R ENT A L R I G H T S C U S T O M ER R EF ER ENC E G U I D E

Rental Rights Licensing

A GUIDE FOR MICROSOFT CUSTOMERS

Updated: August 2010

R ENT A L R I G H T S C U S T O M ER R EF ER ENC E G U I D E

Contents
Introduction.............................................................................................................................................................................................. 2 What Are Rental Rights?....................................................................................................................................................................... 3 Top Reasons To Purchase Rental Rights ......................................................................................................................................... 4 Steps To Acquire Rental Rights .......................................................................................................................................................... 5 Scenarios ................................................................................................................................................................................................... 7 License Restrictions ................................................................................................................................................................................ 8 Resources ..................................................................................................................................................................................................9 Glossary .................................................................................................................................................................................................. 10

Updated: August 2010

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Introduction
Rental Rights licenses from Microsoft provide an easy way for organizations to rent, lease, or outsource PCs to third parties with licensed, qualifying Windows operating system or Microsoft Office software. Renting, leasing, and outsourcing PCs is becoming increasingly popular with business models ranging from short-term rentals through Internet cafs and airport kiosks to complex multiyear contracts with vendors serving large organizations. Microsoft introduced Rental Rights licenses because Windows and Microsoft Office licenses acquired through Microsoft Volume Licensing, original equipment manufacturers (OEMs), Microsoft Authorized Refurbishers (MARs), or at retail as Full-Packaged Product (FPP), do not permit renting, leasing, or outsourcing the software to a third party. As a result, many organizations that rent, lease, or outsource PCs to third parties do not comply with Microsoft licensing.

Updated: August 2010

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What Are Rental Rights?

Rental Rights are licenses from Microsoft that permit organizations to rent, lease, loan, or outsource PCs to third parties with licensed, qualifying Windows operating systems and PCs with licensed, qualifying Microsoft Office suites. Examples of these organizations include Internet cafs, hotel and airport kiosks, business service centers, and office equipment leasing companies. If you are interested in renting, leasing, or outsourcing PCs, Rental Rights offer a simple, one-time licensing solution to keep your organization in compliance with Microsoft Volume Licensing. Rental Rights licenses are user rights licenses only and do not replace customers underlying Windows or Microsoft Office product licenses. Sold together with, or under an existing software license, Rental Rights are assigned per device with the price based on the type of Microsoft Volume Licensing upgrade to enable renting, leasing, and outsourcing scenarios. When an organization acquires Rental Rights licenses for a PC that will be rented, leased, or outsourced to a user on a short- or long-term basis, the user of that PC is permitted to use licensed, qualifying versions of Windows and, if they choose, licensed, qualifying versions of Microsoft Office on those PCs. Rental Rights licenses modify the use rights of the owners Windows or Microsoft Office licenses to allow renting, leasing, or outsourcing of the software. These activities are generally prohibited under standard license terms for those products. QUALIFYING SOFTWARE Licenses for the following Microsoft software qualify for Rental Rights if purchased through Microsoft Volume Licensing, OEMs, MARs, or at retail as a FPP: y Windows 7 Professional y Windows Vista Business y Windows XP Professional y Windows XP for Refurbished PCs (MAR only) y Microsoft Office Standard 2010 y Microsoft Office Professional Plus 2010 y Microsoft Office Standard 2007 y Microsoft Office Professional Plus 2007 APPLICABLE VOLUME LICENSING AGREEMENTS Rental Rights licenses are purchased under one of the following Microsoft Volume Licensing programs: y Microsoft Open License y Microsoft Select License y Microsoft Select Plus License
Note: Prior versions of the software may be used instead of the qualifying software only if the qualifying software was licensed under an Open License, Select License, or Select Plus Microsoft Volume Licensing agreement (both Rental Rights for Office and Rental Rights for Windows), or OEM Windows licenses which permit downgrading (Rental Rights for Windows only).

