truths about product activation 1 september, 2001 by johnmichael patrick monty monteith

The controversy over Microsoft's Product Activation feature is continuing to grow as the release date for Windows XP approaches. So much so that Microsoft took a few minutes of their precious time from taking over the world to try to convince a few people that the Product Activation is a good thing. Here is the link to Microsoft's lovely propaganda:

Top 10 Myths About Product Activation

As you might expect, we here at Sanitypages.com have a different interpretation of the Product Activation feature. Rather than write a long piece about how awful it is (which we already have), we will respond to each one of their questions and answers. We hope you enjoy it. Most of all, we hope Microsoft is reading:

Myth #1: "Product activation will hamper corporate customers' deployment of software."

Microsoft Response:
Actually, corporate customers should only be minimally impacted, if at all. Licenses acquired by customers through one of Microsoft's volume licensing programs will not require activation.

Our Response:
This completely ignores that fact that Microsoft essentially forces companies to pre-install OEM versions of their products on machines. Most corporations will not go through the trouble of upgrading machines. What they do is buy new ones, and new ones pre-installed with the operating system and Microsoft Office OEM. Do these products use Product Activation? Yes. And what happens when a corporate I.T. Department sitting behind a strong firewall tries to use Product Activation? It fails because most firewalls will block it. So, then anytime a corporate customer reinstalls these products they may be forced to call Microsoft, a significant impediment in the installation process. In addition, we have found that often even after calling and getting the authorization code the installation will still fail. One time we were forced to completely format the computer in order to correct the problem. Not even Microsoft Tech Support could fix the issue.

And this does not impact corporate customers?

The truth of the matter is that the only way a corporate customer would not be impacted by Product Activation is to uninstall all OEM product from all of their machines and install all open license software. Of course, that means corporate customers will be purchasing these products TWICE. But, that is the only way to avoid the time consuming nature of Microsoft's Product Activation.

Which raises a very important question: Was the decision to use Product Activation to protect their software, or to force companies to buy the product twice?

Myth #2: "Product activation is an invasion of privacy."

Microsoft Response:
Microsoft absolutely respects the privacy of its customers and does not ask for any personally identifiable information to activate a product. Product Activation is completely anonymous.

Our Response:
Microsoft is proceeding from the perspective that if no personally identifiable information is transmitted that your privacy has not been invaded. Admittedly, if Microsoft wanted to they could track IP/MAC addresses sent on the packets with the product information and often trace it back to you. But, that is the nature of the Internet, so we all blindly accept that this is not an invasion of privacy.

Bottom line is that there is no way to activate anything on the Internet without some risk of invasion of privacy. Just the fact that they are sending information over the Internet is an unnecessary risk.

Furthermore, even if we ignore the potential risk, the bottom line is that Microsoft is tracking what you are doing. Maybe they will not track it back to you personally, but their servers know every time you reinstall their software. To put this in another light, if someone knew every time you were cooking in your house and was tracking that behavior, but did not know it was specifically you, would you consider that an invasion of privacy? Now add to the question that someone out there somewhere may be able to trace that back to you? Is this still not an invasion of privacy?

Myth #3: "So it's anonymous, but you are still requiring information about the make and model of my PC."

Microsoft Response:
To ensure the end user's privacy, Microsoft uses a one-way mathematical algorithm to create the hardware hash used by Product Activation to create the Installation ID. Once created, the hash information cannot be calculated back to its original values. Hardware information is sent through the algorithm in the software on the PC - not at Microsoft - to create the hash. The raw hardware information is not known or sent to Microsoft. Ensuring end user privacy is a No. 1 design goal for Microsoft with Product Activation.

Our Response:
This is without question a lie. The number one design goal of Product Activation is to stop piracy. If the number one design goal was user privacy, there would be no Product Activation.

But, I digress. While Microsoft might have gone to great lengths to assure that Product Activation is private, they have not gone to the same great lengths with the products. In fact, Windows XP is one of the least secure Microsoft operating systems ever due to the use of full raw sockets. http://grc.com/dos/winxp.htm

If a hacker now has easier access to the operating system then ever before, who is to say what they could use Microsoft's secure Product Activation for.

