Legal Information

Legitimate software licensing

The establishment of legitimate software licensing of machines during an inspection by the authorities.

What does an audit for legal software license consist of?

In the case of a software audit from the respective authorities in your country, the inspecting party will use a device with a USB interface which will display all licensed software on the machine and the respective license keys.

Once it is ascertained what licenses for software are used on the machine, a document for the purchase of the license keys (invoice) is required. When all documentation relating to the purchase of the installed software is presented, the machine is deemed legally licensed.

Why is it important to use licensed software?

Most obviously, companies run the risk of facing fines for using unauthorized software, but they also expose themselves to security threats in the form of malware and cyber attacks in general. Most pirated products are old and incomplete versions, some of which carry destructive viruses that can delete or damage files. They may also contain “spyware,” through which cybercriminals can access and use confidential information such as bank accounts and personal data. In addition, with illegal software, companies cannot take full advantage of the product and are not entitled to support and updates. Once a software license is purchased, the legal software vendors offer updates that protect computers and the system from ever-evolving threats for free.

What are refurbished licenses? Is it legal to use refurbished licenses?

Refurbished licenses have been released on the market but have not been previously activated and are returned to the secondary market for reselling. They are fully functional and come with 100% legal and technical guarantees.

Our inspection process follows strict models, and we work only with verified companies. The licenses obtained in this way are eligible to be purchased because of their certifiable origin. The reselling of software is protected within the EU by a 2012 Court of Justice ruling:

“An author of software cannot oppose the resale of his ‘used’ licenses allowing the use of his programs downloaded from the internet. The exclusive right of distribution of a copy of a computer program covered by such a license is exhausted on its first sale.”

Read the full ruling here.

Laws adopted by the CJEU operate in the EU and make the resale of software 100% legal. This allows physical and legal persons (companies) to take advantage of the lower prices of these licenses and license their software.

Case law on used software

The European Court of Justice (ECJ), as the supreme judicial body of the European Union, has provided final clarity in its ruling and declared the trade in used computer programs to be fundamentally lawful.

The ECJ also ruled that second-hand software trading is permissible even if the software is transferred online.

On 17.07.2013, the Federal Court of Justice then fully confirmed the fundamental decision of the European Court of Justice with regard to the underlying legal issues.

The ECJ ruling also applies to volume licenses and their splitting. This was confirmed by the Higher Regional Court of Frankfurt am Main in a case between Adobe and usedSoft.

In their reasoning, the 13 judges of the Grand Chamber clearly stated that the principle of exhaustion applies to every first sale of software. The ECJ even ordered that the second buyer may download the software again from the manufacturer in the case of licences transferred online: “In addition, the exhaustion of the distribution right extends to the program copy in the version improved and updated by the copyright holder”, the ECJ stated. The Court thus went well beyond the Opinion of the ECJ Advocate General of 24 April 2012.

VOLUME LICENSES AND THEIR SPLITTING ALSO LEGAL

In a later decision of the Higher Regional Court Frankfurt am Main in a case between Adobe and usedSoft, the further consequences of the ECJ decision were impressively confirmed: The Frankfurt Higher Regional Court ruled that the ECJ ruling is also applicable to volume license agreements and their splitting. On 11.12.2014, the Federal Supreme Court completely rejected an appeal by Adobe (Az. I ZR 8/13). The ruling of the Frankfurt Higher Regional Court was thus confirmed in the final instance.

  • IT-Business: ECJ: Download licenses may be resold
  • Financial Times Deutschland: Smart judgement on second-hand software
  • Spiegel.de: Used software may be resold
  • Bild.de: Used licenses may be resold
  • WELT ONLINE: ECJ: Software licenses may be resold
  • ComputerBild.de: EU Court: Sale of used software licenses is permissible
  • crn.de: Oracle is defeated in the dispute over download software
  • ChannelBiz: European Court of Justice decides in favour of UsedSoft
  • Online PC: usedSoft wins: European Court of Justice gives green light for software used trade
  • golem.de: Used software licenses may be resold
  • ITReseller.ch: EU declares sale of used software legal
  • n-TV.de: Trade with used software – sale is generally allowed