this post was submitted on 03 Oct 2023
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KMS requires phoning back to MS periodically to keep the license activated. It's still "permanent" because there's no limit on duration (as of now at least).
HWID activation registers a hardware ID in MS servers to permanently license it. That means no renewal, just forever activation that survives reinstalls.
Wow that's actually better
There is a limit with KMS (2038)