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German Company Will Take Windows Off Your Hands

Felix writes: "The German computer magazine c't writes that the German PC manufacturer Waibel now buys your used Windows licenses for around $30-$40 to sell the them bundled with their PCs. The highest German court, the BGH, declared this as being legal in its "OEM decision," so Microsoft can do nothing about it...." I obtained a reasonable translation using the Systrans translation engine over at dictionary.com. Imagine -- a market where the end-user hasn't duly accepted a shrink-wrap license which robs him of all further transfer rights. Sounds like a more robust market to me.

42 of 108 comments (clear)

  1. Great news by Anonymous Coward · · Score: 2

    This is great. Actually there is a 9th district circuit court ruling that allows the same thing in the USA. They ruled that once a manufacture vends a product, the manufacture cannot control the sale of that product. This means that you can resell your OEM or Academic software to any one with or without a PC. Unfortunately for me, MS called their wolves at Preston, Gates (yes its his dad's firm) & Ellis and had them ruin me using other methods. (Federal Court is a very expensive play to play) My old site www.oemsoftware.com was forced to close and I had to fire 7 people. They won this one, but hopefully karma has a way and coming up and biting them in the ass.

  2. Re:Their motivation: by Trepidity · · Score: 2

    Windows 95 is still a pretty decent consumer-level OS: unless you're going up to Win2k there's no real reason to upgrade beyond service packs (e.g. 98 & ME suck ass, NT sucks at multimedia).

    Uhh, I don't think so. Windows 95 won't even install on lots of newer hardware (try getting it to support some of the newer AMD motherboards), and it doesn't do USB. Obtroll: Perhaps in the Linux world not having USB support is the norm, but some of us demand better. =P

  3. Re:M$ behaves as if they are selling, not licencin by kris · · Score: 2

    Of course they behave as if they were selling something. If they were actually licensing something under German law, there would be a continous liability of the licenser to the licensee. This is a situation where Microsoft would not like to find itself in, given their quality of code.
    © Copyright 2000 Kristian Köhntopp
    All rights reserved.

  4. Re:Hope the moderators find this "Informative" . . by spitzak · · Score: 2
    Oh come on! It is well known here that Scott McNealy would be as bad, and probably far worse, than Bill Gates if he had managed to get into his position (and they tried, they tried so hard they scared all the other Unix companies into forming OSF, and spending all their energies fighting Sun rather than coming up with real new stuff, hmm kind of similar to what everybody is doing now).

    Beloved Sun, indeed. You obviously don't read the text here. Even Linux zealots are mad that Sun seems to be spurning them! You don't even seem to be reading the extremest attitudes here!

  5. Well, they tried. by Booker · · Score: 4
    from The Register:

    1. Disconnect from any network.
    2. Start the install, but don't use dynamic update (which wants to connect, right?)
    3. After installation and on first boot, don't set up your Internet connection when it asks. Click next or skip - the wizard will crash when you click next. ;)
    4. Click Start/Run and type:
    regsrv32.exe -u regwizc.dll
    Close the confirmation window that appears.
    5. Start/run: regedit
    6. Under HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\WindowsNT\Cu rrentVersion change RegDone value to 1
    7. Open up Internet Explorer. Open the Tools/Internet Properties and change your home page to something that isn't Microsoft or MSN.
    8. Reboot and before windows starts up, plug your network connection back in.

    ---

    1. Re:Well, they tried. by jerrytcow · · Score: 2

      Why is that illegal? I've never seen a law that stated one had to register software they purchased. I almost never register my software.

      I look at registering software like sending in the warrantee cards that come with electronic products. I'll do it if it seems that there is some benefit to me (i.e. notifications of updates not otherwise available on the web, etc.). Otherwise it seems that it's just a ploy so companies can keep huge databases full of buying habits or so they can put you on mailing lists.

  6. Re:Logical, actually by bstadil · · Score: 2

    The effort your are talking about was in Australia with different law covering licenses. The issue here is that German law specifically allow transfer of licenses regardless of the "text" under which it is granted. In this case MS.

    --
    Help fight continental drift.
  7. Re:Great !!! by kzinti · · Score: 2

    The 5000, which was on sale in 1999 when I was shopping for a laptop, has a max resolution of 1400x1050. Your 5000e is a more recent laptop. The two differ in other ways too, most notably size and heft. The old 5000 was 2.5" thick and nearly 10 lbs in weight, whereas the 5000e is more like 1.5" and 6 or 7 lbs. That size kept me away from the 5000, and I bought the 3700. I really like it, but when replacement time comes, the 5000e or its successor, is more likely what I'll get.

