UsedSoft traded in second-hand Oracle software licences acquired from Oracle customers who no longer needed them. Oracle sued, arguing that the distribution right is not exhausted for software distributed by online download, unlike physical CDs.

The CJEU rejected Oracle’s distinction: the principle of exhaustion of the distribution right also applies to software licences downloaded online, where the right holder has sold the copy with its consent in return for remuneration corresponding to the economic value of the work.

Once the software has been lawfully sold, the right holder can no longer control the resale of that copy. The purchaser of the second-hand licence is entitled to download and use the software, and the seller must delete its own copy.

The judgment opened the market for used software licences in the EU and forced producers to adapt their licensing models. It has direct implications for companies managing large software licence portfolios and seeking to optimise costs by reselling unused licences.