Win 10 Licensing Explained

The following is an exerpt from an article in the Windows Secrets newsletter, used by permission:

Sorting through the changes in Windows licensing

By Susan Bradley

With consumer versions of Windows 10 offered free for the first year, many users have questions about licensing.

Windows users have never "owned" the OS they paid for, but Win10 has significantly changed the rules.

Tying the OS license to specific hardware

Windows licensing has always been murky. Windows 7, for example, had retail, original equipment manufacturer (OEM), and enterprise editions. In theory, OEM editions were tied to the hardware they came on. Retail versions, however, were "portable"; if, for example, you purchased Win7 separately from the PC, you could move that copy from machine to machine — as long as you no longer used the OS on the old PC. (Most retail versions of Windows were used for upgrading or for hand-built PCs.) Usually, you had to reauthorize your copy of Windows for the new system, but in most cases that step was a formality.

Long-term, portability is not part of the free version of Windows 10. When you install Win10, Microsoft's activation servers create and store a unique ID based on the old key plus the hardware in your machine. The Win10 upgrade will stay tied to that upgraded system and your original Win7/8 key will no longer be valid. (You can roll back to Win7, but you're not allowed to run both your original OS and Win10, say, in a virtual or dual-boot setup.)

A Microsoft spokesperson stated: "After the first year, you would not be able to move the installation to a different device, as the upgrade is specific to your device, not your license or Windows account. After that first year, for devices not upgraded, you would have to purchase a copy of Windows 10 through the Microsoft Store or Microsoft retail partners."

To make things even more confusing, if you eventually purchase a retail edition of the Win10 license, you will be able to move that copy from one computer to another — that version comes with portability rights.

You can, however, still upgrade a Win10 system. As with earlier Windows versions (typically tied to the Windows Genuine Advantage program), you'll need to call Microsoft to reactivate the license if you change major parts of your computer after upgrading to Win10. (It's usually an annoying but not too painful process.)


Unfortunately, the types of changes that trigger a reactivation always have been — and still are — vague. For example, adding more memory generally does not require a reactivation, but changing the motherboard would. (In OEM setups, changing to a new motherboard is allowed only while the PC is still under warranty.)