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Microsoft Disables KMS38 Activation Method After Years of Unofficial Use

Microsoft Disables KMS38 Activation Method After Years of Unofficial Use

Microsoft has quietly eliminated the KMS38 activation method, an unofficial technique used for years to activate Windows 10 and 11 without purchasing licenses. The changes, implemented through recent Windows updates, received no mention in official release notes or security bulletins.

Users first noticed the disruption last week when the KMS38 method stopped functioning entirely. The Massgrave project, which developed and maintained the activation scripts, confirmed that Microsoft's October and November 2025 updates permanently disabled the technique.

What KMS38 Was and How It Worked

KMS38 represented an unofficial activation method developed by the Massgrave (MAS, Microsoft Activation Scripts) project, a community-driven effort creating tools for activating Windows and Office without valid licenses. The project maintains an open-source repository on GitHub—ironically, a platform owned by Microsoft itself.

The Technical Mechanism:

KMS38 exploited a legitimate Windows system file called GatherOSstate.exe, a utility Microsoft uses to determine whether a system qualifies for specific updates and license transitions. The activation method manipulated this utility to:

  1. Initiate a standard Key Management Service (KMS) activation
  2. Extend the activation period from the typical 180 days to January 19, 2038
  3. Create what appeared to Windows as a valid, long-term license activation

Why January 19, 2038?

The specific date stems from the Year 2038 problem (Y2K38), a limitation in 32-bit systems that cannot represent dates beyond January 19, 2038, at 03:14:07 UTC. This technical constraint in Unix timestamp format determined the maximum extension possible through the KMS38 method.

The name "KMS38" directly references this date: KMS (Key Management Service) + 38 (the year 2038).

Key Management Service Background:

KMS is Microsoft's legitimate volume licensing technology designed for organizations activating multiple Windows installations. Organizations run KMS servers on their networks, and client computers connect to these servers for activation, which remains valid for 180 days before requiring revalidation.

KMS38 mimicked this process but extended the activation period to effectively create a permanent license without access to a legitimate KMS server or valid volume license keys.

Timeline of Microsoft's Response

While last week's final shutdown appeared sudden, Microsoft has been systematically dismantling KMS38 functionality for nearly two years:

January 2024 - Initial Action:

Microsoft removed the GatherOSstate.exe file from Windows 26040 installation images. This change meant:

  • Clean installations would not include the utility KMS38 depended on
  • Major version updates would remove the file during the upgrade process
  • Users who reinstalled Windows would find KMS38 no longer functioned
  • The activation grace period would reset to zero after major updates

However, this initial action left existing installations intact. Systems already running KMS38 activation continued functioning normally, and users could restore the removed file through various workarounds.

October 2025 - Functionality Disabled:

Microsoft released optional update KB5067036 for Windows 11, which completely disabled the functionality of GatherOSstate.exe even when the file remained present on the system. The utility no longer performed its activation-related functions, breaking KMS38's core mechanism.

November 2025 - Complete Elimination:

The November "Patch Tuesday" updates (KB5068861 for Windows 11 and KB5067112 for Windows 10) finalized the elimination of KMS38. After these mandatory security updates:

  • KMS38 activation stopped working entirely across all Windows installations
  • No workarounds could restore functionality
  • Users saw their Windows installations revert to unlicensed status

December 2025 - Massgrave Removes Support:

The Massgrave developers confirmed KMS38's permanent death and removed support from Microsoft Activation Scripts version 3.8. The project's GitHub repository now directs users toward alternative activation methods that currently remain functional.

Why Microsoft's Approach Was Unusual

Several aspects of Microsoft's handling of KMS38 and the Massgrave project raise questions about the company's enforcement priorities:

1. GitHub Hosting of Activation Tools

The Massgrave project operates openly on GitHub, which Microsoft acquired in 2018 for $7.5 billion. The repository containing activation scripts that bypass Windows licensing has remained publicly accessible throughout Microsoft's ownership of the platform.

Microsoft could have used GitHub's terms of service or DMCA takedown procedures to remove the repository at any time but chose not to. This raises the question: why tolerate the distribution platform while eliminating the technical functionality?

