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Hi Keith Eades
The behavior you’re describing, emails opening in read‑only mode along with an “Unlicensed product” message is expected when Outlook desktop is not activated, even if the mailbox itself is working.
If Outlook detects only a mailbox license (for example, Exchange Online Plan 1/2 or a third‑party hosted Exchange account) but does not detect an active Microsoft 365 Apps license, Outlook will open but operate in read‑only mode.
That’s why you can see emails but can’t reply, edit, or create new items.
Check which account Outlook is activated with
In Outlook, go to File > Office Account
Under Product Information, confirm:
- Whether it shows “Unlicensed product”
- Which email address is listed as Signed in as
Outlook must be signed in with the Microsoft 365 account that owns the Apps license, not just the mailbox account.
Confirm the correct license is assigned
Have the admin sign into the Microsoft 365 Admin Center: https://admin.microsoft.com
- Go to Users > Active users > select the user
- The user must be assigned a license that includes desktop apps, such as:
- Microsoft 365 Business Standard
- Microsoft 365 Business Premium
- Microsoft 365 Apps for Business
- Office 365 E3 / E5
(Licenses like Exchange Online Plan 1 or 2 alone do not activate Outlook)
Sign out and re‑sign in to Office
- Open Outlook (or any Office app) > Go to File > Account > Sign out
- Once Outlook successfully detects a valid Microsoft 365 Apps license: The “Unlicensed product” message will disappear > Emails will no longer open as read‑only > Full functionality (replying, editing, composing) will be restored
If the problem persists after all steps above, please share:
- A screenshot of Outlook > File > Office Account
- Confirmation of the assigned license SKU
- Whether the mailbox is hosted by Microsoft or a third‑party provider
Additionally, you can see this official document: Unlicensed Product and activation errors in Office - Microsoft Support
I hope this information is helpful to you. If you have any questions, please feel free to ask them in the comment section.
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