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8/4/2019 SAM Proof of License Guide 0326[1]

http://slidepdf.com/reader/full/sam-proof-of-license-guide-03261 1/15

 

8/4/2019 SAM Proof of License Guide 0326[1]

http://slidepdf.com/reader/full/sam-proof-of-license-guide-03261 2/15

 

2

Table of Contents

Overview and How to Use This Guide ............................................................................................................................................ 3 Licensing Microsoft Technology ....................................................................................................................................................... 3 

Preinstalled ............................................................................................................................................................................................ 4 Volume Licensing ............................................................................................................................................................................... 5 

Open License Agreement ........................................................................................................................................................... 5 Open Value Agreement .............................................................................................................................................................. 6 Select License Agreement and Enterprise Agreement .................................................................................................. 6 

Proof of License Table ........................................................................................................................................................................... 7 Glossary ..................................................................................................................................................................................................... 14 Useful Resources ................................................................................................................................................................................... 15 

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Overview and How to Use This Guide

As part of any successful software asset management project, it is important that you understand the

various ways in which your customers acquire and use Microsoft® software, as well as the rules that govern

the use of that software, and the best ways of documenting that the software has been correctly licensed.

This guide will help you to evaluate your customers’ software licenses, and to advise your customers onhow to reduce the risks associated with either mislicensing or acquiring and deploying non-genuine

products. This guide will help you to understand the many ways in which Microsoft technology is

acquired, and what documentation should be considered as ―evidence‖ of proper licensing during

Software Asset Management (―SAM‖) reviews. This guide is intended for use only in connection with SAM

engagements. As you probably know, there are specific legal requirements to prove that someone is

licensed for a particular software title. The ―proof of licensing‖ standards set forth in this guide are not

actual legal proof of licensing requirements under audit standards. SAM engagements are not audits.

Most Microsoft End-User License Agreements (EULAs) that accompany retail and preinstalled software set

forth the requirements for the proof of licensing of that specific product. The content in this guide doesnot replace or supersede the EULA. The ―proof of licensing‖ guidelines in this document were drafted in

anticipation of the relatively limited amount of time a SAM advisor has to review a customer’s licensing

history in order to formulate the customer’s licensing position. 

Different products and versions of those products may have specific requirements for proving that they

are correctly licensed. Some retail and preinstalled (or original equipment manufacturer (―OEM‖)) products

today (and more in the future) use a single-proof-of-

license methodology that relies only upon the 5 × 5product key on the OEM Certificate of Authenticity

(―COA‖) or the 5 × 5 product key on the retail product key

label as proof of license. At the end of this guide, you will

find tables that illustrate the primary and secondary

sources that can be used to evaluate customers’ licensing

positions during a SAM review.

Licensing Microsoft TechnologyThere are various options for licensing Microsoft software, including retail (full packaged product),

preinstalled (OEM), and Volume Licensing agreements. Each has its unique requirements for providing

proof of license. Maintaining proof of license records will not only bolster your customers’ software asset

management (SAM) practices, but can also be used during a Microsoft-sponsored SAM engagement.

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A software license grants the user the right to run or access a software program. Licensing software is not

the same as purchasing a car or house – customers are not buying the software itself. Rather, they are

buying a license that sets forth the way in which the software may be used, along with various restrictions,

such as those relating to the transferability of software licenses, or to a customer’s ability to downgrade to

an earlier version of the software. The nature of these rules and restrictions varies according to the

software title and the type of software—preinstalled, retail or volume licensing software.

Preinstalled—New PCs are commonly purchased with software already installed by the original

equipment manufacturer (OEM). The Windows®desktop operating system and Microsoft

Office are frequently purchased in this way. The initial version of the Windows operating

system license is only available through two channels – as preinstalled OEM software or as

retail ―full packaged product (FPP) software. There are no Microsoft Volume Licensing

programs that provide the initial full version of Windows. Volume Licensing agreements provide only a

means of upgrades, and require a full underlying version of the software for each upgrade1.

