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Canadian QuickBooks Customers Face Deactivation
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By Ed Foster, Section Columns Posted on Thu Dec 04, 2003 at 09:12:07 AM PDT
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QuickBooks customers on both sides of the border might want to pay attention to the new deactivation technology and aggressive "sunsetting" policies being adopted by Intuit Canada.
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Keep in mind that Intuit has used Canada as a proving ground for copy protection before. When Intuit introduced its now much lamented product activation scheme for TurboTax 2002, company officials said they were confident it would achieve the same "wide consumer acceptance" that the existing product activation in its Canadian QuickTax product enjoyed.
What's generating a bit of heat in the northern latitudes right now is a letter that Canadian QuickBooks 2001 customers recently received from Intuit Canada. As of Dec. 31, 2003, QB 2001 would no longer be supported, the letter said. And, just to make sure customers took the hint and upgraded to the soon-to-be released QB 2004, the letter made it clear that "we will be unable to provide you with registration or installation codes should you need to reinstall your program. To continue using these services and maintain access to product support, you will need to upgrade to a currently supported version, such as QuickBooks 2004." And it ended with a final pointed threat of "please send us your upgrade instructions no later than December 23rd, 2003 to continue your QuickBooks benefits without interruption."
Intuit doesn't call it product activation, but all versions of QuickBooks for many years have had an activation requirement. In fact, it's actually worse than Microsoft's XP product activation in the sense that the user is forced to register the product and provide some information about themselves. As with product activation, however, QuickBooks' registerware often requires customers to go through a reactivation process because of changes to the user's hardware. So in saying that registration and installation codes would no longer be available, Intuit Canada was telling its QB 2001 customers that their three-year-old software would soon be useless.
"If you bought the product at the end of the first year like I did, you get to use the product for two years," wrote the reader who first reported the letter to me. "Does Intuit think it is a fair business practice to deprive a customer of using software that was honestly purchased by depriving them of registration codes? How would I know before I purchased the software that it would only be good for three years from the date of manufacture?"
I'm sure that reader would have been even more upset if he'd known what that letter wasn't telling him about QuickBooks 2004 - namely, that Intuit will be able to deactivate it any time it wants. Another reader pointed out an Intuit-Canada website discussing a new "product activation" component that the Canadian version will include. Actually, product deactivation would be the better term for it in my humble opinion, because that's the function it actually provides over what QB registerware already foists on users. Intuit Canada won't need to bother with nasty letters when it wants to sunset QB 2004 - it can just turn it off.
Dave Ludwick, senior product manager for Intuit Canada, confirms that product activation is being added to the registration requirement in the Canadian version of QB 2004. "Registration and activation are now combined in one simple three-step process," he says. Intuit needs the ability to deactivate the program primarily because the company expects the majority of its Canadian customers to use its "Continuous Service" plan whereby they pay a monthly subscription fee for the software instead of a lump sum. But the registration/activation requirement exists for those who purchase the product outright as well, Ludwick acknowledges.
As for the sunsetting of QB 2001, Ludwick says that Intuit Canada will actually continue to provide registration codes "to the best of our ability" after Dec. 31. Why then did the letter state so baldly that the codes would no longer be available? "The reason we worded it that way is that it wouldn't be very good to say 'we might' be able to do something," Ludwick says. "So for the sake of the letter, we did take a position."
And what position does Intuit in the U.S. take? The official sunset date in the U.S. for QB 2001 is April 30, 2004, after which time "Intuit cannot assure that it can register, provide keycodes, or offer data and password recovery" but will do so "if that data is available." And I should add that gripes about that data not being available are becoming more common with each version of QB that reaches its sunset date.
A spokesman for Intuit in the U.S. says that QB 2004 here will not have the same product activation code as the Canadian version, although of course it continues to require registration. "Our business model is a little different because we don't have a 'Continuous Service' program like they do in Canada ... as yet," the spokesman said.
I think it's safe to predict that it won't be long, though. After all, Intuit has turned former QB features like payroll and invoicing e-mails into online services for which customers pay extra, so they will surely follow Intuit Canada's lead in that respect. Will all QuickBooks versions one day automatically deactivate on their sunset date? That might depend on how much "wide consumer acceptance" Intuit Canada experiences. Oh, Canada ...
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