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Second Hand Software: Legality of Used Licenses
Buying and reselling used software licences is lawful in the UK: courts have recognised the market for pre-owned software — particularly perpetual (lifetime) licences. Individuals and businesses can buy genuine software below retail price, in full legal compliance and with the same guarantees of authenticity.
What is second hand software?
When you buy software, you acquire a licence to use it — not ownership of the program itself. This is the key to understanding the market. Under the law derived from the EU Software Directive and retained in UK law, that licence can be transferred to a third party under certain conditions.
Used licences are genuine, fully authentic original licences that were previously purchased and later made available for resale. These are not pirated or unauthorised copies — they are original licences issued by the official publishers, and they remain fully valid when transferred to a new owner.
When a company or individual no longer needs their software, they can lawfully resell it, creating a regulated secondary market that lowers costs without compromising compliance or security.
The Legal Basis for the Used Software Market: All Court Rulings
The validity of used software licenses was recognized by the CJEU (Court of Justice of the European Union) in its July 3, 2012, ruling (Case C-128/11). This decision has become fundamental and seminal in the software resale landscape. It established a clear and solid regulatory framework that allows consumers and businesses to freely buy and sell used licenses. Below are all the rulings that have shaped the used software market.
July 3, 2012
CJEU Judgment C-128/11
The case that led to this ruling stems from a dispute between Oracle and a German company specializing in the sale of used software licenses. Oracle, for its part, contested the possibility of reselling the licenses, but the European Court of Justice, in its ruling, established three fundamental principles upon which today’s entire market is based:
- Exhaustion of distribution rights —once a license is sold within the European Economic Area with the consent of the rights holder, the supplier’s right to distribute the license is exhausted. The original purchaser may therefore resell the license without restriction.
- Equality between physical and digital media —there is no difference between licenses provided on physical media and digitally downloaded licenses (ESD). Both may be legally resold under the same conditions.
- Prohibition on Additional Restrictions —Manufacturers may not impose bans, additional costs, or further restrictions beyond those provided for by law. Software resale must remain free and transparent.
July 17, 2013
Judgment No. I ZR 129/08
With this ruling, the German Federal Court of Justice incorporated into German law the principles previously established by the CJEU in its 2012 case, thereby resolving the dispute over the resale of used software licenses.
The BGH has ruled that if the copyright holder has consented to the download of a copy of a program from the internet, subsequent purchasers of a license are authorized and entitled to reproduce the program, provided that the right to distribute the copy has been exhausted and that the resale of the license is accompanied by the resale of the copy of the program downloaded from the copyright holder’s website.
December 11, 2014
Judgment I ZR 8/13
In its December 11, 2014, ruling, the Bundesgerichtshof dismissed in its entirety the appeal filed by Adobe against the decision of the Frankfurt Oberlandesgericht (11 U 68/11, December 18, 2012), thereby consolidating and expanding upon the principles already established in the previous 2013 ruling. The case concerned the resale of Adobe licenses originally purchased through volume licensing agreements.
The court fully rejected the manufacturer’s argument that a volume license constitutes a single, indivisible license merely because it is associated with a single serial number. On the grounds that the software can be installed on multiple independent workstations, the Court ruled that licenses acquired through volume licensing agreements may be resold individually as used software licenses.
2025-2026
Interim Order 406 HKO 148/16
In November 2025 the UK Competition Appeal Tribunal held that Microsoft could not use copyright to prevent the resale of perpetual Windows and Office licences, and that volume licences may be subdivided and resold. On 7 July 2026 the Court of Appeal dismissed Microsoft’s appeal in full — confirming that the UsedSoft principle applies to Microsoft’s software and that a customer holding a perpetual licence may resell it. The court rejected the argument that interface elements such as icons or help files turn the software into a protected “artistic work” outside the resale rules.
What does this mean for individuals and businesses?
UK law — derived from the EU Software Directive and confirmed by the Court of Appeal in July 2026 — openly protects the used-licence market, allowing individuals, businesses and public bodies to buy genuine pre-owned software with legal certainty:
- A significant reduction in costs without sacrificing quality or security.
- Full regulatory compliance, including in corporate and administrative contexts.
- Greater digital sustainability, promoting reuse and reducing waste.
The used software license market is now a reliable, regulated, and transparent ecosystem that promotes fair competition and protects intellectual property. The specific rules may still vary from jurisdiction to jurisdiction, but precisely for this reason, the added value of a certified reseller lies not only in the lower price but also in the ability to guarantee certifications and document compliance.
Note: subscription and cloud products (such as Microsoft 365 and Adobe Creative Cloud) are services, not perpetual licences, and are not resold on the used market. The value of a certified reseller lies not only in a lower price but in documented provenance and compliance. Every licence sold by PrimeLicense is genuine and guaranteed.
If I purchase a used license, will the manufacturer continue to provide support?
Yes, once activated, the license works exactly like a new one. Technical support and updates remain available for the entire duration of the license, regardless of whether it is used or new. In addition, PrimeLicense offers free technical support with every purchase.
What happens if the original seller of the license objects to the transfer?
It is very difficult due to the CJEU ruling in Case C-128/11, which establishes that distribution rights are exhausted once the license has been lawfully sold within the European Economic Area. The original seller no longer has any rights to the transferred license, and PrimeLicense always verifies the license’s origin before reselling it.
If I use a used license, do I risk legal or corporate compliance issues?
No. European court rulings explicitly recognize that government agencies and companies may purchase used licenses without risk of copyright infringement or compliance issues. They are technically equivalent to new licenses and comply with all European regulatory requirements.
How do I verify that a license is genuine?
When you purchase a used software license on PrimeLicense, you will still have access to the official download on the manufacturer's website. This certifies, in accordance with European law, that you have purchased a 100% genuine license.
Is it legal to buy used software in the UK?
Yes, the CJEU ruling in Case C-128/11 is also valid in the UK, thereby allowing the resale and purchase of used software.
What guarantees do I have when purchasing used software on PrimeLicense?
PrimeLicense partners with numerous manufacturers and is an Microsoft Cloud Partner and an Adobe Certified Reseller. We are committed to providing used genuine software at the best possible price. In addition, users are covered by the Trusted Shops guarantee, which provides insurance coverage of up to €2,500 on their purchases.
