EU Demands Resale Rights for Downloaded Games

The European Union's Court of Justice has ruled that consumers within the EU can legally resell downloaded games and software, despite restrictions in End-User License Agreements (EULAs). This decision, stemming from a legal dispute between UsedSoft and Oracle, establishes the principle of exhaustion of distribution rights. This principle dictates that once a copyright holder sells a copy and grants unlimited usage rights, the distribution right is exhausted, permitting resale.

This ruling impacts major platforms like Steam, GOG, and Epic Games. The original purchaser gains the right to transfer the game license, enabling a new user to download the game. Crucially, the original purchaser relinquishes access after the sale. The ruling clarifies that while the initial buyer can sell the license, they must delete the game from their system. Continued use post-sale constitutes copyright infringement.

The court further clarifies the right to reproduction. While the distribution right is exhausted, the reproduction right remains, but only for necessary use. Making copies for the intended purpose of the software is permitted, and contractual restrictions to the contrary are invalid. However, the ruling explicitly excludes the resale of backup copies.

The practical implications are complex. The lack of a formal resale market raises questions regarding the transfer process, particularly concerning registration and account management. While the ruling offers consumers a new right, the implementation and execution remain challenging. The ruling significantly alters the landscape of digital game ownership and distribution within the EU.