How does the Dell in-built licence work?

I have bought off the web a Dell W7sp1 disk complete with licence code and COA which I will use to uprade the first machine - but wil the system which recognises the Dell XP disk have untoward any effect on my W7 installation?  I presume I will get asked for the licence code!

The Dell Windows 7 will install in non-SLP fashion and it will ask for a product key.  

The built in SLP key that is used is in the bios for Local Activation. Operating systems that use SLP 1.0 check for a particular text-string in a computer's BIOS upon Booting. If the text string does not match the information stored in the particular installation's OEM BIOS files, the system prompts the user to activate his or her copy as normal. SLP 2.0 and SLP 2.1 work in a similar manner. This effectively "locks" the operating system to the qualified motherboard. In addition, if an end-user feels the need to perform a "clean install" of Windows and if the manufacturer supplies the user with an installation disc (not a "System Recovery" disc that is a hard-drive image), the user will not be prompted to activate the copy, given that the installation is performed on the same motherboard. Furthermore, because the check only involves the BIOS and not hardware, a user is allowed to change virtually all hardware components within the machine except motherboard, a procedure that would normally trigger re-activation in retail copies of Windows.  Windows 8 uses SLP version 3.0

 You cannot purchase DELL OEM Licences Legally.  They are only valid for the machine they are installed on.

Yes but a DELL windows 7 disk and COA is an illegal copy.

Dell is not allowed to sell just the COA and Dell media.

This is either illegal and or counterfeit Software that will state

"Your copy of windows and its key are not authorized"

You must buy a get genuine kit.

http://www.microsoft.com/oem/en/licensing/antipiracy/Pages/get_genuine_kit.aspx

State the models of all your 9 Dell PCs and how much RAM each one has. We can give you advice on Clean Windows 7 Installation on a case by case basis. Some of the PCs will probably run Windows 7 a lot better than other ones as you have got them over the years.

I have wrote Windows Reinstallation Guide/A Clean install of Windows 7/8.1:

http://philipyip.wordpress.com/dell-community-forums/

First check if Dell has any Windows 7 drivers using their FTP website:

http://ftp.dell.com/published/Pages/index.html

I have also compiled a list of additional Windows 7 compatible driver sets:

http://philipyip.wordpress.com/unofficial-driver-sets/

My guides link to Digital River for installation media. These .isos can be used to clean install Windows 7 without a product key allowing a 30 day trial which you can of course use to evaluate your systems performance.

You should also check out Windows 8.1 which is in general more available and usually cheaper than Windows 7. My guide also links to the 60 day Windows 8.1 Enterprize evaluation which you can use to assess Windows 8.1's performance on your system. This will give you time to decide whether it is worth upgrading each PC on a case by case basis.

Wow and thanks for all the info -

To answer some of the questions posed.

The desktops are type Optiplex 755 and Optiplex 780

The Laptops are Latitude d400 and D505  -

I Understand the desktops will run W7 ok - I already have one 780 running under W7 will need to test on one of the 755s although I do have a disk of drivers for the 755 which appears to include w7 drivers for this model in its list!

I have seen some D400s working with W7 and it appears they can although not ideal so perhaps I will need to think of  changing those machnes - but I will keep at least one running XP for compatibility rerasons for some older software which I need to run on rare occasions..

The OptiPlex's both run Windows 7 really well. I have installed it on about 6 755's and the 780 is fully supported by Dell for the upgrade.

http://philipyip.wordpress.com/unofficial-driver-sets/optiplex-desktops/optiplex-755-windows-7-64-bit/

You can examine their hardware further by running the crucial system scanner:

http://www.crucial.com/uk/systemscanner/

For Windows 7 64 Bit you should have at least 4 GB of RAM installed. The OptiPlex 755 and 780 will take up to 8 GB of RAM however. The 8 GB upgrade is more expensive and generally not worthwhile. The 4 GB upgrade, generally second hand Crucial modules can be found on the likes of eBay for a lot cheaper. The SSD upgrade will also give both units significantly increased performance. Both will also run Windows 8.1.

The laptops are both old. If memory is less than 1 GB in each of them which it may well be then they will be below minimum system requirements. I would not waste any money on upgrading such old hardware.

The RAM in the D400 is DDR and the hard drive is IDE which is an obsolete interface and superseded by SATA (which is now at revision III but backwards compatible). The hard drive is the most likely component to fail and replacement being difficult to source if it does fail. Finally the video card is Intel Extreme Graphics 855 GM which Intel discontinued way before Windows Vista and so there are no drivers for it compatible for Windows 7. You can try Windows 7 32 Bit on it if it has the RAM but I would say its a waste of time on such weak hardware.

The D510 has DDR2 RAM but still an IDE hard drive. It has the Intel 915 GM (which there is a Vista driver from HP that can be installed in Windows 7). RAM needs to be at 1 GB for Windows 7 32 Bit to run. While its going to be better than the D400, I would still say its not worthwhile the cost of a license to upgrade.

This is either illegal and or counterfeit Software that will state "Your copy of windows and its key are not authorized"

The COA product key will activate and stay activated on non-Dell hardware, but you are correct in that the Dell OEM license is invalid under those circumstances and the end user would be expected to re-activate with a retail (not OEM) product key. Even OEM versions of Windows sold by Newegg, Amazon and other authorized Microsoft software resellers are technically invalid for upgrades and personal builds; Microsoft officially requires retail versions for those cases.

If the seller is honest and the disk and COA are genuine, that won't be a problem.

The vendor is Selling DELL Discs with DELL COA = 100 percent Dishonest = illegal.

Genuine COA's that are Duplicated 1000's of times = illegal.

We are not talking about OEM system builder media from newegg.  Read the original Post.

