EU Court: Resellers' Rights Extended to Digital Games

The European Union's Court of Justice has ruled that consumers within the EU can legally resell downloaded games and software, overruling 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. Once a copyright holder sells a copy and grants unlimited usage rights, the distribution right is exhausted, permitting resale.

This impacts major platforms like Steam, GOG, and Epic Games. The original purchaser can sell the game license, allowing a new buyer to download it from the publisher. The ruling clarifies that the original owner must render their copy unusable upon resale to avoid copyright infringement. However, the practical implementation raises questions regarding transfer mechanisms and the lack of a formalized resale marketplace.

The court emphasized that while the distribution right is exhausted, the reproduction right remains. However, reproduction is permitted for the lawful user's intended purpose. Therefore, the new buyer can download the game, as this constitutes a necessary reproduction for use. Crucially, the ruling does not extend to backup copies; these remain non-transferable.

This landmark decision challenges industry practices, potentially reshaping the digital game resale market within the EU. While consumers gain the right to resell, the process lacks clarity and established infrastructure, leaving room for future developments and potential legal challenges. The inability to resell backup copies further limits the scope of the ruling. The judgment hinges on the principle that the initial sale exhausts the distribution rights, allowing for subsequent transfers despite EULA restrictions. The ruling also clarifies that the original owner is prohibited from continuing to use the software after resale, preventing simultaneous use by multiple parties.