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Sell Your Computers, Keep Paying MS For Licenses

An anonymous reader writes "Microsoft Licensing 6.0 requires a company to pay up on software maintenance when the computers that are covered under the license are sold off. Here's the kicker though: MS is no longer obligated to provide maintenance even though the contract is paid up! Read the Infoworld article."

20 of 573 comments (clear)

  1. huh huh by Anonymous Coward · · Score: 5, Funny

    Tell me Mr. Anderson: what good is a MICROSOFT LICENSING 6.0 if you are unable to KEEP USING IT AFTER YOU SELL YOUR COMPUTERS?

  2. remember..... by Lxy · · Score: 5, Insightful

    You don't own software. Software is a contract, and even though you shelled out $x for a piece of software, you are bound to the agreement. Transfering a Windows license is like any other contract.. read it carefully and make sure you're permitted to do so.

    I'm not saying that MS is good, quite the contrary. They will rape their customers for as much money as they can, but from a bunsiness standpoint they're just just doing business.

    If you don't like it, use linux.

    --

    There is no reasonable defense against an idiot with an agenda
    :wq
    1. Re:remember..... by dachshund · · Score: 5, Insightful
      read it carefully and make sure you're permitted to do so.

      And if you don't like the terms, suck it up. MS has a monopoly on the desktop, especially in terms of business software. They can put any damned thing they want into their licenses, because most businesses have nowhere else to go.

      This story simply helps to illustrate the difference between having a monopoly and abusing one.

    2. Re:remember..... by Mac+Degger · · Score: 5, Insightful

      Yes, correct. But the only reason software is a contract is because we have let it become that. It's still rediculous: it's like the phones of old (at least in parts of europe) which you rented/leased instead of bought.
      Personally I want it spelled out to me: do I buy this or do I lease it. And for me, if I go to a store and buy something, without having to sign a piece of paper which I'd read very carefully, I have bought something. No matter what some clickthru EULA says.

      Of course, Licence 6.0 is nothing like that. But even so, I'd say that this is a perfect example of MS leveraging their monopoly position for vendor lock-in. due to the fact that it is unfeasable for many companies already running MS to switch to anything else [yeah, it's possible, but only with clear changeover protocols and policies...which these companies might not have]. This can have multiple reasons, from financial (retraining) to time factors (retraining ;) ) and many others. But the end result is that MS gains a lot of extra money for no effort, due to restrictive and amoral licencing which many companies jhust can't get out of.

      --
      -- Waht? Tehr's a preveiw buottn?
    3. Re:remember..... by Arcturax · · Score: 5, Interesting

      You honestly think one can't do buisiness using a Macintosh? Mac OS X is every bit as usuable as Windows, some may argue more so. There is certainly Mac software to fill about any need you can think of, and free high quality development tools just in case you find the odd thing that someone isn't currently supporting on the Mac.

      Don't believe me? Go to VersionTracker and take a look at all the software you could ever want for that platform.

      True Apple does have licensing as well, but it's not near as arduous as Microsoft's, that and Apple supports open source far more than Microsoft ever has or ever will.

      When you factor in software and hardware costs, using the Mac isn't so much more expensive given that even though the hardware costs more, you get far better terms on licensing, that and your support costs are a lot less given that Mac's don't break down near as often as PC's. It may even be less, I remember a study which showed total cost of ownership of a network of Mac's was less than comparable PC's using Windows, but I can't remember where it was.

      --

      --Won't that be grand? Computers and the programs will start thinking and the people will stop. - Dr. Walter Gibbs
    4. Re:remember..... by clarkcox3 · · Score: 5, Informative
      Must you spread such lies?
      Yeah. They nabbed their OS from an open source project, and closed the source for their port.
      No, they didn't. Darwin (which contains all of the open source that they "nabbed" for their OS) is itself open source.
      They nabbed the source for a browser from an open source project, and closed the source for their port.
      No, they didn't. They're contributing any changes they've made back to KHTML. Go read the KHTML developer mailing lists.
      --
      There are no tiger attacks in my area and it's all because this rock I'm holding keeps the tigers away.
  3. last two paragraphs in article sums it up... by emptybody · · Score: 5, Insightful

    ..."What microsoft is really doing is saying, 'Hey, just recognize you are truly at our mercy.' "
    If you didn't already know that, you just haven't been paying attention.


    How many more reasons do companies need to dump Microsoft and go with unix/linux?

    --
    comment directly in my journal
  4. Blah blah blah, it's called a contract by stratjakt · · Score: 5, Insightful

    If I sign a 4 year maintanaince contract with Pedros lawn care, I have to keep paying even if I move and the new owners dont want them running around the yard spraying pesticide.

    The same goes with many other maintanaince/support contracts. Dont like it? Do business with someone else.

    We have customers who still contractually pay for support on HP big iron boxes that havent been plugged in for years.

