Fix Microsoft 365 “Unlicensed Product” Warning After Update (2025 Solutions)

After installing the latest Windows or Office updates, does your Microsoft 365 show a red bar on top saying “Unlicensed Product” or “Product Deactivated”? Don’t panic — this is a common issue in 2025 caused by temporary license mismatches or expired tokens. The good news is that it can be fixed easily using the proven steps in this guide.

🧭 Why Does the “Unlicensed Product” Error Appear?

This message usually means that Microsoft 365 couldn’t verify your subscription or product key. It can happen due to:

• Recent Windows or Office updates that reset activation tokens
• Expired Microsoft 365 subscription or payment issue
• Office apps signed in with the wrong account
• Corrupted Office license files
• Firewall or proxy blocking Microsoft activation servers

🧰 Step-by-Step Fixes for Office 365 “Unlicensed Product” Warning

1️⃣ Verify Your Subscription Status

Before anything else, check if your Microsoft 365 subscription is active.

1. Go to account.microsoft.com/services
2. Sign in using the same account linked to Office 365
3. Check your plan’s renewal or expiry date
4. If expired, renew your subscription and restart your device

2️⃣ Sign Out and Sign Back In

Sometimes Office apps get confused between work/school and personal accounts. Logging out and back in can refresh your credentials.

1. Open Word or Excel → Click File → Account
2. Under “User Information,” click Sign Out
3. Restart the app → Sign in again with the correct licensed email

3️⃣ Reactivate Using Command Prompt (Advanced)

If the warning persists, you can manually refresh the activation files using these commands:

cd %ProgramFiles%\Microsoft Office\Office16
cscript ospp.vbs /dstatus
cscript ospp.vbs /act

Wait for the message “Product activation successful.” If you see errors, move to the next step.

4️⃣ Repair Office Installation

A corrupted Office installation can cause recurring license mismatches.

1. Press Win + R → type appwiz.cpl → hit Enter
2. Select Microsoft Office 365 → click Change
3. Choose Quick Repair first; if it doesn’t help, try Online Repair

5️⃣ Clear Cached License Files

Deleting cached activation data forces Office to re-fetch valid tokens.

1. Press Win + R → type %ProgramData%\Microsoft\Office\Licenses
2. Delete all files inside this folder
3. Reopen any Office app and sign in again

6️⃣ Check Your Internet & Firewall Settings

Office needs to reach Microsoft’s activation servers. Disable VPNs or firewalls temporarily, then try again.

💡 Bonus Tip: Switch to Cloud Sign-In

Many older activations use legacy keys or local licensing. The modern Microsoft 365 subscription model uses cloud-based identity validation, which avoids most of these issues. Signing in through your Microsoft account instead of entering a product key keeps activation synced automatically.

📘 Related Blog

If you’re facing an activation error code like 0xC004F074 instead of “Unlicensed Product,” follow this guide:
👉 Fix Office 365 Activation Failed — Error 0xC004F074

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