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Windows XP Preview
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Product Activation is probably one of the more controversial features of Windows XP. The concept of requiring a unique code to be entered into the operating system before allowing complete and unrestricted use might appear to some that Microsoft might have other intentions. However, the sole purpose of Product Activation is to ensure that each copy of Windows XP is a legal one. This page will go into some detail about how Product Activation works, and will hopefully remove some of the myths about it.
First, Product Activation and Registration are two different processes. Product Activation asks for no information from the user. Also, you can wait up to 30 days after installing Windows XP before you will be required to activate. Of course, the ability to activate your copy of Windows XP is offered as soon as installation is done. What might blur the line between the two is the fact that you are offered the ability to register right after you have activated. Registration is optional - Product Activation is required.
How It Works
There are actually two codes involved in Product Activation. The first is sent from your computer to Microsoft, and contains a number of pieces of information. The second is sent back from Microsoft over the 'net, or entered into the OS, should you be activating by phone.
The information sent to Microsoft contains non-identifying information about your system. It's only a few characters long, so it can't hold a complete inventory of your computer. Included in this string are parts of your Hard Drive serial number (which changes when you format), part of the MAC address if you have a network card, the amount of memory in your computer, and some other items too.
Why is that information needed, you might ask. These days, some people might install Windows on one hard drive, then copy that drive to another drive and put it in another computer, resulting in an unlicensed copy of Windows. But because Product Activation keeps an eye on your system's specs, if 3 or 4 of the items it tracks change, then Product Activation kicks in again, and this time, you can't just activate over the 'net - You have to call Microsoft and explain. This gives them the opportunity to explain to you that you're not allowed to install the OS on more than one computer unless you have more than one CD key - the code you enter during setup.
Of course, if you happen to upgrade your computer and over time change 3 or 4 of the things it tracks, then you will have to reactivate as well, but then you have a legitimate reason for reactivating - you were upgrading your hardware.
If you would like a complete technical look at Windows Product Activation, including information on how the data about your computer that is sent to Microsoft isn't completely identifiable and what system specs are kept track of, check out the Fully Licensed Windows Product Activation paper. This document covers everything you ever wanted to know about Windows Product Activation, and even has some test utilities to verify their claims.
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