The European Union's Court of Justice has ruled that consumers within the EU can legally resell digitally downloaded games and software, despite any restrictions stated in End-User License Agreements (EULAs). This landmark decision stems from a legal dispute between UsedSoft and Oracle, clarifying the implications of copyright exhaustion.
Copyright Exhaustion and Resale Rights
The court's ruling hinges on the principle of exhaustion of distribution rights. Once a copyright holder sells a copy of a software program and grants the user unlimited usage rights, the distribution right is considered exhausted. This allows the original purchaser to resell that license, enabling a subsequent buyer to download the game. This applies to digital purchases from platforms such as Steam, GOG, and Epic Games.
The decision clarifies that the original purchaser transfers the license, losing access upon resale. The practical implementation, however, presents challenges, particularly regarding the transfer of registration and account details. The ruling doesn't create a formal resale market; it simply establishes the legal right to resell.
Limitations on Resale
While consumers gain the right to resell, the seller must render their copy unusable after the sale. Continued use after resale constitutes copyright infringement. The court explicitly states that the original purchaser cannot retain access to the software post-sale.
The ruling also acknowledges the right to make necessary copies for program use. This right is inherent to the lawful use of the software and cannot be contractually overridden. The new owner is legally entitled to download the software.
Backup Copies and Resale
Importantly, the court specifies that backup copies cannot be resold. This aligns with previous rulings, such as Aleksandrs Ranks & Jurijs Vasilevics v. Microsoft Corp., emphasizing that only the original licensed copy can be legally resold.
In essence, the EU court's decision grants consumers a significant right to resell digital games and software within the EU, but with the crucial caveat that the original purchaser must relinquish access after the sale and cannot resell backup copies. The practical implications and establishment of a robust resale market remain to be seen.
