However, some computer manufacturers may activate the Microsoft software in the factory. If you purchased a new computer from a personal computer manufacturer, you may have to activate the Microsoft software on that computer. Product activation is required for all licenses that are purchased through retail distribution. Who needs to activate their copy of Office? When you activate your product, no personal information is sent to Microsoft. Product activation is an anti-piracy technology that is designed to verify that the product is legitimately licensed. We ask that you activate your product to verify that your installation is performed with a genuine Microsoft product. More Information Frequently asked questions
No existing Office files are damaged while the product is in reduced-functionality mode.
Additional functionality may be reduced also. In other words, you cannot save modifications to documents or create a new document. In reduced-functionality mode, Office programs function more like viewers. If you do not activate the product after you install it, the Office programs can be started only in reduced-functionality mode.
To fully use Office, you must activate Office. This article provides an overview of the Microsoft Office Activation Wizard.