Licensing is an important aspect that users often overlook—especially when it’s time to upgrade or transfer Windows to new hardware. The type of license you have determines what you can and cannot do with your Windows installation, particularly when it comes to upgrading your system or transferring the license to a new computer. In this article, we’ll explore how different Windows license types—OEM, Retail, and Volume Licensing—affect your ability to upgrade or transfer Windows.
Types of Windows Licenses
Before diving into how licenses impact upgrades and transfers, it’s essential to understand the main types of Windows licenses. Each type comes with its own rules and restrictions.
- OEM License (Original Equipment Manufacturer): This license is pre-installed on a new PC, typically from manufacturers like Dell, HP, or Lenovo. The license is tied to the specific hardware it came with.
- Retail License: A retail license is purchased separately, either in physical form or as a digital download. This license can be installed on any compatible hardware and can be transferred between computers (though with some restrictions).
- Volume Licensing: Large organizations, such as businesses and educational institutions, typically use volume licenses. These are designed to cover multiple devices under a single agreement.
OEM Licenses
If your Windows copy came pre-installed on a new PC, you likely have an OEM license. One major restriction of OEM licenses is that they are tied to the specific hardware they were originally installed on—specifically, the motherboard. This means if you upgrade certain components like RAM or storage, the license will still remain valid. However, if you replace the motherboard or the entire system, the OEM license is no longer valid, and you’ll need to purchase a new Windows license.
Since an OEM license is tied to the original machine, you cannot transfer it to a new PC. If you build or buy a new computer, you’ll need to purchase a new Windows license. OEM licenses are designed to be a one-time installation, meant for the life of the hardware they’re installed on.
Retail Licenses
Retail licenses offer much more flexibility compared to OEM licenses. If you’ve purchased a retail version of Windows, either from a store or online, you are allowed to upgrade your hardware without losing the license. For example, you can change out your hard drive, upgrade your RAM, or even replace the motherboard without needing to worry about the license becoming invalid. In some cases, you may need to reactivate Windows using your product key or contact Microsoft support, but you won’t need to buy a new license.
Retail licenses are transferable between devices. If you decide to get a new PC or build a custom system, you can deactivate your current Windows installation and transfer the license to the new machine. This process typically involves using your product key to reactivate Windows on the new system. There are some limitations, though—Microsoft only allows one active installation of the operating system per retail license at a time. If you’re transferring the license to a new PC, you must first remove it from the old one.
Volume Licensing
Volume licenses are primarily used by organizations and cover multiple devices. The flexibility of volume licenses depends on the specific terms agreed upon with Microsoft. Generally, organizations using volume licenses can upgrade hardware without invalidating the license, provided they adhere to the licensing agreement. For example, replacing components like a hard drive or adding memory typically doesn’t affect the licensing status.
Volume licenses offer flexibility in terms of reassigning licenses to new devices within the organization. For example, if a company replaces its computers with newer models, it can usually transfer the existing volume licenses to the new hardware, depending on the terms of the agreement. However, unlike retail licenses, which are managed individually, volume licenses are managed centrally through the organization, meaning IT departments have to track and manage activations.
How Do They Work?
When upgrading from one version of Windows to another—like from Windows 10 to Windows 11—the type of license you have also matters.
- OEM Licenses: You can upgrade the version of Windows (e.g., Windows 10 to Windows 11) on the same hardware without buying a new license, provided the hardware meets the upgrade requirements. However, once upgraded, the same rules apply: the license is still tied to that specific hardware.
- Retail Licenses: Upgrading Windows with a retail license is typically straightforward. Since retail licenses can be transferred between devices, the upgraded version of Windows can also be moved to a new machine, as long as you follow the proper deactivation and reactivation process.
- Volume Licensing: Organizations with volume licenses often have access to upgrade rights under their agreements, depending on the plan they’ve purchased. These licenses allow multiple machines to be upgraded simultaneously, which can be beneficial for maintaining consistency across a large fleet of computers.
The type of Windows license you have affects your ability to upgrade or transfer Windows to new hardware. OEM licenses are tied to the original hardware and non-transferable. Retail licenses offer more flexibility for upgrades and transfers between devices. Volume licensing is designed for organizations, providing scalable solutions for managing multiple installations and hardware upgrades. Understanding your license type and its limitations can save you time and money and help you remain compliant with Microsoft’s terms.