in fact leeb. Addendum: I have just noticed what the problem is, apologies for my misconstruing your needs, jersey72. You don't want to see the text stating that Vandil knows installing OSX on a VM would break the Apple EULA, which he/she/it has already provided. You want to *be there* when it happens: ==QUOTE== I just want to see him type it. ==END QUOTE== Presumably this would be a more visceral experience. Perhaps you could play the theme from 'Rocky'? I don't know. You strange, strange person. Best wishes, Pete O'Seale, Internets Lawyer http://internets-law-partners.tk THE INTERNETS - SRS TUBES OF BUSINESS
ellohell (not verified)
on Feb 15, 2007
PS. Apologies for the length of time between your post and this reply. The Internets are full of mentals, and, as always, resolving these cases takes time. Please contact us to arrange the payment of your e-settlement check. Regards, Pete O'Seale, Internets Lawyer http://internets-law-partners.tk THE INTERNETS - SRS TUBES OF BUSINESS
jersey72
on Oct 16, 2006
vandil- Thank you for elightening me on PWNAGE. I guess I missed that particular bit of net speech. But you still didn't answer my question about the Apple EULA. Wouldn't me installing OS X on PearPC be a violation?
hey (not verified)
on Oct 16, 2006
"I can't seem to figure out how to set up my MacOSX virtual system. How do I get OSX installed? Can you help me?" Classic! I don't get the objection here. Concerning playing or tinkering with the OS, yes, I have and continue to do that, and try out various flavors. But one thing we are forgetting, that if you are going to play with a commercially available OS, then you have to pay for it no matter what. So all of this playing comes at a cost. You no longer really need to play on the old equipment/software, because you've been using it all along. And a new machine equals new software. Just like music that is DRM (iTunes and the rest of them), you really don't own it. This is nothing new. No matter which way you slice it, you still need to purchase a license. No getting around that (speaking in a strictly legal sense here). As I've stated before, do I like WGA? No, since it is DRM for the OS. But, MS and any other company still has the right to protect their products and ultimately their revenue stream.
Waethorn
on Oct 16, 2006
Apples EULA's are very similar to Microsoft's except with Apple, you can't transfer OSX licenses AT ALL. READ THEM!! Microsoft at least lets you transfer it once for retail copies! As for purchasing licenses and such. What would an enthusiast do with his old hardware? Sell it? Why can't you just sell the copy with the hardware?! If it's enthusiast hardware, selling the enthusiast copy of Windows with it is an easy sell! Then the buyer doesn't have to go out and buy it elsewhere. Sell it with the hardware, recoup your cost, then buy another copy and quitcher b1tchin'!! Too many times I hear of people trying to complain about this, but really it's just because they want to hang on to the old computer and buy a new one and use the same license over again while maintaining it on the old computer. Of the "5%" of people that are enthusiasts, about "95%" of the people I talk to that fall under this category are like that.
shark47
on Oct 16, 2006
"Hear that? It's the sound of PWNAGE." Seriously, how old are you?
Alejandro (not verified)
on Oct 16, 2006
Paul, is good that you realized that the small minority affected actually counts. Specially because I had decided not to ever visit one of your sites again unless you stopped worrying about MS customers and starter worrying about your own customers (us). I'm not a tech enthusiast, I'm a real developer that does real things for real people. If we are such a small minority, then why does MS is changing the EULA (an spinning the change as the "original intention"... how sweet) for such a small number of people. This really makes our life more difficult when it comes to own a legal version of Vista and I want to pay for it because MS has done a great job. By the way, your argument about one not owning the software is bogus. If I follow you logic, I should pay for ALL the software in may machine every time I buy a NEW computer and I remove the software from the old computer to install it in the new one. Imagine how much money every person would spend... now imagine people buying a new computer every 15 years then.