    --Jim

  8. Re:quite partial background by Star_Gazer · · Score: 2

    I agree that c't has indeed a strong "followership" here, but hey, they have well earned it. In all the years I read c't (10+ years) I had never any reason not to trust them. Their style of writing and layout/design is serious and pleasing and their editors are the best in their field (i.e I think it is safe to say that no other journalist in Germany and maybe in Europe knows as much about x86-processors as Andreas Stiller).

    The war is run by Waibel, who are very bad loosers. In open tests where they send in preconfigured special press systems they usually get very good reviews which may lead them to think all their systems live up to that promise. Sadly, this is not the case, like in all this open tests.

    In practise, their systems far to often fail miserably, their customer service and support is terrible and so on. AFAIK c't is the only magazine that do this secret testing in germany (it's quite expensive if you have to buy 15 computers a 1500$) and so they are the only one that actual report about real live with a Waibel system.

    But, funny side note, c't or better the above mentioned Andreas Stiller is fighting a private war - against Intel. Okay, sort of. He is "fighting" the terrible and nowadays totally useless A20 gate which Intel (and AMD, I think) happily integrates into every new processor they build :)

  9. some background by Star_Gazer · · Score: 5

    The story has an interesting background. c't did an anonymous buy test where Waibel sold an apparently illegal Windows license to the test buyer. Now it seems to be the case that M$ refuses to sell any legal licenses to Waibel (at least they have some serious disagreements), so Waibel is looking for ways to get some Win-Licenses to sell together with there computers.

    But this company has an incredible ability to interprete every bad report about them or every law/license infringement with which they get caught as an private little war of c't-magazine against the company.

    Its quite ridicoulous.

  10. Any MS-Windows License? by SEWilco · · Score: 2

    Can I sell them my Toshiba laptop MS-Windows license, or are they only interested in a more generic version? (Yes, mine was never used -- I unpacked the new laptop and loaded Linux on it)

  11. Re: Will not help free software by harmonica · · Score: 2

    Thanks, that's exactly what I couldn't find on their pages ;-) And I did search for a while...

  12. Will not help free software by harmonica · · Score: 3

    That's one reason less to use something different than Windows. It might decrease Microsoft's income a bit, but how about Waibel offering all kinds of operating systems with their system? Microsoft certainly doesn't like Waibel too much for that move, so are there any obstacles in offerings various other operating systems with their hardware?

  13. Re:I couldn't disagree more by mpe · · Score: 2

    You've fallen for the classic Big Company tactic: they do something, and you assume the law is on their side.

    The other variation is they telll you something and you assume that the law is on their side. e.g. Software licence agreements which give a long list of things you can't do (maybe even stating something to the effect that some clauses may not apply in some jurisdictions). Knowing full well that most people are unlikely to check which clauses (if any) are valid.

  14. Re:Great !!! by Betcour · · Score: 2

    Well the CD itself is not a restauration CD but a gull Windows 2000 (with SP1) installation disc. Doesn't has any drivers specific to Dell hardware or doesn't carry any Dell branding. Doesn't sound exactly like a "restauration" CD (which should have OS, drivers and basic Dell apps all installed on a disc image)

  15. Great !!! by Betcour · · Score: 3

    Because my new Dell laptop came with a Windows 2000 CD. As I planned on using another OS on it I wanted to give it away to a friend.

    Turned out :
    - the CD won't run on a compter manufactered by someone else than Dell (I think it checks something in the BIOS)
    - the licence number is a sticker... stuck on the underside of the laptop itself !

    So I just paid for a legal Windows 2000 copy, yet I can't even use it on the computer I want. I wonder how Dell customers who buy desktop computers will like it when they change their motherboards (and therefor, the BIOS in it won't be Dell branded anymore). If this isn't a blatant attempt to rip off customers, then what is it ?

    1. Re:Great !!! by legLess · · Score: 3

      Technically, your laptop came with a disk-image restoration CD, not a Windows CD. And no, the restoration image isn't going to help anyone else.

      Check out my earlier comment about M$ possible motivation for this kind of behaviour (like with everything else they do, it's about long-term control, not short-term profit).


      question: is control controlled by its need to control?
      answer: yes

      --
      This isn't as much "normalization" as it is "don't take so many drugs when you're designing tables."
    2. Re:Great !!! by Frank+T.+Lofaro+Jr. · · Score: 3

      Does that matter?

