Legal Use of License Transferring

Hello,

The use of the license transfer tool is for moving a profile's content to a new console, it will not move content between gamertags. Doing a license transfer to "share" content so your friend doesn't have to purchase it. This sort of activity is a direct violation
of Xbox LIVE's Terms of Use and can get you and your friend involved suspended from
Xbox LIVE. If your friend wishes to play this game, have him purchase it himself.

As far as the issue with the license transfer, there's no way to re-initiate a license transfer, you will now have to wait 4 months in order to do another license transfer.

Again, I spoke to customer service on the site pertaining to the legal use of license transferring. Also I have had the transcript of said conversation mailed to both myself and the Enforcement Act Team. As long as you abide by DRM policy concerning use
of License Transferring with the purpose of updating another console with licenses so that players can be authorized to download and use any game content legally purchased from the market place by the account owner doing the transferring; and as long as you
abide by section G of the Code of Conduct pertaining to the willful distribution of personal information via means non-public and non-commercial, then you are within your legal right to transfer games to/from another console as long as a third party is not
involved.

I'm afraid it cannot be done. Your sole options are purchasing a replacement CD (even a used disc) or buying the digital license for the game on sale from the Xbox Store. There is no legal way to transfer the license from CD to another format.

Hello

You can transfer content licenses from one console to another once every four months.

If your console was recently repaired, or if you’ve purchased a new console, use the license transfer option on your console to transfer content licenses. Here’s how:

On your console, sign in to Xbox LIVE using the gamertag that you used to purchase the content.

Go to the Settings, and then select Account.

Go to Your Billing Options, and then select License Transfer.

Follow the on-screen instructions to transfer the content licenses.

After the licenses are transferred, you need to download the content again to update the local licenses. This way the content can be used by other profiles on your console and when you’re not connected to Xbox LIVE.

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Don't use the Services to do anything illegal. You are responsible for your actions and the consequences of your actions on the service, not Microsoft.

http://www.xbox.com/en-US/Legal/CodeOfConduct?xr=footnav

As long as you aren't using it in a way to share games with friends and only using it to switch between consoles that you personally own, or are sharing it with family members that live in the same household there's absolutely no issues with license transferring.

The only people who should be scared are people who abuse the license transferring system. Microsoft can easily tell who's sharing content with their friends and how many times they do it. Each license transfer leaves a trail so if you're using it for that
reason I suggest you stop. As far as how many times, there's no set number, if you break the
Code of Conduct or
Terms of Use then yes, your account would be banned along with the people partaking in the license transfers as that's marketplace theft.