In an increasingly digital world, software has seamlessly woven itself into the fabric of both personal and business operations. From streamlining productivity with specialized tools to unleashing boundless creativity through sophisticated suites, the insatiable demand for software solutions persists. This unending demand has given rise to a burgeoning market for used software licenses, where individuals and enterprises seek budget-friendly access to essential digital assets.

However, venturing into the realm of used software licenses unveils a Pandora’s box of pivotal inquiries. These inquiries span the spectrum from the legal ramifications of employing pre-owned licenses to the intricate web of software licensing types that dictate their usage. Each licensing model, whether proprietary, open-source, or subscription-based, carries its own set of stipulations, igniting the need for meticulous understanding.

Amidst the allure of cost-efficiency and accessibility, the potential stumbling blocks associated with used software merit thorough contemplation. The labyrinth of unauthorized transfers poses legal repercussions, as licenses are customarily tethered to specific individuals or entities. Furthermore, reliance on outdated software from the secondary market can breed compatibility issues, scant support, and security vulnerabilities. The specter of counterfeit software looms large, underscoring the urgency of sourcing used licenses exclusively from reputable vendors.

Fostering adherence to software licenses’ terms and conditions is an integral facet of effectively and legally utilizing used software. Compliance entails abiding by the stipulations delineated in the software’s licensing agreement, a tapestry that varies in texture contingent on the license type and software origin. This commitment to compliance not only averts legal entanglements but also cultivates an ethos of ethical and conscientious software usage.

To navigate the intricate matrix of used software legality, individuals and businesses are well-advised to embrace a constellation of best practices. Scrutinizing license agreements with unwavering diligence before acquisition or application, procuring software exclusively from esteemed vendors, and methodically cataloging all transactions stand as non-negotiable measures for sustaining compliance. Regular audits serve as the compass that ensures businesses are steering clear of license breaches and unauthorized user limits. In moments of ambiguity, enlisting legal expertise from professionals adept in the nuances of software licensing offers invaluable insights.

In 2012, the European Union (EU) ruled that a software license legally can be treated like any other good, so long as the license was perpetually owned (I.e., not on a subscription). The analogy we often tell customers is if you run a business where you owned a fleet of vehicles, when the time came to upgrade, what would you do with the old vehicles? Leave them to rust? Of course not. You would sell them on as they still hold value. So why should a software license be any different?

Working alongside partners, we at EasySAM have helped our customers make back £1,000,000+ from re-selling old software.

An example of where we see this in the real world is where a customer moves to Office 365. All their old Office Professional Plus Licenses still hold value, and in a lot of cases this can be a sizeable figure.

On the 31^st December 2020, the United Kingdom (UK) formally left the European Union (EU).  A withdrawal agreement (‘Treaty’) was agreed, and the following summarises the key facts concerning how that Treaty affects the trade of pre-owned software transactions between the UK and the EU:

A 2012 decision of the European Court of Justice reaffirmed that the practice of second hand licence sales was, in fact, legal. Since then we have seen a growing business in selling second hand software. But there remains a reluctance in the industry around both the selling of surplus licensing as well as the purchasing thereof. And as software manufacturers certainly don’t want the impact on their new licence sales – they will be and have been on the defence, finding ways to prevent second hand licence sales. We have certainly seen the industry leaning quite heavily in the cloud ‘subscription’ offering since the ruling.

However, Noel Unwin, MD at Discount-Licensing has this to say “It is clear that the software vendors are working hard to move businesses to subscription based software; however, the medium to large corporates are resisting with only 5% of Microsoft’s total revenue accounting for Cloud / Subscription based software. Whilst the markets are realigning, perpetual on-premises software is not going away as there is ‘no one solution fits all’ in the world of software – hybrid IT is now the buzz word, which suits the secondary software market”.

Second hand licence sales have certainly peaked my curiosity and I can’t help but wonder whether this might be an expiring coupon that may, just may, be a way to rectify areas of poor licence management in the past and/or a chance to free up some much needed funds. So I managed to get some of my questions answered with the help of Discount-Licensing Limited – and thought I would share them with you all: