There are two main ways to activate Windows: a digital license or a product key. At first glance, they may not seem to affect your Windows installation, but there are key differences in how they connect to your device and Microsoft account. In this article, we’ll explore the difference between digital license and product key.
Key Takeaways:
Also Read: 10 Top Platforms to Sell Digital Products and Make Money
Digital licenses and product keys activate Windows in different ways. Let’s dive deeper into the difference between digital license and product key to understand how each method works.
Modern versions of Windows commonly use a digital license for activation. Formerly known as Digital Entitlement, this method does not require you to enter a product key. Instead, the license is linked directly to your device’s hardware and your Microsoft account. Once your PC connects to the internet, Windows activates automatically.
Your Windows 10 or Windows 11 installation will use a digital license if any of the following conditions apply.
Furthermore, any Microsoft account associated with the cases above will contain your digital license.
Also Read: Top 15 Best Digital Products to Sell in 2025 to Grow Your Income
Product key activation is the most conventional method. It involves entering a 25-character code to verify and activate your Windows. This key can typically be found in several places, such as:
Additionally, you can retrieve the product key from your system using tools like Command Prompt or PowerShell.
Product keys can also be transferable, depending on the type of license you have. There are three common types of Windows licenses:
You’ll likely activate using a product key if one of these cases happens:
Also Read: 5 Smart Ways on How to Use AI to Create Digital Products
While both activation methods serve the same purpose, their processes and flexibility vary. To better understand Windows 10 digital license vs product key, let’s break down their main differences.
| Feature | Digital License | Key Product |
| How it’s used | Automatically updated and tied to a Microsoft account. | Requires manual input during activation. |
| Ownership proof | Account data is on Microsoft’s servers. | A 25-character code. |
| Ease of use | It may require you to keep the product key. | Easier, since no keys need to be entered and linked to your account. |
| Transferable | Depends on the license terms, but transfer between devices requires more steps than a product key. | Depends on the license terms, but it can be transferable. |
| Security risk | More secure, less prone to piracy. | Can be leaked or shared illegally. |
Now that you understand the difference between digital license and product key, you might be wondering which one your Windows device is using. Fortunately, Windows provides a simple way to check your activation status.
If your Windows is activated with a digital license, the page will say “Windows is activated with a digital license” or “…linked to your Microsoft account.” If it’s activated with a product key, it will simply say “Windows is activated.”
Also Read: What Are Digital Products? A Beginner’s Guide to Selling Online
The difference between digital license and product key often depends on how you obtained your copy of Windows. If you purchased a physical product or got Windows pre-installed on your device, you’re probably using a product key. If you opted for a digital download or upgrade, a digital license is usually what you’ll receive.
Always remember to secure your activation properly. Keep your product key in a safe place or make sure your digital license is linked to your Microsoft account to avoid issues later. If you run into any activation problems, don’t hesitate to contact customer support.Whether you’re activating Windows or building a brand identity, the right license makes all the difference. Just like a digital license keeps your Windows running smoothly, a proper font license from Lettersiro ensures your digital products look professional and protected.
