Steam, GoG and Others Must Allow Reselling of Downloaded Games in EU

The European Union's Court of Justice has ruled that consumers within the EU can legally resell downloaded games and software, despite any restrictions stated in End-User License Agreements (EULAs). This ruling stems from a legal dispute between UsedSoft and Oracle, and hinges on the principle of exhaustion of distribution rights.

Exhaustion of Distribution Rights and Copyright:

The court's decision centers on the principle that once a copyright holder sells a copy of software and grants unlimited usage rights, the distribution right is exhausted, enabling resale. This applies to games purchased on platforms like Steam, GoG, and Epic Games. The original purchaser essentially resells the license, allowing a new buyer to download the game. The ruling explicitly states that even if the EULA prohibits further transfer, the copyright holder cannot prevent resale.

The practical application involves the original buyer transferring a license code, losing access after the sale. However, the lack of a formal resale marketplace creates complexities. For instance, how registration transfers remains unclear, especially considering physical copies remain registered to the original owner.

Seller's Access and Reproduction Rights:

Crucially, the seller cannot retain access to the game after resale. The court clarified that continuing use after sale constitutes copyright infringement. The ruling also addresses reproduction rights: while distribution rights are exhausted, reproduction rights remain, but only for necessary use by the lawful acquirer. This allows for downloading the game onto the new owner's computer.

Backup Copies and Limitations:

The ruling explicitly excludes backup copies from resale. The court's previous decision in Aleksandrs Ranks & Jurijs Vasilevics v. Microsoft Corp. confirmed this restriction.

In summary, while the EU court's decision grants consumers the right to resell downloaded games, several practical and legal complexities remain. The ruling overrides non-transferable clauses in EULAs but doesn't create a defined resale system, leaving many details to be worked out.