Used software – what is it?
The trade in used software is legally protected by ECJ and BGH rulings and enables cost savings of up to 70 per cent with the same quality. Key factors for a secure purchase are TÜV certification of the provider, documentation of the licence transfer and a transparent licence management portal.
Used software refers to software licences that have already been purchased and used by an initial buyer and are now being resold. Unlike physical consumer goods, however, software does not wear out. A used licence is always in mint condition and is functionally no different from a new licence purchased directly from the manufacturer.
When you purchase a used software licence, you acquire the right to use the software. You receive the same scope of services and the same quality as when purchasing new directly from the manufacturer.
Why should you buy used software?
The digital economy is booming: IT budgets have been rising steadily for years, and the percentage of expenditure on operation and maintenance remains high. Companies are investing more and more money in modernising their systems. At the same time, there is growing pressure to optimise costs and use budgets more efficiently.
Used software offers a cost-effective solution here: companies can keep their IT infrastructure up to date and save a considerable amount of money in the process.
Despite the clearly regulated legal situation, many companies are still sceptical when it comes to buying and selling used software. This uncertainty is unfounded, provided that a few important aspects are taken into account.
Is buying and selling used software legal?
Yes, buying and selling used software is completely legal, provided that it is original software that was first released in the European Economic Area or the European Union.
The legal basis
The trade in used software is based on two important court rulings:
- ECJ ruling of 3 July 2012: The European Court of Justice ruled that the resale of used software licences is legal. This landmark ruling created the legal basis for the entire second-hand market in the EU.
- Federal Court of Justice confirmation of July 2013: The Federal Court of Justice confirmed the ECJ ruling and clarified that trading in used software is also permitted in Germany.
No registration requirement
Some manufacturers require registration when purchasing used software. But is this registration requirement binding? No, there is no general registration requirement with the manufacturer for traded software. Licence terms that require registration are invalid in the purchase agreement. A registration requirement is not compatible with the principle of exhaustion or freedom of ownership.
What are the advantages of used software?
There are several advantages to used software:
- Cost savings: Up to 70% cheaper than new licences with identical functionality
- No difference in quality: Software does not wear out
- Full update entitlement: Versions entitled to updates can continue to receive updates directly from the manufacturer
- Legal certainty: Secured by ECJ and BGH rulings
- Fast availability: Immediate delivery from reputable suppliers
- Audit security: With correct documentation, there are no risks during software audits
- Same installation process: Installation and activation are identical to new licences
- For all company sizes: Suitable for start-ups to large corporations
- Budget optimisation: Freed-up capital can be invested in innovation and growth
What should you look out for when buying used software?
When buying used software, you must ensure that it is original software that was first placed on the market in the European Economic Area or the EU. If these conditions are met, trading in used software is legal. This has been established by the European Court of Justice and confirmed by the Federal Court of Justice.
How can you recognise reputable suppliers?
A trustworthy supplier of used software has several distinguishing features:
- Complete documentation: A reputable supplier documents the entire licence transfer, verifies the origin of the licences and tracks the transfer from one owner to the next without any gaps.
- Individual licence advice: An analysis of individual licence requirements helps to avoid over- or under-licensing. This not only saves money, but also minimises legal risks in the event of an audit.
- Licence management portal: A secure portal for managing all licences, documents and downloads ensures transparency and makes archiving much easier.
- Guaranteed availability: Beware of suppliers who advertise products that are not in stock. Reputable dealers guarantee availability and enable fast delivery.
What documents must be provided when purchasing used software?
When purchasing used software, buyers should receive the following documents:
- Invoice and delivery note
- ECJ certificate of conformity confirming that the requirements for proper resale have been met
- TÜV certificate as proof of secure licence transfer
- Installation and activation instructions
- Access to the licence management portal
How can the validity of the licence be ensured?
The validity of a licence is ensured by several factors:
- Complete chain of rights: A reputable provider can prove the entire chain of origin of the licence – from the initial purchaser to the current purchaser.
- TÜV certificate: This certificate confirms that the provider has verified processes for secure licence transfers.
- ECJ certificate of conformity: Documents that the sale complies with all legal requirements.
- Deactivation by the previous owner: The seller must cease using the software and transfer the licence properly. Reputable dealers ensure this.
Are there any technical issues to consider when purchasing used software?
Technically, there is little difference between used and new licences. Since software is not a consumer product, it cannot show signs of wear and tear. Nevertheless, there are a few points to consider.
- Installation and activation: The installation process for used software licences remains completely unchanged compared to new licences. The software is also activated in exactly the same way.
- Compatibility: The software version should be compatible with the existing operating system and hardware. However, this applies equally to new and used software.
- Version selection: Both the latest versions and previous versions are available, depending on your needs and existing IT infrastructure.
How can fraud and counterfeiting be avoided when purchasing used software?
To avoid fraud when purchasing used software, the following points are relevant:
- Only purchase from certified suppliers: The TÜV certificate is the most important indicator of reliability.
- Check all documentation: All of the above documents should be available. If any certificates or evidence are missing, you should refrain from making the purchase.
- No dubious offers: If an offer sounds too good to be true, it usually is. Reputable used software is significantly cheaper than new software, but it is not free.
- Do not purchase licence keys alone: A licence key is worthless without a legally valid licence and the corresponding documentation.
Are updates and support included?
Yes, even with used software, you are still entitled to updates and maintenance, provided that the versions you have purchased are eligible for updates. The status as used software does not affect this entitlement. Second buyers can therefore also purchase updates directly from the manufacturer.
Even with used licences, the manufacturer's after-sales services remain in place, including the entitlement to support.
Who benefits from purchasing used software?
Used software is a smart, legally compliant and cost-effective solution for almost any business. It is particularly beneficial for:
- Start-ups and SMEs with limited IT budgets that still require professional software.
- Growing companies that want to flexibly expand their licences without breaking the budget.
- Established companies that want to optimise their IT costs and invest freed-up capital elsewhere.
- Public institutions that are required to operate economically under public procurement law.
Important: It is crucial to choose a certified provider with TÜV certification, complete documentation and a licence management portal. This allows you to enjoy all the benefits without any legal risks.
Are you planning to switch or would you like to have your existing licences checked? We will guide you through the process step by step. Please use our contact form to get in touch.
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