Share on LinkedInShare on LinkedIn

ARTICLE · 03 JANUARY 2013

When Is A Software License Transferable Even If It Says It’s Nontransferable?

Mayer Brown
Mayer Brown
Contributor
Mayer Brown

Mayer Brown

Mayer Brown is a leading international law firm positioned to represent the world’s major...

View firm profile
Explore more from Mayer Brown

Software companies cannot prevent the sale of "second-hand" software licenses where those licenses are for a one-off fee and an unlimited period. Clauses in these licenses stating that they are nontransferable will not be enforceable.

United KingdomStrategy
Mark Prinsley
Mark Prinsley
Sarah Byrt
Sarah Byrt
Author LinkedIn connections

Keywords: Software companies, licenses, Oracle,

Second-hand Software Licenses and the European Court's Judgment in UsedSoft v. Oracle

Software companies cannot prevent the sale of "second-hand" software licenses where those licenses are for a one-off fee and an unlimited period. Clauses in these licenses stating that they are nontransferable will not be enforceable. This is the effect of a recent judgment by the Court of Justice of the European Union in the case of UsedSoft GmbH v. Oracle International Corp. (3 July 2012).

The case is based on EU competition law "exhaustion of rights" principles, according to which, once a product incorporating intellectual property rights has been sold inside the EU by the rights owner (or with his consent), the rights owner cannot object to the product then being sold to someone else. The European Court has now looked at how that principle applies to software licenses.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

See more popular content from

Article

Preparing For The EU Cyber Resilience Act: Key Reporting Obligations From 11 September 2026

The EU's Cyber Resilience Act introduces mandatory cybersecurity reporting obligations for manufacturers of digital products starting September 2026, requiring notification of actively exploited vulnerabilities and severe incidents within strict timeframes. Companies must establish procedures to identify and report security events to national Computer Security Incident Response Teams, with potential fines reaching €15 million or 2.5% of global turnover for non-compliance.
United KingdomStrategy
Goodwin Procter LLP
Goodwin Procter LLP
Article

European Commission Proposes European Innovation Act

The European Commission has unveiled a European Innovation Act designed to strengthen the EU's innovation ecosystem by addressing two critical challenges: limited access to finance for IP-rich businesses and fragmented regulatory frameworks across Member States. The proposal introduces measures including a common IP valuation framework, streamlined R&D procurement procedures, and harmonized regulatory sandboxes to help startups and scaleups commercialize their innovations more effectively.
European UnionStrategy
Lewis Silkin
Lewis Silkin
Article

The SRA’s AI Warning Notice: A Regulatory Wake-up Call, Not A Reason To Step Back

The Solicitors Regulation Authority has issued a warning notice on AI misuse in legal practice, clarifying what responsible adoption looks like. While recognizing AI's benefits for document review, drafting, and research, the regulator emphasizes that solicitors remain accountable for their work regardless of the tools used, requiring proper governance, human oversight, and professional judgment to manage risks like hallucinated citations and confidentiality breaches.
United KingdomStrategy
Gateley Legal
Gateley Legal
Article

The Legal Profession Isn’t Ready For What's Coming: Richard Susskind's Unfiltered Take From Axiom's London Event

Professor Richard Susskind challenges senior in-house legal leaders to rethink AI's role in the legal profession, arguing that while short-term impacts are overestimated, the long-term transformation toward Artificial General Intelligence will fundamentally reshape how legal services are delivered. Can legal departments prepare for a future where AI doesn't just assist lawyers but potentially replaces the traditional advisory model entirely?
United KingdomStrategy
Axiom
Axiom
Article

Trump Administration Announces New Enforcement Actions Against Employers In H-1B And PERM Fraud Probes

The Trump Administration has launched an unprecedented investigation into H-1B visa and PERM labor certification programs, with the Department of Labor's Office of Inspector General issuing dozens of subpoenas and suspending employers' ability to process applications. Federal agencies are deploying new enforcement tools including whistleblower programs and criminal prosecution threats...
United StatesImmigration
Mayer Brown
Mayer Brown
Article

