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12 July 2012
Issue: 7522 / Categories: Legal News
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Software ruling

ECJ: second-hand software can be sold

“Second-hand” software can be lawfully sold in most cases, the European Court of Justice has ruled.

Currently, business software, films, music, ebooks and other downloaded content is not sold but merely licensed to an individual user, which means the user cannot sell it on to anyone else.

Last week, however, the court held that the licensor’s rights were “exhausted” after the first sale. The case, UsedSoft v Oracle International: C-128/11, arose from a dispute between software manufacturer Oracle and software merchant UsedSoft, which bought and sold on “used” software licenses.

In order for the sale to be lawful, the vendor must delete their copy of the programme from their computer.

Robin Fry, partner at DAC Beachcroft, says: “The inevitable logic of the ECJ’s decision is that the licensing structure and controls set up by record companies, film studios, publishers and games publishers, as well as indeed software sellers, will be substantially undermined by, for the first time, a new legal market in ‘used’ content.

“Unlike second-hand books or CD-ROMs, where one is never quite sure of their condition, a downloaded digital file should not be corrupted and so consumers will readily shift to acquiring much of their entertainment content from friends and from eBay. There will also be a major opportunity for a new marketplace for this pre-owned content.”

Issue: 7522 / Categories: Legal News
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MOVERS & SHAKERS

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
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