- The British court throws out Microsoft’s arguments against ValueLicensing
- ValueLicensing intends to seek £270 million from Microsoft
- Microsoft says it will appeal the decision
The UK Competition Appeal Tribunal has ruled that Microsoft cannot block customers from reselling perpetual software licenses, marking the end of a year-long debate.
The debate started in 2021, when ValueLicensing sought £270 million on the basis that Microsoft used contracts to prevent the resale of licenses – and despite the latter claiming that the resale of licenses infringed copyright, the company failed to get its way.
The court found that Enterprise Agreements ultimately create multiple licenses, not a single multi-user license, so no subdivision should occur for licenses to be resold.
Microsoft lost its resale license case
Since Microsoft’s distribution and reproduction rights do not prevent the resale of parts of bulk licenses, the Court found the resale legal.
ValueLicensing also notes that starting around 2011, Microsoft moved customers with perpetual licenses to their Microsoft 365 subscription, requiring customers (like ValueLicensing) to surrender or retain perpetual licenses they no longer need.
Argument number two concerns Office and Windows including copyrighted non-program elements (such as icons, fonts, clipart and resource/help files). The court found that buyers purchase Microsoft’s software as computer programs, not as collections of artistic work, and therefore Microsoft lost this battle as well.
The court “unanimously[ly]” Microsoft ruled against both issues.
“ValueLicensing has always believed that it ran a legitimate business underpinned by the principles of the European Software Directive and the UsedSoft judgment of the European Court of Justice,” said ValueLicensing CEO Jonathan Horley (via The register).
“Now that these preliminary issues have been resolved, we look forward to continuing the claim against Microsoft.”
Microsoft told The register it disagrees with the decision and intends to appeal.
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