      A license has to go with the CD you get with the PC. (Otherwise people would be buying a CD which they don't have the right to use - i.e. warez).

      So here is the solution. They turn over the CD and the license which comes with it. The recipient of the license destroys the CD, makes a copy of a "normal" windows CD and uses it with the license they obtained.

      Would that be legal? If you have a Windows license, then wouldn't the duplicated CD be legal since it has a license? Note: Big companies often get one copy of media, a bunch of licenses, and duplicate the media or load it multiple times over a network, and it is legal (and standard, sanctioned practice by the vendors and the corporate customers). It works out if there are sufficient licenses.

      The question is, does a license from Windows off a restoration CD allow you to make and use a copy of Windows from a "normal" Windows CD? Microsoft will say no, but what is the law? If ti is not legal, then essentially Microsoft has to aruge, and the courts have to accept and declare, that the copy of Windows with a "restoration" CD is different than off a "normal" CD. I.E. it is not real Windows.

      That could have a marketing impact and even be seen as abuse of monopoly status. I.E. we won't even give you a proper copy of the OS we forced down your throat. If your system doesn't work with all the other junk on the CD, or your system dies, you are hosed. Buy a new PC from an MS friendly OEM, or go pay the (outrageous) $200 for a full Windows 98 CD, which is well above what the OEMs are charged for it, as long as they play that stupid "restore CD" game with the consumers to protect MS at the expense of the computer purchasers.

      --
      Just because it CAN be done, doesn't mean it should!
    3. Re:Great !!! by hammock · · Score: 2

      Well, what you could do is get a pirated copy of Windows 2000, and call that your full backup, which you are legally entitled to make. Provided you don't run your one licensed copy on more than one computer at a time.

      This is a delicious way to circumvent the brain-damaged "restore" cd distributions of Windows.

    4. Re:Great !!! by BSOD+Bitch · · Score: 2

      If it is anything like the IBM restore cds, they should contain the OS in 'zip' files. Use a Unix based machine an unzip them (prevents that zip password crap). Then just burn the unziped files to cd. Its rather easy once you find them.

      --


      M$ stock dropped in 1/2 since last year. If you are a MCSE, you will be broke.
  16. M$ behaves as if they are selling, not licencing by redelm · · Score: 4

    An interesting German ruling, and the consequent market response.

    M$ has insisted long and hard in US Courts that it is _licencing_ it's products thru shrinkwraps hidden inside. For OEMs and big corps, it sure does get signed licence agreements. But at retail, it behaves as if it were simply selling copyrighted works (books, music, videos).

    M$ doesn't do even simple practical things like have purchasers call for a key, insist on registration, or tear-off registration to protect their licencing status. Apparently their marketing department has vetoed these things as expensive or frightening to customers.

    So why should the Courts grant them licencing status when M$ has not done what they could for that status?

  17. Great idea. by NetJunkie · · Score: 2

    This is a great idea. I won a Compaq notebook from Mandrake at Linux World in San Jose. When I got the notebook it had Mandrake installed, of course, which was just fine with me. But, in the box was a Windows 2000 license and CD they had to buy with the system. I'm sure they just loved that.

    Thanks Mandrake!

  18. Re:Good news? by sparty · · Score: 2

    But they're not buying the CDs themselves, they're buying the licenses. And a license to run Windows on one PC should be independent of the installation media, so they can still buy licenses from folks who bought a PC with OEM Windoze, a restore disk, and installed Linux (or *BSD or Be or that OS my friend wrote in his spare time a few years ago or whatever).

  19. This makes sense by amnesty · · Score: 3

    Doesn't the license bascially determine who can use the software? So I don't see why it would be illegal to change ownership of software anymore than selling your old books in a garage sale.

    I guess the Microsoft worry is that you sell the license without deleting the software on your computer. But I still think its criminal to lock an operating system to a specific PC which is what Microsoft plans to do so that there is no option to delete and install on someone elses computer.

  20. Fact Checkers by catseye_95051 · · Score: 2

    The anti-trust suit was brought by the DOJ, which is funded diretly out of all of our taxes.

    Eactly how do you think Sun is funding it? Outside of paying a reasonably large amoutn of coporate taxes due to their excellent sales, I see no link.

  21. Older OS's don't support newer hardware. by yerricde · · Score: 2

    You only really need an OS when it's your first computer.

    Or if your old OS doesn't support your new hardware. Windows 95A does not support USB or large disks.

    After that it should be like any other periferal device that you swap to the new machine.

