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From a strictly licensing and contractual perspective, what is Microsoft's policy regarding the use of their licensed products by a divested organization during a transitional period, without necessitating a license transfer to the newly formed entity?

kaka152001 0 Reputation points
2023-04-06T11:39:50.03+00:00

Hello Microsoft community, I have a question regarding licensing policies during divestiture. Specifically, I'm wondering if a divested entity is allowed to use licensed Microsoft products during a transition period without transferring the licenses to the new entity. I have reviewed Microsoft's licensing policies, including the Universal Product Terms and product-specific terms, but have not been able to find any documentation or guidance regarding this specific question. Could anyone provide any information or insights on this topic? Thank you in advance for your help. To provide some examples, let's say that Company A purchased 20 core SQL Server Enterprise licenses, and 5 of those licenses were being used by a business unit located in London. Now, Company A has decided to divest this business unit and sell it to another company. During the transition period, the question is whether the sold business unit can continue using the 5 licenses owned by Company A without transferring them to the new company. Similarly, let's consider a scenario where Company A has subscribed to Office 365 Enterprise E3 licenses, which includes Exchange Online, SharePoint Online, OneDrive for Business, and Skype for Business. Company A's IT environment comprises multiple business units, and one of these units located in London is being divested and sold to another company. During the transition period, the question is whether the sold business unit can continue using the Office 365 licenses owned by Company A without transferring them to the new entity.

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  1. Anonymous
    2023-04-06T13:29:39.56+00:00

    Your reseller's trained licensing specialist and your own legal team would be better suited to answer this. Legal licensing issues cannot be resolved via anonymous forums users.

    --please don't forget to upvote and Accept as answer if the reply is helpful--

  2. ZoeHui-MSFT 35,556 Reputation points
    2023-04-07T01:51:21.27+00:00

    Hi @kaka152001,

    This is a community forum for technical questions & issues.

    For question regarding pricing / licensing please contact a Microsoft sales partner or licensing expert.

    Call (1-800-426-9400), Monday through Friday, 6:00 AM to 6:00 PM PST to speak directly to Microsoft licensing specialist.

    Regards，

    Zoe Hui

    If the answer is helpful, please click "Accept Answer" and upvote it.

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