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European court declares resale of used software licenses legal, not matter where and

ngon master
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ZacD ngon master
http://www.dw.de/dw/article/0,,16069323,00.html

I remember hearing cases and stories about people being unable to sell autodesk and other software licenses due to their terms of use, this should be some good news to some people in the industry.

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  • dregoloth
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    That's not good.
  • oXYnary
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    oXYnary polycounter lvl 18
  • dregoloth
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    It forces developers to allocate bandwidth to someone who hasn't paid them for their product, and if people can get used software cheaper from another company, the developers lose money from sales because there are licenses bouncing around from person to person, and none of the money goes to them unless I'm mistaken.
  • almighty_gir
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    almighty_gir ngon master
    only one person can hold the license at a time, so they're not losing money, because they still got the one license sale.
  • Snefer
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    Snefer polycounter lvl 16
    Hooraay, now Steam and Origin etc have to legally wrangle around this in some way I suppose.
  • dregoloth
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    only one person can hold the license at a time, so they're not losing money, because they still got the one license sale.

    Yes, but now someone can buy a commercial license on the cheap from someone who's done with it, so if a developer provides free updates to their software, or cheap upgrades, it reduces their profitability.

    And, smaller developers who create very specialized software packages (i.e Marmoset Toolbag or Crazybump) which occupy a very small market, lose many sales to companies that simply buy up licenses/facilitate the trading of licenses.

    Then there's the fact that many companies have systems built into the software to prevent/control the trading of license, and these aren't easy to tear out. Then there's the cost of hiring people to confirm transfers on the company's side.
  • praetus
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    praetus interpolator
    I'm curious on something here. Just because a software developer can't go after you in court for selling a license, are they in fact required to facilitate the transfer of licenses. "We're not going to hunt you down, but we're also not going to give support."
  • dregoloth
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    If the developer wasn't willing to facilitate it, then they would have to remove any DRM/license confirmation system from their software. Or at least that's how I read it. Either way, this is going to have a huge effect across the industry- developers aren't just going to drop a market the size of the EU.
  • pior
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    pior grand marshal polycounter
    The ruling says nothing about the DRM side of the issue. So basically - for software packages with a license system not bound to hardware or some kind of user ID, its cool to re-sell the license. But I dont see this affecting Steam, or any recent DRM scheme really.

    In other words : the ruling does NOT say that every software vendor out there is supposed to allow license transfers. It simply clarifies that in the case of software only bound to a serial number kind of protection, the software vendor has no reason to bitch and whine if the customer wants to pass over a license to someone else.

    Now I might be getting things wrong but that's how I read it...

    What surprises me the most is not the ruling itself - it's the fact that Oracle used such an antiquated system in the first place! Try to do that with Photoshop - you can sure give or sell your serial to someone else, that won't bypass the user ID login and the fact that in Adobe's database, you are the owner of the license and that other person is not. Even the smallest programs and plugins out there (Topogun, many 3DSMax plugins, and so on) use hardware authentification now. Not that I necessarily agree with that in all cases, mind you - but this is not what is being ruled in court in the current case.
  • almighty_gir
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    almighty_gir ngon master
    does this mean i can now legally sell my diablo 3 characters/account?
  • Kwramm
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    Kwramm interpolator
    good decision. Most people feel like they buy a product when they pick up a box of software from the shelf at a store, rather than a license. Now it is like that again - your're paying for a something that behaves like a product. I hope this puts a stop to the "license-ification" of goods and services. e.g. in e-books where a publisher could just revoke your right to read the book because you never bought the product, but just a license to read it.
    I never liked this obsessive control that some companies have over digital products which are never really yours. A step in the right direction imho.
  • dregoloth
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    If pior is right, I have no issue with the ruling and believe that this is a good thing, though it is my belief that whether the software is provided as a license or a product should be up to the developer, irregardless of my preference, and that it isn't up to the government how companies sell their products.
  • ZacD
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    ZacD ngon master
    I hate hardware authentication, it sucks if you have multiple computers or do an upgrade, plus you have to rely on their support a lot.
  • Kwramm
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    Kwramm interpolator
    dregoloth wrote: »
    If pior is right, I have no issue with the ruling and believe that this is a good thing, though it is my belief that whether the software is provided as a license or a product should be up to the developer, irregardless of my preference, and that it isn't up to the government how companies sell their products.

    This ruling changes nothing about the sale of software as such. You can still sell a license to your customer. The only difference is that you cannot forbid people to re-sell these license (aka usage rights) to others. Many software publishers allow license re-sales and some even help with license transfers. This is nothing new.
    In the last years however, publishers tried to force people, by legal (EULA) and/or technical means (non transferrable accounts), to buy new software every time.

    On the other hand if you're a software developer who likes to lock their users in, I'd say it's your greed and your own fault and not the government's which is to blame.

    (About Steam: should be no problem at all. DRM just checks your account. I don't see how changing this info causes a problem. Gift or sell a game to someone else, it gets bound to their account, removed from yours. All achievements or other cloud info is deleted - voila. Works for 99% of the games).
  • Overlord
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    dregoloth wrote: »
    Yes, but now someone can buy a commercial license on the cheap from someone who's done with it, so if a developer provides free updates to their software, or cheap upgrades, it reduces their profitability.

    And, smaller developers who create very specialized software packages (i.e Marmoset Toolbag or Crazybump) which occupy a very small market, lose many sales to companies that simply buy up licenses/facilitate the trading of licenses.

    Then there's the fact that many companies have systems built into the software to prevent/control the trading of license, and these aren't easy to tear out. Then there's the cost of hiring people to confirm transfers on the company's side.

