Glossary

OEM License

A license originally shipped together with a device. It is tied to that product version and activated with a product key.

Retail License (FPP)

A standalone, freely tradable single-seat license (Full Packaged Product). It can be used independently of the original hardware.

ESD (Electronic Software Distribution)

Purely digital delivery of software via download and license key, without a physical medium.

Perpetual License

A one-time purchase that grants permanent use of a specific product version, such as Office 2021 or Office 2024.

Subscription License (Microsoft 365)

A recurring rental license billed monthly or yearly. It includes ongoing feature updates while the subscription stays active.

Product Key

The 25-character license key used to activate a Microsoft product.

Activation

The process that validates a license with Microsoft and permanently unlocks the product.

Exhaustion Principle

The legal principle under which a software license first placed on the EU/EEA market with the rightholder's consent may be resold (CJEU C-128/11, confirmed by German Federal Court I ZR 8/13).

Pre-owned Software

Software that was licensed before and is lawfully passed on to a new buyer.

CAL (Client Access License)

An access license that lets a user or device connect to a Windows Server service.

General information, not legal advice. Microsoft, Office and Windows are trademarks of Microsoft Corporation; Keywi24 is an independent provider.