Yes and no, or rather yes and yes... MS are sneaky, so they likely link to licenses in territories which are activated by customers - but, if those customers are using a 'key' that is not for the territory the customer is in than problems will arise. Sony did it with content (most annoying it was too). &, it's normal in the computer industry to license territories differently.
Here you go, a list of defined regions:
Microsoft Volume Licensing - Microsoft Open Programs Affiliate Participation Policy
& some explanation from the top of that page:
The Microsoft Open License, Open Value, and Open Value Subscription programs (the Open Programs) allow customers to share agreements and accompanying benefits—such as price levels, centralized license management, and license transfer—with their legal Affiliates throughout a Defined Region. Consolidation of purchase, license transfer, and sublicensing is not allowed beyond the Defined Region boundaries identified below. The term “Affiliate” is defined in the relevant Open Program agreement.
So, perhaps, Jabir puts in a license key which the machine initially accepts to get up and running, but after that, as the machine communicates with MS servers that notice Jabir's defined territory and the licensing key's defined territory are different, error notices start popping up and problems occur?