Product key issues are my favorite topic. Customers often run into problems with product keys, and Arrow helps customers with frequent questions like “My key isn’t working” or “My key is bad, can you replace it?” or “My key fails activation, can you replace it?”.
With numerous products and several channels, understanding Microsoft’s specific licensing model by channel and product requires some experience. The most misunderstood topic with Microsoft involves the product key. Almost everyone assumes the product key is the license. Many customers will email or call inquiring to purchase additional keys, which is a common mistake. In truth, they are needing to purchase additional licenses – not keys. TIP: The key is what enables the product to function. The actual license is a physical COA sticker – not the key.
They must purchase more licenses, and the key is the part that enables the product to work. The license ties to the channel, and in the OEM channel, it comes with a Certificate of Authenticity (COA). The COA is a physical sticker printed by authorized replicators and utilizes some of the same technology to print money. Microsoft designs the COA sticker licenses to help prevent counterfeiting and changes the COA sticker every couple of years.
6 essential facts about Microsoft product keys:
- A Microsoft product key is “NOT” the license.
- Microsoft product keys enable the product to function with full features.
- Product activation is not a license and is simply part of piracy deterrence.
- Microsoft product keys vary by licensing channel.
- Product keys are specific to the exact version of the product installation.
- Except for one exception (covered in this blog), a newer version of a product key will not work with an older Microsoft version product and vice versa.
To further understand the licensing model, let’s examine the licensing and product keys’ implementation in the channels.
The above table summarizes the license and product key implementations that Microsoft employs to safeguard against piracy and offer flexibility to channel stakeholders across various business use cases. The price of the license varies significantly across channels and with volume. Retail channels tend to be the most expensive and OEM channels the most cost-effective. Many of you may have seen web ads or entire websites purporting to sell you a Microsoft license for $29 – these are usually the work of pirates or counterfeiters.
Consider this favorite example – You find websites selling keys to houses and buy a key for $29. You drive to a house and insert the key into the door. The key unlocks the door and allows you to enter the home. You do not own the home, but you can enter illegally. The same goes for Windows licensing.
Microsoft is in a constant battle with counterfeiters and pirates. There are ways to procure, extract, and illegally sell product keys to unsuspecting customers. Because Microsoft has numerous licensing channels, there are many opportunities to obtain pirated keys online. Below are the most common practices of pirates:
- Running key search tools: Pirates go to public places such as internet cafes, public libraries, or even retail stores and run a search tool that pulls the key out of the operating system and displays it. They copy the key and sell it online.
- Taking pictures of COA sticker licenses: A user can find devices that use the OEM Windows 10 Home or the Windows 10 Pro COA sticker. The sticker has the OEM product key right on it. They take a photo of the sticker and add it to their key library to sell online.
- Buying and returning: Another practice is to purchase a handful of licenses, obtain the product keys, and return the products. They later sell the keys online.
While the efforts to eradicate piracy are strong, so are the pirates’ efforts. The sheer complexity of the modes in which Microsoft deploys licenses leave many avenues for miscreants to exploit. We can all do our part to stop piracy by reporting fraudulent sites here. To ensure you are getting a full license and a genuine key, only buy from authorized sources.
In Part 2 of this series, I will discuss frequently asked questions regarding key activation, compliance, downgrade rights, and more.
Additional Resources
- Start the Microsoft Customer License Agreement (CLA) Process
- Microsoft Operating System Parts List
- Licensing Guides: Windows 10 IoT, Windows Server, and SQL Server
