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 the End-User License Agreement (EULA). This landmark decision stems from a legal dispute between UsedSoft and Oracle, clarifying the principle of copyright exhaustion.
Copyright Exhaustion and Resale Rights:
The court affirmed the principle of exhaustion of distribution rights. Once a copyright holder sells a copy granting unlimited usage rights, the distribution right is considered exhausted, permitting resale. This applies to games purchased on platforms like Steam, GoG, and Epic Games. The original purchaser can legally transfer the license, enabling a new buyer to download the game. The ruling explicitly states that even if the EULA prohibits further transfer, the copyright holder cannot prevent resale.
The practical application involves the original buyer transferring the game license code, relinquishing their access upon sale. However, the lack of a formal resale marketplace creates complexities regarding registration transfers. For instance, physical copies remain registered to the original owner's account.
Limitations on Resale:
While resale is permitted, the seller must render their downloaded copy unusable before the sale. Continued use after the sale constitutes copyright infringement. The EU court clarified that the original owner must delete the game from their system.
Reproduction Rights and Necessary Copies:
The court differentiated between distribution and reproduction rights. While distribution rights are exhausted upon initial sale, reproduction rights remain. However, the reproduction right is limited to copies necessary for lawful use by the acquirer. This allows the new buyer to download the game for intended use.
Prohibition on Reselling Backup Copies:
Importantly, the ruling specifically excludes backup copies. The court confirmed that lawful acquirers cannot resell backup copies of software.
This decision significantly impacts digital game distribution, clarifying consumer rights within the EU while acknowledging the ongoing challenges in establishing a practical resale framework.
