The European Union's Court of Justice has ruled that consumers within the EU can legally resell downloaded games and software, despite End User License Agreements (EULAs) to the contrary. This decision, stemming from a case between UsedSoft and Oracle, hinges 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 ruling impacts platforms like Steam, GoG, and Epic Games. The original purchaser can sell the game license, enabling a new buyer to download it. The court clarified that the original owner must render their copy unusable upon resale to avoid copyright infringement.
The decision acknowledges that while distribution rights are exhausted, reproduction rights remain. However, reproduction is permissible for the lawful user's intended purpose – meaning the new buyer can download the game. This interpretation overrides non-transferable clauses often found in EULAs within the EU.
Importantly, the ruling specifies that backup copies cannot be resold. This aligns with a previous CJEU case (Aleksandrs Ranks & Jurijs Vasilevics v. Microsoft Corp.) which established this limitation.
The practical implications remain complex, particularly regarding the transfer of registration and the lack of an established resale marketplace. However, the ruling establishes a significant precedent for consumer rights regarding digital goods within the EU.