When the PC comes with Microsoft software preinstalled, the purchaser should also receive an

accompanying Certificate of Authenticity (COA) with the 5 × 5

product key. For Windows, the COA will be affixed to the PC. For

preinstalled applications, including Microsoft Office, the COA will be

affixed to the packaging containing the software media or disc. A

COA helps identify genuine Microsoft software, but is not a software license as such. Purchased by itself,

or ―stand-alone,‖ a COA has no value. When purchased with the appropriate software and components, a

COA is one of a number of visual identifiers that assist in determining whether or not the Microsoft

software running on the PC is genuine. Without the COA, it cannot be known conclusively whether the PC

is running genuine software.

For Windows XP SP2, Windows Vista®, and the OEM versions of Microsoft Office XP, Microsoft Office

2003, and the 2007 Microsoft Office system, the only proof of license required in the context of a SAM

license review is the COA, which includes the 5 × 5 product key. Refer to the table at the end of this guide

for many other preinstalled Microsoft software requirements in addition to the COA, and how they relate

to various products. These proof of licensing requirements may include the EULA, software media, and an

invoice or receipt for the purchase of the licensed software. If a question arises as to what are the

licensing requirements under a particular EULA, copies of the EULAs can be found online at

www.microsoft.com/about/legal/useterms. The EULA provides the terms and conditions of use to whichthe end user agrees before using the software.

1As a one-time option through Volume Licensing, a customer can sign a Get Genuine Windows Agreement to properly obtain a

full version of Windows XP in a mislicensing scenario.

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Retail—Retail software (FPP) is traditionally shipped in a shrink-wrapped box or plastic case. Customers

can purchase FPP from a store or from an online retailer. Customers who purchase retail

software usually do so because they are purchasing in relatively small quantities.

The retail packaging for current Microsoft software versions will include a box

top COA to assist with authentication and product identification and a 5 × 5 product key―Proof of License‖ label. Retail versions of Windows, Microsoft

Office, and many other products2 also contain media with edge-

to-edge holograms. In addition, the retail package will indicate the

appropriate geographic area of sale for that particular software3.

For the retail versions of Windows XP SP2, Windows Vista,

Microsoft Office XP, Microsoft Office 2003, and the

2007 Microsoft Officesystem, the 5 × 5 product key is

considered to be proof of license. Refer to the table at the end of this guide for many other Microsoft

software proof of licensing requirements in addition to the 5 × 5 product key. These may include the

EULA, software media, and an invoice or receipt corresponding to the purchase of licensed software.

Volume Licensing—Microsoft Volume Licensing offers programs that are designed to meet the needs of 

your customers’ businesses. These agreements are tailored according to the size and

purchasing preferences of your customers, and they provide simple, flexible, and

affordable licensing solutions. The primary volume licensing programs are Open License, Open Value,

Select License Agreement, and the Enterprise Agreement. Specific programs for academic institutions and

government entities also exist, in addition to regional offerings. Please note that the Microsoft Volume

Licensing programs do not provide the initial full version of Windows, but only provide an upgrade thatrequires that a full version already be licensed on the PC4. Set forth below is a brief description of each of 

these volume licensing programs. 

Open License Agreement —A volume purchasing plan for small businesses, offered as an alternative to

purchasing software through the retail channel. With a one-time initial purchase of five licenses for one or

more products, customers can continue to purchase single quantity orders of any product available

through the Open License program at volume pricing.

A benefit of the Open License program is access to the eOpen Web site at https://eopen.microsoft.com, 

where customers can view the terms of their agreement and their history of order confirmations. This

2 Visit www.microsoft.com/resources/howtotell/listview.aspx?displaylang=en  to view all Microsoft products and their visual piracy

prevention features.3 A parallel import is sometimes referred to as ―gray market‖ software. It’s software that was intended for distribution in a country other

than the one in which it is found.4 As a one-time option through Volume Licensing, a customer can sign a Get Genuine Windows Agreement to properly obtain a full

version of Windows XP in a mislicensing scenario.  

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agreement and order confirmation history represent the customers’ proof of license. In regions where

eOpen is not available, customers will receive paper order confirmations. For customers with older Open

License agreements, they may have a cover page to confirm their license purchases (this applies to

agreements that predate the 6.x version of our volume agreements). These paper confirmations are

considered proof of licensing for these older agreements.

Open Value Agreement —A volume purchasing plan that enables small to midsize organizations with fewer

than 250 PCs to use and manage Microsoft software licenses under a single agreement. Open Value offers

simplified license management, better control over customers’ investment, and better management of 

software costs.

