Second-hand sale of software protected, rules European court

EU's Court of Justice finds content creators can't prohibit post-purchase redistribution of work, no matter what end-user license agreement says.

Have a kilometer-long Steam games list and a paper-thin wallet? If you're a European citizen, you may soon be in luck, as software producers can no longer prevent users from reselling software licenses, according to a Court of Justice of the European Union ruling.

The case between hardware and software producer Oracle and German company usedSoft, which made a business of buying and reselling software licenses from consumers, was decided in favor of usedSoft. The court's judgment stated that a software author's exclusive license to distribute a given copy of its product is exhausted with its initial distribution, allowing the owner to then distribute said copy.

The judgment applies both to future end-user license agreements and pre-existing ones. Therefore, even if the licence agreement prohibits further transfer, the rightholder can no longer oppose the resale of that copy.

The EU Court of Justice is the union's highest court. Its ruling stipulated that the piece of software must be made inoperable for the reseller, and that it does not affect the author's exclusive right to duplicate the software for anything other than its intended purpose. This ruling applies to both physical and fully digital purchases made in EU member states.

The ruling's impact on digital distribution services active in the EU, such as Steam, is not currently known, though GameSpot has reached out to Valve, as well as Microsoft, Nintendo, and Sony, for a response.

[CORRECTION] This article originally stated that the German Federal Court of Justice issued the ruling. It was actually the Court of Justice of the European Union. GameSpot regrets the error.

Read and Post Comments | Get the full article at GameSpot


"Second-hand sale of software protected, rules European court" was posted by Connor Sheridan on Tue, 03 Jul 2012 12:19:47 -0700
Filed under: Video Games

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