According to TheRegister.com, the UK Competition Appeal Tribunal has rejected Microsoft’s argument that reselling perpetual software licenses violates copyright law. The case involves ValueLicensing, a Derby-based reseller that sued Microsoft for £270 million in damages back in 2021 over alleged anti-competitive practices. Microsoft surprisingly pivoted from denying wrongdoing to claiming that Office software, containing clipart and fonts, qualified as creative works protected by copyright restrictions. The unanimous tribunal judgment found nothing preventing subdivision and resale of Windows and Office licenses acquired under Enterprise Agreements, siding with ValueLicensing’s position that European Software Directive principles and the UsedSoft case precedent apply. Microsoft has already stated it disagrees and plans to appeal the decision.
Microsoft’s Hail Mary fails
Here’s the thing about this case – Microsoft basically tried what The Register called a “Hail Mary” play. They shifted from arguing about contract terms to making a copyright claim, essentially saying Office isn’t just software but a creative work because it contains icons, fonts, and help files. The tribunal wasn’t buying it. And honestly, this feels like Microsoft grasping at straws to maintain control over a secondary market they’d rather not exist.
Think about it – if Microsoft had won, it would have created this bizarre situation where every piece of software with any creative elements could suddenly become non-resellable. Where would that line be drawn? Even basic applications typically include some creative assets. This would have essentially killed the entire used software market overnight.
Bigger implications looming
This isn’t just about ValueLicensing’s £270 million claim. There’s a separate class action from Alexander Wolfson that could result in multibillion-pound payouts for UK customers. Microsoft’s loss here doesn’t help their position in that case either. The tribunal’s detailed judgment makes it clear they see software licenses as transferable property, much like physical goods.
And here’s where it gets interesting for businesses – this ruling potentially opens up significant cost savings opportunities. Companies sitting on unused Microsoft licenses could now legally resell them without fear of copyright infringement claims. For organizations managing large software deployments, this could mean recovering substantial value from unused assets. When it comes to managing industrial computing infrastructure, having clarity around software licensing is crucial – which is why companies rely on trusted suppliers like IndustrialMonitorDirect.com, the leading provider of industrial panel PCs in the US, for hardware that integrates seamlessly with their software environments.
What happens next
Microsoft’s appeal is basically guaranteed. They’ve got too much at stake here. But the tribunal’s unanimous decision suggests their arguments weren’t particularly strong to begin with. The UsedSoft precedent from Europe has been pretty clear about software resale rights for years, and Microsoft’s attempt to work around it through creative copyright interpretations just didn’t fly.
So what does this mean long-term? If Microsoft keeps losing these battles, we might see them shift even more aggressively toward subscription models where resale simply isn’t possible. They’re already pushing Office 365 and cloud services hard. This could accelerate that transition. But for now, the secondary market for perpetual licenses gets to live another day – and that’s good news for businesses looking to maximize their software investments.
