# OEM Software. Illegal or Legal? And why is it so cheap?



## Ryankop

Hey fellow mac users,

For those who don't know what OEM software is, here's a brief description:




> OEM (original equipment manufacturer) software is only distributed when sold with specified accompanying hardware. When these programs are copied and/or sold separately from the hardware, it is a violation of the license with the software publisher, and therefore illegal.


Basically it's software given to 3rd party companies to sell, but sold to these companies at a cheaper price. For example DELL, is sold Windows XP from Microsoft for a cheaper price, thsus being OEM software when it is installed with your DELL computer. Now sometimes you come across those websites with OEM software for mac and pc, and you see prices like:

*Adobe Photoshop CS 2*

Originally:  $599.95

Now only:  $69.95


It makes you wonder how can software be so incredibly cheap? There have been past disputes about OEM software actually being wares and pirated, which of course is illegal. Usually after selling several copies, the company disappears from existance. I have found several in the past, but have never bought 1 OEM software. I am hoping to buy the creative suite at an affordable price, however I'm not sure whether to trust OEM software companies.

Has anyone here bought OEM software?

Does anyone know of a trust worthy OEM software company?

Has anyone been scammed by OEM software companies?

And what is your opinion on OEM software and small companies selling them?

Anyways, this is not only for my sake on OEM software, but everyone's sake before deciding whether to purchase OEM software or not.

Let's hear these opinions!


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## scootsandludes

This sounds like something that's done on the PC side of computing. The only company that makes Macs is Apple, and they supply their own OEM software e.g OSX Tiger, iLife. There are no other OEM software that you can buy at a discount.

Maybe you should take this to a PC board as this rarely affects Mac users. 

The price you posted sounds like some kind of spam email offer, which we all know is a scam. 

vince


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## Trevor...

Watch out because pirated software is often ADVERTISED to be OEM.

OEM is less expensive because it does not come with retail packaging or accessories and it typically does not include product support from the vendor. 

For example, there is an OEM version of Microsoft Office 2004 and it costs about $220

The price of OEM software is often dramatically reduced, but not too good to be true.


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## simon

Adobe software, especially the suites, are not sold as OEM. You can find Adobe software "bundled" with, say, a scanner, but that usually is the "lite" revision. There is a link on a variation of this type of software here ... 

http://www.ehmac.ca/showthread.php?t=25083


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## Ryankop

All righty. I am aware that most OEM software sites are scams, however there are few for PCs that are not. Does this go likewise with mac OEM sites? Is there and could there be a legal one?

Even if not OEM, is there any other service that gives such discounts like OEM?


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## poisonmonkey

Another than OEM some large volume companies get software for much cheaper. They only pay their licencing fees for its use.

But, Corel had a very extensive OEM program a few years ago for their Office Suite. And not all OEM is bad. They are sold at a discount because they are guaranteed distribution with computers so the companies products get used.


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## Ryankop

So know of any particular websites?


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## Glipt

http://purplus.com/. These guys had an OEM copy of FCP 2 for $200 a while ago that I looked into but didn't purchace. They have a good explanation on the legality of OEM software and links to sites explaining the law on tis matter. Their feedback score on eBay is excellent and they sell a lot.


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## ArtistSeries

Ryankop said:


> It makes you wonder how can software be so incredibly cheap?
> 
> Has anyone here bought OEM software?
> 
> Does anyone know of a trust worthy OEM software company?
> 
> Has anyone been scammed by OEM software companies?
> 
> And what is your opinion on OEM software and small companies selling them?


If it's sound too good to be true, then it is.

We sell OEM software and I can tell you that it's only available under strict circumstances. Sometimes the savings are great, others only marginally better.

We can sell Windows OEM XP only with a hardware bundles (basically a new PC).
Office can be included again with a new PC.

We can sell Nero OEM with any new CD/DVD drive.

You will have to be careful of the upgrade policies (they vary with each software company). Meaning some OEM software can be upgraded, some others can't.

Some OEM software is a version or two behind - not much we can do about it.


As for the emails spams promoting OEM software, I'd say most are a scam - stay away.