Myth #4: "Users must have Internet connectivity to activate. "

Microsoft Response:
Product Activation provides two methods to activate: Internet and telephone. The Internet method requires that the PC be able to make a connection to the Internet. The telephone method requires the user to provide information to a customer service representative over the telephone.

Our Response:
That sure sounds easy, doesn't it? Of course, who is the most likely to use the Internet method? Corporate customers that have dedicated T-1's in their office. For the majority of customers, including small businesses that can not afford broadband service, Product Activation will require the annoyance of calling Microsoft every time there is an upgrade. And how are we to know that Microsoft is not tracking the phone numbers called? We don't.

But, for the sake of argument, lets say that you do have a broadband connection. Product Activation should be as simple as a click of the button, right? Except, if you have a broadband connection, and you are concerned about your privacy and the security of your network, then you also have a great firewall. So much for the one click authorization. Your firewall will block Product Activation. While this may seem like a small thing, imagine a corporate I.T. Department doing a major operating system upgrade and how many times each day they will be forced to call Microsoft as they reinstall those OEM copies of Microsoft Office on their computers. Trust me, I know from experience .. This is a significant hassle.

Myth #5: "Counterfeiters are the real piracy problem."

Microsoft Response:
Software piracy comes in many different forms, some more widely known than others. Each type of piracy is unique and often requires unique protection methods. Counterfeiting is a common form of piracy. Others include hard disk loading, Internet pirating and casual copying, or softlifting. Casual copying is the sharing of software between people in a way that infringes on the software's EULA. An example of casual copying is if someone were to get a copy of Office XP and load it on his or her PC, then share it with a second person who loaded it on his or her PC, then share it with a third person who loaded it on his or her PC, and so on. This form of piracy is very prevalent and has been estimated by some industry trade groups to account for a staggering 50 percent of the economic losses due to piracy. It is this form of piracy, casual copying, that Microsoft is primarily looking to reduce with Product Activation. Microsoft is addressing the other forms of piracy with other initiatives such as Certificates of Authenticity (COA) that accompany new PCs with genuine licenses, edge-to-edge holograms, educational campaigns and, as needed, enforcement efforts.

Our Response:
The truth is that Microsoft is the real piracy problem. Let me explain ..

While I will concur that casual double installation of software might sometimes be a problem, I believe the immoral activity by Microsoft is worse. Microsoft forces their customers to buy as many copies of their products as they can, including forcing customers to purchase many copies of the exact same thing.

Here is just one example how our company has been forced to purchase four copies of Microsoft Outlook for every person in the company:
1. OEM version of Microsoft Office 2000 (Outlook is part of the purchase.)
2. Forced to purchase Open License copy of Microsoft Office 2000 to avoid hassles of Product Activation (and the fact that it actually would not work in our office - even when calling.)
3. Purchased copy of Outlook 2000 for every user when purchasing Microsoft Exchange Server. (There is no discount available if you already own Outlook.)
4. When purchasing Compaq iPAQ Windows CE device an OEM copy of Microsoft Outlook is purchased.

And that is just one example of countless. So, while Microsoft puts it's statistics together showing how there are many casual pirates out there, they do not take into account the millions of copies of their software that people are forced to purchase, but are never used. In this example, hundreds of employees with three licenses of Outlook 2000 that will never be used because they already own it.

So, I ask you: Who is the real thief?

Myth #6: "Activation is difficult to complete."

Microsoft Response:
Product Activation is actually very simple to complete. It requires just a few mouse clicks for those with Internet connectivity. For those who must activate over the telephone, the process with a customer service representative can be completed in just a couple of minutes. Most users' response is "that's it?"

Our Response:
So easy? Then why is it that we were on the phone with Microsoft Tech Support for hours (yes, hours) on numerous occasions trying to get a PC to validate the OEM copy of Microsoft Office 2000? First, the Internet method will not work because, like most companies, we have a firewall (to protect against Code Red and other Microsoft Worms), so the Internet Product Activation will not work.

