Microsoft has encountered an error with licensing and will need to close

office I had a customer email me the other day saying that they have been working with Office 2010 and trying to sequence and deploy the package. However every time deployed the sequenced App-V package of Office 2010 to a user, the user received an error;

“Microsoft Office has encountered a problem with licensing and will need to close. If this problem persists, uninstall and reinstall your product.”

When you look at the event logs you see the following;


Log Name:      Application
Source:        Microsoft Office 14 Alerts
Date:          11/06/2010 16:57:07
Event ID:      300
Task Category: None
Level:         Information
Keywords:      Classic
User:          N/A
The description for Event ID 300 from source Microsoft Office 14 Alerts cannot be found. Either the component that raises this event is not installed on your local computer or the installation is corrupted. You can install or repair the component on the local computer.

If the event originated on another computer, the display information had to be saved with the event.

The following information was included with the event:

Microsoft Word

Microsoft Office has encountered a problem with licensing and will need to close. If this problem persists, uninstall and reinstall your product.




The customers KMS server was set up fine and working for locally installed versions of Office 2010.

After looking at the command line to install the proxies (which was fine), we found that the customer was missing the initial Deployment Kit with licence flags option.

As outlined in the sequencing and deployment KB article ( you must first install the kit with the licensing flags only.  The following is the first installation step procedure.

Install the Microsoft Office 2010 Deployment Kit

1. Open a command prompt with administrative permissions.

2. Browse to the directory that contains the Offvirt.msi.

3. At the command prompt, run the following command:

msiexec /i OffVirt.msi [licensing flags]

You must enter a correct licensing flag in the following list to correctly configure the Deployment Kit. Otherwise, functionality may be incorrect.

And once the licensing flag option is complete the offvirt.msi can be executed with the proxies.

Please make sure you dont miss this crucial setting and step in the documentation.

Once this licence flags deployment and then proxies deployment was complete there were no more errors but a fab Office 2010 Virtualized deployment.

Comments (10)

  1. Anonymous says:

    Had a simelar issue running App-V sequenced Office 2010 on Windows 2008 R2

    Ensure that you have installed the correct version of the Office Deployment Kit  -64 Bit for Windows 2008 R2, if you have the x86 version installed you will experieice this problem

  2. Bert Bouwhuis says:

    I like your heading, where you say "Microsoft … will need to close" instead of "Microsoft Office … will need to close" 🙂

  3. NLC says:

    I did the step for the KMS setup and still have the error as above.

    msiexec /i OffVirt.msi PROFESSIONALPLUS=1 KMSSERVICENAME=”(my domain)” KMSSERVICEPORT=1689

    KMS key has been installed on the server.

    I used the default port from the article assuming that it was correct for the KMS server.

    Any ideas why this may have crapped out?

  4. brett wilding says:

    why do u all talk using words i dont understand? im having a problem with the licencing on my ms office starter 2010, it came with the pc n my son turned the pc on and off a few times in a few seconds n since then it has stopped working i tryd restoring previouse versions n all other kinds off stuff on the pc, any ideas?

  5. diana bryant says:

    I agree Brett. I have wexactly the same problem. Did you ever find a solution/ I can't afford to buy it and shouldn't have as it came installed in the computer.

  6. Danny Sandt says:

    How will I know which licensing flag to use?

  7. skye2 says:

    Uggghhhh…this wasn't remotely helpful. This is like the 12th article I've read on this subject and no one actually fixes the problem. Diana is right; this came preinstalled and if I can't fix it, I'll have to pay for it elsewhere or pay for another program and that isn't fair!

  8. tom says:

    Its all about big money and who can take yours.

  9. Daniel says:

    This guide is intended for users who are deploying Microsoft Office on a large scale; not for users who bought a laptop with a "Starter" version of Office installed.

    For those of you with an Office "Starter" — it is exactly that! It is a Starter, or TRIAL, version of Office. If you want the full product, you will have to buy a full product license. Why? Because Microsoft violated Antitrust laws a long time ago by packaging
    operating system and applications together. So Office must be sold separately. It’s been this way for 10-15 years.
    If you work for a large organization that partners with Microsoft, you may have access to the Home Use Program, which reduces the cost of Office to about $10. Do this if you can. $10 is a steal.
    If you are a Student or Teacher, or want it for Home use (not for a Business!), you can get office for a fraction of the retail cost. Shop around and understand your needs and options before you buy.

  10. ralph says:

    I just bought microsoft office home & student 2016 today from ofice depot/office max and after installing I get the problem with licensing

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