Are volume licenses legally transferable?

  • Thread starter Deleted member 19858
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Deleted member 19858

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For example, if a company has a volume license for Windows XP and a computer they want to install it on. Can they then sell that computer with the operating system installed legally or would it need to be removed first?
 
There is no simple answer to this-it depends on the specific way through which the volume licenses were acquired. Different volume licensing programs have different clauses in the VLA regarding your transfer rights.
The process for transferring volume licenses varies by program version. This licensing brief will explain each process by Microsoft Volume Licensing program version.
• 5.x and prior
• 6.x
• 6.x and prior (all current and past programs).
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Here is Microsoft's official transfer FAQ. This document will explain your rights with regards to transfers.
 
True.
Some time ago there was an article linked from /. (grain of salt) that discussed how some businesses when shutting down and selling off assetts may not be able to legally sell the pc's with Win XP on them, since the licenses were not transferrable.

As stated above, I think it has a lot to do with how the licensing was set up from the beginning.
 
odoe said:
True.
Some time ago there was an article linked from /. (grain of salt) that discussed how some businesses when shutting down and selling off assetts may not be able to legally sell the pc's with Win XP on them, since the licenses were not transferrable.

As stated above, I think it has a lot to do with how the licensing was set up from the beginning.
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Generally it depends on the volumn license as the mods have already pointed out. Colleges generally can resell (for cheap) software that is legal to install and use, if you're a student. Once you quit school or graduate, your legal license for that software has ended.

Reguardless of the license structure, one thing is certain. The company may sell it or not but the person who uses it MUST be an employee and it MUST be for buisness use for the software itself to be legal. You cannot use it for home use or sell it to Bob who works at McDonald's. I work for a large health care provider. Even though we have extra licenses of software that I could use, I can't legally since my home PC is not used for work or located at work.
 
The_Mage18 said:
Generally it depends on the volumn license as the mods have already pointed out. Colleges generally can resell (for cheap) software that is legal to install and use, if you're a student. Once you quit school or graduate, your legal license for that software has ended.
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From what I've seen of MSFT licenses like this, the applications expire but the OS does not.
 
Shane said:
Just include the legal cd with the sale and its valid.
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Not true. Selling Volume license agreements is all or nothing. You cannot legally sell one or two VL of any MS software, rather, you must sell the entire agreement which includes the specified number of licenses.
 
The question to ask is, "Is the purchaser of the computer a member of the organization that owns the Volume License. If the answer is no, then it is not legal. If the answer is yes, then you can get into the grainy details of what is legal and what is not. My VLK for XP is legal for me at home, because I use my home PC for work testing purposes.

The biggest question is who is it being sold to. As I mentioned, if the buyer is not affiliated with the company, than it's clear as day that it's not legal...even if you give them the real original CD.
 
It’s a grey area at best. So long as what you're selling was bought and paid for, you can sell it off is you chose to. Standard consumer rights still apply--you paid for it therefore it’s yours (or your company's). However, will this break the licensing? Yup. But that's the problem in regards to shrink wrapped agreements. Breaking a license isn't illegal (yet), it just means you'll be without any official support.

**Edit**
I missed the part about it being part of a Volume License Agreement. This is even more murky than I previously thought. I still think the law applies in regard to "first sale" rights (If paid for, you can do what you want with it, so long as you don't infringe on the copyright).

...the owner of a particular copy or phonorecord lawfully made under this title, or any person authorized by such owner, is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy or phonorecord.
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http://assembler.law.cornell.edu/uscode/html/uscode17/usc_sec_17_00000109----000-.html
 
First sale rights aren't going to do you much good with a volume licensed version of windows - even if there is nothing getting in the way of transfering physical media, it'd be completely worthless, since the license keys still can't be transfered.
 
Right. Which is why I'm implying that licesing and keys are completely legally unenforcable in the first place. Until they've been tested in a court of law I see no reason to abide by them. But this is my personal view on keys and software licensing. If the BSA ever stopped by my business and asked to see my licenses I'd just close the door on them. If it ever went to court, all I'm legally required to show is proof of purchase for each copy in use. Based on those legal requirements I think I'd have a good case.

Software licensing is about as enforcable as an Acceptable Use Policy from an ISP. Can you go to jail for hosting your own website on your home connection? Not unless you were hosting illegal content (i.e. kiddie porn). Can the ISP discontinue service for hosting your own website? If the ISP says they can in a contract you signed, then yes.

I see people lump the two together all the time when it comes to IP. A license is not legally enforceable. Its an agreement for service and support. Nothing else. Can you sell off the goods in question? Yup, so long as there is no law stating otherwise. On the flip side, if the provider says you can't then they have every right to cut off said service. In the case of software licenses this means MS may deem the OS in question voided of all support and service, but it could be legally installed and in use on a system by the person who now owns the goods in question. In addition, regardless of the terms of a license, it does NOT trump consumer rights (including those of first sale). Corporate policy by de jure bends to the will of the law on the books. A good point of this is in MS's own Product Use Rights document.
If you are not using a valid Volume Licensing Product Key for the Software, you are not allowed to install the Software or future Software Updates.
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While I'm sure they'd love for this to be the case, it is in fact not what is legally enforceable. If you legally bought it as defined above, you can use it. Reason being, the Key is still Valid--not by Microsoft's determination, but by the law.

The bottom line: Are volume licenses legally transferable? Yes. If you can buy it, you can resell it. However, if you break up the volume package one of two things may happen.

A. Each instance of the product that is sold outside the volume license is in viloation of the license agreement and makes all contractual support that was included in said license null and void.

or

B. The volume license package is considered one product to be sold or transferred and cannot be legally broken up and sold in part.

Truth be told, neither A or B has been found to be the case since nobody has ever challeged Volume Licensing in a court of law. This is a very similar argument against the legallity of DRM. So long as you do not run afoul of the DMCA, DRM is legally circumventable. Sadly, consumrer rights are being stripped away in these manners (licensing and DRM), even though they are still legally protected should it go to court.
 
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