EU Court Ruling: Digital Game Resales Must Be Permitted

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

This ruling impacts major platforms like Steam, GOG, and Epic Games. The original purchaser can legally transfer the game license, enabling a new owner to download the game. The court clarified that the original purchaser relinquishes access upon resale. However, practical implications remain, including the lack of a defined resale marketplace and unresolved questions regarding account transfers. For instance, physical copies remain registered under the original owner's account.

Importantly, the ruling doesn't allow the original seller to retain access after resale. The court emphasized that continued use after sale would infringe on the copyright holder's reproduction rights. While the distribution right is exhausted, the reproduction right remains, permitting only copies necessary for lawful use by the new owner. This allows the new owner to download the game for intended use.

Furthermore, the court specified that backup copies cannot be resold. This restriction applies to all lawful acquirers of computer programs. The decision clarifies the boundaries of copyright exhaustion within the context of digital distribution, impacting how consumers and publishers interact with digital game ownership in the EU. The ruling, while granting resale rights, highlights the ongoing complexities of managing digital licenses and the need for clearer frameworks for secondary markets.