The European Union's Court of Justice has ruled that consumers within the EU can legally resell downloaded games and software, despite any restrictions in End-User License Agreements (EULAs). This decision stems from a legal dispute between UsedSoft and Oracle, and hinges on the principle of exhaustion of distribution rights.
Exhaustion of Distribution Rights and Copyright:
The court's ruling centers on the principle that once a copyright holder sells a copy of software and grants the user unlimited usage rights, the distribution right is exhausted. This allows for resale. This applies to games purchased on platforms like Steam, GoG, and Epic Games. The original purchaser can sell the license, enabling a new buyer to download the game. The ruling clarifies that: "A license agreement granting the customer the right to use that copy for an unlimited period, that rightholder sells the copy to the customer and thus exhausts his exclusive distribution right... Therefore, even if the license agreement prohibits a further transfer, the rightholder can no longer oppose the resale of that copy."
The process might involve the original buyer transferring a license code, losing access after the sale. However, the lack of a formal resale system creates practical challenges. For instance, how registration transfers will function remains unclear, especially considering that physical copies remain linked to the original owner's account.
Limitations on Resale:
While the ruling grants resale rights, it also imposes limitations. The seller must render their copy unusable before reselling. The court stated: "An original acquirer of a tangible or intangible copy of a computer program for which the copyright holder’s right of distribution is exhausted must make the copy downloaded onto his own computer unusable at the time of resale. If he continued to use it, he would infringe the copyright holder’s exclusive right of reproduction of his computer program."
Reproduction Rights:
The court addressed reproduction rights, clarifying that while distribution rights are exhausted, reproduction rights remain. However, these are limited to necessary reproductions for the lawful user's intended purpose. This allows for the download by the new buyer.
Backup Copies:
Importantly, the court specified that backup copies cannot be resold. This is consistent with previous rulings, such as Aleksandrs Ranks & Jurijs Vasilevics v. Microsoft Corp.
In conclusion, this ruling significantly impacts the digital games market within the EU, granting consumers resale rights while clarifying limitations regarding continued usage and backup copies. The practical implementation of this decision, however, remains to be seen.
