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Microsoft Software for Sale, Slightly Used

Alsee writes "The Register reports that recent UK business Discount-Licensing.com has been having booming growth reselling pre-owned Microsoft software licenses 20-50% below retail, after spotting the opportunity in Microsoft's licensing terms and Britain's insolvency laws for insolvent and downsizing businesses. Sorry, no discount personal OS resales, corporate bulk resales only."

21 of 159 comments (clear)

  1. What a crazy idea! by IntelliAdmin · · Score: 4, Informative

    What a crazy idea - the thought that you actually can do what you want with something you purchased. I wonder how long it is before the BSA finds some way of shutting these people down.

    1. Re:What a crazy idea! by caffeination · · Score: 3, Insightful

      If those are the examples you're using to back up your point, then I'm afraid you're not going to convince anyone. And why should consumer rights be subject to the exact same moral conditions as every other facet of society? That doesn't make any sense whatsoever.

    2. Re:What a crazy idea! by hey! · · Score: 4, Insightful

      What a crazy idea - the thought that you actually can do what you want with something you purchased.

      Well, it would be, if Microsoft sold sofware.

      Which they don't.

      Whether you think i's a good idea for society or not, they sell licenses. A license by its very nature is more ambiguous than ownership, because it is, at its heart, an agreed upon, ungoing relationship between the licensee and licensor.

      So, what is going on here is something a bit extraordinary. It's saying that licensees have in certain cirumstances the ability to transfer their relationship with the licensor to a third party, without the licensor's consent.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    3. Re:What a crazy idea! by ehrichweiss · · Score: 4, Informative
      There's really absolutely nothing extraordinary about this at all. At least here in the States, "shrinkwrap licensing" doesn't hold water in the higher courts and the only real way to keep someone from selling their software is by signed agreement.

      SGI has for years sold software under a license where you physically sign an agreement to purchase, and the license forbids resale of the software without express permission of Silicon Graphics. The thing is, they have the attitude toward their media that most of us wish that the record/movie companies had toward CD/DVD's..if it gets damaged, lost, stolen, etc. then they replace it for free...usually overnight Fedex. But that was back in the day, I'm unsure if they still do this now.

      Anyway, I'm glad to see someone do this with the corporate licenses; it's about damn time.

      --
      0x09F911029D74E35BD84156C5635688C0
    4. Re:What a crazy idea! by Sparr0 · · Score: 4, Informative

      Let me direct you to one of my favorite Sale vs License rulings, Adobe v Softman. Relevant excerpts follow:

      A number of courts have held that the sale of software is the sale of a good within the meaning of Uniform Commercial Code. Advent Sys. Ltd. v. Unisys Corp., 925 F.2d 670, 676 (3d Cir. 1991); Step-Saver, 929 F.2d at 99-100; Downriver Internists v. Harris Corp., 929 F.2d 1147, 1150 (6th Cir. 1991). It is well-settled that in determining whether a transaction is a sale, a lease, or a license, courts look to the economic realities of the exchange. ...

      Other courts have reached the same conclusion: software is sold and not licensed. See, e.g., RRX Indus., Inc. v. Lab-Con Inc., 772 F.2d 543, 546 (9th Cir. 1985); Applied Info. Mgmt., Inc, v. Icart, 976 Supp. 149, 155 (E.D.N.Y. 1997) finding that whether a transaction denominated a "license" was in act a sale conveying ownership was a disputed question of fact); Novell, Inc. v. CPU Distrib., Inc., 2000 U.S. Dist. Lexis 9975 (S.D. Tex. 2000). In Novell, a software manufacturer was pursuing a discount retailer for copyright infringement. Like Adobe, CPU argued that it purchased the software from an authorized source, and was entitled to resell it under the first sale doctrine. Novell claimed that it did not sell software but merely licensed it to distribution partners. The court held that these transactions constituted sales and not a license, and therefore that the first sale doctrine applied. 2000 U.S. Dist. Lexis 9975 at *18. ...