A benefit of the Open Value program is access to the Microsoft Volume Licensing Services (MVLS) Web

site at https://licensing.microsoft.com, where customers can log on to view their history of volume license

order confirmations. Customers’ signed agreements, order confirmation history, and evidence of payment

represent their proof of license under this program.

Select License Agreement and Enterprise Agreement —A volume purchasing plan for organizations with

more than 250 PCs. The Select License program is priced based on a customer’s forecasted level of 

purchasing. Customers sign Select License agreements, and then purchase their licenses under those

agreements. The agreements themselves do not specify the number of licenses purchased, but do

forecast the volume of licenses to be purchased. The Enterprise Agreement helps customers standardize

IT across the enterprise, simplifies license management, and provides maintenance benefits to help ensure

that customers maintain a competitive advantage and increase employee productivity. The Enterprise

Agreement provides a specific number of licenses for a specified range of software titles and is ―trued up‖

annually to adjust the numbers of licenses needed. Both of these programs are only available through theLarge Account Reseller (LAR) or Enterprise Software Advisor (ESA) channels.

A benefit of the Select License program and the Enterprise Agreement is access to the Microsoft Volume

Licensing Services (MVLS) Web site at https://licensing.microsoft.com, where customers can log on to view

their history of volume license order confirmations. Customers’ signed agreements, order confirmation

history, and evidence of payment represent their proof of licensing under these programs. For licenses

acquired prior to the 6.x version of our volume agreements, the license confirmations would have been

received by the customer in paper form.

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Proof of License Table

Listed below are two types of ―evidence‖ of licensing for various types of Microsoft OEM and FPPsoftware—―primary‖ evidence and ―secondary‖ evidence. The primary evidence indicates proof of 

licensing for the purposes of the SAM license review. The secondary evidence components are secondary

sources we can look to when customers do not have any primary evidence, or when we need information

to supplement the primary evidence a customer provides. By itself, secondary evidence may not always

serve as adequate proof of licensing. However, we have to realize that customers may have misplaced

their primary evidence, even though they are properly licensed. Considering supplemental, or secondary,

evidence allows us to do all we can to help customers show that they are licensed during a SAM

engagement. For example, an invoice might help us track down the proof of licensing from the source

of the software.

If a customer had purchased systems from Dell, for example, and the invoice reflects that the systems

were purchased with OEM Windows, then that invoice would help us to confirm that the systems were

initially properly licensed. Similarly, if the invoice reflects that a customer purchased stand-alone EULAs

for Microsoft software, then the invoice would help us to determine that the customer is not

properly licensed.

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Product ChannelPrimary

Evidence

Secondary

EvidenceProduct ID Checks

Microsoft

Office

Microsoft

Office4.2/4.3

to

Microsoft

Office 95

Retail EULA

Retail box withCOA, CD sets,

floppy disks,

invoices

If you find large numbers of FPPEULAs or CD sets always ensure they were

originally shipped as complete boxed

products.

Microsoft

Office

4.2/4.3 to

MicrosoftOffice 95

OEM

Green generic

COA on CD

sets/manuals

CDs, manual,

invoices

Always ensure OEM is still installed on

original PC, or was when upgrades were

applied. No need to count if they aren’t

being used as underlying licenses. A

common infringing offering is a combination

of Retail and OEM components that would

not result in a licensed installation. Look out

for an “OEM” CD set consisting of an OEM

COA on the front, but a Retail CD Key label

on the rear.

Microsoft

Office 97 Retail

EULA or Microsoft

License Pak

(“MLP”) 

agreement

Retail box with

COA, CD sets,manual, invoices

Common counterfeit. Look out for large

numbers of FPP EULAs or CD sets. Check

whether components were supplied “stand-

alone.” Check CD has Mould/Master IFPI

codes. Look out for EULAs with no Work

Order and Stock Keeping Unit references

and the part number 91073 on therear/bottom left of the EULA, especially

outside North America. Also, check WO

number on Microsoft License Paks. High

numbers could indicate risk of counterfeit.

Invoices should not indicate loose

components, like CD sets or EULAs.

