Microsoft volume licensing for business
Volume licenses are the form Microsoft designed for organizations rather than individuals. They are managed centrally, they are not tied to a particular machine, and unlike most other license forms they may be transferred. That last property is what makes a pre-owned market possible at all.
Why volume licenses may change hands
This is not a grey area and not a matter of opinion. It rests on two judgments that have stood for more than a decade.
CJEU, 3 July 2012
Case C-128/11
Software sold outright may be resold, and this applies to downloaded copies just as it does to physical media. No consent from the rights holder is required. The decisive factor is permanent transfer against a one-off payment.
German Federal Court, 2013 and 2014
I ZR 129/08 and I ZR 8/13
Confirmed for Microsoft volume licenses specifically, and clarified that volume packages may be split where each individual license constitutes a distinct right of use. A server license and its access licenses form one unit and may not be broken apart.
The territorial limit
European Economic Area only
The exhaustion principle applies where the license was first placed on the market in the EEA with the rights holder's consent. Licenses originating outside it do not qualify, which is why suspiciously cheap offers from third countries are not usable. We supply within the EEA only.
Four license forms, only one of them transferable
Microsoft sells the same software under several license forms. They do not differ in what the software does, but they differ considerably in what you are allowed to do with the license.
Volume license
Bought under an agreement such as Open, Open Value or Select. Deployed centrally through a key management service or a multiple activation key, tied to the organization rather than to hardware. This is the form traded on the pre-owned market, and the only one we deal in.
Transferable: yes, subject to the usual conditions.
OEM license
Supplied with a new machine and permanently bound to it. It may change hands with the hardware but never separately. An OEM license offered on its own is being sold by someone who is not entitled to sell it.
Transferable: only together with the device.
Retail license
The boxed product intended for individual purchase. Legally transferable, but rare in a business context and impractical at scale because every installation has to be activated separately.
Transferable: yes, but seldom relevant for organizations.
Subscription
A right of use for a period, not ownership of a copy. It ends with the last payment and therefore cannot be passed on. Anyone offering a pre-owned subscription is selling something that does not exist in law.
Transferable: no, and no exception applies.
How to identify what you hold
The invoice usually settles it. Volume licenses appear under a program name; OEM licenses appear as a line on a hardware invoice; subscriptions appear as a recurring charge. The product key itself tells you nothing reliable. If the paperwork is unclear, send it to us and we will tell you which form you have.
Frequently asked questions
Does Microsoft have to approve the transfer?
No. Under the case law no consent from the manufacturer is required, and there is no register to enter. What matters is documentation: proof of EEA origin, the previous owner's deletion confirmation and an unbroken chain of ownership.
Can a volume package be split?
It depends on what is being split. Where an agreement contains independent workstation licenses, individual licenses may be passed on. A server license together with its access licenses forms a single unit and may not be divided. We check this before any purchase.
Do pre-owned volume licenses receive security updates?
Yes, to the same extent as a newly purchased license, for as long as the version is in support. There is no technical difference. We state the end of support date for every license before you commit.
How are volume licenses activated?
Either through a multiple activation key or through your own key management service, depending on the agreement. Both are designed for organizations and avoid activating each machine individually. We state the activation method for every license.
Do you supply outside the European Economic Area?
No. The exhaustion principle that makes resale lawful is tied to the EEA, so we supply businesses and public bodies within it only. This excludes the United Kingdom, Switzerland and the United States. A VAT identification number is required.
Read further
CAL licensing explained
The access license side of volume licensing: user versus device, the multiplexing rule, version matching, and how to work out how many you actually need.
Used Microsoft licenses for business
What we supply, how an order works and the four documents that come with every license. For companies and public bodies in the European Economic Area.
Not sure which license form you hold?
Send us the agreement details and we will tell you what you have and whether it can be transferred. No obligation either way.