Using SPP, Microsoft's new Software Protection Platform, which is even better - or, if you like, worse - than WGA (Windows Genuine Advantage).
Vista uses a new disk-image installation system so every DVD will carry all the code. This will enable users to upgrade from a cheap version just by obtaining a passcode online or over the phone without needing a new DVD or a long download. This makes protection critical. SPP will therefore check that users have "genuine" (not pirated) versions of Vista, and that these remain "genuine".
More...Credit: Technology Guardian