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 in the End-User License Agreement (EULA). This decision stems from a legal dispute between UsedSoft and Oracle, clarifying the principle of copyright exhaustion.

Copyright Exhaustion and Resale Rights:

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

The practical application involves the original buyer transferring the game's license code, losing access upon resale. However, the lack of a formal resale market creates complexities. For instance, registration remains with the original account holder, even with physical copies.

Restrictions on Resale:

The seller cannot continue using the game after resale. The court emphasized that the original purchaser must render their downloaded copy unusable before resale to avoid copyright infringement.

Reproduction Rights:

While the distribution right is exhausted upon sale, the reproduction right remains. However, it's limited to necessary reproductions for the lawful user's intended purpose. This allows the new buyer to download the game.

Backup Copies:

Importantly, the court clarified that backup copies cannot be resold. This aligns with a previous CJEU ruling in Aleksandrs Ranks & Jurijs Vasilevics v. Microsoft Corp.

In summary, this ruling grants EU consumers the right to resell downloaded games, but with limitations regarding continued usage by the seller and the prohibition of reselling backup copies. The practical implementation of this decision remains to be seen.