2. Internal Use by Microsoft Support

In 2023, reports surfaced that Microsoft's own support engineers sometimes used Massgrave solutions to activate Windows for customers experiencing licensing issues. This suggests:

  • Microsoft's official support processes occasionally fail to resolve legitimate activation problems
  • Even Microsoft employees found unofficial activation tools more reliable than internal systems
  • The company's stance toward unofficial activation has been pragmatic rather than absolute

3. No Legal Action Against Developers

Despite years of public operation and widespread use, Microsoft has not pursued legal action against the Massgrave developers. The company has extensive resources for intellectual property protection and regularly defends its software licensing revenue, yet it has allowed this specific project to operate openly.

4. Silent Implementation Without Documentation

Microsoft did not announce the elimination of KMS38 in release notes, security bulletins, or other official communications. The company simply removed functionality through updates without acknowledging the change or its impact on users relying on unofficial activation methods.

Alternative Activation Methods Still Functional

With KMS38 permanently disabled, the Massgrave project now recommends two alternative methods for activating Windows without purchasing licenses:

HWID (Hardware ID) Activation:

This method exploits Windows 10's digital license system, which ties activation to specific hardware configurations. HWID creates what appears to Windows as a legitimate digital license permanently associated with the hardware.

Advantages:

  • Survives Windows reinstallation on the same hardware
  • Remains active through updates
  • Creates a "permanent" activation tied to the hardware

Limitations:

  • Only works for Windows 10 (not Windows 11)
  • Stops functioning if significant hardware changes occur
  • Requires internet connection during initial activation

TSforge (Ticket Signing) Method:

TSforge represents a newer technique that manipulates Windows activation tickets to create what appears as valid licensing.

Advantages:

  • Works for both Windows 10 and Windows 11
  • Functions offline after initial setup
  • Resistant to some update-related disruptions

Limitations:

  • More complex implementation than KMS38
  • May require reapplication after major system updates
  • Less extensively tested than KMS38's years of use

The Massgrave project maintains that both methods currently function, but users should expect Microsoft to eventually target these techniques with similar countermeasures.

The Gray Area of Unofficial Activation

The existence and longevity of projects like Massgrave highlight several tensions in Microsoft's Windows licensing model:

Technical Accessibility vs. License Enforcement:

Windows remains technically functional without activation. Microsoft allows unlicensed installations to operate with limited personalization features disabled, creating a usable (if restricted) system. This design choice suggests Microsoft prioritizes Windows ecosystem adoption over strict license enforcement.

Volume Licensing Complexity:

KMS exists because Microsoft's enterprise customers need efficient methods to activate hundreds or thousands of computers. However, the complexity of volume licensing creates scenarios where legitimate customers encounter activation problems, sometimes leading IT administrators to seek unofficial solutions.

Pricing and Regional Disparities:

Windows licenses cost $139-$199 in the United States but represent substantially larger percentages of income in developing economies. This pricing structure creates incentives for unofficial activation, particularly in regions where legal software purchases remain financially prohibitive.

The Software-as-Service Shift:

Microsoft's business model has evolved toward subscription services (Microsoft 365, Azure, Xbox Game Pass) rather than one-time software purchases. Windows revenue now represents a smaller portion of Microsoft's total income compared to cloud services and subscriptions, potentially reducing the company's motivation to aggressively enforce license compliance.

What This Means for Different User Categories

Home Users Relying on KMS38:

If you used KMS38 to activate Windows, your system likely now displays activation errors and restrictions:

  • Watermark on desktop indicating "Activate Windows"
  • Disabled personalization features (wallpaper, themes, colors)
  • Periodic notifications prompting license purchase
  • All other functionality remains intact

Options:

  • Purchase a legitimate Windows license ($139-$199)
  • Explore alternative activation methods (HWID or TSforge)
  • Continue using Windows with activation restrictions
  • Consider Linux distributions as free alternatives

Small Businesses Using Unofficial Activation:

Businesses operating with unofficial activation face compliance and security risks:

Legal Risk: Using unlicensed software violates Microsoft's terms of service and potentially applicable laws. Businesses caught using unauthorized software during audits face penalties and forced license purchases.

