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Licensing

OEM vs. retail vs. volume license keys: what's the difference?

By the TrustiKeys support team. Updated , 3 min read

OEM licenses are preinstalled by PC makers and stay with that computer. Retail licenses are sold to individuals and can move to a new PC. Volume licenses are issued to organizations under an agreement with Microsoft and activate through the organization. All three run the same Windows or Office; the difference is who the license belongs to and where it can be used.

Choosing between home and business licenses

The three license channels compared

ItemOEMRetailVolume
Who it's forPC makers, preinstalledIndividuals and small businessesOrganizations with a Microsoft agreement
Transfer to a new PCGenerally noYes, one PC at a timeManaged by the organization
How it activatesFirmware key / digital licenseProduct key or digital licenseKMS server, MAK key or Active Directory
Microsoft supportThrough the PC makerThrough MicrosoftThrough the organization's agreement

OEM licenses

When you buy a laptop with Windows already installed, the license is OEM. The key is embedded in the firmware and Windows activates automatically, even after a reinstall. The trade-off: the license is tied to that computer. Replace the PC and the license stays behind.

Retail licenses

Retail licenses are sold to end users, either as a boxed product or a digital key. They can be moved to a new computer as long as they're removed from the old one; see how to transfer a Windows license. For Office, retail keys are redeemed once to a Microsoft account, and you can reinstall from that account on a new computer.

Volume licenses

Businesses, schools and governments buy volume licenses through agreements with Microsoft. Their PCs activate against the organization's own KMS server or with a Multiple Activation Key (MAK). Volume licenses are meant for that organization's devices.

If a key you bought shows VOLUME_KMSCLIENT or VOLUME_MAK in slmgr /dli, or Windows reports error 0x8007007B, it's an organization license. Ask the seller for a key intended for individual use.

Which should you buy?

For a home or small-business PC, a retail-style license for the edition you need is the straightforward choice. Each TrustiKeys product page lists the devices, account requirement and restrictions before you buy. Browse Windows licenses or Microsoft Office, or read software license types explained for how one-time purchases and subscriptions compare.

Frequently asked questions

Is an OEM version of Windows different from retail?
No. The software and features are identical for the same edition. Only the license terms differ.
Why are some keys so much cheaper than others?
Price differences come from the license channel, the seller's sourcing and the edition. Check what channel and restrictions a seller states before buying.
Can I convert an OEM license to retail?
No. The channel is set by how the license was issued.

Products mentioned in this article

Microsoft, WindowsWindows 11 Pro
  • 1 PC
  • One-time purchase
$39.99
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