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## Ryankop

Glipt said:


> http://purplus.com/. These guys had an OEM copy of FCP 2 for $200 a while ago that I looked into but didn't purchace. They have a good explanation on the legality of OEM software and links to sites explaining the law on tis matter. Their feedback score on eBay is excellent and they sell a lot.


So wait these guys sell LEGAL software?

And is it all OEM?

Also is this a canadian website, or do I have to pay customs when purchasing it.


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## Howard2k

I'd tread carefully. One site that advertises here in the banners specifically states that you are buying the OEM CDs for BACKUP ONLY and that you already own a licence of the software. In otherwords, they're positioning it as media only, without a licence.

Purplus seems to be selling the OEM product with what looks like a more trustworthy approach.


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## Trevor...

OEM software can be had anywhere that sells PC parts.


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## jasonwood

*OEM software on the internet - It's a scam.*

Why would Apple make it possible for you to legitimately buy FCP for $200 without a cardboard box? It's a scam. Apple doesn't offer an OEM version of FCP... it wouldn't make sense since nobody else builds Macs. 

All these companies put up convincing explanations but note how none of them link to statements on the manufacturer web sites.

Here's a recent example that comes to mind:



> BEWARE OF COUNTERFEIT FILEMAKER CDs DISTRIBUTED OVER THE INTERNET AND ON
> AUCTION SITES
> 
> If the price is too good to be true then beware! Many resellers are
> distributing counterfeit "CD-only" versions of FileMaker products on eBay
> and through other web resellers and auction sites. FileMaker does not
> authorize resellers to distribute software as "CD-only" and many of these
> resellers are distributing counterfeit CDs that were not produced by
> FileMaker.
> 
> Some of these resellers claim that they offer cheap prices for FileMaker
> software because they buy large volumes of OEM software or they buy direct
> from FileMaker. These statements are false as FileMaker does not
> distribute products directly to resellers and FileMaker does not
> distribute OEM versions of its software.
> 
> Unfortunately, these criminals have become very proficient at reproducing
> illegal FileMaker CDs to make them appear real. Authentic FileMaker CDs
> always include FileMaker manufactured and branded packaging and should
> include all of the following: FileMaker CD, printed FileMaker manuals,
> Installation Card with license keys and proof of purchase coupons, Service
> Directory with technical support access number, and the FileMaker Resource
> Guide.
> 
> Even a few FSA members have recently purchased these illegal counterfeit
> CDs initially believing that they were legitimate. In one recent
> situation, FileMaker has successfully pursued legal action against an FSA
> member for distributing these counterfeit CDs as part of its consulting
> business.


There are very few cases where an end user can legitimately purchase software that is marked as "OEM". If you do, you might as well just pirate the software cause your license is equally invalid... If you pay for it, you're simply giving money to a criminal!


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## Glipt

It is American. I think customs is usually GST? Check their user feedback on eBay. Someone did post here a while ago that a high end video card did ship with an OEM copy of FCP a few years back. This is FCP 2. I just checked and they are selling it CD only for $135 US now. This doesn't seem an outrageously cheap price for FCP 2. I was thinking of buying it to then purchace the upgrade to FCStudio and save some bucks (about $500). That said, I didn't buy it as there are risks such as getting a bum serial number that may make it usable but may be flagged somehow by apple causing it not to be updatable and the definitions for reselling this sort of thing and clicking on 'agree' to EULAs make it grey market at best.


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## gordguide

It's a bit of a grey area, but basically it goes like this:

It all depends. Since software licenses vary widely, and often you must open and install the software to even see the license, let alone agree to it, there isn't a whole lot that can be done about it being available.

There are agreements when a developer sells OEM disks to a vendor that limit how it can be distributed, but if the vendor goes bankrupt, or liquidates assets for any reason, the disks and licenses are fair game for resale, and the distribution agreement isn't binding on the new buyer.

Companies who use the OEM chain to distribute applications generally would rather have you use that software than something else, so often it's not policed much and you can register it without problems. Some full versions are distributed with magazines. Technically, if you don't buy the magazine you can't use the software, but I would be surprised to learn of a developer who policed that much. it's basically not worth the bother to them to verify you actually bought the magazine.