So, we called Microsoft and got an authorization code and typed it in. After validating the code, Microsoft Office shut down. I would try loading up Word, Excel, or Outlook and it would start, and then the Product Activation window would come up again. The friendly Microsoft person would give me a code, and the program would shut down again. Next we tried repairing Microsoft Office, which took about twenty minutes. No luck. So, then we tried uninstalling and reinstalling Microsoft Office. Twenty minutes to uninstall and forty minutes to install. We tried the activation code again. Guess what? Product Activation window is still popping up, and Microsoft Office will not run even though it says that I have forty more tries before it will stop working. It was already not working.

We tried uninstall again, and reboot a couple of times, and uninstalling other applications, and then reinstall of Microsoft Office 2000. Guess what? Same problem.

So then we purchased a second copy of Microsoft Office through an Open License and installed it on the computer. Remember that the Open License supposedly has no Product Activation feature, right? Guess again. Apparently the Product Activation feature of the previous OEM version of Office that was installed kept the Open License version from running.

What was ultimately the solution? Completely formatting the hard drive and reinstalling all software, and installing the Open License version of Microsoft Office. Imagine if I had been running Windows XP as well and had to deal with the Product Activation on that when I was forced to reinstall the operating system .. Perhaps that computer would never have worked again. "… simple to complete" my ass.

Myth #7: "Product Activation keeps users from changing or upgrading their hardware."

Microsoft Response:
Not true at all. Users can change or upgrade their hardware. One of the forms of piracy that Product Activation guards against is hard disk imaging. Not all forms of hard disk imaging are illegal. In the case where a pirate copies data from one PC hard drive to another to illegally run the software on two PCs, Product Activation stops that by forcing the copied software to be reactivated. It does so by comparing the hardware on which it was activated to the hardware on which it is now being booted. If the hardware is substantially different, then reactivation is required. If it is the same or similar, then the software will continue to work. Those who upgrade their PC's hardware substantially may be asked to reactivate. Reactivation for this reason is easy and can be completed by contacting Microsoft to obtain another confirmation ID.

Our Response:
First, to Microsoft's credit, every time I have been forced to call their activation phone line I have never been put on hold, and the person answering has always been very friendly. Granted, they have never been able to solve the bugs in Product Activation, however they have always been a pleasure to talk to.

So, while I give Microsoft high marks on the ease of calling their Product Activation facilities, they get extremely low marks on the ability to be able to reactivate their software.

The bottom line here is if you are a corporate customer that will be doing upgrades, or if you are a home user that links to format your system and install lots of new products, then you should actively avoid any Microsoft software with Product Activation.

Myth #8: "Product Activation changes the way Microsoft software is licensed."

Microsoft Response:
The underlying principles of Microsoft's software licenses have not changed. Microsoft's end user license agreements have always stipulated the number of PCs that software can be installed on. Product Activation does not change that.

Our Response:
Microsoft's stipulation of the number of PC's the software can be installed on is in contradiction with copyright law. The law states that software can be installed on as many PC's as a user likes, but can only be run on one at a time. So, if I wish to use a single copy of Microsoft Office to install on ten of my computers at home, legally I can do this. However, as soon as I run Microsoft Word on two of those PC's at the same time, I break the law.

However, Microsoft's Product Activation will only allow you to install their software on two PC's at the same time. While what Microsoft is doing is not illegal, it does restrict the rights of customers.

Personally, I have four personal computers I use. Two desktops and two laptops. Obviously I can only be at one place at one time, so there is no concern of me running Microsoft Outlook on two machines simultaneously. Nonetheless, Microsoft's Product Activation will force me to purchase two copies of Microsoft Office for those four machines, even if one copy should legally be fine.

Yes, Microsoft would say that even though I could install four copies before, I should not have since their license did not explicitly say I could do that. Still, copyright law states that this is perfectly legal. So, now Microsoft is going to force me to purchase multiple copies. Should consumers then be able to force Microsoft to give us a refund for all of the licenses we are not using, which I am willing to bet outnumbers the former?

