Terms and Jargon - Information from Tekgia

Terms and Jargon
[Licenses]

For prices, call
0845 124 0484
For a quote, email
quote@tekgia.com

Finding the different terms used in the selling of software and software licenses confusing? Here is our guide to understanding them.

Retail Box (Full Packaged Product)
OEM
Volume Licenses
Concurrent Licenses
Academic discounts
EULA (End User License Agreement)
COA (Certificate of Authenticity)
Media Disk
MOLP
MOLP NL
eOpen

Retail Box

Also known as Full Packaged Product (FPP). This is the packaged version of the software you find on the shelves of shops like PC World.

With the Microsoft retail box products, as an example, you get an attractive box, a CD (or DVD) with the software on it, an End User Licence Agreement (EULA), a Certificate of Authenticity (which has the product key - a series of letters and numbers you have to enter this to install the software), and often a manual.

The Retail Box product is meant for the general public. The license normally allows the end user to remove the software from the computer he installed it on and reinstall it onto another (for example, after he has replaced his computer with a better one).

A fully legal Microsoft retail box product consists of four parts: the CD (or DVD), the manual or booklet, the Certificate of Authenticity (COA) and the End User License Agreement (EULA).

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OEM

OEM means Original Equipment Manufacturer. OEM products are meant for the trade - those that build computers to sell them. The idea is that the manufacturer or builder of the computer will install the software onto a new computer and then sell it to an end user. In other words, it is meant for the middle man, not the end user. It is cheaper than retail box products so the computer builder can make a profit on it.

However, the license for OEM software is more restrictive than that of Retail Box software. The software license forbids the selling of OEM software to end users without the required hardware.

With all Microsoft OEM software, the required hardware is a full computer. The only Microsoft OEM exceptions to this rule are: Microsoft DOS, Windows 3, Windows 95, Windows 98, Window Me, Windows NT4 Workstation, and Windows 2000 Professional. These can also be supplied with what Microsoft call a non-peripheral component (a computer component that is necessary to the running of the computer - for example, we supply them with a computer mouse). This exception used to apply to Microsoft Windows XP OEM, but Microsoft withdrew it in August 2005. Nowadays, Windows XP OEM has to be supplied with a full computer.

Another restriction is that Microsoft OEM software is tied to the computer it is installed on. That means that, unlike the Retail Box version, you can not remove it from one computer and install it on another.

So if you had Microsoft Windows XP Professional OEM and Microsoft Office Professional OEM installed on a laptop and the laptop got crushed, say, under the wheels of a car, even though you had the original disks for your Windows XP Professional OEM and Microsoft Office Professional OEM at home, you could not use them for reinstallation on another computer. The right to use them died with the laptop.

A fully legal Microsoft OEM product consists of four parts: the CD (or DVD), the manual or booklet, the Certificate of Authenticity (COA) and the End User License Agreement (EULA). However, you will sometimes find exceptions to this where the computer builder doesn't supply a CD or DVD.

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Volume Licenses

Also known as multi-user licenses, site licenses, open licenses, and bulk licenses. This is the buying of licenses alone, without the software, the packaging, or the manual. If you buy volume licenses you buy the software separately.

These are meant for organisations that are buying licenses in volume. Microsoft, for example, have a restriction that the initial order for volume licenses has to be at least five licenses. After that, the customer can buy licenses in ones or twos if he so wishes. But the first order has to consist of at least five licenses.

There are advanatages to buying volume licenses. They usually works out cheaper than buying Retail Box software and they are easier to manage and audit than Retail Box software. Such licenses also carry more rights than retail box licenses and OEM licenses.

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Concurrent Licenses

Concurrent Licenses refer to licenses that are purchased to run at the same time. For example, if you purchase ten (10) concurrent Adobe Photoshop licenses, you can install the software on more than ten (10) computers as long as there are never more than ten (10) copies of Adobe Photoshop running at one time.

Microsoft does not sell concurrent licenese. Adobe does sell concurrent licenses, but only to educational organisations.

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Academic discounts

These are discounts given by vendors on their range of licenses. Each vendor has different stipulations on who qualifies for such discounts. For example, some include charities, some don't.

These discounts can be very attractive. In many cases they can be the cheapest way of buying new software.

Although teachers and students can not buy licenses at academic discounts, they can usually buy special individual retail box software at prices below normal.

For more information on academic discount software and licenses: Academic discount software.

For more information on Microsoft Educational Licenses (at discounted rates): Microsoft Educational Licenses.

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EULA

EULA stands for 'End User License Agreement.' This is the software license agreement for the person that is actually going to use the software (the End User). It grants him the legal right to use the software.

If he doesn't have an End User License Agreement or he is using the software in a way that violates the terms of it, he shouldn't be using the software. For example, if the End User License Agreement is for a student or teacher for educational use, but Joe is not a student or teacher, then he should not be using it.

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COA

COA stands for Certificate of Authenticity, a label or symbol most software manufacturers place on their packaging or CD's to show the product is genuine. To inhibit piracy, the COA may have holograms, bar codes, watermarks or fine engraving.

With OEM products (such as Windows XP Home OEM), the COA is stuck to the side of the new PC or the bottom of the new laptop that Windows XP is installed on. In fact, if you got a new computer with Windows XP installed on it but there was no COA on the computer itself, you can question the legality of the Windows software.

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Media Disk, Media Kit or Fulfilment CD

These are the names given to the CD that contains the software. Usually supplied to the license holder for a small fee, it will usually state 'Not for retail or OEM distribution. Not for resale.' The license holder can use this one CD to install the software on as many computers as his license covers him for.

Some unscrupulous dealers will sell such CD's as a full product, but without the license these are 1. illegal and 2. unlikely to install.

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MOLP

MOLP stands for Microsoft Open Licence Program. It is one of Microsoft's volume license schemes.

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MOLP NL

Microsoft has a volume license level referred to as NL. It means No Level. It requires an initial purchase of 5 licences. Those who buy more than 150 licenses can buy at MOLP B or MOLP C prices which are lower than those of MOLP NL.

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eOpen

Since 2000, Microsoft has stopped selling volume licences in paper format. Nowadays you only get volume licenses in electronic format. They exist online at Microsoft's secure eopen.microsoft.com website. To see how eOpen works go to our web page on it: eOpen.

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You will find more information in the Product Info box near the top right. The Product Info box contains links on related products and information. Click on one of the links to go to its web page.

For further information, please email: info@tekgia.com.

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