What’s the Harm in an OEM Software Deal?
SHA Newsletter: Vol 2. No. 5
I get many offers for cheap OEM software via email every day. Maybe you’ve
seen them too. Here's the scoop on OEM software and what makes it different.
If you buy software at a store or from a reputable online merchant, you’re
buying at retail. You’re getting the full version of the program,
and generally you’re going to pay full price. OEM software is the
name given to the programs that are preloaded on a new computer that you
buy. These programs are licensed from the publisher by the company that
sells your computer, known as an OEM or Original Equipment Manufacturer.
The software publisher offers the programs at a steep discount because
the OEM does all the work: loading the software, distributing CDs, and
answering users’ questions. Most important, the OEM agrees to include
the software only with a new computer. The OEM may not sell the software
alone. Such sales are prohibited by the publisher, because they will reduce
sales through other retail stores.
It’s important to understand this relationship. When you buy preloaded
software, you get it from the computer vendor, not from the publisher.
Strictly speaking, you buy a license for it from the computer company.
Their ability to give you the license at a low price depends on the agreement
they negotiated with the software publisher. Any limitations they agreed
to might restrict what you can do with the software.
What kinds of restrictions might there be? I’ve noticed these:
- You can use the software only on the computer on which it was preinstalled
- You can use the software only on computers made by the particular vendor
- You might not obtain support from the publisher, and you might have to pay extra for help from the computer vendor
- You might not be allowed to give the program away to someone else, or only by giving away the computer
- There might be other rights you give up compared to the license for a retail version of the program. For example, some software licenses allow you to use programs on both your work computer and a computer at home. The OEM version of the same program might not allow this.
What About the Offers in Email?
I’d ignore any offers for OEM software that don’t come with
a new computer you buy. Software publishers only offer OEM agreements
to companies that sell computers, because those OEMs expand the market
for the software. The publishers will offer discounts to software retailers,
of course, but the best deals are reserved for OEMs. If you are offered
an OEM version or an OEM discount on software – and you aren’t
buying a new computer – you probably aren’t getting a legitimate
deal.
What About OEM Software from a Store?
Sometimes you get OEM software when you buy a new custom computer from
a specialty store. Retailers who custom-build computers often have OEM
agreements with various publishers. But a store that sells OEM software
outright (not loaded on a new computer) might not be selling legitimate
copies.
What’s the Harm in an OEM Software Deal?
Here are specific reasons to avoid those OEM email deals.
- You cannot be certain of the actual source of the software unless it comes through authorized sales channels. Counterfeit software might be called OEM so that you’ll accept its unusual packaging. Sometimes legitimate OEM copies might have been stolen and resold.
- The program might be incomplete and it might contain malicious programming. You can’t be sure unless you buy through authorized channels.
- The program might not work on your computer. OEM versions are frequently tailored for the specific brand or model of PC for which they were intended. They might not run on other computers. This is often seen with OEM versions of operating systems that have a limited set of hardware drivers.
- You might be denied program updates if the publisher can verify that the program came from an unauthorized source. This can be true even if the software is otherwise intact and correct.
- You might not receive the program at all, or might not get a refund if you are unhappy with it. You could lose the money you paid for the program. When you don’t buy from reputable sellers, you take a real risk.
If you believe that proprietary software packages are just too expensive, don’t fall for a fake offer on OEM programs. Look to alternatives among free and open-source (FOSS) software offerings. These packages can save you a lot of money, generally work well, and let you take a stand against expensive software.
We can help you make a good choice, if you want us to, or you can dive in and explore.
Please note: Any trademarks and trade names of others mentioned in this message are the property of their owners, and not Stoney Hill Associates, LLC. We respect the intellectual property of others. The information provided is believed to be reliable, but we cannot guarantee that the procedures and information given here will work correctly for your specific situation.
If you would like help with a computer or software problem you face, contact us. Send an email to request@stoneyhillassociates.com.
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