Update, December 2005: In August of this year, Microsoft changed its OEM licensing rules, eliminating the silly requirement that you had to buy a trivial little piece of hardware along with an OEM operating system. Now, anyone can buy an OEM version of any Windows operating system, including Windows XP Media Center Edition 2005, if they are a “system builder.” And the rules of the System Builder specifically state that a hobbyist qualifies, without having to join any organization or pay any fees. For more details, see this post.
The other day, I pointed to a post by a Microsoft blogger who claimed you can’t legally buy an OEM copy of Windows XP Media Center Edition unless it’s installed on a new PC. I provided lots of evidence to prove that’s not true, including quotes from Microsoft’s Web site and from official representatives of the OEM Systems Group, as well as from the license agreement itself.
That’s not enough for some people, I guess. Case in point, Ed Oswald, who writes a blog called The Daily Ed and says his occupation is “Reporter, BetaNews.” In a blog post today, Ed insists that “The official line from Microsoft is that Windows Media Center Edition is not available as a standalone product.” After a couple of confusing paragraphs that refer to eBay and the absence of a retail price for this software, Ed concludes, “So, in response, my answer is right. Because legally, as said by the company itself, Windows Media Center is not sold seperately, and only with a new PC.”
Ed, you’re wrong. Don’t just listen to me; here’s Microsoft’s own take on the subject. As part of its System Builder program, Microsoft produced this official Product Guide for Windows XP Media Center Edition 2005:
System Builders must distribute each desktop operating system unit with either a fully assembled computer system or a nonperipheral computer hardware component.
Non-peripheral hardware? What’s that? Conveniently, Microsoft has put together a Web page that defines the term:
What is Non-peripheral Hardware?
A non-peripheral hardware component is one essential to running a PC
Examples of non-peripheral hardware:
Memory
Internal drives
Mice
Keyboards
Power supplies/cordsExamples of components not considered essential are:
Scanners
Printers
Cameras
External modems
Networking device
In other words, you can legally buy a copy of Windows XP Media Center Edition (or any OEM edition of Windows XP for that matter) from any authorized reseller as long as you buy it with a power cord. Or a mouse. Or a keyboard. OK? That’s the legal, official answer. (Note that this is not true of OEM copies of application software, like Office, or server software, like Microsoft Exchange. Those can only be sold with a fully assembled computer system.)
Over to you, Ed.
Update: On his blog, Ed replies, “I have really not heard of one person who would want to go through the trouble of obtaining MCE through this process – even if it is possible, it sure isn’t advertised, and I’m sure even if you contacted a customer service representative, many of them wouldn’t even know how to sell it to you anyways.”
Not advertised? C’mon, Ed. Here are four large companies that prominently advertise Windows XP Media Center Edition 2005 on their Web sites and will gladly sell it to you without requiring that you buy a new PC. All you have to do is click a link; you don’t even have to talk to a sales rep:
Newegg, $129.95
PC Alchemy, $119.95
Allstarshop.com, $128.00
Chief Value, $125.99
In each case, the listing makes clear that the software must be purchased with hardware. So throw a $1.99 power cord or a $5 generic mouse into your shopping basket. Or get that memory upgrade you’ve been thinking of. Or upgrade your hard drive. Use your imagination.
Remind me not to take BetaNews too seriously from now on, if this is the quality of their “reporters.”
All of the above companies still sell Media Center OEM versions. A few still include the outdated requirement that you must purchase a qualifying peripheral. Newegg is a notable exception. In keeping with the updated license terms, it now has this text in the product description:
OEM versions are intended for system builders only and cannot be transferred to another PC once it is installed. Purchasers of this software are required to comply with the terms of the System Builder License, including responsibility for providing all end-user support.
So, bottom line: You can still legally buy a copy of Media Center Edition 2005.
Ed Bott 
Ed, you’re full of crap. Why should I have to buy some piece of hardware just because Microsoft said so? Either make it retail or don’t. Microsoft chose not to. Therefore, if they decided to change the license at a whim (which if you read it again, they have all the rights to do), then they can decide your OEM copy was obtained illegally and fine you some ungodly amount. As it stands, it is illegal to buy a copy of MCE 2005 standalone.
My my, such a mouth on you, “Carlos.”
Why should you have to buy some piece of hardware? Because Microsoft made that a condition of the license. They’ve had OEM licenses for as long as there is Windows. And no, they can’t arbitrarily change the terms of the license after you’ve purchased it and “fine you some ungodly amount.” Where do you come up with this stuff?
For what it’s worth, I’ve spent a lot of time with the Media Center team over the past few months. They’re thrilled that enthusiasts and white box system builders are getting excited about Media Center. It’s part of their strategy. The official, legal one.
PS: When you post a comment here, your IP address gets recorded, and it’s trivially easy to trace it. I’m just sayin’…
“I have really not heard of one person who would want to go through the trouble of obtaining MCE through this process”
I dont know what Ed Oswald is going on about there. The majority of people I know who see Media Center say “How do I get it?” and “Can I upgrade my PC?”. These people have a PC, but want Media Center. There’s no reason why they should have to buy a Media Center PC for £800 when they can upgrade thier PC for under £200.
Just a side note. When you add the software to your cart at NewEgg, they also add a $5 power cable splitter which happens to be discounted by $5… MCE2005 and a free power cable…
do they sell MCE in the employee store? i have heard they do not. strange strategy…
The last time I was in the employee store was in March, and no they weren’t selling MCE. The only products sold in the employee store are retail packages.
That actually does make sense, because OEM products are designed to be sold by vendors who (at least in theory) sell a full range of hardware to system builders.
I’ve done this through NewEgg and bought the very cool OEM Microsoft MCE remote for $38. It’s the perfect addition to buying the OEM MCE 2005.
http://secure.newegg.com/NewVersion/FeedBack/CustratingReview.asp?item=N82E16880100851
Ed,
My understanding of the System Builder licensing as it relates to MCE was the same as yours. However I recently came across this post:
>
In this new Agreement (which you can see at link), you will notice a few changes to address these actions by these people:
Under the Software Distribution section of the Agreement, you will notice it now states:
“4.1 We grant you a nonexclusive right to distribute an individual software license only with a fully assembled computer system. A “fully assembled computer system” means a computer system consisting of at least a central processing unit, a motherboard, a hard drive, a power supply, and a case.”
You will notice the loophole that people have been exploiting (the former language which stated that an OEM desktop Operating System license could be sold with “non-peripheral hardware,”) is no longer in place. It is now very simple and straightforward: an OEM license must be sold “only with a fully assembled computer system.” Loophole closed.
>
It would appear that this does infact stop people from purchasing MCE without purchasing a full system. I would be interested to know your thoughts.
I find this interesting since MCE has purportedly selling like hotcakes.
Actually, Mike, this guy’s analysis misses a crucial point. It used to be a stupid requirement that you had to buy an OEM copy of software with a fully assembled PC or with a nonperipheral hardware component. The second option is no longer available. HOWEVER… You can legitimately purchase an unopened OEM copy from a reseller as long as you intend to build your own PC.
You can read more here.