Q: I created a virtual machine out of my Windwos system with Paragon P2V wizard. When I run this virtual machine it prompts a message requesting to activate Windows. Why do I need to activate again?
A: Windows activation is required after migration to virtual environment, because it is similar to migration to new hardware.
As virtualization requires installation of many new 'virtual' devices and drivers, according to Microsoft licensing policy re-activation is needed if new devices limitation is exceeded.
For more information please refer to appropriate Microsoft links below:
section "Product Activation keeps users from changing or upgrading their hardware."
[...] If the hardware is substantially different, then reactivation is required. If it is the same or similar, then the software will continue to work. Those who upgrade their PC's hardware substantially may be asked to reactivate.[...]
section "Modifications to hardware and how they affect the activation status of Windows XP"
[...] If it detects that the hardware is "substantially different", reactivation is required.[...]
section "What hardware changes may require re-activation?"
# If you acquired Windows Vista via retail purchase (boxed product) or pre-installed on a computer from a local computer vendor, Windows Vista will require re-activation if you, for example:
* Replace the hard disk drive and memory at the same time.
* Replace the motherboard.
# If you acquired Windows Vista pre-installed on a computer from a major manufacturer (sometimes referred to as an Original Equipment Manufacturer or OEM), Windows Vista will require re-activation if you replace the motherboard with a motherboard not provided by the OEM. [...]
[...] Periodically, Windows 7 and Windows Server 2008 R2 check the hardware configuration of the computer on which the operating system is installed. If the operating system detects that the hardware has changed substantially, reactivation is required.[...]