Windows 7 OEM (Original Equipment Manufacturer) versions are only available in preinstalled conditions on a new PC that you purchase. The system manufacturer (or assembler) will install the operating system for you and activate it before handing the PC over to you.
When you boot up the PC for the first time, you will have to agree with a negotiation between Microsoft and the manufacturer. The conditions of the agreement include the fact that any problem that occurs with the installation will be solved by the manufacturer, and Microsoft will not be responsible for providing free support. However, Microsoft will allow the owner to apply Automatic Updates and Security Updates to the operating system from the Microsoft website.
Windows 7 OEM versions are provided to system manufacturers and assemblers under certain agreements between the manufacturer and Microsoft. First off, the manufacturer can only install the Win 7 OEM version in a PC that he intends to resale to a customer. Installing the operating system for personal use is strictly prohibited by law.
Secondly, the OEM license will be locked into the PC in which it was installed for the first time. The operating system can be reinstalled in the same PC as many times as necessary, but the license cannot be transferred to another PC.
Critical components of the PC, most importantly the motherboard, cannot be upgraded once the Windows7 OEM version has been installed. Doing so will render the OEM license null and void. However, any peripheral and system components of lesser importance, such as the GPU, network card, modem, keyboard, and mouse may be freely upgraded at any time without risking loss of the Win 7 OEM license.
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