Volume license key
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Volume License key (VLK) is the term used by Microsoft to denote the product key used when installing software licensed under Volume Licensing, which allows a single product key to be used for multiple installations. This form of licensing is typically used in business, government, and educational institutions, with prices for Volume Licensing varying depending on the type and size of the setting. Microsoft software available through the Volume License program include Windows XP, Windows Server 2003, Microsoft Office 2003 and many others.
Since Volume Licensing bypasses activation, VLKs have been exploited by software pirates since the advent of this service. The FCKGW key is a prominent example of VLK exploitation. Although to some this may seem like an easy way to circumvent Microsoft's product activation feature, each VLK is uniquely linked to the company from which it was purchased. Therefore, should the software be installed on more computers than it was licensed, Microsoft can hold the company responsible, and blacklist the product key in extreme cases.
[edit] Volume Activation 2.0
Starting with Windows Vista, VLKs will be replaced with Multiple Activation Keys (MAKs) that either activate copies through a local Key Management Server (KMS), which in turn reports back license usage to Microsoft, or activates directly in communication with Microsoft. Hosts activated via a KMS have to report back to that key server once every 180 days. This change in design was made in order to deter piracy, as pirated copies of products often used VLKs. This differs from previous Microsoft products in which VLKs simply bypassed product activation and will aid Microsoft in tracking down and disabling key access for companies somehow violating their license agreement.
However, these new local key servers are known to already having been used as new attack vectors to enable piracy, such as opening them for Internet access, which is a violation of the EULA. It's possible such "rogue servers" will be, or are, modified to not communicate with Microsoft, and rather report that generated MAKs are valid. Such keys would likely still fail Windows Genuine Advantage tests though.
Microsoft Office 2007 Enterprise Edition will still use the Volume Activation 1.0 system despite being released in the Vista timeframe.