ValueLicensing's David spins the sling for another go at the Windows Goliath
Microsoft's tussle with UK-based reseller ValueLicensing over the sale of secondhand licenses returns to the UK's Competition Appeal Tribunal this week, with the Windows behemoth now claiming that selling pre-owned Office and Windows software is unlawful.
ValueLicensing's representatives say this week's trial - due to start tomorrow - will "address whether the entire pre-owned license market was lawful – with Microsoft arguing that it was not lawful to resell pre-owned Office and Windows software at all."
This stems from a May 2025 agreement that the scope of copyright issues now central to Microsoft's defense needs to be determined.
The case has the potential to blow a hole in the European reselling market. According to ValueLicensing, "if Microsoft's argument is correct, it would mean that the entire resale market in Europe should not exist."
The ValueLicensing case has rumbled on for years, beginning with allegations that Microsoft stifled the supply of pre-owned licenses by offering attractive subscription deals to public and private sector organizations in return for the surrender of perpetual licenses. ValueLicensing (and companies like it) operated a business model based on organizations selling their perpetual licenses and resellers selling them on to customers at a discount.
ValueLicensing alleged that Microsoft added clauses to customer contracts aimed at restricting the resale of perpetual licenses. In return for accepting those contracts, customers were given a discount.
Judging by the case so far [PDF], it appears that this practice was a policy at Microsoft.
According to ValueLicensing, Microsoft's allegedly anti-competitive antics and attempts to eliminate the secondhand software license market have cost it £270 million in lost profits.
Microsoft's argument [PDF] is that it owns the copyright to the non-program bits of Office – the graphical user interface, for example – to which rules around software reselling (the European Software Directive) do not apply.
ValueLicensing boss Jonathan Horley noted the timing of the copyright claim. "It's a remarkable coincidence that their defense against ValueLicensing has changed so dramatically from being a defense of 'we didn't do it' to a defense of 'the market should never have existed,'" he said.
Microsoft's contention is not without precedent. The Tom Kabinet judgment drew a line between the secondary market for software programs and e-books. Reselling a software program isn't a problem, while reselling something like an e-book is. Microsoft's argument for its software appears to be similar.
The tech giant is facing other actions before the UK's Competition Appeal Tribunal. Alexander Wolfson has brought a similar claim against Microsoft, potentially worth billions, regarding the purchase of certain licenses for specific products. Dr Maria Luisa Stasi has brought another regarding the cost of running Microsoft software on platforms like AWS and GCP compared to Azure.
The Register asked Microsoft to comment and will update the article should the company respond. ®
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