The legality of second-hand Microsoft Windows and Office licenses is back under the microscope as the company’s battle with a UK-based reseller returns to court this week. The matter concerns whether core parts of Microsoft’s software are exempt from Europe’s software resale rules, and what that could mean for the grey market that many DIYers rely on.
The UK’s Competition Appeal Tribunal (CAT) is holding a three-day hearing, running through September 11, to resolve a key question in the case: Do certain components of Windows and Office fall outside the EU’s software exhaustion rules? As it stands, these rules allow the resale of perpetual software licenses. Microsoft argues that the resale doctrine only applies to computer programs, and not to “non-program” elements like the GUI, which it says remain under copyright control even after the license is sold.
If that theory holds up, it could effectively gut the legal foundation for resale markets in Europe and the UK — markets that ValueLicensing, the reseller on the other side of the case, claims have been suppressed for years by Microsoft’s licensing tactics. “If Microsoft’s argument is correct, it would mean that the entire resale market in Europe should not exist,” the company told The Register.
Low-cost Windows keys have been a fixture in the European DIY market for years, allowing builders and refurbishers to pass on savings, especially for customers who don’t need the full Microsoft 365 package. PC Gamer notes that a ruling in Microsoft’s favor could “mean the end of second-hand Windows licenses,” in the UK.
The wider case dates back to 2021, when ValueLicensing filed a £270 million competition claim against Microsoft. At the time, ValueLicensing alleged that Microsoft starved the pre-owned software market by bunding discounts with conditions preventing resale, thereby costing the company £270 million in lost profits.
While the full trial isn’t expected until 2026, the current hearing does focus on some copyright questions that could scuttle the rest of the case before it gets there. With Windows 10 support ending in just over a month, any move that raises the floor on licensing prices could hit just as users are forced to upgrade.
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