Myth #9: "Product Activation has already been cracked, or at least it will be cracked very quickly, and therefore is of no anti-piracy benefit."

Microsoft Response:
Actually, Product Activation has yet to be cracked. The so-called "crack" now being passed around the Internet contains a set of instructions for setting a registry key that disables activation. Microsoft made the existence of this registry key public to its technical beta testers back in early February telling them where it was and how to set it to disable activation, and included it as a testing tool.
Still, the intellectual property protection arena is a cat-and-mouse game. All intellectual property protection technologies will be cracked at some point - it's just a matter of time. The measure of success is not completely stopping software piracy, which is probably an unattainable goal. Success is more likely to be measured in increased awareness of the terms of the license agreement and increased license compliance.

Our Response:
So, Microsoft has made an anti-piracy method, which they fully admit that technically savvy hackers will be able to crack. However, Mom and Pop's that might install their OEM copy of Microsoft Office on Cousin Judy's new laptop will not be able to. So, this Product Activation will not stop the people in China creating millions of copies of illegal Microsoft Software, or the other large piracy shops running throughout the world. However, it will stop Mom and Pop from sharing one copy of Office on Cousin Judy's computer. Even though it is probably unlikely Cousin Just and Mom and Pop will be running Microsoft Office at the same time, so it hardly matters anyway. Basically, Microsoft admits here that they have created a Product Activation scheme that screws the little guy, but lets the big troublemakers continue their business.

Does this strike anyone else as fundamentally flawed?

Myth #10: "Internet Explorer and Windows 2000 will begin requiring activation as well."

Microsoft Response:
Not true. Internet Explorer 6 does not require activation or activation of the operating system it has been installed on. Some Internet reports have suggested that; however, the registry key detailed in those reports is created by a separate software installation. The registry key is created by the installation of the Terminal Services client software and a connection to a Windows 2000 terminal server; it facilitates the licensing of Terminal Services.

Our Response:
While we certainly appreciate that Internet Explorer and Windows 2000 will not have Product Activation, I wish we could say the same about the rest of Microsoft's products. In any case, technology managers everywhere had best purchase all of the copies of Windows 2000 you can to avoid the headaches of Windows XP.

Lets sum up their ten questions with one final one:

Myth #11: "Isn't it true the Microsoft is a money grubbing, thieving company that will do anything possible to steal every last dollar out of every person they can?"

On the whole, yes.

Microsoft has created a Product Activation scheme that will force corporations to purchase multiple copies of the same software, and force home users to purchase multiple copies of the same software so that their family members that infrequently use this software can have a copy as well.

Microsoft completely admits that this Product Activation will not stop software duplication houses that will churn out thousands of copies of Microsoft Office, and are widely considered to be the true pirates. These folks have already found a way around Product Activation, and will continue selling illegal software.

Why doesn't Microsoft let their paying customers (corporations and home users) use the software as freely as they have always been, and instead just focus on stopping the software shops? Because there is no money in stopping the real pirates. Where is the greenbacks in stopping these foreign and highly illegal shops? It costs money to hunt these folks down, and the people they are selling this software to at nearly free prices are not going to purchase a four hundred dollar copy of Microsoft Office anyway. Microsoft has learned that even when they stop some of these shops they do not see an increase in revenue. Therefore, Product Activation is not about stopping true piracy.

Microsoft in desperate need to get more cash, decided to make a financial decision. There are all of these corporations and home users that obviously have money, since they have already purchased Microsoft products. There is significant money to be made in forcing these people with money to purchase the same products over and over again.

While it is debatable that Microsoft is a "money grubbing, thieving company that will do anything possible to steal every last dollar out of every person they can …" What is not debatable is that Microsoft has set up a Product Activation scheme that will force home users and corporate customers, which have already made Microsoft one of the richest companies in the world, to hand over yet more money to Bill Gate's retirement account.

So, I will ask you one more time: Who is the real thief?