Retail licences can be moved to another PC you own and are supported by Microsoft. OEM licences are tied to the first PC they activate on and are supported by the PC maker or system builder. Volume licences (MAK or KMS) are for organisations buying under a Microsoft agreement. All three run the same Windows; the difference is the licence terms.
Written by the Softkeyworld technical team · Updated October 2026
"Is this an OEM key or a retail key?" is one of the questions we answer most often, and it deserves a straight answer. Microsoft sells the same Windows and Office software through several distribution channels, each with its own licence terms. The installation files are identical and the features of, say, Windows 11 Pro do not change between channels. What changes is where you can use the licence, who supports it, and how it activates. This guide explains each channel accurately, shows you how to check which one you have, and helps you decide which suits you.
Key takeaways
- Features are the same across channels for the same edition; licence rights are not.
- Retail = transferable to another device you own. OEM = stays with the first device.
- Volume licensing is designed for organisations and activates through MAK or KMS.
- Run
slmgr /dlito see which channel your Windows licence came from.
OEM vs retail vs volume at a glance
| Feature | Retail | OEM | Volume (MAK / KMS) |
|---|---|---|---|
| Intended buyer | Individuals and small businesses | PC makers and system builders, passed on with a new PC | Organisations under a Microsoft licensing agreement |
| Move to a new PC? | Yes, after removing it from the old one | No, it stays with the first device | Governed by the organisation's agreement |
| Who provides support | Microsoft | The PC manufacturer or system builder | Organisation's IT team, with Microsoft support per agreement |
| How it activates | Unique key, online or by phone; becomes a digital licence | Key embedded in firmware (pre-built PCs) or entered once | MAK (activation count) or KMS (local server, renews regularly) |
| Hardware change | Reactivate via the Activation troubleshooter | A motherboard swap is usually treated as a new PC | Handled by the organisation |
slmgr /dli shows |
RETAIL channel | OEM_DM, OEM_COA or similar | VOLUME_MAK or VOLUME_KMSCLIENT |
What is a retail licence?
A retail licence (sometimes called "Full Packaged Product" or FPP) is the version Microsoft sells directly to consumers, whether as a boxed USB stick or a digital key. Each key is unique and activates one PC at a time.
Transferability
The defining advantage of retail is portability. Under the Microsoft software licence terms, software acquired as stand-alone retail software can be moved to another device, provided it is removed from the first. In practice: when you replace your PC, you install Windows on the new one, sign in with the Microsoft account the licence is linked to, and use the Activation troubleshooter or re-enter the key. The old PC must no longer use it.
Support and who it suits
Microsoft supports retail licences directly. Retail suits anyone who upgrades or rebuilds PCs regularly, enthusiasts who change motherboards, and small businesses that want a licence to outlive one machine. A Windows 11 Pro retail key such as Microsoft Windows 11 Pro (Retail) is the most flexible option for a single user.
What is an OEM licence?
OEM stands for Original Equipment Manufacturer. These licences are made for companies that build and sell PCs, from large brands to small independent system builders. If you bought a laptop from Dell, HP, Lenovo or similar, it almost certainly came with an OEM licence for Windows 11 Home or Pro.
Pre-installed vs system builder OEM
On branded PCs, the key is stored in the firmware (the "OEM_DM" or digital marker) and Windows activates automatically, even after a clean reinstall. System builder OEM keys are entered by whoever builds the PC; once activated, the licence binds to that machine.
Transferability and support
An OEM licence is tied to the first device it is installed and activated on. You can reinstall Windows on that same PC as often as you like, upgrade the RAM, storage or graphics card, and it stays activated. Replacing the motherboard is generally treated as a new device, and the OEM licence does not move with you. Support comes from the PC maker or system builder, not Microsoft.
OEM suits you if you are building or refurbishing a PC you plan to keep for its working life and do not need to move the licence later. Our Windows 11 Pro OEM key is aimed at exactly that use.
What is a volume licence?
Volume licensing is how organisations license many devices at once, through Microsoft programmes such as Enterprise Agreements and the Cloud Solution Provider (CSP) programme. Instead of one key per PC, the organisation receives keys that activate many machines and manages them centrally. Two points are often misunderstood:
- For Windows desktop, volume licences are upgrade licences. Microsoft's volume activation planning documentation states that licences from volume programmes cover upgrades to Windows client operating systems only, so each PC needs a qualifying retail or OEM licence first.
- Some editions exist mainly in the volume channel. Windows Enterprise and Office LTSC Professional Plus are sold to organisations through volume licensing, whereas the retail Office 2024 line-up consists of editions such as Office Home 2024 and Office Home & Business 2024.
MAK activation
A Multiple Activation Key (MAK) works much like a retail key but allows a set number of activations, decided by how many licences the organisation holds. Each activation is a one-time online or phone check with Microsoft and is permanent for that installation. MAK is common in small offices and on isolated networks.
KMS activation
Key Management Service (KMS) uses a server inside the organisation's network. Clients activate against that server rather than Microsoft, renew every seven days by default, and must contact the KMS host at least every 180 days or they fall back to unactivated. A KMS host only starts activating Windows clients once at least 25 machines have requested activation (five for Windows Server). Larger organisations may also use Active Directory-based activation, which works on the same principle.
That 180-day renewal is why KMS is meaningless for a home PC: there is no legitimate KMS server on a home network. A home computer that reports "VOLUME_KMSCLIENT" and activates against an unknown server address is a strong sign of an unofficial activator, which we cover in our guide to the "Activate Windows" watermark and on our authentic software page.
