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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

EIP—Stuart Malcolm

EIP—Stuart Malcolm

EIP strengthens Commercial practice with a new partner

Ellisons—Francesca Brown

Ellisons—Francesca Brown

Ellisons welcomes Francesca Brown to Family team

Shakespeare Martineau—Marie Bourke

Shakespeare Martineau—Marie Bourke

Shakespeare Martineau strengthens Sheffield regulatory practice with new hires

NEWS
A wide-ranging Civil Way column highlights developments from insolvency procedure to employment law, but one case stands out for its lessons on bankruptcy, family homes and digital communications
A sprawling Intellectual Property Office battle between House of Fraser and Frasers Property has delivered a masterclass in modern trade mark law
Courts in England and Wales and Singapore are increasingly confronting complex disputes over international child relocation as families become more globally mobile
The government’s long-awaited family law reform consultation could mark a turning point for domestic abuse victims navigating financial remedy proceedings, but significant challenges remain
A new commercial court pilot giving the public access to documents used in hearings, including expert reports, is raising difficult questions about transparency and privacy
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