Updated: August 2010

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Top Reasons to Purchase Rental Rights

Rental Rights licenses ensure that your organization complies with Microsoft Licensing. Focus on your business, not on licensing with Rental Rights. Tailored specifically to your business model, Rental Rights give your organization permission to rent, lease, or outsource PCs with Windows and PCs with Microsoft Office to a third party. Providing unlicensed use of PCs can threaten an organizations ability to stay in business. By purchasing Rental Rights licenses, you protect your organization from potential legal action by Intellection Property (IP) protection agencies. Costs are up-front and predictable with Rental Rights, supporting current business models where recurring cash flow and margins can be thin. Rental Rights are good for the life of the PC, so you can focus on your business, not on licensing. Conduct a simple one-time Rental Rights transaction for the life of the PC. Order the same way any other Microsoft license is orderedthrough your local authorized Microsoft software distributor or added to a Windows or Microsoft Office software order through the Microsoft Open License, Select License, or Select Plus licensing programs by any authorized Microsoft reseller. With just one transaction, Rental Rights are easy to purchase and have no ongoing fees or reporting required for the life of the PC. By validating that your organization owns Genuine Microsoft software, and ensuring that the licenses match the use rights for the software, you can protect your organization from legal action and protect your organization from threats to IT security and performance. Genuine Microsoft Software Genuine, properly licensed Microsoft software provides important protections for you and your customers, much like a form of insurance. Many organizations are not aware that they have pirated or counterfeit software. And, using software in ways that are not permitted under the use rights of the license is a form of piracy, whether or not the unlicensed use is intentional. Making sure the PCs you rent, lease, or outsource to your customers are properly licensed protects you and your customers from legal action. One of the primary reasons your customers choose to rent, lease, or outsource their PCs is because they are not able to (or do not want to) manage their software licensingthey rely on you to ensure that they comply with their license rights. Learn more about potential risks of pirated or counterfeit software by going to the Genuine Microsoft Software site at www.microsoft.com/genuine/.

Updated: August 2010

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Steps to Acquire Rental Rights

Microsoft created a way for your organization to easily and affordably follow its licensing terms for renting, leasing, or outsourcing PCs with licensed, qualifying Windows or Microsoft Office. If you already have a license for your Windows or Microsoft Office software, all you need to do is purchase Rental Rights for each PC with Windows and for each PC with Microsoft Office to ensure they are covered. Rent, lease, or outsource PCs with Windows in just three easy steps shown in Figure 1. 1. Acquire PCs with Windows licenses from an OEM, reseller, MAR, PC retailer as a FPP, or through the Get Genuine Windows program. 2. Acquire a one-time Rental Rights for Windows license for every PC to be rented, leased, or outsourced with licensed, qualifying Windows software. 3. Rent, lease, or outsource PCs with Windows software with no ongoing payments or reporting for the term of the underlying software agreement or the life of the PCs. Figure 1: How Rental Rights work for the Windows operating system

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Rent, lease, or outsource PCs with Microsoft Office in just four easy steps shown in Figure 2. 1. Acquire PCs with Windows licenses from an OEM, reseller, MAR, PC retailer as a FPP, or through the Microsoft Get Genuine program. 2. Acquire an Open License, Select License or Select Plus Agreement for every PC to run Genuine Microsoft Office. 3. Acquire a one-time Rental Rights for Windows license and a one-time Rental Rights for Office license for every PC to be rented, leased, or outsourced with licensed, qualifying Microsoft software. 4. Rent, lease, or outsource PCs with Rental Rights for Windows and Rental Rights for Microsoft Office with no ongoing payments or reporting for the term of the underlying software agreement or the life of the PCs. Figure 2: How to acquire Rental Rights for Microsoft Office

Updated: August 2010

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Scenarios
Rental Rights licenses address scenarios in which organizations rent, lease, or outsource PCs to third parties. The following are examples of scenarios that are in and out of the scope of the Rental Rights licenses. In Scope Office equipment leasing companies Business service centers (for example, copy/print stores) Internet cafs Hotel and airport kiosks Government tendered shared access Out of Scope License Microsoft products via a hosted solution (Services Provider License Agreement [SPLA]) Libraries Academic institutions Internal use (shared PCs) Traditional financing (for example, rent-to-own programs)