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Product ChannelPrimary

Evidence

Secondary

EvidenceProduct ID Checks

Microsoft

Office

Microsoft

Office 97

OEM

Green generic

COA on CD

sets/manuals

CD sets,

manual, invoices

Common counterfeit. Make sure CD set

includes OEM CD, not retail CD. Liners will

be black and white. Look out for OEM/Retail

component mix, namely an OEM COA and

retail CD key. Check CD has Master/Mould

IFPI codes. Should be no CD key label on

 jewel case. Generic COA must be attached

to CD set/manual to confirm product.

Microsoft

Office

2000

Retail EULA

Retail box with

COA, CD sets, or

invoices

Common counterfeit, Professional and

Premium. Conduct tear test on interwoven

thread of EULA. Check CD has Master and

Mould IFPI codes. Look out for L826 master

IFPI (especially outside Asia Pacific) and

OEM/Retail component mix, normally Retail

CD set with OEM CD. Invoices should not

indicate loose components, like CD

sets or EULAs.

Microsoft

Office

2000

OEM

ICC manual or

COA label on

cardboard slip

CD sets,

manual, invoices

Common counterfeit, especially

Professional. Check ICC for genuine

interwoven thread using tear test. Check

CD has Master/Mould IFPI codes. Look out

for L826 master IFPI code (especially

outside Asia Pacific). Invoices should not

indicate loose components, like CD sets or

 “licenses.” 

Microsoft

Office XPRetail

5 × 5 product

key label

on CD set

Retail box with

COA, CD, manual

insert, invoices

Check E2E hologram CD for Mould

IFPI code and ensure E2E hologram is

not a label.

Microsoft

Office XPOEM

5 × 5 product key

on COA on

cardboard slip

CD, invoices

Check E2E hologram CD for Mould IFPI

code and ensure E2E hologram

is not a label.

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Product ChannelPrimary

Evidence

Secondary

EvidenceProduct ID Checks

Microsoft

Office

Microsoft

Office 2003

Retail

5 × 5 product key

label on CD set

(DVD case)

Retail box with

COA, CD, manual

insert, invoices

Check E2E hologram CD for

Mould IFPI code and ensure E2E hologram

is not a label.

Microsoft

Office 2003OEM

5 × 5 product key

on COA on

cardboard slip

OEM CD set,

manual, invoices

Common counterfeit. Check E2E hologram

CD for Mould IFPI code and ensure E2E

hologram is not a label. Make sure

interwoven strip for COA is not simulated

and properly threaded. Take sample COA

numbers (14 digit) if in doubt.

Microsoft

Office 2007Retail

5 × 5 product

key label on

plexiglass case

Plexiglass case with

COA, CD, manual

insert, invoices

Check edge-to-edge (“E2E”) hologram

CD for Mould IFPI code and ensure E2E

hologram is not a label. The 5 × 5 product

key label should be an interwoven or

submerged strip.

Microsoft

Office 2007OEM

5 × 5 product key

on COA, on

cardboard slip

(DOEM) or inside

media less kit

(MLK) (System

Builder only) DVD

case

OEM CD set inside

cardboard slip

(DOEM) or MLK as

DVD case (SB),

invoices

Common counterfeit. Check E2E hologram

CD for Mould IFPI code and ensure E2E

hologram is not a label. Make sure

interwoven strip for COA is not simulated

and properly threaded. Take sample COA

numbers (14 digit) if in doubt. MLK

should not have CD. If it does,

authenticate E2E CD.

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Product ChannelPrimary

Evidence

Secondary

EvidenceProduct ID Checks

Microsoft

Windows

Windows

95/Windows

98/Windows

NT® Workstation

Retail EULA

Retail box with

COA, CD sets,

manual, invoices

If you find large numbers of FPP EULAs

always ensure they were originally

shipped as complete boxed products.

Windows 95/

Windows 98/

Windows NT

Workstation 

OEM

Green generic

COA on manual,

or Integrated

Certificate of 

Authenticity

Cover (“ICC

manual”),

or PC COA label

CDs, EULA,

manual, invoices.

(For PC COA

label version

only, you can

accept invoices or

purchase records

to confirm license

counts and

use COAs

(representative

PC sampling) as

corroboration.)

Common counterfeit is Windows 98 SE.

