Microsoft Loses UK Court Appeal Over Office and Windows Resale
Microsoft has lost its bid to stop the resale of on-premises Office and Windows licenses in the UK, with the Court of Appeals upholding the principle that once software is bought, it can be resold. The decision, which aligns with EU law, may lead to billions in damages for Microsoft and accelerates the shift towards cloud-based software subscriptions.
Key points
- Microsoft has lost its appeal in the UK Court of Appeals to stop the resale of on-premises Office and Windows licenses.
- The court upheld the principle that software licenses can be resold, in line with EU law.
- The decision may result in billions of dollars in damages for Microsoft.
- The ruling accelerates the shift towards cloud-based software subscriptions, which Microsoft prefers over traditional sales.
Microsoft has suffered a significant setback in its efforts to control the resale of on-premises Office and Windows licenses in the UK. The company had argued that its software was a creative work deserving of copyright protection, but the UK Court of Appeals rejected this claim, upholding the principle that once software is bought, it can be resold.
This decision aligns with EU law, which has long recognized the right to resell software licenses. The ruling may have significant implications for Microsoft, as it could be liable for billions of dollars in damages for its efforts to date to shut down the resale market.
The shift towards cloud-based software subscriptions is accelerating, with Microsoft itself preferring this model over traditional sales. As a result, the on-premises market is likely to continue its decline, with resellers continuing to play a key role in the distribution of Microsoft software.
Sources
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