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3DWin has posted a product activation FAQ.



Q: How does Microsoft Product Activation work?

A: Product Activation works by validating that the software's product key, required as part of product installation, has not been used on more PCs than allowed by the software's license. The customer activates the product using a straightforward user interface to communicate the activation information to Microsoft either directly via the Internet or by telephone. Customers may use a product a certain amount of time without activating it.
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