In Part 1 of this blog, I clarified that a Microsoft product key enables a product to function with full features. It is not a license. Microsoft product keys vary by the licensing channel and are specific to the exact version of the installing product. A newer version of a product key will not work with an older Microsoft version product and vice versa, with one exception – for product activation with Microsoft.

The Microsoft activation process aims to reduce software piracy, protect you and your company’s intellectual property, software development investments, and ensure product quality. For this part of the blog, I will address a few frequently asked questions by customers.

FAQ # 1: I am a Windows Home user, and I thought if the key works, I am compliant?

If the key was procured through an authorized channel for home users, there should be no concern. Often a user purchased a $20 Windows 10 key, and it worked great. There are many risks with these purchases. For example, the credit card used to purchase the $20 key is subject to misuse, or even worse, if you downloaded Windows 10 from their website, the odds are high the key contains malware. Just having an activation key does not mean you have a legal license. Penalties for using pirated versions can be high and not worth the “savings.”

FAQ # 2: The key on the COA sticker license is defective, and I need a replacement.

In over 30 years of dealing with Microsoft product keys and activation, there has never been an instance of a “defective” key. Microsoft uses a perfected algorithm to produce the keys, and the key creation does not allow for a bad key. So why doesn’t the key work for the customer? Most of the time, the customer typed the wrong key. It is common to confuse the letter B for the number 8 or the letter O for the number 0.

Some customers use the incorrect media to load the product and do not realize that an OEM key requires OEM media, and a Volume key requires Open Volume media. Last, they often try to use the key to activate an older version of the product. For example, they want to downgrade and load Windows 7 and use a Windows 10 key on a Windows 7 operating system install.

You must always have the correct version with one exception – the Windows 7 key will work with a Windows 10 installation. Always make sure you have the right media with the right version of the product. If the key still does not work, get in touch with an authorized professional.

FAQ # 3: My Windows 7 Key activated my Windows 10 installation, and I know Microsoft had a free upgrade at one time. Is using Windows 7 key to activate a Windows 10 license illegal?

I recently had a customer upgrade all their Windows 7 Pro systems to Windows 10 Pro however they were not purchasing any Windows 10 Pro licenses. They told me they had tested the Windows 7 key on the Windows 10 image and that Microsoft had promised a free upgrade. They assumed that because the Windows 7 key worked on the Windows 10 installation and activated with no errors, they were 100% legal. I had to give them the bad news that their systems would not be compliant or legal.

Microsoft ended the free upgrade on January 16, 2018, and it is no longer available. To be legal, they would have had to install Windows 10 and activated the license before the deadline. Anything activated after this date is out of compliance.

Microsoft continues to allow Windows 7 keys to activate a Windows 10 install because customers may need to reload their systems for various reasons. Microsoft’s view is that eventually, you will need to replace the older Windows 7 hardware, and they want you to replace it with a new Windows 10 device. They will lean in this direction for years to come.

FAQ # 4: We shipped 50 systems successfully, but now we are dealing with activation errors. Are the keys defective?

We had a customer buy 50 Windows 7 Pro OEM licenses, load all 50 systems, and ship them. Three days later, all of the systems were showing watermarks and would not activate over the internet. The customer claimed the keys were defective. After an investigation, we found their technician loaded them with the same image using a single key and never activated them before shipment. The end customer had to enter each key from each COA into each system and activate them. These steps led to all successful activations. OEMs should always use the key from the COA and activate it before shipping. Using a single key multiple times is not supported by the OEM System Builder products. The OEM IoT Embedded Windows 10 IoT Enterprise LTSC 2019 product comes with a single key, simplifying activation.

Having an operating system accept the key and not activate is a separate issue. A customer will often say the key is bad or not working even though the operating system accepted the key. The key is valid however, it fails during activation. A key failing activation can happen for many reasons. We can help with this issue.

FAQ # 5: Server 2016 accepts my key, but it fails activation with an error code.

In this situation, the customer believed the key was defective. I verified that the operating system accepted the key, but it was not activating. There was a problem with either their server or their internet access. A firewall or specific blocked ports can cause activation issues. Their RAID configuration had corrupted the server’s activation files. Once they repaired the RAID configuration and performed a clean install, the key activated successfully.

FAQ # 6: My key won’t activate via the internet or the phone. I was told to purchase a new license.

When this takes place, usually, the key has been activated too many times. It can also mean that Microsoft flagged the key as a pirated version and blocked it from activation. I often explain to customers that if they perform telephone activation and speak to a live person, they either pressed the wrong button or have a pirated key. Microsoft keys are good for two to six online activations and up to 1,000 telephone activations. Microsoft understands that “used” keys will aid in downgrade right situations and system reloads, so they allow up 1,000 activations. If a customer purchased a license from an authorized source, the odds are low for this scenario.

FAQ # 7: Tell me more about downgrade rights and how to obtain keys for older operating systems.

The end-user may load an older version of the product; however, they obtain the older media and the older key. It is crucial to read the product EULA and product terms for each specific product as they will have requirements. For example, the Windows 10 Pro EULA terms state:

Downgrade Rights. If you acquired a device from a manufacturer or installer with a Professional version of Windows preinstalled on it and it is configured to run in full feature mode, you may use either a Windows 8.1 Pro or Windows 7 Professional version, but only for so long as Microsoft provides support for that earlier version as set forth in (aka.ms/windows lifecycle). Neither the manufacturer nor installer nor Microsoft is obligated to supply earlier versions to you. You must obtain the earlier version separately. At any time, you may replace an earlier version with the version you originally acquired.

Downgrading from Windows 10 Pro back to Windows 7 Pro is only allowed if the product is still supported. Microsoft ended support for Windows 7 Pro back on January 14, 2020, and is thus not an option to downgrade from Windows 10 any longer. If you are building a dedicated appliance and still want to use Windows 7 Pro, it is available to purchase in the IoT embedded channel until 2024.

Need Help?

As an authorized Microsoft distributor, we at Arrow help you design and deploy smart devices powered by Microsoft Windows and Azure. Our team of Microsoft experts is here to help you at every stage of the design. Please contact us at msembedded@arrow.com or visit our Getting Started page to learn how to purchase Microsoft operating systems licenses.

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Ken Marlin

Supplier Manager

Based in Phoenix Arizona, Ken is a Microsoft Business Development Manager at Arrow Electronics. Ken is a 3-time Microsoft MVP on Windows IoT products and has over 35 years of experience in supporting all Microsoft products and channels. Known in the industry as the Windows Champ, Ken has a youtube channel that provides valuable information on getting started with Windows IoT products and “How To” informational videos. His specialty is helping customers with complex licensing on Windows Server, SQL Server and Windows 10 IoT Enterprise.

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