Comments on: Dealer in secondhand Microsoft licenses sees success

Loophole in British insolvency laws and a clause within many Microsoft licenses are keys to U.K. dealer's business plan.

[bobsaccount]

Genuine Windows Validation

I have to wonder how this meshes with the Windows Genuine validation scheme.

[JFDMit]

As I understand it...

...all that's being sold is the right to use the software. The reseller or end user will still need to install legitimates copy of the software, up to the number permitted by the licence.

Many companies may use these licences to legitimise existing installations that are in excess of the number of users permitted by their volume licences.

[Al_S_Cook]

Validation may not be necessary

The customer should get the original volume license key (VLK) used to install the software (volume software doesn't use Product Activation) and can use that.
The genuine program may not be used with volume software, since it's not a good idea for companies to give their users access to VLKs. VLKs are widely used for pirated software: get the volume media and a valid VLK and you can install to your hearts content, until MS cuts off the VLK (usually with a new service pack)

[Al_S_Cook]

What's the loophole?

I'm wondering what the loophole is in the UK? Companies can legally resell Open License software without going bankrupt, as long as they follow the rules for transfers. Why is a loophole needed?