OEM vs Retail License — What Is the Difference?
Last Updated: August 2026 | Category: Licensing
Table of Contents
- What Is an OEM License?
- What Is a Retail License?
- OEM vs Retail — Full Comparison
- Which Should You Buy?
- How to Transfer a Retail License
- What About Volume Licenses?
- Common Mistakes to Avoid
- Frequently Asked Questions
- Related Articles
What Is an OEM License?
OEM stands for Original Equipment Manufacturer. An OEM license is a type of software license that is permanently bound to the first PC it is activated on. Once activated, it cannot be moved to a different computer — even if the original PC is retired or replaced.
OEM licenses are the same software as Retail — they install and activate the identical version of Windows. The difference is purely in the licensing terms, not the software itself.
Key characteristics of OEM licenses:
- Permanently tied to the first PC activated
- Cannot be transferred to a new PC
- Lower price than Retail
- Microsoft support is handled through the PC manufacturer (for pre-installed OEM) or the license seller
- Ideal for a single, long-term PC build
What Is a Retail License?
A Retail license (also called an FPP — Full Packaged Product) is a transferable software license. You can deactivate it on one PC and activate it on another, making it ideal for users who upgrade their hardware regularly.
Key characteristics of Retail licenses:
- Transferable between PCs (one at a time)
- Higher price than OEM
- Direct Microsoft support
- Can be linked to a Microsoft account for easy reactivation
- Ideal for users who upgrade PCs or build new systems regularly
OEM vs Retail — Full Comparison
| Feature | OEM License | Retail License |
|---|---|---|
| Price | Lower | Higher |
| Transferable to new PC | ❌ No | ✅ Yes |
| Tied to hardware | ✅ Yes (permanent) | ❌ No |
| Same Windows software | ✅ Yes | ✅ Yes |
| Microsoft account linking | Limited | ✅ Full support |
| Support channel | Seller/manufacturer | Direct Microsoft |
| Best for | Single PC, long-term use | Multiple PCs, hardware upgrades |
| Genuine activation | ✅ Yes | ✅ Yes |
Which Should You Buy?
Choose OEM if:
- You are installing Windows on a single PC you plan to keep for several years
- You want the lowest possible price for a genuine license
- You are building a dedicated workstation, server, or home PC
- You do not need to move the license to another machine
Choose Retail if:
- You upgrade your PC hardware regularly (new motherboard = new PC in OEM terms)
- You want the flexibility to move your license to a future PC
- You are a developer or IT professional who rebuilds systems frequently
- You want direct Microsoft support for activation issues
How to Transfer a Retail License to a New PC
- On your old PC, go to Settings → System → Activation → Troubleshoot.
- Select "I changed hardware on this device recently".
- Sign in with your Microsoft account and select "This is the device I'm no longer using" to deactivate it.
- On your new PC, go to Settings → System → Activation → Change product key.
- Enter your Retail product key and click Next to activate.
What About Volume Licenses?
Volume licenses (also called Open License, OLP, or MAK/KMS licenses) are designed for organizations that need to deploy Windows or Office across multiple devices. They are purchased in bulk and managed centrally.
| License Type | Best For | Transferable |
|---|---|---|
| OEM | Single PC, home/small business | No |
| Retail (FPP) | Individual users, IT pros | Yes (one PC at a time) |
| Volume (OLP/MAK) | Businesses, schools, enterprises | Depends on agreement |
For business licensing options, see our Business Licensing Help Center.
Common Mistakes to Avoid
- Buying OEM expecting to transfer it: OEM licenses are hardware-locked. If you replace your motherboard, you will need a new license.
- Assuming OEM is less genuine: OEM and Retail activate the exact same Windows software. Both are 100% genuine.
- Not linking Retail to a Microsoft account: Always link your Retail license to a Microsoft account so it reactivates automatically after hardware changes.
- Confusing OEM with pirated software: OEM is a legitimate Microsoft licensing model, not a workaround or grey-market product.
Frequently Asked Questions
What is an OEM license?
An OEM license is a genuine Microsoft software license permanently tied to the first PC it activates on. It cannot be transferred to another computer but is typically less expensive than a Retail license.
Can I transfer an OEM Windows license?
No. OEM licenses are permanently bound to the original hardware. If you need a transferable license, purchase a Retail (FPP) license instead.
Is an OEM license genuine?
Yes. OEM licenses are 100% genuine Microsoft licenses. They install and activate the same Windows software as Retail licenses. The only difference is the licensing terms around transferability.
What happens to my OEM license if my PC breaks?
If the PC is beyond repair, the OEM license is effectively lost — it cannot be moved to a replacement PC. This is one reason some users prefer Retail licenses for peace of mind.
Does replacing my motherboard affect my OEM license?
Yes. Microsoft considers a motherboard replacement equivalent to a new PC. An OEM license activated on the original motherboard will not automatically transfer to a new one. You may need to contact Microsoft support or purchase a new license.
What is the difference between OEM and Volume licenses?
OEM licenses are for individual PCs. Volume licenses are for organizations deploying Windows across multiple devices simultaneously, managed through Microsoft's Volume Licensing Service Center.
Which license type does TrustedTech sell?
TrustedTech sells both OEM and Retail licenses. Each product listing clearly states the license type. All licenses sold are genuine and guaranteed to activate.
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