Microsoft seeks Supreme Court lifeline in pre-owned license battle
Microsoft makes a final attempt in the second-hand software licenses case.
1Microsoft's licensing strategy
Microsoft initially contested claims that it added contract clauses to steer customers toward Microsoft 365 subscriptions. Later, it shifted strategy, arguing that reselling software constituted copyright infringement. This approach was rejected by the court.
2ValueLicensing's claims
ValueLicensing sued Microsoft for £270 million in 2021, alleging the company choked off the supply of surplus Office licenses. This case could precede a class action with similar features, potentially costing billions.
3Court proceedings
Microsoft lost in the Court of Appeal in July and now seeks to appeal to the Supreme Court. Meanwhile, ValueLicensing's disclosure and confidentiality applications will be heard in September, marking a key step in advancing the case.
4Legal complexities
The court noted Microsoft's approach could produce 'odd results,' distinguishing between CD-ROM products and software licenses. It also referenced the 2012 UsedSoft case, where Oracle's attempt to block second-hand software licenses was thwarted by an EU court.
5Microsoft's risks
If the Supreme Court denies Microsoft's appeal, the company could face billions in damages. ValueLicensing's success might set a precedent for similar cases.
6Implications
This case could establish a significant legal precedent for reselling software licenses. A loss for Microsoft might radically alter licensing models in the software industry, while ValueLicensing's victory could inspire similar lawsuits.