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[WIN8] Ran format / restore, win8 key is blocked

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Not 100% sure if this falls under a software problem, or a hardware problem. Since the laptop works, I'm gonna call it a software/MS one. Ok, had a customer bring me an HP Envy 15 laptop they had tried to load windows 10 on, but for whatever reason (likely something didn't work as expected, or maybe tied to this issue) they downgraded it back to 8.1. When things still didn't work right, they brought it to me. The one thing I saw right off the bat, was the windows 8.1 message in the lower right corner of the desktop, which indicates windows isn't activated. Checked, and sure enough, system properties said it wasn't activated. When I checked under settings, it says "Error code 0xC004C003 - The activation server determined the specified product key has been blocked." Well, that's odd. Since this is a system running 8, there is no COA to type a key from, as it's in the BIOS. Well, easiest thing to do, even if it's overkill, is to image the drive, and run HP's recovery on it. Maybe a virus screwed with the key? Done. Same problem, only now it's back to windows 8 and not 8.1. Same error though. Apparently, it's a common issue with these HP Envy/touch laptops, and there is no solution listed other than call HP for another key, which would be good, if the unit is still under warranty. People mention calling MS to activate by phone, to be told to call HP about it. People claim this is happening with units right from the store. That's not cool. Has anyone run into this problem? Is the only solution to call HP for a new key or buy another license for 8? (or 10 if they wanted) I don't like either idea really. This no-COA thing is a pain. I doubt highly the old man that owns this thing hacked his BIOS key, and AFAIK, he's not had this unit worked on. (motherboard, recovery, etc)

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