Check ICC for genuine interwoven thread

using tear test. Check CD has

Master/Mould IFPI codes. Look out

for L826 master IFPI code strain for

Windows 98 SE (especially outside

Asia Pacific). Conduct tear test on

interwoven thread on original pink/green

COA Labels. For E2E Windows 98 CDsensure E2E hologram is not a label and

Mould IFPI code is present. Take sample

COA numbers

(14 digits). Only count Windows OEM

if it is still installed on original PCs. Focus

on System Builder channel Windows 98

SE, which has “D” on COA. You should

never find loose COA Labels.

Windows2000/ME

Retail EULA

Retail box with

COA, CD sets,

manual, invoices

Conduct tear test on interwoven thread

of EULA. Check CD for Mould IFPI code

and ensure E2E hologram is not a label.

Windows

2000/MEOEM

PC COA label with

5 × 5 product key

for sampling/

corroboration

CDs, manual, and

to be practical in

SAM license

review scenario

use

invoices/purchase

records for

overall license

count

Common counterfeit. Conduct tear

test on interwoven thread on original

pink/green COA labels, record sample

COA numbers. Blue silver COA labels are

common counterfeit too. Record sample

COA numbers and product keys if in

doubt. Focus on System Builder channel

(not DOEM) for counterfeit.

Windows XP Retail5 × 5 product key

label on CD set

Retail box with

COA, CD, manual

insert, invoices

Counterfeit possible. Check edge-to-edge

(E2E) hologram CD for Mould IFPI code

and ensure E2E hologram is not a label.

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Product Channel Primary Evidence  Secondary Evidence  Product ID Checks 

Microsoft

Windows

Windows

XPOEM

PC COA label with 5 ×

5 product key for

sampling/corroboration

CDs, manual, and to be

practical in SAM license

review scenario use

invoices/purchase

records for overall

license count

Common counterfeit. For

sampling, blue silver COA labelsare common counterfeit. Record

sample COA numbers and

product keys if in doubt. Conduct

tear test checks on interwoven

thread of “Porky” and “Porthole” 

and “Ranger” COA labels. Each

porthole should be unique, with

interwoven thread. Focus

sampling on System Builder

channel. DOEM will be branded.

Record sample COA numbers.

You should never find loose COA

Labels.

Windows

Vista Retail

5 × 5 product key on

plexiglass case

Plexiglass case with

COA, CD, manual

insert, invoices

Check E2E hologram CD for

Mould IFPI code and ensure E2E

hologram is not a label. The 5 ×

5 product key label should be an

interwoven or submerged strip.

Windows

Vista OEM

PC COA label with 5 x 5

product key

CDs, manual insert

in DVD case; for

sampling/corroboration,

and to be practical in

SAM license review

scenario use

invoices/purchase

records for overall

license count

Counterfeit possible. For

sampling, conduct tear test on

interwoven thread of “Porky” and

 “Ranger” COA labels. Counterfeit

Porky COA label has red

interwoven strip, when it should

be silver. Each porthole should

be unique, properly interwoven.

Focus sampling on System

Builder channel. DOEM “Ranger” 

COA will be branded. Record

sample COA numbers. You

should never find loose COA

labels. Check E2E hologram CD

for Mould IFPI code and ensure

E2E hologram is not a label.

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Product ChannelPrimary

Evidence

Secondary

EvidenceProduct ID Checks

Microsoft

Windows

Server

Windows

NT Server

4.0

Retail EULA and CAL

Retail box with

COA, CD sets,

manual, invoices

Common counterfeit, shipped as loose

components or complete boxed product. If you

find large numbers of FPP EULAs, always ensure

they were originally shipped as complete boxed

products. Check CDs (all 4) have Mould/Master

IFPI codes. If the customer is outside of North

America, look out for items marked For

U.S./Canada only, as they are often counterfeit.

Windows

NT Server

4.0

OEM

Green generic

COA on

manual, or

ICC manual,

or COA label

CDs, floppy

disks, EULA,

manual

or invoice

Not a common counterfeit. Be wary of unlicensed

second-hand usage, where OEM software from

one system is moved to another one.

Windows

2000ServerRetail

EULA or 5 × 5

product key

label on CD

set as the

 “license,” plus

paper CAL

Retail box with

COA, CD,

invoices

Less common counterfeit. If you find large

numbers of FPP EULAs, always ensure they were

originally shipped as complete boxed products.

