Advice Line | Bob Lewis | InfoWorld | Licensing rules for virtual machines | March 20, 2008 05:54 AM

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Licensing rules for virtual machines

March 20, 2008 | Comments: (0)

Licensing rules for virtual machines

More about the legalities of running multiple virtual machines on the desktop:

I did some research on Microsoft's website. The language seems quite clear: OS licenses are tied to physical machines, not virtual machines.

In the current EULA for Windows XP Professional Edition Service Pack 2, the relevant text says:

1.1 Installation and use. You may install, use, access, display and run one copy of the Software on a single computer, such as a workstation, terminal or other device ("Workstation Computer"). The Software may not be used by more than two (2) processors at any one time on any single Workstation Computer.

Seems clear to me that the license is tied to the hardware, not to any VM running on the hardware.

Here's the relevant text from "MICROSOFT SOFTWARE LICENSE TERMS WINDOWS VISTA BUSINESS":

2. INSTALLATION AND USE RIGHTS. Before you use the software under a license, you must assign that license to one device (physical hardware system). That device is the “licensed device.” A hardware partition or blade is considered to be a separate device.
a. Licensed Device. You may install one copy of the software on the licensed device.
You may use the software on up to two processors on that device at one time. Except as provided in the Storage and Network Use sections below, you may not use the software on any other device.

And,

f. Use with Virtualization Technologies. You may use the software installed on the licensed device within a virtual (or otherwise emulated) hardware system. If you do so, you may not play or access content or use applications protected by any Microsoft digital, information or enterprise rights management technology or other Microsoft rights management services or use BitLocker. We advise against playing or accessing content or using applications protected by other digital, information or enterprise rights management technology or other rights management services or using full volume disk drive encryption.

This last is a baffling set of restrictions, but does not require a separate license for each VM.

Note that there is a lot of confusion on this subject, driven by the use of "Virtualization" both for server-side processing (for example Citrix, where you do need a license for each user) and for multiple VMs on the desktop (what I've been talking about).

- Bob

Posted by Bob Lewis on March 20, 2008 05:54 AM

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COMMENTS

Those restrictions aren't baffling at all. DRM "works" by creating an encrypted path from disk all the way through analog output (with engineers furiously working on closing the "analog hole"). Under virtualization, the Windows OS is handing off an unencrypted stream to what it thinks is an audio or video card, but could in fact be a recording application.

Microsoft hasn't been able to lock down the hardware yet -- despite their best efforts with Palladium. So they're using their standard Plan B: license terms and threats of legal action.

Posted by: Drew Kime at March 20, 2008 09:40 AM

Hi Bob,

The problem's not the hardware per se, but this line:

"You may install one copy of the software on the licensed device."

One *copy*. Since almost all virtual PC software requires a separate virtual hard disk, then placing the Office "bytes" in multiple locations counts as multiple copies. Doesn't matter if they're all on the same machine or not.

So Microsoft has you coming and going:

You can't place a copy of Office on a removable hard disk and ship it around different machines (multiple "devices"). Nor can you take a single machine and install Office multiple times on that piece of hardware.

Either way triggers the liability.

Posted by: Stephen at March 21, 2008 07:37 AM

Why all this angst about "locked down" PCs and running virtual machines.

Have a look at Ceedo (www.ceedo.com). BTW, I'm not associated with the company, I just thing they've "nailed" this problem.

As usual, technology solves all . . .

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