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Authentic Software

Discover how European court rulings have established a legitimate marketplace for pre-owned software licenses, offering substantial savings while maintaining full legal compliance.

Understanding Pre-Owned Software

Pre-owned software represents legitimate licenses previously purchased and now available for resale. These are genuine licenses from original publishers—not pirated copies—that retain full legal validity when transferred to new owners.

When businesses or individuals no longer need their software licenses, they can legally resell them to other parties. This creates a legitimate secondary market offering significant cost savings while maintaining complete legal compliance.

The key distinction is understanding that purchasing software means acquiring a license to use it. Under European law, this license can be transferred to others under specific legal conditions, creating substantial savings without compromising authenticity or legal standing.

The Legal Foundation: European Court of Justice Ruling

The legitimacy of pre-owned software is firmly established by the Court of Justice of the European Union (CJEU) ruling of July 3, 2012 (Case C-128/11). This decision provides the legal framework that ensures businesses and consumers can securely sell and purchase pre-owned software licenses.

The CJEU Ruling (Case C-128/11): A Game-Changing Decision

The CJEU ruling issued on July 3, 2012 is a landmark judgment addressing the fundamental question of whether software licenses could be legally resold within the European Union. The case emerged from Oracle's attempt to restrict the resale of its software licenses, challenging the very concept of a secondary software market.

The court's decision established three crucial principles:

  • Exhaustion of Distribution Rights: Once a software vendor has sold a license within the European Economic Area (EEA) with the copyright holder's permission, it has exhausted its distribution rights. The original purchaser gains the unequivocal right to resell that license, creating a legitimate secondary market.
  • Equal Treatment Principle: The ruling emphasized no distinction should exist between licenses obtained via physical copies and those downloaded digitally. This ensures both have equal resale rights, aligning law with digital realities.
  • Prohibition of Additional Restrictions: Vendors cannot add extra limitations to resale beyond those agreed at the time of original sale—no transfer bans or added fees—ensuring a truly open market.

Strengthening Legal Framework: Subsequent Rulings

The CJEU decision led to additional rulings that reinforced the legal foundation for pre-owned software:

  • Münster Public Procurement Chamber (March 1, 2016 – VK 1-2/16): Confirmed license holders' rights to resell without interference from original vendors.
  • Federal Court of Justice (July 17, 2013 – I ZR 129/08): Germany's top court supported the legality of second-hand software, bringing EU law into national practice.
  • BGH Ruling (December 11, 2014 – I ZR 8/13): Further solidified the secondary software market by reinforcing resale rights.
  • OLG Ruling (August 2016 – 406 HKO 148/16): Strengthened consistent legal interpretation across court levels regarding software resale.
  • What This Means for You or Your Business

European law now recognizes and protects pre-owned software licenses, allowing both individuals and businesses to use them with confidence and full compliance.

The financial benefits are significant: companies and individuals can lower software costs without compromising quality or legal integrity. Businesses can reinvest savings into core priorities, while individuals access professional tools at affordable rates. The secondary software market is now a transparent, trustworthy space that promotes digital ownership and fair competition.

What This Means for Your Business

European law now clearly protects your right to buy and use pre-owned software licenses. For businesses, this means substantial cost savings without cutting corners on quality or compliance. Companies can redirect budget from software costs to other priorities like hiring, equipment, or growth initiatives.

For individuals, it opens up access to professional-grade software that might otherwise be out of reach. The secondary software market has evolved into a transparent, reliable option that benefits everyone - except perhaps the original vendors who preferred the old model of selling only new licenses.