Updated: August 2010

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License Restrictions
The following important limitations apply to the Rental Rights licenses. y Perpetual license: A Rental Rights license is permanently assigned to a specific device and cannot be reassigned to another device. When the device reaches its operational end-of-life (dies), so does the license. In the case of Rental Rights, an underlying license must exist for the qualifying Windows or Microsoft Office software. y Remote access: Rental Rights do not allow for remote access to software. y Separate devices: Use of additional copies of the qualifying software on a separate portable device, such as a laptop PC, or a network device is not allowed. y Additive license only: Rental Rights licenses are not stand-alone product licenses that replace the need to buy the qualifying Microsoft software license. They are additional licenses that permit renting, leasing, or outsourcing of qualifying Microsoft software to a third party. For more information about Microsoft product licenses for Windows and Microsoft Office, go to the Microsoft product licensing site at http://www.microsoft.com/licensing/about-licensing/product-licensing-overview.aspx. y Earlier versions of software: With Rental Rights, an earlier version of the software can be used instead of the licensed, qualifying software only if the qualifying software was licensed under an Open License, Select License, or Select Plus Microsoft Volume Licensing agreement. For more information about Microsoft Volume Licensing programs, go to the Microsoft Volume Licensing site at www.microsoft.com/licensing. y Virtual PCs: Rental Rights do not account for software used within a virtual (or otherwise emulated) hardware system. In other words, the primary customer cannot create and rent, lease, or outsource virtual PCs. To learn more about virtualization, go to the Microsoft virtualization licensing site at http://www.microsoft.com/licensing/about-licensing/virtualization.aspx. y Microsoft Software Assurance: Software Assurance is not available to the primary customer. End user customers may acquire Upgrade and Software Assurance (U&SA) for Windows Operating System licenses and License and Software Assurance for Office Suite licenses through their own Volume Licensing agreement. Software Assurance offers a variety of additional benefits. Learn more about Software Assurance at www.microsoft.com/licensing/software-assurance/.

Updated: August 2010

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Resources
y Rental Rights Licensing, including Frequently Asked Questions:www.microsoft.com/licensing/aboutlicensing/rental-rights y Volume Licensing Program Information: www.microsoft.com/licensing y Volume Licensing Product Use Rights (PUR):www.microsoft.com/licensing/userights

Updated: August 2010

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Glossary
The following terms are defined in the context of Microsoft Rental Rights: Comply: To follow Microsoft Software License terms software to ensure use of software is covered by the terms of the agreement. Customer: Primary organization that owns the PCs, acquires the Rental Rights licenses, and rents, leases, or outsources the PCs to a third party. User: Third party that is renting, leasing, or outsourcing a PC(s) from another organization for personal or business use. Full Packaged Product (FPP): Offered through the distribution channel, FPP refers to a physical shrinkwrapped software package with a CD/DVD of the licensed product, printed materials such as a users guide or product manual, and Microsoft Software License Terms (formerly the End User License Agreement [EULA]). Lease: To provide a PC with qualifying licensed Microsoft software to a user on a fee basis for a given period of time or, in some cases, for the life of the PC. Microsoft Authorized Refurbisher (MAR): A company that is authorized by Microsoft to refurbish and preinstall used PCs with genuine Windows licenses to be deployed in the commercial market. Original Equipment Manufacturer (OEM): A company that is authorized by Microsoft to preload Microsoft products onto PCs prior to shipment to the customer. Outsource: To subcontract, in the case of Rental Rights, some companies can outsource PCs from a technology service provider to retain services related to the maintenance and upkeep of the PCs. Primary Customer: Entity that owns the PC, acquires the Rental Rights licenses, and rents, leases, or outsources the PC to a third-party user. Product List: List of products and services available through Microsoft Volume Licensing. Product Use Rights (PUR): Govern the use of Microsoft products acquired through Microsoft Volume Licensing based on the product, version, and use. Rent: In the context of a Microsoft Rental Rights license, to provide a PC with qualifying licensed Microsoft software to a user on a fee basis for a given period of time; in many cases, by the minute or hour. Rental Rights License: Microsoft license that permits the primary customer to rent, lease, or outsource PCs to customers that include a licensed, qualifying Windows operating system and for PCs that include licensed, qualifying Microsoft Office suite. Reseller: Company with whom the primary customer orders licenses. Services Provider License Agreement (SPLA): A license geared towards services providers that offer Microsoft products as part of a hosted solution.

2010 Microsoft Corporation. All rights reserved. Microsoft provides this material solely for informational and marketing purposes. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. Customers should refer to their agreements for a full understanding of their rights and obligations under Microsoft Volume Licensing programs. Microsoft software is licensed not sold. The value and benefit gained through use of Microsoft software and services can vary by customer. The contents of this guide are subject to change. Customers with questions about differences between this material and the agreements should contact their reseller or Microsoft account manager.

Updated: August 2010

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