Used software may be resold with its licence
In case C-166/15, Ranks and Vasiļevičs, the CJEU ruled that a purchaser of an original computer program with an unlimited-use licence may resell the used software together with the licence. Selling a backup copy, however, is unlawful. The Court emphasised that, under EU rules, a copyright-owning software publisher, such as Microsoft, that sells a copy within the Union, regardless of medium, with an unlimited-use licence can no longer oppose its subsequent resale.
The Court stressed that even if the purchase agreement prohibits onward sale, the buyer remains entitled to resell the program with its licence.
The judgment nevertheless found trading in backup copies unlawful. Under the EU Computer Programs Directive, only the copyright holder, Microsoft in this case, may reproduce or authorise reproduction of all or part of the program, permanently or temporarily, by any means and in any form. Only that holder may authorise sale of a copied version. A purchaser of original licensed software may also make a backup, provided it is used solely for their own needs.
'A backup copy of a computer program may be made and used only to meet the program owner's needs. However, even if the original medium has been damaged, destroyed or lost, that person may not use the copy for resale to a third party,' the Court held.
EU law must therefore be interpreted as allowing the original purchaser to resell the used program and licence, but not to trade in a backup copy without the publisher's consent.
More on EU law concerning software and its resale:
