OEM vs Open License

Posted on 2005-04-14
Medium Priority
Last Modified: 2008-02-26
can anyone describe the terms OEM and Open License for me in a understandable way and provide some example?

tks in advanced!
Question by:InNoCenT_Ch1ld
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Accepted Solution

stengelj earned 500 total points
ID: 13787679
As simple as I can make it...

OEM stands for Original Equipment Manufacturer.  OEM licenses are available to resellers.  They can purchase licenses in volume, typically at a cheaper price than retail.  They use these licenses to pre-install software on computers when you buy them (and the price of the software is built into the price of the system).

Open Licence give businesses an opportunity to simplify purchases of a high volume of licenses.  Vendors, like Microsoft, offer these licenses to reward purchasing licenses in 'bulk'.  Typically, with an open license purchase, you would buy multiple licenses but only one installation disk.  This makes is more cost effective for large companies to purchase software and upgrades than going to the local Office Deport and buying 5,000 boxes of OfficeXP.

Make sense?

OEM is for retailers.
Open License if for volume buyers.
Retail is for consumers.

Expert Comment

ID: 13787711
It's really quite simple.
OEM is software that the code is not revealed and you pay to USE and INSTALL the software
in Open License you pay for the code, the use of the code, and permission to Install the software
In Open License, not only can you see the code, you can add/remove parts of the code as you see fit for your needs. In order to resell the code, that you may have tweaked, you must have changed at least 70% of the Open Source Code (the amount of code needed to be changed may be misquoted, I'm not really sure how much of the code must be changed, but I know it has to be a substantial amount).

So OEM - Install and use no changing of the code
Open License - Install, use, and ability to see and change the code

Windows XP is OEM
Linux is Open License

Expert Comment

ID: 13787720
Oops I was incorrect, I was under the understanding that it had to do with open source licensing - sorry disregard.
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Expert Comment

ID: 13787742
Oooooo! Good catch concretesailors,  I was just about to copy/paste/post....  

Your comment is good though as it discusses another type of licensing.

Whatever it's worth:
MS Open Licensing: http://www.microsoft.com/licensing/programs/open/default.mspx

Expert Comment

ID: 13787751
Thank you, InNoCenT_Ch1ld.

Don't know why, but I feel wierd writing that...hopefully the FEDs will read it in context.

Author Comment

ID: 13787784
tks guys for your comments ;)

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