We had previously reported that you can use your Live ID to share an application purchased through Microsoft’s app store Marketplace for Mobile, but that’s not true. You can only use your Live ID to authenticate the DRM if you actually own, use, and control those devices–meaning they’d have to be phones you personally use, not the ones you give to family or friends. According to WMExperts, you can still install the same app onto five different Windows Phone, just be sure that they are yours.

The policy, although tighter than what we had previously reported, is still more generous and liberal than some current application rights management, which limits you to one device, even if you own and use more than one Windows Mobile handset, depending on the terms of service. A blatant example of such include many popular mapping software for turn-by-turn GPS navigation, which uses a specific SD-based (mini SD, micro SD, and SD) memory card to load the program–should you use a different card or copy the contents to a different card, the mapping program would not operate.

It’d still be interesting to see how Microsoft and its partners will handle de-authentication of applications should your devices fail and require upgrades or you constantly shift to newer devices all the time. Also, details are still unclear at this point on how apps purchased through developers or other marketplace stores like Handango would be handled and if those purchases would still require the typical serial number method or a Live ID system.

Update: As per Microsoft’s statement:

“Microsoft knows the frustration of losing favorite apps and personal information when you lose, upgrade, or add a phone. For this reason, if you buy an application on Windows Marketplace for Mobile, you’ll be able to reinstall the application on a limited number of additional phones simply and free of charge. As outlined in the terms of use for Windows Marketplace for Mobile, this ability is limited to phones owned by the person who purchased the application. Application sharing is not permitted. We believe people will find a high value in mobile applications they purchase through the Windows Marketplace, and we will also be offering a refund policy that will make it easier to shop for applications with confidence.”