Pre-owned software trial kicks off in UK as Microsoft pushes resale ban
- Reference: 1757328334
- News link: https://www.theregister.co.uk/2025/09/08/microsoft_valuelicensing_latest/
- Source link:
ValueLicensing's representatives say this week's trial - due to start tomorrow - will "address whether the entire pre-owned license market was lawful – with Microsoft arguing that it was not lawful to resell pre-owned Office and Windows software at all."
This stems from a May 2025 [1]agreement that the scope of copyright issues now central to Microsoft's defense needs to be determined.
[2]
The case has the potential to blow a hole in the European reselling market. According to ValueLicensing, "if Microsoft's argument is correct, it would mean that the entire resale market in Europe should not exist."
[3]
[4]
The ValueLicensing case has rumbled on for years, beginning with allegations that Microsoft stifled the supply of pre-owned licenses by offering attractive subscription deals to public and private sector organizations in return for the surrender of perpetual licenses. ValueLicensing (and companies like it) operated a business model based on organizations selling their perpetual licenses and resellers selling them on to customers at a discount.
ValueLicensing [5]alleged that Microsoft added clauses to customer contracts aimed at restricting the resale of perpetual licenses. In return for accepting those contracts, customers were given a discount.
[6]
Judging by the [7]case so far [PDF], it appears that this practice was a policy at Microsoft.
According to [8]ValueLicensing , Microsoft's allegedly anti-competitive antics and attempts to eliminate the secondhand software license market have cost it £270 million in lost profits.
Microsoft's [9]argument [PDF] is that it owns the copyright to the non-program bits of Office – the graphical user interface, for example – to which rules around software reselling (the European Software Directive) do not apply.
[10]Microsoft facing multibillion legal claim over how it sells software
[11]Microsoft's spat with ValueLicensing limps toward 2026 showdown
[12]ValueLicensing tries to smack down Microsoft defenses in license reselling spat
[13]Microsoft does not want ValueLicensing CEO anywhere near its confidentiality ring
ValueLicensing boss Jonathan Horley noted the timing of the copyright claim. "It's a remarkable coincidence that their defense against ValueLicensing has changed so dramatically from being a defense of 'we didn't do it' to a defense of 'the market should never have existed,'" he said.
Microsoft's contention is not without precedent. The [14]Tom Kabinet judgment drew a line between the secondary market for software programs and e-books. Reselling a software program isn't a problem, while reselling something like an e-book is. Microsoft's argument for its software appears to be similar.
[15]
The tech giant is facing other actions before the UK's Competition Appeal Tribunal. Alexander Wolfson has brought a [16]similar claim against Microsoft, potentially worth billions, regarding the purchase of certain licenses for specific products. Dr Maria Luisa Stasi has brought [17]another regarding the cost of running Microsoft software on platforms like AWS and GCP compared to Azure.
The Register asked Microsoft to comment and will update the article should the company respond. ®
Get our [18]Tech Resources
[1] https://www.catribunal.org.uk/judgments/15705722-t-jjh-enterprises-limited-trading-valuelicensing-v-microsoft-corporation-and-1
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aL79oKRR5ifQvEwfL4WDoQAAAFQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aL79oKRR5ifQvEwfL4WDoQAAAFQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aL79oKRR5ifQvEwfL4WDoQAAAFQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.valuelicensing.com/en/blog/valuelicensing-files-antitrust-court-action-against-microsoft
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aL79oKRR5ifQvEwfL4WDoQAAAFQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.catribunal.org.uk/sites/cat/files/2025-05/15705722%20%28T%29%20JJH%20Enterprises%20Limited%20%28trading%20as%20ValueLicensing%29%20v%20Microsoft%20Corporation%20and%20Others%20-%20Transcript%20of%20CMC%20Hearing%20%2024%20Feb%202025.pdf
[8] https://www.theregister.com/2021/07/26/microsoft_valuelicensing_hearing_date_2022/
[9] https://www.catribunal.org.uk/sites/cat/files/2025-08/15705722%20%28T%29%20JJH%20Enterprises%20Limited%20%28trading%20as%20ValueLicensing%29%20v%20Microsoft%20Corporation%20and%20Others%20-%20Transcript%20of%20PI%20Trial%20PTR%20%2031%20Jul%202025.pdf
[10] https://www.theregister.com/2025/05/13/microsoft_licensing_lawsuit/
[11] https://www.theregister.com/2025/01/06/valuelicensing_microsoft_trial_date/
[12] https://www.theregister.com/2023/12/19/valuelicensing_files_a_summary_judgment/
[13] https://www.theregister.com/2023/10/10/microsoft_valuelicensing_update/
[14] https://newtech.law/en/articles/end-of-the-road-for-the-secondary-market-in-e-books-and-video-games
[15] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aL79oKRR5ifQvEwfL4WDoQAAAFQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[16] https://www.microsoftclaim.co.uk/about-the-claim/
[17] https://ukcloudclaim.com/about-the-claim/
[18] https://whitepapers.theregister.com/
Re: "The case has the potential to blow a hole in the European reselling market."
I'd imagine the UK is being used as a test case, as most UK law is still in step with the EU. It does seem to this layman that Microsoft's argument is crafted in the hope of evading prevailing UK/EU laws on licences. Hopefully the courts will kick this case out.
Talking of copyright, Microsoft, what did you train Copilot on? You did have copyright holder's prior permission, didn't you?
