Microsoft reached a deal with two major sellers of refurbished PCs to provide them with cheaper licenses of Windows XP. More companies could also join the Microsoft Authorized Refurbisher (MAR) program in the near future, but for now Columbus, Ohio-based Redemtech Inc. and Austin, Texas-based TechTurn Inc. are the only ones in the program.

"Microsoft is offering a new license for refurbishers that is only available through the MAR program: Windows XP Home for Refurbished PCs and Windows XP Professional for Refurbished PCs. As long as the PCs that are being refurbished have a Certificate of Authenticity (COA), they can be easily licensed," said Hani Shakeel, senior product manager of the Genuine Windows Product Marketing team.

"Initially, we're offering these Windows XP licenses in English, French and Spanish. Right from the start, refurbishers will have the ability to ship anywhere in the world," Shakeel said.

For a refurbisher to be able to legally sell a PC with the original Windows system, they need two items which make up a valid copy: a Certificate of Authenticity (COA) and the original media, whether it is a Microsoft-manufactured install disc for Windows or a recovery disc which many newer computers have. In most cases, refurbishers lack at least one of these two items. However, smaller refurbishers have been unofficially allowed to reinstall Windows if they had the original sticker or COA.

Through the Microsoft Authorized Refurbisher (MAR) program, the Redmond company will also provide refurbishers proprietary tools that simplify the deployment of Windows XP on refurbished PCs. These tools enable rapid deployment of Windows, complete with all the appropriate drivers.

Microsoft's move seeks to prevent refurbishers from switching to Linux or shipping PCs without any operating system. It also fills a legal hole which made it possible, although not probable, for Microsoft to seek prosecution from refurbishers who reinstalled the original Windows operating system without the two items mentioned above or otherwise infringing on some aspect of Microsoft's complicated End User License Agreement (EULA) for Windows.

Of course, the MAR program also means, bottom line, that Microsoft charges twice for the same thing. But that's hardly surprising when it comes to Microsoft.