How does product activation work?
Activation is integrated with OEM software bundled with a new computer -and full retail versions of Microsoft products. It isn't required with volume licensing-Microsoft Open License, Enterprise Agreement, or Select License agreements. Activation isn't an issue with the corporate edition of the software. It's also not required for Academic versions.

During installation, you enter the standard product key. Once accepted, the user is asked to accept the EULA. Upon reboot, you're prompted to activate. A similar window appears for non-OS products. You may choose to activate or wait. If you proceed, you're prompted to activate over the Internet or by phone.

During activation, Microsoft uses an equation based on the product key and your hardware configuration. This generates a unique 50-digit installation ID. This ID is sent to Microsoft, who returns a confirmation ID. If you are activating over the Internet, your computer handles this automatically. If you are activating over the phone, you'll manually key the confirmation ID into your system. Once successful, a Thank You message appears and the product is fully activated.

What information does Microsoft gather during activation?
The only information Microsoft collects is the installation ID and, for Microsoft Office products, the country of origin. Microsoft claims they can't use the ID to determine your hardware configuration. They also claim not to associate a particular user with their software during activation. I believe this is true.

However, from first hand experience, if you REGISTER the software after activation, Microsoft associates that name with the confirmation ID.

Will the product work without being activated?
Microsoft time-bombed their software if you don't activate. By default, Microsoft Office products can be launched 50 times before mandatory activation. The time limit on the OS is 30-days.

Can I use my software after the grace period expires?
Nope-that's why Microsoft time bombs it. With Office, the user gets read-only mode after expiration. You can open documents created before the timeout, but can't change or create documents. The OS will cease to function entirely, requiring activation before continuing to boot.

Will I have to reactivate my copy of Windows XP if I upgrade my hardware?
That's tricky. Microsoft says changing some hardware will require reactivation. They haven't detailed exactly which hardware but have provided a list of what's used to generate the initial confirmation ID. These include hard drive volume serial number, network card MAC address, CD-ROM drive identification string, graphics card identification string, CPU serial number string, hard drive identification string, SCSI host adapter identification string, IDE controller identification string, CPU processor model string, RAM size, and whether the computer is able to be docked.

What changes trigger reactivation?
Microsoft states if you "overhaul" your computer the system appears to be a different PC. You'll have to reactivate. Microsoft says "common changes" such as changing video cards, a second hard drive, or more RAM, won't require reactivation. Changes are cumulative. If you change one item per day for a week, Windows will count that as seven changes to the system. Once a user reactivates, the count is reset to zero.

I have it on good authority that certain changes cause reactivation immediately. Since the MAC address on your NIC is 100% unique, changing the NIC requires reactivation. I've also seen reactivation triggered by replacing the motherboard and/or processor. Other than that, an anonymous Microsoft source informed me that the magic number is six changes to hardware per quarter. That means the OS resets the change counter every three months, no matter what you've done to the system. The same source also told me that Microsoft questions reactivation on a system more than four times per year.

Is reactivation required if the software is reinstalled?
In general, if you reinstall the same software on the same OS, you'll not be required to reactivate. However, you format the hard drive, reactivation is required. Reformatting resets the grace periods for all software.

Can I install the software on both my laptop and PC?
For the OS, that's exactly what Microsoft wants to stop! We all READ the software license before agreeing. It states the OS is only for a single machine. You need a copy for each machine.

Now, Microsoft Office licenses work on 80/20. You're allowed to load the software on one desktop and one laptop, for a single user. The rule is that you intend to use Office 80% of the time on the desktop and 20% of the time on your laptop. This rule only applies to the full retail versions. It doesn't cover OEM.

I hope I've cleared any confusion with activation. If you've got further questions, contact your Microsoft licensing representative or check out the Microsoft website.

Until next month…