    For instance, I can't swap ISA cards into my new machine because it doesn't have any ISA slots. I can't swap my old non-USB joysticks into my new machine because my PCI sound card doesn't have a game port. And I can't swap old versions of DOS into my new machine because DOS can't handle hard disks bigger than 8 gigabytes.


    Like Tetris? Like drugs? Ever try combining them?
    --
    Will I retire or break 10K?
  22. Re:Their motivation: by legLess · · Score: 3

    Actually, I admin a network with 40 Windows 95 clients, among others, and they have no trouble on the hand-built white boxes I use: old and brand new, Intel and AMD. And lack of USB isn't much of a concern for a larger company, as much as I love it at home. Win95 still has its niche.

    question: is control controlled by its need to control?
    answer: yes

    --
    This isn't as much "normalization" as it is "don't take so many drugs when you're designing tables."
  23. Their motivation: by legLess · · Score: 5

    From the article (paraphrased by the fish): the company had a spat [Babelfish link] with M$ a few months ago about a supposed illegal Windows 98 license. M$ seems to have suspended sale of OEM licenses to them, so they needed to find another way to sell PCs loaded with Windows.

    Necessity being the mother of invention and all, I like the idea. What they're really talking about is continuously recycling Windows licenses. Rather than everyone pitching their Windows license when they pitch their old PC, the license could now be sold to someone else.

    Of course, this is bad news for M$. Windows 95 is still a pretty decent consumer-level OS: unless you're going up to Win2k there's no real reason to upgrade beyond service packs (e.g. 98 & ME suck ass, NT sucks at multimedia). So this means that Germans could protest M$ snail's pace "innovation" by re-buying license for their old OS. Beautiful.


    question: is control controlled by its need to control?
    answer: yes

    --
    This isn't as much "normalization" as it is "don't take so many drugs when you're designing tables."
  24. Re:I couldn't disagree more by gunner800 · · Score: 5
    You've fallen for the classic Big Company tactic: they do something, and you assume the law is on their side.

    You have a legal right (under most circumstances) to resell Windows. Microsoft doesn't want you to, and eBay prevents you from doing so because eBay is Microsoft's bitch.

    Even if you receive a letter from Bill Gates himself, signed by his Army of Lawyers, saying "You cannot resell Windows", it's still won't be true.


    My mom is not a Karma whore!

  25. Registration cards can be good... by -Harlequin- · · Score: 2

    Otherwise it seems that it's just a ploy so companies can keep huge databases full of buying habits

    That's not necessarily a bad thing - I once worked at a games company, and there was a bit of hand-wringing over how much polish should be sacrificed to make the game availible for lower-end machines. What it boiled down to was that it was very difficult to know what kind of computer hardware breakdown was out there, so such conversation turned into "what giveaways could we give for registering, so we can find out how low people want us to go".

    So when people complain "It's ridiculous! My machine is perfectly good, not very old, and I can't play any games on it!", I often say "Send in your registration cards - since no-one else does, you'll be voting with the power of 20 men :-)"

    Of course, a huge amoubt of the info they want is marketing guff for junkmail, etc, but with some companies, it can be a way to have some input and give some feedback.

    So the compromise solution would be to ONLY fill in those parts of the form relevant to what you want them to know. If half the boxes are not check, I can't see them denying your registration (there would be no point - it's not like a webform that won't accept submit until you've finished - once the card is mailed, it's mailed).

    Any suggestions for a hypthetical, particulaly nasty card that you want to fill in, but don't want to give your address to for mandatory junk mail, but do want to give it for some freebie offer for registering?

  26. Re:Good news? by sqlrob · · Score: 3
    We might start seeing more "system restore" type distributions with new PC's to make it harder to resell

    Does it matter? They aren't buying the disks, they are buying the licenses. If they already have the disks, what does it matter?

  27. Good news? by johndoe42 · · Score: 3
    While this is all well and good, MS probably won't like it too much (duh). We might start seeing more "system restore" type distributions with new PC's to make it harder to resell, and the whole Whistler copy protection might make this a moot point (although the German court might then rule that MS has to reenable copy-protected installs, and then they might refuse -- ugh).

    I wonder if I can sell all my old MSDN copies of Windows now? I must have at least 20 :) Imagine that: subscribe to MSDN and _make_ money by reselling all those CD's. Probably won't happen.

