What is a OEM System builder license

I see a lot of software that Cost less because of OEM. so i have a question Question: what does OEM mean ? and why it is cheaper? I have XP Home and Family , I would like to move to vista , I have thought of buying a windows vista home premium OEM disk , the problem is that there is message written on it Which is

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This OEM software is intended for system builders only and cannot be transferred to another PC once it is installed. The purchaser of this software is required to comply with the terms of the System Builder license, including the responsibility of providing all end user support for the software.,

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, So it this true , please give some suggestion and advice on this issue

OEM = Original Equipment Manufacturer , It is sold with exclusively for licensehardware (CPU or components). therefore you do not have right to change machine , Not even the possibility to change language, downgrade or upgrade with another OEM.

When an individual buys a PC from a shop, the vast majority of these computers is equipped with pre-installed software (usually at least the operating system, Microsoft Windows, Linux or Mac OS). These programs are called "licensed OEM.

Some of these programs have an strict OEM (in particular Microsoft Windows). In case of change of computer it is forbidden to use the software sold with the previous one. This type of OEM supplies a controversy, particularly among supporters of free software in general and among the competitors of Microsoft.

A system builder is anyone who assembles, reassembles, or installs software on a new or used computer system. Microsoft OEM System Builder software is designed to make it easy for system builders to acquire and distribute genuine Microsoft software with the systems they build and distribute.
The right to distribute Microsoft OEM System Builder software is governed by the OEM System Builder license and is affixed to the side of the OEM System Builder pack. You agree to the terms and conditions of this license upon opening the pack. The license covers areas such as how the software can be distributed, how it must be supported, and placement of the Certificate of Authenticity (COA) labels. System builders can acquire OEM System Builder packs from Microsoft authorized distributors. Are you interested in acquiring OEM System Builder software? See a list of authorized OEM distributors in your country. get more information here http://forums.techarena.in/education...ob/1204123.htm

OEM 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. OEM software almost always includes licensing language along these lines: "For distribution with a new personal computer only. This software may not be sold independently." When it comes to Windows, "OEM editions" most often refer to the cheaper versions of Windows made available to "system builders" and other classes of Microsoft partners. You can buy OEM versions of Windows online almost any place that sells software, such as NewEgg. Companies keep compliant with Microsoft's rules by bundling OEM versions with a token piece of hardware, like a cable. Here's a glimpse of current OEM pricing: