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Authentic Software

Discover how rulings by European courts have officially recognised the full legitimacy of the used software licence market—particularly for perpetual licences—allowing individuals and businesses to achieve substantial savings while remaining fully compliant with the law.

What is used software?

Used software consists of genuine licences that were previously purchased and are now available for resale. These are not pirated or unauthorised copies, but original licences issued by official publishers, which retain full legal validity even when transferred to a new owner.

When companies or private users no longer require their licences, they can resell them legally, creating a regulated secondary market. This model helps reduce costs without compromising compliance or security.

It’s important to remember that when you purchase software, you obtain the right to use the licence, not ownership of the programme itself. Under European law, this licence can be transferred to third parties provided certain conditions are met. This opens the door to a convenient and fully lawful alternative, without compromising the authenticity or legal validity of the software.

The legal foundation: the ruling of the Court of Justice of the European Union

The legality of the used software licence market was officially recognised by the Court of Justice of the European Union (CJEU) with the landmark ruling of 3 July 2012, Case C-128/11. This key decision established a clear and robust legal framework, allowing the free buying and selling of used licences by consumers and businesses.

A landmark decision: the CJEU ruling (Case C-128/11)

The case originated from a dispute between Oracle and a German company specialising in the resale of used licences. Oracle contested the very possibility of reselling software licences, calling the entire secondary market into question.

The court established three key principles:

  1. Exhaustion of distribution rights
    Once a licence has been sold within the European Economic Area with the rights holder’s consent, the supplier’s distribution rights are exhausted. The original purchaser is therefore free to resell the licence without restrictions.
  2. Equal treatment of physical and digital formats
    There is no distinction between licences supplied on physical media and those provided as digital downloads. Both can be legally resold under the same conditions.
  3. Ban on additional restrictions
    Software publishers cannot impose transfer bans, extra fees, or further constraints beyond those allowed by law. The resale of licences must remain free and transparent.

A consolidated legal framework: subsequent rulings

Following the CJEU decision, various European courts have confirmed and strengthened this interpretation:

  • Public Procurement Chamber of Münster (1 March 2016 – VK 1-2/16): upholds the right to resell licences without interference.
  • German Federal Court of Justice (17 July 2013 – I ZR 129/08): reaffirms the legality of used licences in line with EU law.
  • BGH ruling (11 December 2014 – I ZR 8/13): further reinforces the full validity of resale.
  • OLG ruling (August 2016 – 406 HKO 148/16): consolidates a consistent interpretation of rules governing the licence market.

What this means for you and your company

Today, European law openly protects the market for used software licences. This allows individuals, businesses, and public organisations to purchase second-hand licences with full legal certainty and significant economic benefits.

Key advantages:

  • Substantial reduction in IT costs, without compromising quality or security.
  • Full regulatory compliance, including for corporate and public-sector environments.
  • Greater digital sustainability, promoting reuse and reducing waste.
  • Broader access to professional software, even for SMEs, start-ups, and private users.

The used licence market is now a reliable, regulated, and transparent ecosystem that supports fair competition and protects intellectual property.