OnLive in Trouble for Violating Microsoft's Windows License?

There's no question that streaming a hosted Windows 7 environment to an iPad or Android tablet is a cool thing, especially when it comes packed with pre-installed Office apps. But now there's talk that OnLive may not have acquired the appropriate licenses to provide a Desktop-as-a-Service (DaaS) environment on tablets using Microsoft's products.

On February 29, Gartner said that OnLive Desktop and its premium variants may present Microsoft licensing risks for organizations if consumers install the product on company iPads or use it to edit company documents from personal devices. Even more, neither Microsoft nor OnLive has provided clear instructions on how users must comply with Microsoft licensing requirements.

"Using a Windows desktop through hosted virtual desktop (HVD) requires careful licensing that often includes additional products, fees or Software Assurance," the report states. "Further, Microsoft often requires service providers to license products they provide through a Service Provider License Agreement (SPLA) with monthly payments for devices running the software."

As per Microsoft's virtualization licensing policy, providing access to Windows 7 and Office products in this type of a virtual environment requires the end user (OnLive Desktop subscribers) to have valid license keys for all available products.

Gartner said that OnLive has not disclosed how it is complying with Microsoft licensing, and that if Microsoft were to conclude that OnLive is misusing its products, the Redmond company "could potentially take action against OnLive that could affect OnLive's ability to service clients." There's also potential for Microsoft to hold both OnLive and OnLive Desktop users accountable for any potential mislicensing.

After Gartner's report, Microsoft's corporate vice president of worldwide licensing and pricing Joe Matz said on Thursday in a blog that the company is "actively engaged with OnLive with the hope of bringing them into a properly licensed scenario," adding that Microsoft is committed to seeing that the licensing issue is resolved.

"Our licensing terms provide clarity and consistency for our partners, ensure a quality experience for end customers using Windows across a variety of devices, and protect our intellectual property," he states. "It’s important to us and to our partners that we’re serious about issues of compliance."

OnLive will likely announce a new licensing deal with Microsoft that will allow users to continue to use OnLive Desktop and the premium versions. However there's also a good chance that users will see an increase in price, and possibly a monthly charge for the currently free OnLive Desktop Basic version.

We reached out to OnLive for a comment, but basically received a "no comment" statement in return. "We have never commented on any licensing agreements," a spokesperson said in an email.

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  • phamhlamI am glad MSFT is keeping cool and are talking about a licensing deal.


    well, they're not Apple, after all.
    33
  • Microsoft keeping its promise not to sue even when its an outrageous rip of their products and very sue worthy? Lets give microsoft some major credit here I doubt any other company would keep their promise like this. Bravo microsoft.
    22
  • How could Onlive seriously not know they were doing this? I am glad MSFT is keeping cool and are talking about a licensing deal.
    21
  • Other Comments
  • How could Onlive seriously not know they were doing this? I am glad MSFT is keeping cool and are talking about a licensing deal.
    21
  • phamhlamI am glad MSFT is keeping cool and are talking about a licensing deal.


    well, they're not Apple, after all.
    33
  • phamhlamHow could Onlive seriously not know they were doing this? I am glad MSFT is keeping cool and are talking about a licensing deal.


    I'm not! I'd rather MS sue the hell out of OnLive, that company's services are disgusting, I can't stand cloud computing and streaming games/desktops. Thoughtless waste of network bandwidth.
    -7