Windows grace (n)~ A state between licensed and non-licensed for the user to activate/reactivate the Windows license. Typical retail Windows will be unlicensed after it is first installed before activation. Enterprise Windows (volume license clients) may find they are in this state if the computer has not been connected to the enterprise key management service for more than 180 days. Finally a customer who has initially used an invalid product key that Microsoft later identifies may be placed in this state and asked to get a valid product key.