      The Court finds that the circumstances surrounding the transaction strongly suggests that the transaction is in fact a sale rather than a license. For example, the purchaser commonly obtains a single copy of the software, with documentation, for a single price, which the purchaser pays at the time of the transaction, and which constitutes the entire payment for the "license." The license runs for an indefinite term without provisions for renewal. In light of these indicia, many courts and commentators conclude that a "shrinkwrap license" transaction is a sale of goods rather than a license.12 ...

      The reality of the business environment also suggests that Adobe sells its software to distributors. Adobe transfers large amounts of merchandise to distributors. The distributors pay full value for the merchandise and accept the risk that the software may be damaged or lost.13 The distributors also accept the risk that they will be unable to resell the product.14 The distributors then resell the product to other distributors in the secondary market. The secondary market and the ultimate consumer also pay full value for the product, and accept the risk that the product may be lost or damaged. This evidence suggests a transfer of title in the good. The transfer of a product for consideration with a transfer of title and risk of loss generally constitutes a sale. VWP of Am., Inc. v. United States, 175 F.3d 1327, 1338-39 (Fed. Cir. 1999). ...

      [signed]
      DEAN D. PREGERSON
      United States District Judge

  2. Here's how they will "fix" this by Anonymous Coward · · Score: 3, Interesting

    Microsoft will start putting a non-transferability clause in license agreements. Simple as that. US Bankruptcy law may or may not create an out for such a clause, so that a trustee can sell a debtor's licences. If the law allows it and if it causes a drain on sales revenue, you can bet that there will be another anti-consumer amendment to the bankruptcy code.

    1. Re:Here's how they will "fix" this by m50d · · Score: 3, Interesting
      So if the license says you can't transfer it, you can still transfer it?

      Yes

      Does that mean that if it says you can't install the software multiply that you may indeed install it as many times as you want?

      No, because copyright law prevents that.

      Does it mean that licenses are completely worthless to the licensor?

      Licenses are useful for one thing only - making exceptions to your copyright. Any other terms are meaningless.

      Are you a lawyer?Not yet

      --
      I am trolling
    2. Re:Here's how they will "fix" this by ajs318 · · Score: 5, Insightful
      So if the license says you can't transfer it, you can still transfer it?
      Yes, because the Law of the Land says you may transfer a licence -- and rights given to you by the Law of the Land cannot be denied to you by entering into a contract. That's what the magic words "Your statutory rights are not affected" mean. It's also the reason why EULAs have a severability clause; that's the bit that says if any provision is found not to be applicable it shall not prejudice any other provision.
      Does that mean that if it says you can't install the software multiply that you may indeed install it as many times as you want?
      No, because the Law of the Land does not say you may install it as many times as you want. Though, you might argue in court that this constituted Fair Dealing {a deliberately ambiguous term: it is for the courts to decide what does or does not constitute fair dealing}. If you were successful, you would set a precedent.
      Does it mean that licenses are completely worthless to the licensor?
      Pretty much so, yes.
      Are you a lawyer?
      No, but I know my rights.
      --
      Je fume. Tu fumes. Nous fûmes!
  3. This probably won't last for very long. by gameforge · · Score: 3, Interesting

    From TFA: "The secondhand resale of a license agreement is not the intended purpose of these provisions."

    Apparently, a Microsoft rep said that to the article writer.

    Something tells me that Windows Vista and future versions of Office, etc. will probably restrict their licenses somehow to prevent this. Some company had "net saving in the region of £10,000." That means Microsoft probably lost a lot more than that.

    Too bad they won't sell to individuals; I might actually purchase a Microsoft product if I could just download it from P2P and go buy a cheap license from these guys. Even better, someone should go start collecting unused Windows licenses and giving them away to those who need them, like college students (okay, just kidding).

    1. Re:This probably won't last for very long. by mjmartin_uk · · Score: 3, Informative

      Ahhh but you forget that UK law would prohibit this (the forceable non-resale of a licence agreement). In the UK you can legally resell your copy of Windows, with the licence agreement, even if it is an OEM copy and was intended to be used (as Microsoft says) 'only on new computers'.