Windows

2000ServerOEM

PC COA label

with 5 × 5

product key

CD, manual,

invoices; Forcorroboration,

look to invoices

or purchase

records

Less common counterfeit. For sampling, conduct

tear test on interwoven thread of “Porky” and

 “Porthole” COA Labels. Focus sampling on System

Builder channel for counterfeit. DOEM will be

branded. Record sample COA numbers.

Windows

Server

2003

Retail

5 × 5 product

key on CD set

as the

 “license,” plus

paper CAL

Retail box with

COA, CD,

invoices

Counterfeit not likely. Check E2E hologram

CD for Mould IFPI code and ensure E2E hologram

is not a label. Paper CAL should be present too.

Windows

Server

2003

OEM

PC COA label

with 5 × 5

product key

CD, manual

invoices; for

sampling/

corroboration,

invoices/purchas

e records for

overall license

count

Counterfeit possible. For sampling, conduct tear

test on interwoven thread of “Porky” and

 “Porthole” COA labels. Focus sampling on System

Builder channel for counterfeit. DOEM will be

branded. Record sample COA numbers. You

should never find loose COA labels.

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Glossary

Certificate of Authenticity (COA)—The COA is a label that is affixed to the packaging or to the computer in the case

of preinstalled Windows software. It is one of a number of visual identifiers that assists in determining whether or not

the Microsoft software running on the PC is genuine.

End-User License Agreement (EULA)—This is the agreement between Microsoft and the end user, providing the

terms under which the end user may use the software. Frequently, the EULA will be agreed to by the end user upon

first attempted use of the software. The language from the EULA is available on line at

www.microsoft.com/about/legal/useterms. 

Full packaged product (FPP)—Microsoft software purchased from retail sources, such as a store or an online retailer.

It is packaged in a box or, more recently, in plastic packaging. FPP software is sometimes called ―retail‖ software. The

license agreement for FPP software permits it to be taken off of one computer and moved to another. The licensing

terms for OEM software do not permit the software to be moved from one computer to another.

Get Genuine Windows Agreement—This is a volume license agreement to help a customer correct Windows XP

Professional desktop licensing deficiencies. This agreement is available through Microsoft Volume Licensing

corporate programs. This agreement is available to corporate customers only, and not to academic or

government customers.

ICC Manual—A manual that has an integrated Certificate of Authenticity on its cover. This is an older version of the

OEM COA, and was used for Windows 98 and Microsoft Office 2000.

License—An agreement by the owner of the intellectual property to permit the use of a particular version of software

by an end user or a licensed entity.

Mislicensing—This term is used by Microsoft to refer to instances where customers do not have the proper licensing

to run the software they are using. Examples of mislicensing include using a volume license agreement as the basis

for an installation of the full version of Windows software, or using academic licensing when a customer is not a

qualified academic customer.

Original equipment manufacturer (OEM)—Entity that builds computers or servers, often providing preinstalled

software, such as the Windows desktop operating system, with new computers it builds.

IFPI Codes – The International Federation of the Phonographic Industry. Each genuine Microsoft CD-ROM has a

mould and a master IFPI code. The mastering code is put on by the machine that creates the master from which all

the CD-ROM’s are stamped. The mould code is a manufacturing code which is machine tooled onto part of the

mould that CD-ROM’s are pressed in. Microsoft has required all of its authorized replicators to produce discs withboth these codes since January 1996.

E2E Hologram - A genuine Edge to Edge (E2E) hologram is embedded into the CD-ROM during the manufacturing

process and is not a label.

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Useful Resources

Microsoft Software Inventory Analyzer: www.microsoft.com/resources/sam/msia.mspx

Microsoft How-to-Tell site: www.microsoft.com/resources/howtotell/ 

Review policies and procedures for SAM: www.microsoft.com/resources/sam/Implementing_Policy.mspx 

Implementing SAM into your business: www.microsoft.com/resources/sam/Implementing.mspx

Learn more about Microsoft Volume Licensing: www.microsoft.com/licensing 

Learn more about software piracy: www.microsoft.com/piracy

SAM training material and practical tools: http://partner.microsoft.com/sam2

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