Stephen (not verified)
on Oct 16, 2006
Well, I am not deceived here. We have been able according to the Windows EULA to move a retail copy of Windows from computer to computer to computer as long as it was installed on only one computer at any one time. If one bought a new computer, one could strip Windows off the old one and put it on the new one. And one could do it again and again. That was the primary advantage of buying a retail copy verses an OEM copy - the flexibility. Now Microsoft, and in a most unsavoury way Paul Thurrott, are making like this was never the case. That somehow the this was not so, not common practice, not the way it was. When I read Paul's first article on this I almost felt like punching him I was so disgusted. I couldn't believe what he was writing. The words "You're lying!" came to mind. It's disappointing that Microsoft wants to impose on the techies and enthusiasts. But they seem to have really taking up tightening the screws on their customers. What did I say to people though back in 2002? I said that WPA was just the beginning and that Microsoft was going to make it tighter and tighter on their customers. And look at where we are now? Product keys, WPA, WGA, WGA N, OEM-like EULA for retail customers, retricted downloads and restricted updates. It's still just four years since 2002. Microsoft, you've come a long way baby .. yet in such a short time! Perhaps Microsoft should just forget about changing the EULA? It's fine as it is. You know, for years, I've been tending towards Microsoft software rather than away from it. I uninstalled Netscape Navigator, dropped Corel WordPerfect, dropped Real Player, now use Windows Defender instead of any of a number of anti-Spyware solutions, heck, I've even started using Live as my search page. I don't code in C/C++ anymore - instead I do Microsoft's C#! Perhaps I should reconsider?
Alejandro (not verified)
on Oct 16, 2006
"No well advised consumer, or business, would knowingly buy Vista on this basis: the licence would be a mere trap for the unwary." (from tmorshead) I agree. Actually, those that upgrade XP in their current machines will fall in the trap!!! People must be advise not to upgrade and also not to buy a retail version of Vista by any means. Only OEM Vista is reasonable. All this is sad because it looks like now Windows is married to the hardware as OS X is. It's okay to copy the good things that Apple has but it isn't okay to copy the bad things too.
Will (not verified)
on Oct 16, 2006
"Emulating hardware is also a breach of intellectual property rights too and several hardware companies have sued software developers for doing that. Prime example: Nintendo. Nintendo has sued several groups for trying to emulate NES, SNES, and N64 hardware in software." Incorrect. Hardware emulation is legal in every sense. The lawsuits brought about by nintendo concern the software copywrights. It is illegal to emulate hardware for the expressed purpose of breaching software copywright laws. I.e. the distribution of compiled binaries to be ran on unintended hardware via software emulation. My senior engineering project was the emulation of the 6502 CPU. A.K.A. the NES processor. By leaving out the ability to interpret the 16k NES ROM identification, our project was very much legal. Some other individual could take our emulator and add functionality... and this would still be legal, but then you would be flirting. --- "You guys are like young Republicans, I swear." I believe Bill Clinton said it best when he outlined the Republican strategy for success. Pick one topic and hound it into the ground, do this repeatedly and never relent, nit-pick your foe on these few topics and eventually they will give up. Never divert and never wander into their territory. Its an old political strategy and the neocons of today do it well. preston/bonch, I'd say you fit this description better than anyone here. According to today's most prevalent Democrat, you are a neocon, which is just a fancy word for the new generation of conservatives, extremist conservatives.
Vandil (not verified)
on Oct 16, 2006
Those of you reinstalling Windows on whiteboxes you've built from NewEgg and are not being prompted to call Microsoft are simply using your workplace's MSDN/VL installation CD and product key. I'm sure you've all made your own interpetations of your company's MSDN/VL EULA to think it's "okay" to do this since you're officially calling your whitebox a home-stationed work PC or VPN box... Try using a retail copy. PWNAGE = ownage = I proved you wrong. There's no age required to understand that. Unless you're over 40 and can't comprehend how to text message someone let alone net speech that has been in use for over a decade.
lotsamystuff
on Oct 16, 2006
One of the advantages of being a monopoly is that it makes absolutely no difference how many of your customers you pi55 off. What are these "tech enthusiasts" going to do except loudly complain? Switch to Linux? The Mac? Heil no. They'll either find a way around the activiation, or they'll "write a strongly worded letter to Microsoft". And Microsoft will do nothing, because they don't have to. I'm not sayin' it's right...I'm just sayin'.