Security Risk: Unofficial activation sometimes requires disabling Windows Update or security features, creating vulnerability to malware and attacks.

Audit Risk: Microsoft periodically audits business customers for license compliance. Unofficial activation detected during audits triggers financial penalties and forced license purchases at full retail rates without volume discounts.

Recommendation: Businesses should use legitimate licensing through volume licensing programs, which offer substantial discounts compared to retail pricing and include support and compliance documentation.

IT Administrators Managing Large Deployments:

Organizations managing hundreds or thousands of Windows installations should use Microsoft's official volume licensing options:

  • Volume Licensing Service Center (VLSC) for traditional KMS servers
  • Azure Active Directory for cloud-based activation
  • Windows Autopilot for modern device provisioning
  • Microsoft 365 subscriptions that include Windows licenses

These official options provide better compliance documentation, support, and integration with enterprise management tools compared to unofficial activation methods.

Software Developers and Testers:

Developers and testers who used KMS38 for test environments have legitimate alternatives:

  • Visual Studio subscriptions include Windows licenses for development and testing
  • Microsoft provides free Windows 10/11 evaluation VMs (valid for 90 days)
  • Windows Insider Program offers preview builds for testing purposes
  • Azure Dev/Test subscriptions include Windows licenses for cloud development environments

The OSINT Investigation Angle

When I conduct due diligence for M&A clients or security assessments, software licensing compliance represents a specific risk category that often reveals broader organizational issues:

Indicators of Licensing Problems:

During investigations, I look for evidence that might indicate unlicensed software use:

  • Online discussions from employees seeking activation solutions
  • IT documentation referencing unofficial activation methods
  • GitHub repositories for internal projects that mention activation workarounds
  • Job postings seeking IT staff with "Windows activation troubleshooting" experience
  • Social media posts from employees about licensing issues

Why This Matters:

Organizations using unofficial Windows activation typically face multiple risk factors:

  • Compliance and audit risk (Microsoft and BSA audits can result in substantial penalties)
  • Security vulnerability (disabled updates or security features to preserve activation)
  • Professional maturity questions (if an organization won't invest in basic software licensing, what else are they cutting corners on?)
  • Cultural indicators (acceptance of license violations may reflect broader ethical issues)

Due Diligence Red Flags:

For M&A clients, evidence of widespread unofficial software use suggests:

  • Immediate remediation costs (forced license purchases at full price)
  • Potential legal exposure (Microsoft audit penalties, BSA settlements)
  • Integration challenges (merged organization must eliminate unlicensed software)
  • Cultural integration issues (different compliance standards between organizations)

The Disclosure Question:

Sophisticated acquirers specifically ask during due diligence: "What percentage of your software is properly licensed, and can you provide evidence?" Organizations that cannot produce license documentation face skepticism and potentially reduced valuations.

Why Microsoft Took Two Years to Fully Eliminate KMS38

The gradual elimination of KMS38 over nearly two years suggests several possible motivations:

1. Minimize Disruption to Ecosystem:

Immediately breaking activation for millions of installations would create:

  • Massive support ticket volume
  • Negative public relations
  • Potential antitrust scrutiny (claims of predatory enforcement)
  • Disruption to systems that cannot easily be updated

The gradual approach gave users time to transition to legitimate licensing or alternative methods while minimizing dramatic disruption.

2. Test Enforcement Mechanisms:

Microsoft's staged rollout allowed the company to:

  • Test technical countermeasures (file removal, functionality disabling, complete elimination)
  • Observe user response and workaround development
  • Refine enforcement approach based on effectiveness
  • Prepare support infrastructure for the inevitable increase in activation-related inquiries

3. Balance Ecosystem Growth and Revenue:

Microsoft benefits from Windows ecosystem adoption even when users don't pay for licenses:

  • More Windows users mean more potential Microsoft 365 subscribers
  • Larger Windows market share maintains application developer interest
  • Enterprise customers pay license fees; consumer enforcement generates less revenue
  • Cloud services revenue increasingly outweighs Windows licensing income

The two-year timeline suggests Microsoft weighed enforcement costs against revenue benefits and chose a measured approach.

