Introduction to used software
The idea of used software may seem unusual and challenging to grasp, but it is gaining increasing attention in a world where recycling and sustainability are key concerns, even in the digital realm. Used software refers to programs that have already been purchased by another individual or company and are then resold. Unlike physical products, however, software does not experience wear and tear, allowing it to be reutilized as a new license. The transfer of such licenses differs from the sale of physical goods, as it is governed by specific legal regulations.
The market for used software initially emerged to help companies reduce IT-related expenses. Over time, the concept has evolved, driven by increasing digitization and the recognition that software licenses are not necessarily tied to a single user or device. Today, used software presents a valuable opportunity not only for large corporations but also for small and medium-sized businesses and individual users. Any company or individual can purchase second-hand licenses through a specialized software reseller and save on their budget.
How the used software market operates
The second-hand software market is based on a simple principle: anyone who owns a software license that they no longer use can sell it on to someone else. There are several platforms that facilitate this buying and selling, both for companies and individuals. The main sales channels include specialized online marketplaces and authorized resellers. These entities verify the authenticity of the licenses and guarantee the correctness of the transfer.
One of the key benefits of used software is the cost savings. Businesses, in particular, can acquire older software versions at significantly lower prices than newer ones, without sacrificing functionality. This is especially advantageous for those who don’t require the latest or most advanced features.
The software life cycle plays an important role in determining its value in the second-hand market. As new software versions are released, older versions tend to decrease in value, similar to what happens with electronic devices. However, unlike physical products, software doesn’t degrade over time, making it ideal for reuse. Additionally, with increasing awareness of resource conservation and waste reduction, more companies are integrating used software into their IT strategies.
European regulations on used software
The legal framework regulating the sale of used software within the European Union has developed over the years since the decision of the Court of Justice of the European Union (CJEU) in 2012 in Case C-128/11 UsedSoft GmbH v. Oracle International Corp.
The ruling states that: ‘An author of software cannot oppose the resale of his ‘used’ licenses allowing the use of his programs downloaded from the internet. The exclusive right of distribution of a copy of a computer program covered by such a license is exhausted on its first sale.’
This therefore forms the basis of the regulation. This directive defines the rights of distribution and use of software, setting the parameters within which software may be transferred to third parties.
The Court introduced the concept of exhaustion of rights, according to which once the manufacturer has sold the first license, it no longer has the right to oppose the resale of that same license by the user. This paved the way for the growth of the used software market, both for downloadable and physical products.
Even if a license agreement between the manufacturer and the original buyer explicitly prohibits the resale of software, the manufacturer cannot prevent the resale. This is because the license agreement is subject to European law, and any clause conflicting with European law is considered invalid.
The legal principle of “exhaustion of rights” is key to understanding the resale of used software. Under this rule, once a license is sold, the owner is allowed to transfer it to another user, provided it is deactivated on the original device and reinstalled on a new one. Essentially, used software must be treated similarly to physical goods when it comes to resale rights.
Potential risks and factors to consider when purchasing used software
When purchasing used software, it is essential to ensure that the license is valid and genuine. One of the first steps is to check licenses carefully, particularly if purchasing from third-party platforms or online marketplaces. Buyers should ensure that the license has not been previously duplicated or used on multiple devices, which could cause problems when installing or using the software.
Another important consideration is the authenticity of the software. Ensuring that the software has not been altered or modified is essential to ensure that it functions properly and does not present security vulnerabilities. In addition, it is important to only use reputable resellers who can provide full documentation on the origin of the license and ensure that all legal requirements have been met.
To avoid scams or unsafe purchases, it is always advisable to research the seller thoroughly and check other users’ reviews. In general, choosing certified resellers or recognised sales platforms can significantly reduce the risks associated with buying used software.
The future of the used software market
The used software market is poised for continued growth, with future trends indicating its increasing appeal to companies looking to cut costs and optimize their IT resources. As environmental awareness rises and the focus on waste reduction intensifies, this sector is likely to remain relevant. Reusing software licenses offers a sustainable solution by eliminating the need for new physical packaging and reducing demand for additional resources.
Purchasing used software licenses offers significant environmental benefits by reducing the need for new physical packaging, minimizing the consumption of raw materials, and lowering electronic waste. This practice promotes a more sustainable and circular economy by extending the lifecycle of digital products, aligning with global efforts to reduce resource depletion and environmental impact. As businesses and individuals prioritize eco-friendly solutions, the adoption of used software licenses presents a viable strategy for lowering the carbon footprint of IT operations while supporting long-term sustainability goals.
How the hospital St. Johann in Tirol was able to implement their Microsoft licensing affordable
The hospital, which has been in operation since 1262, treats about 15,000 inpatients and 68,000 outpatients annually, with 500 employees using computers. The IT team faced challenges related to Microsoft software licensing, which, although accessible through government contracts, included costly and unnecessary maintenance agreements.
In 2018, the hospital needed to upgrade from Office 2010 to Office 2019 but wanted to avoid the high costs of new licenses and maintenance contracts. They turned to a provider of second-hand software, which helped the hospital cut licensing costs by 50%. This also allowed them to purchase Windows Server Datacenter licenses and other needed tools. The hospital saved additional funds by trading in old Office 2010 licenses.