Waethorn
on Oct 17, 2006
You can't. Apple won't let you run it on anything but Apple *hardware*. End of story.
Alejandro (not verified)
on Oct 16, 2006
Microsoft, you win this time... there is nothing we can do about the new EULA... there is no other comparable OS out there to change to (and we love Vista anyhow). BUT, forget about me (and hopefully other people) using any of your new Live products. You can screw us all when it comes to interfacing with the hardware, but we are 100% free on the Internet so we can fight you there. Tell the lawyers and managers that wrote the new EULA to talk to the poor marketing department people, who's been trying to improve MS image lately. Tell them to explain how the just ruined that effort. Tell the WLive people how Google looks like a nicer creature and that the so called Tech Enthusiast are smart enough to get back at MS by promoting non Windows Live apps. Don't worry MS, it's not that we are the trend setters in the industry so you'll be fine with our boycott. We are such a small useless minority after all.
jersey72
on Oct 17, 2006
vandil- I apologize for not being clear in my original request. I'm not interested in what everyone else may or may not do with their home system. Let me rephrase my question: I can legally run my MSDN copy for development/testing purposes inside a VPC. I would like to be able to do the same, legally, with Mac OSX. Can you help me here?
Waethorn
on Oct 16, 2006
My my. This is turning out to be almost a political debate. On one side we have the liberal debater on the other we have a conservative. Which one is right?? As far as the 3 PC limit for XP goes, I remember reading that on Paul's website years ago.
Waethorn
on Oct 16, 2006
jersey you're right, it's all illegal. vandil would know that if his IQ were higher than his age. Emulating hardware is also a breach of intellectual property rights too and several hardware companies have sued software developers for doing that. Prime example: Nintendo. Nintendo has sued several groups for trying to emulate NES, SNES, and N64 hardware in software. They will not legally license out their platform to third parties either. They're extremely difficult to deal with because of it. That's one of the reasons why Gametap won't carry their games. Sony is the same. Sega is more open though now that they are just a software company, as are many other older game console companies. Besides that, PearPC is poor way to run OSX. There's people that have broken the "EFI requirement" for OSX anyway. Microsoft supports EFI in Windows Vista now too. Why won't Apple support PC systems in OSX? What are they afraid of? They afraid that they'll lose the exclusive market bundling that is the inferior-quality Mac hardware because they wouldn't be able to compete with PC hardware? Is it really better to be "anti"-competitive or just stay out of the race altogether?
jersey72
on Oct 16, 2006
Waethorn - I know I'm right. ;-) I really just wanted vandil to answer the question more than vindication, but I guess I'm going to be disappointed.
jonbjerke
on Oct 16, 2006
Good article here and insightful responses as well. http://blogs.zdnet.com/Bott/?p=158
Waethorn
on Oct 16, 2006
Actually VLK (or Volume License Kit/Key) versions of Windows are only licensed as UPGRADES NOT FULL VERSIONS. So installing them on any "new" computer is against the EULA whether or not they were previously used on a different computer. The reason that Microsoft does this is because it's still cheaper to buy an OEM copy of Windows with a new computer. The VLK copies are about the same price as a retail upgrade, but don't require activation. Also, support is handled directly by Microsoft, even though you would buy the VLK licenses from a Microsoft reseller.
idiotspeak (not verified)
on Oct 16, 2006
From Urban Dictionary, this probably best describes this idiotic, infantile word (e.g. you have to be 14 and a video game freak to understand): http://www.urbandictionary.com/define.php?term=pwnage 1. pwnage Pure Ownage as used in online gaming to stress your superiority on all levels. Spawned from the root word pwn, which originated as a misspelling of the word own. Hence this stupid word is two screw-ups away from anything close to english. William's pwnage in that game was complete and utter.
Preseton
on Oct 16, 2006
All I have to say is, WGA is crap, activation is crap, and Microsoft's EULA's are crap. That is all.

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