AI Regulation In Singapore And Hong Kong: A Mid-Year Checkpoint

Singapore and Hong Kong continue to regulate artificial intelligence through existing laws and voluntary frameworks rather than comprehensive AI statutes, but the first half of 2026 has brought sharper emphasis on practical controls including agentic AI governance, assurance and testing, financial-sector oversight and cyber resilience. Both jurisdictions are building concrete expectations around risk management, transparency, human accountability and operational safeguards while avoiding horizontal AI legis
GlobalStrategy
Mayer Brown
Mayer Brown
Article

DOL Announces New Enforcement Policy For Mental Health Parity Nonquantitative Treatment Limitation Requirements

The US Department of Labor has issued new guidance establishing a streamlined framework for enforcing mental health parity requirements under MHPAEA, focusing enforcement on three priority areas while maintaining nonenforcement of controversial 2024 rule provisions. This guidance aims to reduce compliance burdens on plan sponsors while ensuring participants maintain access to mental health and substance use disorder benefits comparable to medical and surgical coverage.
United StatesEmployment and HR
Mayer Brown
Mayer Brown
Article

Russia/Ukraine Sanctions Update - Month Of August 2026

This monthly update tracks the latest developments in Russia/Ukraine sanctions across US, EU, and UK jurisdictions, covering new designations, general license extensions, legislative proposals, and enforcement actions. The update also examines Russia's countermeasures, including shadow fleet expansion and legal restrictions on foreign investors, while highlighting international coordination efforts by Switzerland, Canada, and New Zealand.
GlobalInternational Law
Mayer Brown
Mayer Brown
Article

SEC Staff Statement On Fair Value Measurement And Disclosure Considerations For Private Assets

The SEC Staff has issued new guidance addressing fair value measurement and disclosure practices for private credit and other illiquid assets held by registered funds and business development companies. As private credit portfolios have grown nearly 60% since 2020, reaching $270 billion, regulators emphasize the critical importance of robust valuation methodologies, transparent disclosure of significant judgments, and careful application of accounting standards when market prices are unavailable.
United StatesAccounting and Audit
Mayer Brown
Mayer Brown
Article

European Union Adopts 21st Package Against Russia & Parallel Sanctions On Belarus

The European Union has adopted its 21st package of sanctions against Russia and Belarus, significantly expanding restrictions across finance, energy, crypto, and military-industrial sectors. This comprehensive package introduces 218 new designations, freezes the oil price cap, imposes stricter LNG controls, and closes loopholes while reinforcing measures to discourage third-party sanctions evasion. The sanctions also strengthen protections for EU operators and facilitate business exits from Russia.
European UnionInternational Law
Mayer Brown
Mayer Brown
Article

Trump’s China Visit Will Likely Extend Trade Truce, While Points Of Friction Remain

President Trump's May 2026 state visit to China yielded agreements on trade boards, agricultural purchases, and tariff stability, but tensions persist over export controls and military company designations. As both nations pursue "strategic stability," multinational companies face increasing compliance conflicts from competing regulatory frameworks. Will the planned bilateral forums successfully navigate friction points in semiconductors, rare earths, and defense sectors?
ChinaInternational Law
Mayer Brown
Mayer Brown
Article

EU AI Act News: Digital Omnibus On AI, New Guidance On Risk Classification, GPAI, And Transparency Obligations

The European Union's Artificial Intelligence Act continues to evolve with significant regulatory updates that reshape compliance timelines and clarify key obligations. Recent developments include the Digital Omnibus on AI, which extends implementation deadlines for high-risk systems and introduces new prohibitions on harmful AI applications, alongside comprehensive guidance from the European Commission on classification criteria, transparency requirements, and general-purpose AI model obligations.
European UnionIntellectual Property
Mayer Brown
Mayer Brown