When buying a new version of Windows, there are a few licenses you should know about. The licenses which you agree to when purchasing the Windows operating system have different usage terms.
In this article, you're going to learn about the licenses, how to choose the right one and where to get them.
Types of Windows Licenses
Let's look at the three types of Windows licenses and who they're for.
1. Full Packaged Product (FPP) Licenses
The Full Packaged Product (FPP) licenses are sold in retail for customers who require fewer than five licenses to purchase the software. These FPP licenses can be upgrade licenses or full licenses.
Upgrade licenses help you cheaply upgrade to a newer version of the software, such as Windows 7 to Windows 10.
On the other hand, full licenses do not require any software version to be installed on the machine.
With an FPP licensed software, you enter into an agreement with Microsoft each time you purchase one. The agreement states that you will follow the usage rights associated with the software, e.g., how many devices you can install the software on, transfer rights, and so on.
You can find FPP software usage rights in the Microsoft License Terms. Use the search function to locate the license terms for your licensed Microsoft software.
2. Original Equipment Manufacturer (OEM) Licenses
An original equipment manufacturer (OEM) is a company that makes hardware that is then marketed to another manufacturer. OEM software is software that's already pre-installed when you buy a new computer.
To illustrate this point, consider the following scenario; Microsoft sells its Windows operating system, and Dell makes computers and other hardware and installs Windows on some of its computers. When you buy a Dell computer with pre-installed Microsoft Windows from Amazon. Microsoft is the original equipment manufacturer (OEM)
So OEM's most significant benefit is that, unlike self-installation, the manufacturer usually installs the software correctly. So, if Microsoft Office is not functioning correctly, it's the computer manufacturer's responsibility. In this case, Dell has to provide support and not Microsoft. The OEM license agreement ensures that the software (Microsoft Office) was correctly made and then was, in turn, installed properly by Dell. Also, the cost is comparatively lower than the other license types as the software and the licenses come pre-loaded on the machine.
Just like FPP licensing, OEM software usage is governed by the Microsoft Licence Terms. The terms detail what you can and cannot do with the OEM software.
OEM companies are primarily concerned with business clients. However, in some cases, individuals can purchase items from OEM companies directly.
Companies created the OEM license agreement to help the various parties involved address any issues related to payment, branding, quality assurance, and confidentiality.
3. Volume Licenses
The third type of licensing is Volume Licensing. This type of license is mainly for large businesses, organizations, and educational institutions. Firms and companies can only use volume licensing on computers associated with the registered company or business. Also, administrators can use a single key on multiple computers because the product keys are managed either with a KMS server or Multiple Activation Keys (MAK).
Volume license comes in many types depending on the requirements and size of the organizations involved. There are volume licenses aimed at small to medium businesses called Open and Open Value, respectively. For the medium to large organizations, they are called Select Plus and Enterprise, respectively.
The software usage terms are mentioned in the agreements. In addition, the usage rights per product are found in the product list documents and the Product Use Rights (PUR) document. You can view the PUR and product list documents on Microsoft's website.
The product list provides monthly information about Microsoft software licensed in the agreements, step-up licenses, and available promotions. The Product Use Rights (PUR), on the other hand, is a detailed document that shows general volume licensing terms for each licensing model.
How to Determine if Your Windows Is Activated With a Retail, OEM, or Volume Licensing
You can use the following short tutorial to determine what type of license your Windows installation is activated with.
First, press the Windows + R buttons simultaneously to open the Run command box.
In the Run command box, type cmd and press OK.

In Command Prompt, type slmgr -dli and press Enter.

A Windows Script Host Dialog box will appear with information, including the name, description, and the Windows 10 license type.

Know Your Windows Licenses
In conclusion, we have seen three major license types and several different ways to purchase them. You can use the Command Prompt program to find the type of license your current device is registered with.
The three types of licenses are;
- Full Packaged Product (FPP) or Retail. You can get this type of Windows license from retail merchants or buy from the Microsoft store. The product keys are often transferable to another computer.
- OEM means Original Equipment Manufacturer (OEM). OEM PCs come with pre-installed Windows operating systems installed by manufacturers. The manufacturer embeds the product key in the UEFI firmware chip, which means that OEM licenses are not for resale and are non-transferrable to other computers.
- Volume license keys for use on PCs associated with an organization. Here, a KMS Client manages the license keys. They can be installed in bulk which means administrators can use a single product key for multiple installations.
The most important thing to know about the licenses is that each type has different usage rights with the software. So the best license for you depends on your needs.
If you're tech-savvy, you can get an FPP licensed version of Windows and install it yourself on your computer. If you don't want too much work, you can opt for a pre-installed OEM version of Windows. Finally, if you have multiple PCs, you can get the volume license keys which will be cheaper since you'll use one product key for all your PCs.