Safe Software Purchase

Legal Foundations for Pre-Owned Software

The EU Court of Justice Ruling confirms the legality of using pre-owned software licenses in your organization. Discover the key legal rulings that form the foundation of our operations!

Discover Key Legal Rulings on Pre-Owned Software

Here’s an overview of the Key Legal Foundations. Discover the most important legal principles confirming the legality of selling and using pre-owned software, including licenses from volume agreements resold as single copies.

According to this ruling, the sale of pre-owned software is legal for both physical media and digital licenses within the EU. A key point of the decision is the statement that the exclusive right to distribute copies of a computer program expires after its first sale. The seller must also ensure that all copies of the software on their computer or other devices are deleted or rendered unusable at the time of sale. This is necessary to avoid infringing on the creator’s exclusive right to reproduce their program.

The sale of pre-owned software is legal. The exclusive right to distribute copies of a computer program expires after its first sale.

Another ruling confirms that resale is legal if the first purchaser was granted the right to use the software copy for an unlimited period. The resale of licenses for software downloaded from the Internet is legal if the right to distribute the copy has been exhausted (exhaustion of the right to distribute a copy means that after the first lawful sale of the software by the copyright holder, the holder loses control over the further distribution of that specific copy). The new purchaser can download a copy of the software from the author’s website, even if they did not receive a physical medium.

The new purchaser can download a copy of the software from the author's website, even if they did not receive a physical medium.

The German Federal Court of Justice ruled that the CJEU’s decision also applies to volume licensing agreements and their division. In its ruling, the German Federal Court of Justice dismissed Adobe’s appeal in its entirety. As a result, software licenses from volume agreements can be sold individually. Acquiring individual pre-owned licenses from volume agreements is legally compliant.

Software licenses from volume agreements can be sold individually.

The Public Procurement Chamber in Münster ruled that excluding pre-owned software from tenders violates the principles of competitiveness and equal treatment of bidders. The justification stated that pre-owned licenses are not licenses different from the original but are indistinguishable from a new version.

Pre-owned software can no longer be excluded from tenders.

According to the ruling of the Hamburg Regional Court, it is not mandatory to disclose the chain of rights. This decision overturns the claim that disclosing the chain of rights, meaning the previous owners of the license, is necessary for the legal trade of pre-owned software. The ruling confirms that pre-owned software can be used without concerns and without the need for additional documentation. This means that as a buyer of secondary market software, you do not need to collect any documentation about the chain of rights, simplifying the entire process and eliminating unnecessary formalities while ensuring full legality of the transaction.

There is no need to disclose the chain of rights, meaning the previous owner of the license, for the trade of pre-owned software to be fully legal. Pre-owned software can be purchased and used without any additional documentation.

Ruling of the European Court of Justice dated July 3, 2012, Case C-128/11

According to this ruling, the sale of pre-owned software is legal for both physical media and digital licenses within the EU. A key point of the decision is the statement that the exclusive right to distribute copies of a computer program expires after its first sale. The seller must also ensure that all copies of the software on their computer or other devices are deleted or rendered unusable at the time of sale. This is necessary to avoid infringing on the creator’s exclusive right to reproduce their program.

The sale of pre-owned software is legal. The exclusive right to distribute copies of a computer program expires after its first sale.

Ruling of the German Federal Court of Justice dated July 17, 2013, Case No. I ZR 129/08

Another ruling confirms that resale is legal if the first purchaser was granted the right to use the software copy for an unlimited period. The resale of licenses for software downloaded from the Internet is legal if the right to distribute the copy has been exhausted (exhaustion of the right to distribute a copy means that after the first lawful sale of the software by the copyright holder, the holder loses control over the further distribution of that specific copy). The new purchaser can download a copy of the software from the author’s website, even if they did not receive a physical medium.

The new purchaser can download a copy of the software from the author's website, even if they did not receive a physical medium.

Ruling of the German Federal Court of Justice dated December 11, 2014, Case No. I ZR 8/13

The German Federal Court of Justice ruled that the CJEU’s decision also applies to volume licensing agreements and their division. In its ruling, the German Federal Court of Justice dismissed Adobe’s appeal in its entirety. As a result, software licenses from volume agreements can be sold individually. Acquiring individual pre-owned licenses from volume agreements is legally compliant.

Software licenses from volume agreements can be sold individually.

Ruling of the Public Procurement Chamber in Münster dated March 1, 2016, Case No. VK 1-2/16

The Public Procurement Chamber in Münster ruled that excluding pre-owned software from tenders violates the principles of competitiveness and equal treatment of bidders. The justification stated that pre-owned licenses are not licenses different from the original but are indistinguishable from a new version.

Pre-owned software can no longer be excluded from tenders.

Ruling of the Higher Regional Court (OLG) dated September 14, 2016, Case No. 406 HKO 148/16

According to the ruling of the Hamburg Regional Court, it is not mandatory to disclose the chain of rights. This decision overturns the claim that disclosing the chain of rights, meaning the previous owners of the license, is necessary for the legal trade of pre-owned software. The ruling confirms that pre-owned software can be used without concerns and without the need for additional documentation. This means that as a buyer of secondary market software, you do not need to collect any documentation about the chain of rights, simplifying the entire process and eliminating unnecessary formalities while ensuring full legality of the transaction.

There is no need to disclose the chain of rights, meaning the previous owner of the license, for the trade of pre-owned software to be fully legal. Pre-owned software can be purchased and used without any additional documentation.

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Savings Without Compromise

Pre-owned licenses are more affordable than new ones while offering the same functionality. You gain full capabilities without straining your budget.

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Enjoy the latest updates and security patches at no additional cost.

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Access to documentation in case of an audit. If the license agreement allows, you have the option to downgrade, providing greater flexibility in software management.

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