    1. Re:Good news? by flafish · · Score: 3

      If they ( German company ) have the full OEM cd verion then anyone can use the license. Try it yourself if you have one. Use any valid " Product Key " and load it on any hard drive you have. The CDs from Dell, NEC/PB, and others were not the full winX CDs but were/are the manufactures own version of that CD. Full OEM version doesn't check for Bios information as to make of computer.That's one reason m$ wants to cripple Whistler and make it have to register with then before it is usable.

  28. Logical, actually by Alien54 · · Score: 2
    I recall that a year or two ago that a large number of people tried to get refunds from MS, on the basis that although it came with their machines they were not going to use it anyhow.

    If I recall right, it did not go anyplace. It was and is a sort of catch 22, that MS points to the OEMs, and the OEMs point to MS.

    So the Germany solution of selling them off second hand is an elegant and sensible solution.

    With the future MS rental licenses, this may be a problem. I can see a future market for English versions of Windows from Germany.

    --
    "It is a greater offense to steal men's labor, than their clothes"
  29. Re:Great !!! Not even same machine under VMware by splante · · Score: 3
    I bought an HP, and installed Linux and VMware. I then tried to install Win98 that came with the machine under the Linux/VMware, and it wouldn't let me because it couldn't detect it was that HP machine.

    So now I am forced to go buy an off-the-shelf copy and leave the one that came with my machine unused. I'd like to sell the HP-only copy to recoup some of that cost.

    Actually, if I "borrowed" a friend's media to install, would I be legal since I do have a license, just not one that will install properly? Would this not be the same as borrowing a friend's copy because my CD was scratched?

  30. No by tswinzig · · Score: 2

    Isent Microsoft Tieing lisences to the computer hardware it's self in it's next OS release?

    No, Microsoft is just using technology to try and enforce what their licenses have always said: You have only purchased the rights to install and use this software on one machine at a time.

    You're still going to be able to move to a new PC or hardware configuration, you just might have to call someone on the phone to do it (or maybe they'll have a better idea).

    --

    "And like that ... he's gone."
  31. I would think... by 2nd+Post! · · Score: 2

    They might be pricing at the same rate that M$ charged them?

    So if they were already paying $30-$40 or more by M$, they lose nothing by paying this much to consumers!

    This is also gotta hurt M$. They now compete against themselves, and they *have* to innovate against themselves, if this catches on!

    Geek dating!

  32. Beautiful! by 2nd+Post! · · Score: 5

    How ironic! How karmic! How fitting!

    If half a million Windows OSes are out there now, then during the next upgrade cycle, and if there are manufacturers that wan't to beat the system, all they have to do is buy back the OSes from their customers and sell it again with the next cycle of systems created.

    M$ may argue that there are unlicensed systems, but then there is always the argument that people are running Linux, BSD, Be, or Darwin!

    Even better, it means M$ has to out-innovate itself to force people to buy the newer OS at the same or similar price to the older OS; if they charge too much, people will generally opt for the older OS, and if they don't charge enough, the M$ loses out on profits!

    Geek dating!

  33. Hope the moderators find this "Informative" . . . by 0bjectiv3 · · Score: 4

    Virtually EVERY software company does this. As usual, most of the comments on Slashdot read as though M$ is the only one engaging in a given (negative) practise.

    In fact, your beloved Sun Microsystems, without whom your precious "M$" anti-trust lawsuit would not be funded, engages in the very same practise.

    I'm not condoning the policy. I'm just tired of hearing about how evil "M$" is and how wonderful all other companies are.

    However, I'm sure my voice will fall upon deaf ears and closed minds.

    Don't read everything you believe . . .

    --

    "Saddam Hussein cavorts with terrorists."
  34. Re:I couldn't disagree more by Verteiron · · Score: 2

    The law IS on their side. They have more money than you. Therefore, they win.

    --
    End of lesson. You may press the button.
  35. Old news... by Killeri · · Score: 2

    A similar decision was recently made in a lower court here in Finland. The ruling basically said, that a shrink wrap software is similar to a music record. When you buy one you also get a right to resell it. We're anxiously waiting for the Supreme Court to rule on this.

  36. What about bios coupled distributions? by abumarie · · Score: 2

    One of the rather major irritations that have been promulgated on the community is the bios coupled distribution. You buy a Dell computer and get a Windoze 2000 distribution that will only install on a Dell computer. I am sure there is some very small print someplace that makes this vaguely legal, but it sure does annoy the heck out of me. Given that Dell does not support AMD processors, this seems to be more than a small restraint of trade. Bad enough to have to buy bundled software. Even worse to buy bundled software that reverse bundles itself into the hardware.

    --


    Sex is heriditary, if your parents didn't have it chances are good you won't either.