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Windows XP pro license transfer from broken machine to a new machine?

Last Modified: 2013-11-17
I am not familiar with microsoft's license regulation.  I have a borken down laptop with xp pro and i need to transfer the license to a new machine.  Is it possible to use the license key of the broken laptop to a new machine?  Will I need to call microsoft to do the transfer?  Technically I purchase both the machine and the OS correct?
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