    2. Re:This probably won't last for very long. by Ironsides · · Score: 3, Insightful

      Something tells me that Windows Vista and future versions of Office, etc. will probably restrict their licenses somehow to prevent this. Some company had "net saving in the region of £10,000." That means Microsoft probably lost a lot more than that.

      Microsoft didn't "lose" any money on this sale, neither did they "make" any money. This is similar to me buying the Monopoly(tm) board game at a garage sale. Parker Brothers neither lost nor made any money on the deal.

      --
      Fly me to the moon Let me sing among those stars Let me see what spring is like On jupiter and mars
    3. Re:This probably won't last for very long. by LewsTherinKinslayer · · Score: 3, Informative

      Microsoft didn't "lose" any money on this sale, neither did they "make" any money.

      You're right, Microsoft didn't lose money per se. However, Microsoft did lose a fairly substantial potential business because of this.

      This is similar to me buying the Monopoly(tm) board game at a garage sale. Parker Brothers neither lost nor made any money on the deal.

      Perhaps Parker Brothers should put some kind of license agreement in their board games that prohibits resale of Monopoly. This is of course, the move Microsoft is going to be making soon. (And already has, as in the case of OEM licenses.)

      Personally I think the idea of a license agreement forcing non-resale is ridiculous. Its similiar to DRM: some company telling me what I can and can't do with something once I've purchased it. Feh.

    4. Re:This probably won't last for very long. by gameforge · · Score: 3, Insightful

      Software makers (Microsoft) would have you think that you did indeed rob GM when you bought a used car.

      Remember also, cars wear out and die; a used software license installs and works perfectly every time. The CD might wear out, of course, but that's not what you paid for (that's why backing up any piece of media should always be legal... you didn't pay $300.00 for a $0.03 piece of plastic, you bought the numbers recorded on it).

      You could argue that software goes obsolete; but the company that saved all that money that I was referring to bought older licenses of Office XP, which isn't the newest Office. They would have bought new licenses to Office XP from MS, but instead bought used ones. No matter which way you cut it, MS lost a sale, a potentially high value sale. I don't know of anywhere else you can go to buy used licenses to MS software in bulk.

      I don't believe software makers should have the right to this "forced non-resale" licensing; I'm just pointing out that it's costing MS a lot of money, and if they can stop it (which it sounds like they can't, even in the US) they would love to do so.

  4. This is legal in the US too by Anonymous Coward · · Score: 5, Insightful

    This is legal in the US too. And protected under the "Doctrine of First Sale", much as the software companies would like it didn't exist.

    "US copyright case law supports that consumers cannot make copies of computer programs contrary to a license, but may resell what they own."
    http://en.wikipedia.org/wiki/First-sale_doctrine

    "Software publishers claim the first-sale doctrine does not apply because software is licensed, not sold, under the terms of an End User License Agreement (EULA)."

    but if it's licensed then one should be allowed to make backups of the disc or receive a replacement disc if the disc gets lost or damaged. Software companies will argue either way where it suits them.

    they can't have the cake and eat it. It's either or

    1. Re:This is legal in the US too by ChristTrekker · · Score: 3, Insightful

      The exact same argument applies to the media (**AA) corps too (IMHO, IANAL). If I'm licensed to watch/hear your product, then replacing the physical medium or getting it in a different format should be a very nominal (pennies!) charge since I can show that I've got a license for the product. If I'm buying a copy of the product for my own, then how do they have any right to restrict what I do with my copy for my own use?

  5. Not at all like used anything else by BadAnalogyGuy · · Score: 3, Insightful

    Typically, when you think of used goods, you think of worn out hand-me-downs donated to Goodwill or the Salvation Army. But software licenses are not anything at all like that. In fact, they do not wear out, nor do they have any physical form except for the paper they are printed on. They are purely logical constructs.