How to tell which licence type you have
Windows: slmgr /dli
- Press Win + R, type
cmdand press Enter (admin rights are not needed for this command). - Type
slmgr /dliand press Enter. After a few seconds a Windows Script Host box appears. - Read the Description line, for example "Windows(R) Operating System, RETAIL channel".
| Description shows | Meaning |
|---|---|
| RETAIL channel | Retail key or a retail-based digital licence (including Microsoft Store upgrades) |
| OEM_DM channel | Pre-installed by a PC manufacturer, key in firmware |
| OEM_COA_NSLP / OEM_COA_SLP | OEM licence from a certificate of authenticity or system builder |
| VOLUME_MAK channel | Volume licence activated with a Multiple Activation Key |
| VOLUME_KMSCLIENT channel | Activated by a KMS host; expected on corporate PCs only |
For more detail, slmgr /dlv adds the activation ID and remaining counts, and slmgr /xpr tells you whether activation is permanent or expires on a date. A permanent retail or OEM licence shows "The machine is permanently activated".
Office: ospp.vbs and the Account page
For perpetual Office versions, run an elevated Command Prompt, move to C:\Program Files\Microsoft Office\root\Office16 (or the Program Files (x86) equivalent for 32-bit Office) and run cscript ospp.vbs /dstatus. The LICENSE NAME line includes words such as "Retail" or "KMS" or "MAK", and the LICENSE STATUS should read "---LICENSED---". Microsoft documents ospp.vbs for volume-licensed Office; Microsoft 365 subscriptions use a different licensing method, so check those under File > Account instead.
Which licence type should you choose?
| Your situation | Best fit | Why |
|---|---|---|
| You upgrade or replace your PC every few years | Retail | Licence moves with you |
| Building one PC to keep for its lifetime | OEM | Transfer rights are not needed |
| Already on Windows 11 Home, want Pro features | Home to Pro upgrade | No reinstall; keeps your apps and files |
| Business with many PCs and an IT team | Volume licensing | Central management, MAK/KMS, Enterprise editions |
If you are already running Windows 11 Home, the Windows 11 Home to Pro upgrade key is usually the simplest route: you enter it under Settings > System > Activation and Windows switches edition in place.
Digital licences: where the channels meet
Since Windows 10, a successful retail or OEM activation creates a digital licence: a record on Microsoft's activation servers tied to your hardware. That is why a PC can reactivate on its own after a clean install, without you typing a key again. If you sign in with a Microsoft account, the digital licence is also linked to that account, which makes the Activation troubleshooter far more useful after a hardware change.
The digital licence keeps the rights of the channel it came from. A retail licence linked to your account can be moved to a new PC with the troubleshooter's "I changed hardware on this device recently" option; an OEM one linked the same way still belongs to the original machine. Linking an account is always worth doing, but it does not upgrade the licence type.
What to check before you buy any key
- The licence type is stated clearly on the product page, not hidden in small print.
- The edition matches what you will install. A Windows 11 Pro key will not activate Windows 11 Home, and a key for one Office edition will not activate another.
- Installation comes from Microsoft. A reputable seller points you to official Microsoft downloads, never to modified ISOs or "pre-activated" images.
- There is a named company, a support address and a returns policy you can actually use if activation fails.
Common myths
- "OEM Windows is a cut-down version." False. Windows 11 Pro OEM and Windows 11 Pro retail are the same edition with the same features and the same updates.
- "OEM keys stop working after a while." A properly activated OEM licence is permanent on that device. What ends it is replacing the motherboard.
- "Any key that activates is legitimate." Not necessarily. Activation confirms a key is valid in Microsoft's systems, not that it was sold to you under the right terms. Buy from a seller who explains the channel and supports you if a problem appears.
- "KMS activation is fine at home." KMS is designed for corporate networks. Third-party "KMS activators" are unauthorised tools, and security software frequently flags them as hacktools.
Frequently asked questions
Can I transfer an OEM Windows licence to a new PC?
No. OEM licences are tied to the first device they are activated on. You can reinstall on the same PC and upgrade most components, but a new PC or a new motherboard needs a new licence.
Is a retail key better than OEM?
It is more flexible, not better software. Choose retail if you expect to move the licence to another device; OEM is fine for a PC you plan to keep.
What is the difference between MAK and KMS?
MAK activates each PC once with Microsoft, using up one of a fixed number of activations. KMS activates PCs against a server on the organisation's network and must renew at least every 180 days.
How do I check if my Windows is OEM or retail?
Open Command Prompt and run slmgr /dli. The Description line shows RETAIL, OEM or VOLUME.
Does the licence type affect Windows updates?
No. Retail, OEM and volume installations of the same edition receive the same updates through Windows Update.
Can I link an OEM licence to my Microsoft account?
Yes. Signing in with a Microsoft account links the digital licence to it, which helps you reactivate on the same PC after a repair. It does not add transfer rights to an OEM licence.
Our recommendation
Decide first whether you will ever need to move the licence. If yes, choose retail; if the PC is a long-term machine, OEM is perfectly adequate; and if you manage a fleet, talk to a Microsoft licensing partner about volume agreements. Every product page in our catalogue states the licence type, and if you are unsure which fits, email support@softkeyworld.com or use our contact page before you buy.
Browse genuine Microsoft licences
Related reading
| Resource | Why read it |
|---|---|
| Authentic software | How we source and verify the licences we sell |
| Windows 11 Pro (Retail) | Transferable licence for users who change PCs |
| Windows 11 Pro OEM key | Single-device licence for new builds |
| Remove the "Activate Windows" watermark | What to do when activation fails or lapses |