February 9, 2003

Activation Keys

Many software designers, tired of being ripped-off by consumers, are turning to the use of activation keys. Software piracy is a worldwide problem that negatively affects software developers, resellers, support professionals, and most importantly, consumers. One form of piracy, estimated to be as high as 50%, is casual copying. Casual copying is the sharing and installation of software on multiple PCs in violation of the software's end user license agreement (EULA). Product activation is one solution to reduce this form of piracy. Product activation uses several methods and technologies to help achieve the goal of protecting intellectual property rights by making it easy for users to comply with the terms of the EULA and reducing software piracy.

Microsoft developed an activation key for Windows XP (and other products), based upon the product ID and a Hardware Hash. The product ID is unique to the installation of Windows and is created from the product key used during installation. Each product key delivered with retail boxed software is unique, and the product ID it creates is unique. Microsoft uses the product ID for other purposes in addition to product activation such as when requesting product support. The product ID can be found by viewing the Properties of My Computer (an example of a product ID is 12345-123-1234567-12345). The hardware hash is an eight byte value that is created by running 10 different pieces of information from the PC's hardware components through a one-way mathematical transformation This means that the resultant hash value cannot be backwards calculated to determine the original values. Further, only a portion of the resulting hash value is used in the hardware hash in order to ensure complete anonymity. No information about the computer or the owner is transmitted to Microsoft.

Significant changes to the makeup of the computer can cause the product to require reactivation. This can be done online or by phone. No elaborate explanation is required, nor are you required to identify yourself.

Since the release of Windows XP Professional, Microsoft has discovered that the vast majority of illegitimate copies in use are using a small handful of leaked "corporate" keys. In an effort to thwart these illegitimate users, Windows XP Service Pack 1 (and possibly all future updates) will not install on systems using these keys, and it is unclear what additional steps Microsoft may take in the future.

Other software manufacturers are following Microsoft’s lead including Intuit, the maker of Quicken, QuickBooks and TurboTax. Product activation in TurboTax 2002 is part of the product's installation and is based on the exchange of numeric codes between the customer's computer and Intuit. None of these numbers contain personally identifiable information nor can they be used to identify any personal information about the customer or any characteristics of the customer's PC configuration. Customers can use this copy of TurboTax to prepare returns on other computers, but when it comes time to print, e-file, or access the tax return, the customer will need to use the PC on which TurboTax was activated.

Intuit uses a program called SafeCast (by Macrovision) for activation. Intuit provides an uninstaller program to eliminate SafeCast from PCs using its TurboTax 2002 software through an automatic Web update that is pushed to the user when the application is launched. Eliminating SafeCast prevents TurboTax from running, so wait until you are ready to uninstall TurboTax. Contrary to popular belief, the software does not disable CD burners. The TurboTax 2002 CD cannot be copied, because the SafeCast software sends certain commands that can only be interpreted by "master" CD burners at mass duplication factories.