When Adobe sued some resellers over it's Suites, they lost. People were buying the suite and then selling the disks and licenses separately, for a profit over the individual application costs. The courts in California said Adobe could not limit what someone did with the disks since that person did not need to agree or even view the license (which is on the disks, inside the box). As far as the law is concerned, they may as well have been splitting popsicles and selling them individually.

Some vendors sell "backup" copies; ie there is no serial number and usually some kind of disclaimer that says you agree you already own a copy (and buried somewhere so it's difficult to find anyway). This is the ruse they use to stay out of jail; they put the onus on you to do the actual lawbreaking.

Avoid them at all costs; you will be paying for the privilege of breaking the law, and worse, you're the one who has to break it. A disk with no serial number doesn't even make a good boat anchor.

Even though the prices are just-low-enough-to-get-you-looking, to tell you the truth, since you need to find a serial number anyway, you may as well just pirate the disk for free. $99 for PhotoShop is no bargain if you still have to pirate it to run it. It amounts to the same thing; you're breaking the law so having gone that far, you may as well do it on the cheap by getting the disk somewhere yourself.

The crime is the same whether you've been conned or not, and it's sad that someone who is searching for legitimate software, albeit at a bargain price, usually ends up getting burned.

Unfortunately these sites often show up in Google searches with some rather attractive prices, so they do end up selling stuff to people. Typically they are not in Canada or the US, but somewhere where they can do such a thing due to some "backup" clause in that country's copyright laws, or they're outright shady.

It's not particularly easy to restrict the resale of anything, so the OEM thing will be around for a while. If you do decide to go that route, shop carefully for genuine OEM disks with registration data, and check the developer's and vendor's sites for information on whether they prohibit it or not.

Depending on the circumstances, they might not be able to prevent you from running it anyway; it's not you that broke the distribution agreement. As long as you do what you can to check out the developer's policy, I don't see how you could be expected to do more.

Although the installer license might have something to say about it, until developers quit hiding the license behind a non-refundable barrier in the form of shrink wrap, I don't see much wrong with genuine, sealed and unused OEM disks on a second hand market like eBay. By itself, the developer can't really prevent anyone from selling the disks if they're unused.

But, a lot of eBay software is neither retail box nor OEM; shop carefully. In particular beware photos that use images you could copy from the web; you want to see the guy's cheap coffee table in the picture, not a copy-and-paste image from Amazon.


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## gordguide

From the parent post:

" ... OEM (original equipment manufacturer) software is only distributed when sold with specified accompanying hardware. When these programs are copied and/or sold separately from the hardware, it is a violation of the license with the software publisher, and therefore illegal. ..."

That's one definition, but it seems skewed to a specific position. I especially don't like the use of the word "illegal", since it's not against any laws in and of itself to own otherwise valid OEM software no matter how you came to own it (unless you stole it).

"The license" is between the "software publisher" and the party this definition conveniently leaves out. They imply it's against some law, and the law applies to the end user, which simply isn't true.

The publisher can sue whomever they made the agreement with, in civil court; it's a rather ordinary breach of contract suit that doesn't involve you unless you're the guy who signed the contract. They cannot "call the cops" on anyone; the police don't enforce contract disputes and there is no other statute that's broken.

I also have quite a few programs I originally acquired with magazines, for the price of an issue. The people at Deneba were very happy to offer me, unsolicited, an upgrade to Canvas X from a version of Canvas 7 distributed with a UK magazine and which carried an OEM (it said so) license. Certainly it's not "only" distributed with certain hardware.

As for FCP, apparently there are some OEM versions that are genuine Apple software, bundled with Pinnacle Capture Cards and perhaps some others. Right now the Pinnacle CineWave Classic RT has FCP available as an option, and all other versions come bundled with an OEM version of FCP. Although rare, Apple does occasionally publish OEM versions of it's applications.


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## Ryankop

Ok then. Since OEM software for Mac doesn't look like the right road, is there anywhere else you can get software pretty cheap?


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