Use of Volume License Keys
Volume license keys can be used to activate multiple installations of software without any mechanism (such as a product activation mechanism) checking the total number of installations. The license for the software will place restrictions on the use of the key. Typically the license will limit the key to a fixed number of installations which must only be within the licensee's organization and also place the licensee under an obligation to keep a record of the number of installations, keep the key confidential and possibly even require that the licensee organisation makes itself available for a software licensing audit to verify that its use of the key falls within the terms of the license. If a volume license key becomes known and used outside of the organization to which it is licensed, then this is regarded as software piracy.
Volume license keys are not generally transferable between organisations; however, this can occur if the associated license agreement is transferred. If this happens, then the original licensee is required to cease all use of the key, and any software installed using it. This may occur when a company reorganises its structure, or when it sells unneeded software licences. Volume licenses are not always transferable; however, some types of Microsoft volume-license can be transferred provided a formal transfer-process is completed which enables Microsoft to register the new owner. A very small number of software vendors specialise in brokering such transfers in order to allow the selling of volume licenses and keys. The most notable of these, Discount-licensing.com, pioneered the sale of Microsoft volume licenses in this way.
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—Abraham Lincoln (1809–1865)
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