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, clarifying the principle of copyright exhaustion.
Copyright Exhaustion and Resale Rights
The court's ruling centers on the principle of exhaustion of distribution rights. Once a copyright holder sells a copy granting unlimited use, the distribution right is exhausted, permitting resale. This applies to games purchased on platforms like Steam, GoG, and Epic Games. The original buyer can sell the license, enabling a new buyer to download the game. The ruling explicitly states that even if the EULA prohibits transfer, the copyright holder cannot prevent resale.
The process might involve the original buyer providing a license code, losing access upon resale. However, the lack of a formal resale market creates complexities. For instance, registration remains with the original account holder for physical copies.
Limitations on Resale
While resale is permitted, the seller must render their copy unusable upon sale. Continued use after sale constitutes copyright infringement. The court emphasizes that the original owner must delete the game from their device before reselling.
Reproduction Rights
The court clarified that while distribution rights are exhausted, reproduction rights remain. However, these rights allow for necessary reproductions for lawful use by the new owner. This allows the new buyer to download the game.
Backup Copies
Importantly, the court specified that backup copies cannot be resold. This aligns with previous rulings, emphasizing that only the original purchased copy can be resold. This ruling clarifies the legal landscape for digital game resale within the EU, although practical implementation details remain to be worked out.