    Another case of MSFT doing the same thing everyone else does, execpt (heres the kicker!) for some reason it's "evil" because you dont like windows.

    Big fat whoop. MS Licensing is a business support contract, and pretty much a standard one at that.

    --
    I don't need no instructions to know how to rock!!!!
    1. Re:Blah blah blah, it's called a contract by Carbonite · · Score: 5, Insightful

      Actually your analogy also has serious flaws. The companies in the posted article weren't trying to terminate the contract, they were simply transferring it to new owners. In many cases it would be the same person using the computer, just under a different company name.

      If John Smith changes his name to John Jones, does Sprint PCS force an "acceleration" of the original contract and then make John Jones sign a new contract? No, that would be absurd. However, if a computer that once was part of Company X is now part of Company Z, the contract must be paid in full, yet Company Z must now also purchase a new contract.

      The main reason your analofy doesn't hold up is because the situation are just too different. Cell phone contracts are relatively short (1-2 years) and inexpensive ($25-50/month) compared to software licenses. There's also numerous companies who offer very similar service. Microsoft is the only company who sells Windows XP, 2003 Server, etc. You can't go "somewhere else" unless you plan on migrating away from MS entirely. This is usually far too expensive, it's not at all like switching cell service. I do agree that companies need to read the contract much more carefully, but that doesn't excuse the fact that Microsoft is abusing its monopoly status.

      --
      ich muß mehr Kuhglocke haben
  5. Re:What happens with licences on dead computers? by stratjakt · · Score: 5, Informative

    No, you got a discount from the retail cost of ME for the OEM copy that came bundled with your laptop. The OEM license is limited and for that computer and that computer only.

    If you pay full retail for a boxed copy, you can use it as long as you want, so long as you only use it on one machine at a time.

    --
    I don't need no instructions to know how to rock!!!!
  6. what if my computer catches fire?-"/." testing. by Anonymous Coward · · Score: 5, Funny

    " what if my computer catches fire, and is reduced to carbon? do i still keep on paying to MS?"

    Give us your URL. We'll find out.

  7. This is misleading... by spanky1 · · Score: 5, Informative

    We are under EA (enterprise agreement) version 6 here at my company and this is how it works. Once a year you tell MS how many computers are using what software products. This only happens once per year. Yes, if you cut the number of machines in half you won't see an immediate savings until the next time you give MS your numbers.

    However, if you end up doubling your computers you come out ahead: you basically get free use of the software until you update your numbers with MS.

    This also means you could get free use of software if you only used it for part of a year. For example, if you give MS numbers each January, you could install extra stuff in February, remove it in December, and MS would never have to know you used it.

    The EA does end up saving money if you were going to upgrade all the time anyway, or perhaps only skip one version. If you tend to skip two or more versions, the EA would most likely cost you more money.

  8. Deal Points by milo_Gwalthny · · Score: 5, Informative

    Not that anyone who isn't actually buying or selling divisions of companies cares, but here are a couple of other things you might think about to make sure you're protected:

    - make sure each legal entity is the licensor of its own licenses (ie. Bluelight should have been the licensor, not Kmart); then when the division is sold or divested, it is transparent to Microsoft (you may lose some volume discount here, of course);
    - if you haven't done the above or are selling assets instead of equity, set up a permanent lease of the computers to the buyer instead of transferring ownership; make sure payments are structured (probably through some sort of escrow account or trust) so the lease is a lease and not a sale;
    - in a bankruptcy, ask the judge to tell Microsoft to stuff it, which he may well have the power to do, and if he's a Windows user will certainly *want* to do.

    Does it need to be said? IANAL.

    On a related note, why doesn't some unemployed entrepreneur out there start a company that buys unused MS licenses (for Windows and Office, say) from companies that are downsizing or going out of business, then resell them to large companies that are being audited by MS? I know a few that would pay decent money just to not have to sort out the mess that is their file cabinet full of licenses, even if they do lose SA.

    --
    Milo
  9. Microsoft and the RIAA are actually useful by TrueJim · · Score: 5, Insightful

    Legislatures often pass bad laws. Their intentions are good, but the letter of the law often leads to ridiculous conclusions when taken to the extreme.

    It usually takes many years to discover how badly a law has been written, because it usually takes many years for people (or companies) to get around to pushing the wording to its logical conclusion. When Microsoft (or the RIAA, etc.) imposes seemingly ridiculously licensing terms on the public, they're actually doing us all a service in the long run, by quickly demonstrating to legislators that the applicable public policies are (in the long run) unworkable.

    We know Microsoft isn't going to "win" in the long run (they're losing our data centers already, and eventually they'll lose our desktops and office suites as well), but when they do these extremely silly things they actually help hasten their own eventual demise, by rapidly educating the public (and the policy makers) about what's wrong with current regulation.

