Product activation technology
Microsoft piloted product activation technology in seven countries, including the United States, when it launched the test and final-shipping versions of Office 2000.
Product activation, which is mandatory, is different from product registration, an optional process where consumers provide their names, product information and contact information.
Through activation, a Microsoft-run clearinghouse generates a random "installation ID." This installation ID is based off the product key used during setup and the hardware configuration in the PC, according to Microsoft.
The product activation technology detects the hardware configuration on which the product is being installed, but not through any kind of scanning of a customer's hard drive, Microsoft executives said. The technology does not register the make, model or manufacturer of the PC or peripherals attached to it. Nor does it register any of the software applications loaded on the customer's machine, Microsoft said.
Consumers will be able to change their hardware without having to reactivate the product, unless they "completely overhaul" their machines, at which time, reactivation may again be required, according to the company.
With the product activation feature in Office 2000, Microsoft allows customers to install one additional copy of Office on their laptops--in addition to their desktops--but requires a second activation and verification of the license.
Future Microsoft applications are expected to be similar. Microsoft executives said the addition of new software or software components won't result in customers needing to reactivate, but an install on a reformatted disk of a product activated product will require consumers to obtain a new ID.
All this sounds promising, but Microsoft still needs to win over sceptics, Gartner analyst Chris LeTocq said.
"It would be good for them to get third-party certification of the fact that they aren't collecting user data," LeTocq said, "but they probably don't want to risk that (product activation) algorithm being broken."
LeTocq added that Microsoft's product activation scheme is aimed at halting "casual copying" more than large-scale software piracy.
"Microsoft is in revenue maximisation mode right now," LeTocq said. "Casual copying by end users is what they're really fighting with this. And from a licensing standpoint, they have a right to do that."