4. Technical Complexity:

Completely eliminating KMS38 required changes across multiple Windows components:

  • Installation images (removing GatherOSstate.exe)
  • Update infrastructure (disabling utility functionality)
  • Activation systems (detecting and blocking KMS38-created activations)
  • Quality assurance (ensuring changes didn't break legitimate activation methods)

Implementing these changes safely across Windows 10 and 11 required time for development, testing, and staged rollout.

What to Expect Next

Based on historical patterns, here's what likely happens from here:

Short Term (3-6 Months):

  • Users report activation failures as November 2025 updates reach all systems
  • Massgrave community focuses on improving HWID and TSforge reliability
  • Microsoft may release additional updates targeting remaining unofficial methods
  • Some users purchase legitimate licenses; others explore Linux alternatives

Medium Term (6-12 Months):

  • Microsoft likely targets HWID and TSforge with similar countermeasures
  • New unofficial activation methods may emerge, beginning the cycle again
  • Windows 12 (expected 2025-2026) may implement new licensing architectures resistant to current techniques
  • Increased focus on Microsoft 365 subscriptions (which include Windows licenses) as the preferred licensing model

Long Term (12+ Months):

  • Microsoft may transition Windows toward subscription model (Windows-as-a-Service)
  • Cloud-based activation tied to Microsoft accounts becomes standard
  • Offline activation becomes increasingly difficult or impossible
  • Linux desktop adoption may increase among users unwilling to purchase licenses

The Cat-and-Mouse Pattern:

The KMS38 elimination follows a predictable pattern:

  1. Unofficial activation method emerges exploiting Windows functionality
  2. Method becomes widely adopted over several years
  3. Microsoft eventually eliminates the specific technical mechanism
  4. New methods emerge exploiting different Windows functionality
  5. Cycle repeats

This pattern has continued for decades (Windows XP activation cracks, Windows 7 WAT removal, Windows 10 KMS exploits, KMS38), and there's no reason to expect it will stop.

Key Takeaways

Microsoft has permanently eliminated the KMS38 activation method through updates released in October and November 2025. The gradual, two-year process of disabling this unofficial activation technique demonstrates a calculated approach to enforcement rather than aggressive legal action against developers or users.

For users currently relying on KMS38 activation:

  • Your Windows installation now shows as unlicensed with limited functionality restrictions
  • Alternative unofficial methods (HWID, TSforge) currently function but face eventual countermeasures
  • Legitimate licensing options include retail purchase, volume licensing, or Microsoft 365 subscriptions
  • Windows remains functional without activation, though with personalization and feature restrictions

For businesses using unofficial activation:

  • Compliance and audit risks outweigh short-term cost savings
  • Volume licensing programs offer legitimate options at reduced prices
  • License violations discovered during due diligence reduce company valuations
  • Security risks from disabled updates create vulnerability to attack

The broader lesson: Microsoft's approach to Windows licensing enforcement balances revenue protection against ecosystem growth. The company tolerates some level of unlicensed use while periodically eliminating specific activation methods, maintaining a dynamic equilibrium between license enforcement and platform adoption.

Sources:

  • Massgrave project GitHub repository and release notes (version 3.8)
  • Microsoft Windows update documentation (KB5067036, KB5068861, KB5067112)
  • Windows licensing and activation technical documentation
  • Security researcher analysis of activation mechanism changes

Disclosure: This article discusses unofficial Windows activation methods for informational and educational purposes only. Red Dog Security does not condone software license violations and recommends using legitimate licensing for all software deployments. This analysis is based on publicly available information from open-source repositories, technical documentation, and security research.

Legal Note: Using unofficial activation methods violates Microsoft's Terms of Service and may constitute copyright infringement under applicable laws. Businesses using unlicensed software face audit penalties and legal consequences. This article presents technical information for educational purposes and should not be construed as encouragement to violate software licenses.