Microsoft just recently changed the requirements to get the OEM discount on Microsoft Office and Microsoft Windows software products. For example, Windows XP Pro with Service Pack 2 from Newegg.com costs $229.95. Whereas the Microsoft Windows XP Pro with Service Pack 2 - OEM is only $146.95, an $83 savings. And in the past, all you had to do was purchase a cheap $5 (or less) PC part (like a microphone) to get the discount. In fact, Newegg actually adds a $5 Power Cable Splitter to your order if you order the OEM version of XP Pro and then gives you a $5 discount on the order so you don't even have to pay for the splitter.

With this licensing change, this "exploit" is no longer possible. This should make the so called "System Builders" very, very happy as there is now an incentive for people to buy/upgrade to their products to get the "discount" on Windows/Office. However, this may make end users that exploited this loophole very, very angry. And it might actually increase piracy of Windows and Office if the new price is far above the threshold people would otherwise be willing to pay for Windows. It also makes the "Windows XP Pro is just as cheap as Mac OS X" argument moot.

Furthermore, there is now a requirement that the OEM software must be pre-installed on fully assembled computer systems to get the discount. This means you cannot build a system running Linux or another operating system and get the OEM discount. So much for Linspire possibly taking advantage of this.

The updated agreement can be viewed here.