Licensing guide
OEM vs Retail License – and where Volume licensing fits
Three channels: OEM, Retail and Volume
According to Microsoft, Windows reaches customers through several channels. Retail (a licence bought on its own) and OEM (a licence tied to a PC) cover the Home and Pro editions. The commercial channel, meaning volume licensing, covers Pro as an upgrade licence, Enterprise and Enterprise LTSC.
This guide is for businesses and individuals who want to understand these terms before they buy a licence. For organisations we also collected information on the business portal.
Important: we do not list the licence type (OEM, Retail, Volume) per product — if it matters to you, ask us.
OEM vs Retail vs Volume comparison
| Aspect | OEM (preinstalled) | Retail (stand-alone) | Volume |
|---|---|---|---|
| Windows editions | Home, Pro | Home, Pro | Pro (upgrade), Enterprise, Enterprise LTSC |
| Tied to a device | Licence tied to the PC | Can be moved to another device that belongs to you | As set out in the volume licence agreement |
| Passing to another person | Only together with the device | Only if you are the first licensed user and the new user agrees | Per the agreement |
| Agreement | Microsoft licence terms | Microsoft licence terms | Volume licensing agreement |
| Typical buyer | New PC with a factory-installed system | Someone buying the system on their own | Companies and institutions |
Based on the Windows 11 licence terms (last updated April 2024) and Microsoft Learn documentation.
What the licence terms say: Section 4, Transfer
In the Windows 11 licence terms, Section 4 covers transfer. For preinstalled software (OEM) you may transfer the licence directly to another user, but only with the licensed device.
For stand-alone software (Retail) you may transfer the software to another device that belongs to you. Every time you do, you must remove it from the prior device. Transfer to someone else is possible only if you are the first licensed user and the new user agrees to the terms. You may not transfer the software to share licences between devices.
The terms also contain a carve-out: the provisions of this section do not apply if you acquired the software in Germany or in the countries listed at aka.ms/transfer. In that case transfer must comply with applicable law. We could not confirm the full country list here, so check it with Microsoft. How EU law treats the resale of licences is covered in our guide are cheap Windows keys legal.
Activation is not proof of legality
Under the licence terms activation is required, but successful activation does not confirm that the software is genuine or properly licensed. That is why the source, the purchase document and the stated licence type matter more than the mere fact that a key activates.
Volume licensing
If you are a volume licence customer, use of the software is subject to your volume licence agreement. Windows desktop licences in this channel are upgrade licences: Windows 11 Pro Upgrade upgrades a device from a previous version of Windows Pro, and Enterprise E3 and E5 require Windows Pro as the qualifying operating system.
Office LTSC is available to organisations through volume licensing and is activated with KMS or MAK. For servers and user access licences see also the Windows Server page.
Which licence type fits you
A few simple pointers:
- Buying a new PC with the system installed: you usually get an OEM licence tied to that device.
- Building your own PC and expecting to change it: a stand-alone (Retail) licence gives more flexibility to move between your own devices.
- Managing many seats in a company: consider volume licensing.
- Planning to hand the PC to someone else: check that the licence allows transfer together with the device.
- Not sure about a product's licence type: ask the seller before buying and keep the invoice.
Frequently asked questions
Short answers to the questions we hear most often.
Can an OEM Windows licence be moved to a new PC?
Under Microsoft licence terms a preinstalled (OEM) licence can be transferred to another user only together with the licensed device. In Germany and the countries listed at aka.ms/transfer this rule does not apply and applicable law governs.
Can a Retail licence be moved to another PC?
Yes, to a device that belongs to you, after removing the software from the previous device. You may not transfer it in order to share a licence between devices.
Can a Retail licence be given to someone else?
Microsoft terms allow it only if you are the first licensed user and the new user accepts the licence terms.
What is a Volume licence?
A licence under a volume licensing agreement, meant for organisations. For Windows these are upgrade licences such as Pro Upgrade, and Enterprise, which requires Windows Pro as the qualifying operating system.
What type are the licences in the Softflix shop?
We do not list the licence type (OEM, Retail, Volume) per product — if it matters to you, ask us.
Does successful activation mean the licence is legitimate?
No. Microsoft licence terms state that successful activation does not confirm that the software is genuine or properly licensed.
Legal basis and sources
We checked licensing rules and support dates against official documents. Links open the publishers’ pages.
Licences for your company?
Business account, quotes on request and invoices in your customer panel.