Re: You did have copyright holder's prior permission, didn't you?
As if MS cared one little bit about stinking copyright.
Cue a chorus of micro sized violins.
Is this lawsuit season?
Seems like everyone is going at eachother's throats at the moment. Tesco, Siemens, AT&T Vs Broadcom - GN Vs Bloomberg - now this...
As an aside "Stasi" is an unfortunate surname.
Re: Is this lawsuit season?
There is a continuous stream of lawyers wanting second holiday homes.
Re: Is this lawsuit season?
How do you know someone is a lawyer?
- They tell you.
Re: Is this lawsuit season?
What if they're a vegan lawyer?
Re: Is this lawsuit season?
They tell you, and explain that they are doing it in a way that won't harm animals.
Re: Is this lawsuit season?
If you don't count humans, you're correct.
Re: "offering attractive subscription deals"
I thought the subscription deals repulsive by intent with a marketing slogan along the lines of: "You will pay whatever we decide to charge because you are locked in! Muahahaha!"
Pre-owned software ..
With Open Source you don't ever need to repeatedly pay double extortion for something you thought you had originally purchased outright.
Re: Pre-owned software ..
At some point there is going to have to be a ruling on exactly what 'ownership' means. We've basically sleep-walked into a situation were we are now 'buying' what is essentially a limited license to use the item we've paid for.
Re: Pre-owned software ..
The key to enshittification is an endless smorgasbord of monthly subscriptions to services its hard to extricate ones self from. Just look at the VMWare debacle.
Once users/businesses are mired in a vendors swamp its often hard to get away. Better to make the switch to FOSS sooner rather than later.
Re: Pre-owned software ..
Similarly with Amazon claiming that you purchase a revokable license to watch content, rather than the content itself.
Betting
Given how Microsoft is embedded in the public sector - my bet is that Microsoft will win.
We are tech hostages.
You will own nothing
and you will be happy.
Re: You will own nothing
I keep telling saying it: They may me own nothing but they'll never make me happy
What About Cheap Licences From The Internet ?
I have purchased licences from the internet which are cheap. This is usually for Microsoft older window versions, such as 8.1, or more recently version 10.
Are these fake licences or resold licences ?
A quick search shows that 8.1 licence product keys are now free from various sources.
This legal action to stop people or businesses from purchasing licences from 3rd parties in the UK or EU, does not stop people or businesses from purchasing from outside the UK or EU.
This action seems to be Microsoft beginning to restrict customers options, such that only Microsoft can benefit from licences. Which is understandable for the initial sale, but this does present itself as Microsoft previous attempt to stop second hand games from being resold without them taking a cut.
Are they claiming this extends to 2nd hand PCs & laptops which originally came with Windows pre-installed?
Already does...
If you and end-user purchase a used PC directly from someone else, with Windows "pre-installed" (or with a Windows licence code stuck to it) you could use that licence. However, if you were a "refurbisher" and thus it was your business to purchase used equipment and refurbish it, you had to buy a new special "refurbished" Windows licence, remove the OEM licence key sticker etc. and install the new licence. Obviously, to support the "refurbishment" market MS leaned on PC builders to stop providing recovery media (still got a stack of Dell OEM WinXP and Win7 install and driver CD's).
The way I got around this with my clients was for them (an end-user organisation) to purchase the as-is used equipment directly and for them to pay for a contractor to "restore" them to use.
I expect similar applies to W10 and W11, even though if the system was originally from a major PC builder there will still be a fully functioning OEM BIOS/firmware key...
If there isn't a firmware licence installed when it comes to me, I will install one as part of my efforts to return it to factory condition.
I would never condone anyone using the same approach on a computer that didn't come with a licence though.
I've seen batches of laptops on offer as refurbished with a note that some might have W11 installed and some might not but with instructions as to how to install it (possibly they may have had W10 and the instructions would be how to upgrade although I'd have thought the need for instructions would have been more relevant for those who wished to avoid an upgrade). Of course if I'd bought one neither version of Windows would have been my upgrade.
If I buy a laptop with MS Windows installed and on first boot do so from a memory stick and install Linux (as I do) I have a license for MS windows that is going begging.
Who can I give that to ?
Pretty sure you could give this away on Reddit or similar platforms via private messages. Maybe put it on freecycle?
Your worst enemy?
AIUI an OEM licence is keyed to the machine and not separable from it so you'd have nothing to pass on. Back in the day there used to be licence stickers for sale on eBay. Maybe there still are.
Simple solution, Microsoft buys back unused licences at a published standard price, depending on age of licence and disregarding discounts offered at the time, both sides win, cuts off reseller market.
Not what is wanted, as this makes it even harder to get install media for old systems.
Currently, for many OEM PC's you need to jump through hoops to gain access to their install media portal and so be able to download recovery media for the PC you own or have acquired.
With many withdrawing recovery/restore Windows media shortly after that version of Windows has gone EoL...
So the simple solution is in fact to make software like real books: I own the book/licence, I can sell the licence without requiring the permission of the original seller/author and/or paying them any royalty.
Why would you want the OEM media? Microsoft pre-load enough crap, but the OEM then loads even more.
Plain install from microsoft-provided images, then load the drivers as needed from the manufacturer's website. Never been a problem.
"The case has the potential to blow a hole in the European reselling market."
It could blow a hole in the UK market, an EU country could rule that it is legal in their country, the CJEU could rule it's legal in the whole of the EU.