Understanding OEM
Software Licensing

OEM stands for Original Equipment Manufacturer. It identifies the people or the company that produces hardware and computers. Manufacturers buy OEM software in bulk and package the items together with their computer hardware and other related products. These are eventually offered to their target market. OEM software is a third-party inclusion for the people who buy these packaged systems. While you can buy a copy of a particular application as a stand-alone product in the retail market, it can be more expensive compared to the ones that are available in the OEMs.

The number of items purchased is important. In general, the programs from an OEM help save money to a buyer of a computer. However, these acquisitions come with some license restrictions. For example, if the user decides to sell the program later on but wants to keep the hardware to himself, they may discover that the software license agreement does not permit it. Basically, the computer system is supposed to work with the software that it is sold with.

The following list will help you get the answer to the question about OEM software licensing.

OEM Software Licensing Explained

What Is Original Equipment Manufacturer (OEM) License?

You can only buy OEM as a single license for a new computer. While it is the most affordable form of software license, it also imposes the most restrictive regulations. In essence, this particular license that is installed on the computer system is bound to each other. In simple terms, the license stays and stops functioning with the hardware. Should you want to get rid of your computer and it has an OEM license, the license is not transferable to a different computer. It should be disposed of legally.

Why Is Beneficial?

A new computer with a manufacturer brand is usually preinstalled with an operating system such as Windows 10. Sometimes, it also comes with a Microsoft Office programs. This is called an OEM software license. Therefore, when you buy a new computer, it most likely has a license of Windows that is already installed on it. It is beneficial to the buyer because the software is guaranteed to perform correctly. In addition, the manufacturer or installer is responsible for any operating system issues. They are the ones who will give you support instead of the Microsoft.

What Are the Rules?

The terms and regulations of Microsoft Software License govern the usage of OEM software. It includes that the Windows licensing through OEM has downgrade rights restrictions. It is possible for you to downgrade to two previous models of the operating system. However, there are no rights for its transfer. This means that the application program cannot be taken out from the computer; it is preinstalled and transferred to another computer. On the other hand, you can transfer the computer that has an OEM software license to a different owner.

What Are the Characteristics of an OEM Software?

OEMs are usually bulk purchasers, and they receive a discount price on these software applications. Therefore, you get a low price when you buy a computer system from them. The computer system that is integrated with an OEM software comes with the following characteristics:

  • The software could be an older model that is offered in the marketplace
  • The software program could be a feature-limited model that is offered in the marketplace. Usually, these applications are called as Limited or Special Edition. This is also a marketing technique to encourage people who use computers to choose a full-fledged edition
  • The software program could be a full-fledged edition that is available in the market
  • OEM is considered the most inexpensive option to acquire Microsoft software licensing
  • Upon acquisition, you can receive an invoice for both the software and the hardware
  • Most often than not, the manufacturer of the computer hardware can install the software for the buyer

Let’s Wrap It Up

A computer that has an OEM software license normally comes with an activation key, in which it is built in. It is considered illegal to install the operating system with OEM into another computer. The license is actually tied to the computer, and not the purchaser. It indicates that when the computer stops working, the OEM software ceases to function as well. If you buy a new computer, you cannot transfer the software to it. The software is installed exclusively on the original computer. The OEM software applications can be purchased online. When you choose to buy your software on the Internet, do so with caution, as there are many websites that sell software without any authorization from the manufacturer. It is highly recommended to look into the OEM credibility. A pirated version of the software will not give you upgrades of the software and the support you need compared to a purchase that is done legally.

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