How can I use my portable license of Windows 7 on a new PC?

I bought a license for Windows 7 Professional 32 - bit at a retailer and installed on my laptop.

Recently, I decided to change machines and reformatted and sold my laptop. The license I bought is no longer used on the old laptop.
I want to use my license on a new laptop. Using the original DVD that I bought, I installed Windows 7 on my machine, but when I try to enter the license key and activate, Activation of Windows informs me that my product key cannot be used on this computer.
I contacted the support of Microsoft Windows, but they tell me I have to buy a new license (!) This seems ridiculous and unfair. I understand that my license is valid for only 1 machine, but Microsoft cannot impose that we can work on 1 * specific * computer only. Why can't I just move / move my license to a new machine? What happens to all those people who change machines? Is their money to license Windows into the sewer?
What can I do? How can I solve this problem?
Thanks in advance.
Kunal

I bought a license for Windows 7 Professional 32 - bit at a retailer and installed on my laptop.

Recently, I decided to change machines and reformatted and sold my laptop. The license I bought is no longer used on the old laptop.
I want to use my license on a new laptop. Using the original DVD that I bought, I installed Windows 7 on my machine, but when I try to enter the license key and activate, Activation of Windows informs me that my product key cannot be used on this computer.
I contacted the support of Microsoft Windows, but they tell me I have to buy a new license (!) This seems ridiculous and unfair. I understand that my license is valid for only 1 machine, but Microsoft cannot impose that we can work on 1 * specific * computer only. Why can't I just move / move my license to a new machine? What happens to all those people who change machines? Is their money to license Windows into the sewer?
What can I do? How can I solve this problem?
Thanks in advance.
Kunal

You say you purcheased a retailer, but many retailers sell the retail and OEM versions. If you have purchased an OEM version (which is probably because they are less expensive than commercial versions), sorry to tell you that you are out of luck. One of the major drawbacks of an OEM version is that its license is permanently tied to the first computer that it is installed it can never be moved to another. It's one of the reasons for which the OEM versions are less expensive than commercial versions.

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