Microsoft loses UK appeal over resale of used software licenses, seeks Supreme Court review

A UK Competition Appeal Tribunal ruled that the resale and subdivision of Microsoft on‑premise software licenses does not infringe copyright. The Court of Appeal affirmed this decision on 7 July, rejecting Microsoft’s argument that such resale violates its copyright.

ValueLicensing, a British reseller, has sued Microsoft for £270 million, accusing the company of restricting the secondary market by pushing customers toward Microsoft 365 subscriptions and inserting contractual clauses that limit resale of perpetual Office and Windows licences. Microsoft is now seeking permission to appeal the case to the UK Supreme Court. A procedural stay was granted on 21 July, allowing the case to continue while the Supreme Court decision is pending. The outcome could affect UK SMEs and the broader EU principle on the exhaustion of software licence rights.