    Getting laws corrected may feel like it's occuring with glacial slowness to those of us who already understand where things are heading, but it'll actually happen much more quickly than it would otherwise, the worse Microsoft behaves. So I say, heck ya Microsoft! Charge us twice for things you don't deliver...charge us ten times, twenty! Let's show the world what the phrase "illegal monopoly" -really- means.

    --
    I hope that after I die the one word people use to describe me is "resurrected."
  10. Re:Linux Call the Manufacturer Day by dr-suess-fan · · Score: 5, Interesting

    OK,

    How does April 23rd sound ?

    Seriously. It's fine to say 'we should', we see
    that alot on slashdot (phone your political rep. etc.). Let's do something. Pick your favourite
    vendor that doesn't support linux yet, call them
    on April 23rd.

    I think we (slashdot readers) have more influence
    than we often think we do.

  11. Re:What happens with licences on dead computers? by Anonymous Coward · · Score: 5, Informative

    This statement is incorrect. Compare the EULA before and after installing SP2 (or whatever the latest big service pack was). You'll notice a BIG change in the section labeled "Transfer".

    Originally, my retail box of Windows XP Pro stated I was explicitly allows to transfer XP from one machine to another, provided I deleted the first copy.

    After the upgrade, the EULA stated "The SOFTWARE is licensed with the HARDWARE as a single integrated product and may only be used with the HARDWARE." It goes on to state that if I sell the hardware, XP has to go with it.

    This is from a full retail copy, folks. Take a look at your own EULA, \windows\system32\eula.txt. Also note that I never saw any indication this EULA was being updated in the SP2 installation process (and I read the presented update EULA there in full).

  12. Re:So? by gl4ss · · Score: 5, Insightful

    better way to put it:

    -hey, there's this company that wants us to pay them even if we stop using their product and there's an extra contract included that gives them rights to anything we have on our systems if they would want it. the contract also includes an extortion option for them we can do nothing about, and the system is going to go through expensive forced migration to another backwards incompatible system in short time, and this we can do nothing about either if we want our business to be safe. oh, and there's an alternative for using them that would free our balls from their fist.

    -why exactly are we doing business with this company again?

    surely, not as black'n'white as that, but if executives actually read and understood half of the stuff they agree with ms...

    --
    world was created 5 seconds before this post as it is.
  13. Where will it all lead? by Futurepower(R) · · Score: 5, Funny

    License agreements are becoming more and more abusive. I decided to jump several steps ahead (short steps) and write the final EULA:

    The final license agreement:
    1. I can do anything I like.
    2. You have no power.
    3. You can't say anything bad about me.
    4. Everything belongs to me.
    I knew a 3-year-old who said this. He has since become an adult, which is more than I can say for some executives.
  14. Re:There is a good reason... by gruhnj · · Score: 5, Informative

    Uh, you must not be in AG. As a sysadmin for an AG brigade, I can tell you that I have alot of XP computers under my control. Not my choice mind you, but the Army DOES use XP. XP does your 201 file, your life insurance, and your orders. They may not be in a tactical enviroment, but XP is alive and well in the Army.

    PFC Gruhn
    G1/AG Automation, the Dilbert Guy
    I Corps, Fort Lewis, WA
    "Serve and Sustain"

  15. Brief primer on contract law by Pettifogger · · Score: 5, Informative
    One of the biggest misconceptions out there is that when someone presents you with a contract, you are not allowed to make any changes to it. Though Microsoft may not agree to them, you can usually negotiate ANY contract provision you want, even if it's printed on a form and you have to write the changes in the margin. Contracts are very flexible, and that's so you and someone else can agree to what you want. I do not use any Microsoft products, and do not intend to. However, if I had to, I would read the EULA (and their other crap) then make all revisions I thought were appropriate, sign it, and send it to Microsoft via certified mail with a letter stating that they had 30 days to correct my revision or negotiate further terms. And if they didn't, in one month all of my terms would constitute the new agreement between me and Microsoft. Yes, this can create a new and binding contract, but do not take that as legal advice. Do some more research and carefully read your contract before taking any action. Microsoft might pick a fight if only a few people did this, but if there were hundred and thousands, well, there'd be no way for them to handle it. Any ideas?

    The other point is that contracts usually get judged solely on what's contained inside of them, unless there's fraud, illegality, mistake, mutual recission, and a few other exceptions. So if you want to know what you've gotten yourself into, then RTFC. There are no state or federal laws (with a few small exceptions) that force you to agree to certain things, so it's all in the contract. And you don't need a law degree to understand them, either. Most of the legalese is shorthand so that broad concepts don't have to take pages and pages of explanation. Get a law dictionary (don't use Black's if you're a novice- it explains legal terms with legal terms, get one that uses layperson definitions) and go through it yourself. It might not be pleasant, but you'll understand more than you think you will.

    --

    IAAL