    Just make software license separate from the support and upgrades account which is non-transferable. Then people can buy the used software license, but not get the support.
  • Kwramm
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    Kwramm interpolator
    Overlord wrote: »
    Just make software license separate from the support and upgrades account which is non-transferable. Then people can buy the used software license, but not get the support.

    Isn't that the same scam some companies are already doing to coerce users to buy new products? If it's been paid for, it should be transferable.

    If I buy a laptop and have warranty/support and I sell it to someone else and give them the original bill they'll enjoy all the benefits I as original buyer had.
    I just don't see why software makers should have special privileges over the resale of their goods versus manufacturers of physical goods.
  • Ghostscape
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    Ghostscape polycounter lvl 13
    I'm curious to see how this affects PC gaming. It seems like it offers no benefits to developers and makes PC development a higher risk, which can only hurt the industry as a whole and push games farther away from singleplayer, finite experiences.
  • Overlord
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    Kwramm wrote: »
    Isn't that the same scam some companies are already doing to coerce users to buy new products? If it's been paid for, it should be transferable.

    If I buy a laptop and have warranty/support and I sell it to someone else and give them the original bill they'll enjoy all the benefits I as original buyer had.
    I just don't see why software makers should have special privileges over the resale of their goods versus manufacturers of physical goods.

    That's a fair point. Then I suppose software developers shouldn't try to sell such a weak product when they could sell a valuable service (i.e. making software people want) or just accept that people are going to resell it. All they'll accomplish by trying to stop people from doing it is earn some bad publicity.
  • Ace-Angel
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    Ace-Angel polycounter lvl 12
    If you have a decent history, Steam allows you to return games already, if you file a support ticket. A friend of mine got one of them COD games you kids so damn love, and wasn't too happy with it, he filed a ticket and and got a return or was allowed for an exchange.

    The only deal is, again, if you have a proper history or not exchanging everything you buy and if it's within the week you got the game.

    Also, I'm not exactly sure what this law will do in the long run, we all know the digital medium is a wild west as of now, and EA only got in on the deal to avoid such issues, I would be really surprised if the EU law doesn't become just that, an EU law, and the America's have to deal the usual issues we have now.

    Also, we're in the year 2012, you can get a decent server for hosting at a nickle and dime count by the end of the year, seems hardly the issues the publishers will have.

    Also, about the 'dropping DRM' part, seriously, we're still going to talk about that? I mean c'mon...
  • dfacto
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    dfacto polycounter lvl 18
    Wrangling aside my stance on this is firm: Screw profits, if you sell me something it should be mine, and mine to do with as I please, including resale. If you create a system to selectively give me a product, you must allow me to resell it. The saying is "what's mine is mine", not "what's mine is actually still yours". If you're against this then rethink your position because you are creating a future where your entire online interaction will be rentals, not sales.
  • almighty_gir
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    almighty_gir ngon master
    dfacto wrote: »
    Wrangling aside my stance on this is firm: Screw profits, if you sell me something it should be mine, and mine to do with as I please, including resale. If you create a system to selectively give me a product, you must allow me to resell it. The saying is "what's mine is mine", not "what's mine is actually still yours". If you're against this then rethink your position because you are creating a future where your entire online interaction will be rentals, not sales.

    pretty much this.

    ultimately, if the service a company offers is good enough, then they will get unique sales anyway. if it's not then people will buy their product once, and sell it one when they realise it's not good enough.

    i can see companies like Autodesk allowing resale of their product licenses (due to this new judgement), but charging a nominal fee to transfer all the products services from one person to the next.

    for example:
    Matthiew has purchased 3ds-max, it's all registered in his name/email details etc. he has full access to the Autodesk support forums and customer support.

    Matthiew wants to sell on his license key for the product to John. John pays Matthiew roughly 60% of the original price for the license, Matthiew is happy... Autodesk still thinks the license key is in Matthiews name. when John calls Autodesk support with a problem, he can't be helped.

    to resolve this issue, Autodesk contact Matthiew, confirming that he has sold on the license key. they then contact John, and tell him that the product is now his, however the services attached to that product can only be transferred to him after he pays them $150.

    John can then decide whether the future services attached to the product are worth $150, or not. either way the license itself has been transferred over to him, however the services he receives are not the same as if he had purchased a "new" copy until he pays the fee.
  • Fomori
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    Fomori polycounter lvl 12
    Now I can see why Sony acquired Gaikia just before news of this. I wonder if mainstream gaming's future will be subscription based games. You never own the product you just pay the subscription and have access to a large library of streaming games. Films are kind of going that way with Netflix/Love Film. Don't think out technology is quite ready for that yet but maybe in a few years. PS4.....

    Adobe is now offering the subscription service on their software. Did they see this coming?

    I personally would much prefer to own my games. I would feel much more like I'm supporting individual developers.
  • Elyaradine
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    Elyaradine polycounter lvl 11
    I'm not that familiar with the ruling, but from what I gather, this is really cool for traditional/"normal" software where it's a tool that you're using, but pretty scary for games where it's more about the experience than the software. In many cases you only want to experience it once or twice anyway; wouldn't this totally kill those kinds of games?
  • dfacto
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    dfacto polycounter lvl 18
    Did it kill the film industry?
  • Thermidor
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    Thermidor polycounter lvl 18
    Its been said before, but as far as i can tell this is only making it so that software developers cannot use the law to stop you reselling (which some were doing in the EULA)

    So if a company wants to stop resale in some other way (like DRM) they can do it.
    It dosnt look like this is intended to force steam or any similar digital download service to introduce a way of reselling into their current systems. All its doing is saying its legal, and cannot be stated as illegal.

    I cant see how this will affect anyone too much. It s a ruling on digital downloads so those super cheap stores where you can buy keys for boxed games might be happy to have this law clarified.
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