    But IP owners would have you think otherwise. They want you to think that licenses are akin to the actual CDs that the media came on. One CD, one installation. However, this is prima facie ludicrous. One CD suffices to create a farm of PC installations, the only thing needed is multiple licenses for each individual installation.

    So don't be fooled into thinking that buying CDs is absolutely necessary. All you need are valid licenses and you have the rights to install as many times using the same CD as you have licenses.

  6. Good and Bad by ajs318 · · Score: 3, Insightful

    On one hand this is good because it reaffirms such doctrines as "fair dealing" and "exhaustion of rights", which are statutory rights that cannot legally be abridged by contract. On the other hand it is bad because it perpetuates the myth of dependency on Microsoft {though I suppose I shouldn't complain about that without actually trying to do something positive, like build and try to sell a sexy little all-in-one business server based on i-tal software}.

    Disclic aren't doing anything illegal, nor are they doing anything wrong {an important distinction in the UK, where many things that are not wrong are technically illegal, and many things that are wrong are not illegal}. I'm sure Microsoft would like to have a pop at them; but I don't know of anything that they could actually make stick. And if they do try, it will almost certainly call into question the legal enforcibility of EULAs in the UK.

    --
    Je fume. Tu fumes. Nous fûmes!
  7. I'm going to mix things and hope you won't notice by Anonymous Coward · · Score: 5, Interesting

    "Modern societies go out of their way to restrict one's freedom"

    Actually, modern has nothing to do with it. And just living with another person will restrict your freedom. Ask any married man. But some of those rules are societal such as you mention:

        "you cannot buy alcohol and give it to minors"

    or

        "[you cannot] drive a car around without a license"

    Let's be clear about these things. They are *laws* debated and agreed to by *represented officials* and can be changed at any time if society at large decides these rules need to be changed.

    Also, it's worth noting these laws don't restrict the sale or ownership of an item, they restrict the use of an item.

    Let's compare that with a EULA from MS not to resell that item.

    1) It's not against the law to buy or sell software
    2) Copyright law has no jurisdiction in this case, because it deals with reproduction, not sale
    3) First sale doctrine encourages me to resell what I own
    4) Microsoft would rather I didn't and they put it in a EULA.
    5) Nobody voted on this restriction. In fact, they didn't even get a say. I bought a PC a few years ago, it came with XP Pro, I assumed I could sell it, but no, it's licensed to the box and I can't resell it. Why? Well... just because. I don't think it would hold up in court, but it's not worth it to try.

    So please stop comparing a EULA to underage drinking and societal conventions because they are not at all related. EULAs are a trick that may or not be legal and they are enforced by big money, not society.

  8. What an awesome idea... by mblase · · Score: 3, Funny

    ...Now, is there any chance I can legally buy a used driver's license?

  9. Used drivers licenses by Kadin2048 · · Score: 3, Interesting

    Sure, I have a few old expired ones hanging around; I'm not sure how far you'll get, seeing as they have my name and picture on them, and a corner is cut off...but they were given back to me by and employee at the DMV because I asked nicely, so I assume I can do whatever non-fradulent thing I want to do with them now.

    In some states you can also buy old license plates. That doesn't mean it's legal to put them on your car, but you can get them. In fact, I know of at least one state where the DMV sells "novelty" plates direct: they're not legal to actually use as a license plate, but if you wanted to get a historical one for your Model T, they'll sell it to you.

    You can buy and sell all sorts of stuff that would be illegal if used in a certain way.

    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  10. Small things show just how bad it is. by twitter · · Score: 3, Insightful
    On one hand this is good because it reaffirms such doctrines as "fair dealing" and "exhaustion of rights", which are statutory rights that cannot legally be abridged by contract.

    Wow, I'm underwhelmed.

    Wake me up when you can sell the crappy CD that comes with your non-naked PC the same way you could sell it's floppy drive, the manuals or any other worthless component. It's funny they want to extend all of the limitations of physical property into the binary world and then binary limits into the physical world.

    --

    Friends don't help friends install M$ junk.