"bought off the web a Dell W7sp1 disk complete with licence code and COA"

If the seller is honest and the disk and COA are genuine, that won't be a problem.

[quote user="SpeedStep"] This is either illegal and or counterfeit Software that will state "Your copy of windows and its key are not authorized"

The COA product key will activate and stay activated on non-Dell hardware, but you are correct in that the Dell OEM license is invalid under those circumstances and the end user would be expected to re-activate with a retail (not OEM) product key. Even OEM versions of Windows sold by Newegg, Amazon and other authorized Microsoft software resellers are technically invalid for upgrades and personal builds; Microsoft officially requires retail versions for those cases.

[/quote]

"The COA product key will activate and stay activated"  Actually it won't.   My brother got caught up in this.  The windows would install and activate.

Then in a few weeks it would "deactivate" and says "You may be a victim of software counterfeiting."The Dell OEM Keys are not MAK keys and therefore only work on one machine at a time.  The BAD Vendors make Many Duplicates of Keys and the DELL OEM Discs then sell them in small batches to unsuspecting people.

Windows is not genuine
Your computer might not be running a counterfeit copy of Windows.
0x80070005

You may also notice the following symptoms:

The computer desktop background is black, and you receive the following error message on the bottom right corner of the screen:

“This copy of Windows is not genuine”

You receive the following error message when you view the System Properties: (Control Panel / System and Security / System)

“You must activate today.  Activate Windows now”

It's a violation of the license terms to use the disk, but it's not illegal to sell it.

If a genuine COA is activated once, it will stay activated, although technically the end user is in violation of the OEM licence terms.

These are not illegal

http://www.newegg.com/Product/ProductList.aspx?Description=windows%207%20oem&Submit=ENE

http://www.tigerdirect.com/applications/SearchTools/search.asp?keywords=WINDOWS+7

http://www.microsoftstore.com/store/msusa/en_US/cat/Windows/categoryID.62684800

 ebay purchasing and using an OEM copy of Windows carries additional risks,
 limitations, and requirements when compared to the full-price retail copies:

    * Risk of pirated or counterfeit copies
    * Lack of retail packaging and user manual
    * You open it - you support it
    * Install only once - no transfers allowed


Risk of pirated or counterfeit copies
If you consider purchasing an OEM copy of Windows online, you should take extra caution
to ensure you only purchase the software from a reputable company.
Some unscrupulous people will use the OEM label to try to entice you to buy
pirated or counterfeit software, so be sure to only purchase OEM software from a known company.

Lack of retail packaging and user manual
OEM copies of Windows are not shipped in the pretty retail boxes
you see in stores and online. They also aren't shipped with a user manual,
or quick start guide. However, the retail copies of Windows don't come with
a complete user manual, so you won't miss much more than the box.

You open it - you support it
When you break the seal on a OEM copy of Windows, you agree to Microsoft's
OEM system builder license attached to the software.
A key requirement is for you to provide support to the person using the computer.
Retail copies of Windows come with 90 days of free support, and people who install
OEM software have to provide support to the end-user. If you obtain a named OEM like
DELL not from Dell you will NOT GET SUPPORT FROM DELL for the product.


What does that mean? Legally, if you install the software on your computer,
you have to provide the first level of technical support meaning must provide your own
technical support. You can, however, pay for technical support from Microsoft.

Install only once - no transfers allowed
Another restriction of the OEM license is that after you install the software on one computer,
you can't transfer it to another you must purchase a full-priced retail copy.

If you replace the motherboard in your computer, you also can't continue to use the OEM copy of Windows on it.
Microsoft considers a motherboard such a significant component that, when you replace it, you have created a
new computer. The OEM copy of the software will then fail the validation, and you should purchase a new license
to continue using Windows.

OEM Windows - a good choice?
Whether an OEM copy of Windows  is a good choice for you depends on whether you can live
with the conditions outlined above. For greatest support and flexibility, buy a retail copy.
But if you don't need the pretty box, support, or flexibility to transfer the software to
another device, consider OEM copies.

Wow - so complicated - On ebay there are loads of people selling the Dell disks with the COAs and claiing this is legal and the software will be OK - how do they get away with it? So I need to get some genuine licences it seems - seems an awefull cost simply not to fall foul of modernisation! No wonder people look for cheaper alternatives!!!!

These are not illegal http://www.newegg.com/Product/ProductList.aspx?Description=windows%207%20oem&Submit=ENE http://www.tigerdirect.com/applications/searchtools/item-details.asp?EdpNo=5213932

Technically, they are to be used by system builders only and that does not include individuals building their own PCs.

[quote user="SpeedStep"] These are not illegal http://www.newegg.com/Product/ProductList.aspx?Description=windows%207%20oem&Submit=ENE http://www.tigerdirect.com/applications/searchtools/item-details.asp?EdpNo=5213932

Technically, they are to be used by system builders only and that does not include individuals building their own PCs.

[/quote]

You are straying off topic. 

This user has a fully assembled OEM system.

There are no technical restrictions preventing you from using it, but its not intended for consumers.

OEM versions of Windows 7 are identical to Full License Retail versions except for the following:

- OEM versions do not offer any free Microsoft direct support from Microsoft support personnel

- OEM licenses are tied to the very first computer you install and activate it on

- OEM versions allow all hardware upgrades except for an upgrade to a different model motherboard

Right on the box however the oem sbk has this.

In fact, over the past two years, someone at Microsoft has deliberately and methodically scrubbed all traces of those statements from the web.

I have had no issues reinstalling OEM system builder versions of windows Onto Dell's using the COA key from dell on the system and I don't think that its illegal to do so.

I have also purchased Retail upgrades and installed those.

I further do not think its a problem for me to make Bootable USB recovery media specific to particular machines that have valid COA and Licence.