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For Windows users must have often heard about Microsoft License Products that call Retail License, Factory OEM pre-activated license, Volume License, Full Packaged Product (FPP), Upgrade License and others. Actually, what is the different between all licenses above?

All Microsoft Licenses can be obtained through 3 ways, they are: Retail, Original Equipment Manufacturer (OEM), or Volume Licensing. The installation CD has different versions for each distribution and each License has its own unique activation methods.

Here is a description for Windows operating system base on their License type.

RETAIL: Retail version of Windows generally can be purchased in two license pricing levels, namely Full Version License of Upgrade license. Windows operating system products are licensed and activated that are acquired through a retail store.

FULL LICENSE – Full Packaged Product (FPP). There is no limitation for installing the full version on each PC as long as its own legitimate license. Full License can be transferred to upgraded or entirely new systems, either clean or upgrade install. This full license is the most expensive edition and can be re-sale to other user.

Upgrade License – This version is for end-user who already has a genuine Windows Operating system, for example upgrade from Windows Xp Profesional edtion OEM or Full License who wish to upgrade to newer operating system. This upgrade version is cheaper discounted price.

Retail version of Windows license includes full support from Microsoft, and each purchased copy comes with one unique product key (printed on the product packaging), which the user enters during the product installation to complete the activation online or via phone.

OEM: OEM (Original Equipment Manufacturer) license is a restricted version of Windows that included with a new computer. OEM license has limitation that it can only perform a clean install or custom install on original computer, but not upgradable. Windows XP, OEM license can be installed on one computer at a time and is forever locked and bounded to the computer (motherboard)

OEM license also has another variant called System Builder OEM license, which is also an OEM license with lesser discount, has all the same restrictions and limitations of OEM license. But System Builder OEM license may be available to general customer who purchased a new PC (or hardware) from a small system builder via retail store.

Volume Licensing: Volume licenses is a software license programs that are sold in bulk to corporate customers, in quantities of five or more at a time. Volume License depending on the Volume Licensing program, subscriber may receive media, or has the option to acquire media or supplemental media, documentation, and product support separately as needed. Volume licensing, such as Open Value, Open License, Open Value Subscription, Select License, Select Plus, Enterprise Agreement, and Enterprise Subscription Agreement.

Windows with volume license can be activated through Volume Activation models, which is through Key Management Service (KMS), a locally hosted activation services preactivated with Microsoft activation service normally used in large corporations with minimum activation threshold of 5 servers or 25 client computers (physical or virtual machines), and Multiple Activation Key (MAK), which similar to retail product key and used for one-time activation with Microsoft’s hosted activation services, independently or through MAK proxy.