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Used software licenses are legal

That is not the industry talking, it is the highest courts: the Court of Justice of the European Union and the German Federal Court of Justice have expressly permitted the purchase and resale of used software. This page shows what that rests on, where the limits lie and which documents you actually need in a license audit.

Why used software may be resold

Anyone who has bought a software license permanently may resell it, just like a used book or a used car. The manufacturer has already earned its money on the first sale; its distribution right is exhausted by it. It cannot prohibit resale.

What matters is the type of license: the principle covers licenses acquired permanently, not rental models with a recurring fee. This is precisely why we trade exclusively in volume and perpetual licenses.

The chain of title at a glance

In an audit it is not the purchase receipt that counts, but the path of the license from the first buyer to you.

1
First purchase
A company in the EEA buys the licenses permanently for a one-off payment. This triggers exhaustion.
2
Use and end of use
The licenses are used until the need ends: cloud migration, relocation or insolvency.
3
Decommissioning
The previous owner renders their copies unusable and confirms this in writing.
4
Transfer to you
You receive the license agreement, invoice, declaration of transfer and confirmation of deletion.
The complete chain stays with us. Your copy is issued to your company and your quantity and therefore cannot serve as proof for other quantities.

Which documents you receive with every license

Four documents come with every delivery, at no extra charge and without you having to request them.

Unterzeichnung eines Vertrags, sinnbildlich für die Übertragung von Lizenzen

License agreement in your company's name

Names your company as the holder, plus product, version, edition and quantity. Unlimited term, no renewal needed.

Answers: who is allowed to use the software?

Declaration of transfer

Confirms that the licenses come from a completed acquisition and pass to you. Issued for your quantity.

Answers: what quantity has passed to you?

The previous owner's confirmation of deletion

The previous owner confirms in writing that they have rendered all copies unusable. Without it we do not take on a holding.

Answers: is the license used only once?

Proof of the chain of title

The documented path from the first purchase in the European Economic Area (EEA) to you, with a copy of the invoice. It proves that the license was allowed to be transferred.

Answers: was the license allowed to be passed on at all?

Retention and later presentation

An audit rarely comes in the year of purchase. We keep the documents permanently and send them again at any time, free of charge and without a deadline. A message with your invoice number is enough.

The decisive rulings

Three decisions form the basis of the used software trade in Europe.

Säulenreihe eines Gerichtsgebäudes, sinnbildlich für die Rechtsprechung zum Handel mit gebrauchter Software
EuGH, 03.07.2012

C-128/11, UsedSoft v Oracle

Resale applies to downloaded software as well. The manufacturer's consent is not required.

BGH, 17.07.2013

I ZR 129/08

Confirmed for Germany: Microsoft volume licenses may also be transferred without Microsoft's consent.

BGH, 11.12.2014

I ZR 8/13

Volume packages may be split, provided each individual license represents a distinct right of use.

What this means for you

You acquire a right of use in full. The software is functionally identical to a new license, receives the same updates and is supported by Microsoft in just the same way.

What you additionally get is the documentation: the evidence that the license passed to you lawfully. You need that evidence in a license audit and for your accounts.

  • No obligation to obtain consent from or register with the manufacturer
  • Fully functional, with the same updates as new licenses
  • Clean evidence for accounting and audit purposes
  • Documentation that holds up in a license audit

Where the limits of what is permitted lie

Four points mark where the case law ends. This is exactly where questionable offers fail.

The chain is complete, not just the invoice

An invoice proves your purchase, not the seller's entitlement. Only the complete chain across all previous owners shows that the license was allowed to be transferred.

The previous owner has deleted in writing

A license may be used only once. Without written confirmation that the seller has rendered their copy unusable, the resale is not effective.

Packages are not broken up

A server license with its access rights forms one unit and may not be broken up. Independent workstation licenses from a volume agreement, by contrast, may be passed on individually. We check this for every package.

Subscriptions are not offered in the first place

A subscription is a right of use for a limited period and never becomes your property. Anyone offering one as used is selling something that does not exist.

Ask for legally sound licenses

Tell us the product and the quantity. You will receive a concrete quote together with details of the documentation.

Frequently asked questions about used software

Do I have to inform Microsoft about the purchase?

No. The purchase is a transaction between you and the seller; the manufacturer's consent is not required. You only need your proof when someone asks for it.

Where do the licenses you offer come from?

From the holdings of companies in the European Economic Area (EEA), mostly after a move to the cloud, downsizing or insolvency. The previous owner and the first purchase are documented for every license.

Does this apply to licenses from outside Europe as well?

No. Exhaustion applies only if the license was first placed on the market in the European Economic Area (EEA). We trade exclusively in EEA licenses.

What happens if Microsoft disputes the transfer?

Then the documentation decides. We make it available even years later and, on request, present the complete chain directly to the auditing body.

How does a license audit work in practice?

The auditor compares the software you use against the proof of acquisition. You present the documents you received with the delivery.

Does this apply to downloads without physical media?

Yes. The Court of Justice of the European Union has ruled that it makes no difference whether the software comes on physical media or as a download. What matters is the permanent grant against a one-off payment.

Do I get the same updates as with a new license?

Yes, to the same extent, for as long as the version is in support. We tell you the end-of-support date before you buy.

Is buying permitted for public sector buyers?

Yes, and often even required: the principle of economic efficiency calls for the cheaper equivalent alternative. Details are on our page for public authorities.

What applies if a license later turns out not to be transferable?

Then there is a defect in title and we stand behind it. This case is rare because we check every holding before we take it on.