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Second-hand software licences: the resale market explained

Second-hand software, used licences, pre-owned licences: different terms for the same thing. Here we explain what second-hand software licences are, how the resale market works and why a used licence is in no way technically inferior to a new one.

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What are second-hand software licences? We explain the term, how the resale market works and why used licences are technically equivalent to new ones.

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What second-hand means when it comes to software

Second-hand software refers to a licence that has already been lawfully sold once and is now being passed on. The term sounds like used goods showing wear and tear, but that isn't quite right. Software does not wear out. A pre-owned licence activates the same software with the same features as one bought new.

This resale market is made possible by the principle of exhaustion. Once a licence has been sold with the manufacturer's consent, it may be resold. The ECJ ruling C-128/11 of 2012 confirmed this for the EU; in Switzerland, Art. 12 para. 2 CopA applies.

How the resale market works in practice

  • Initial purchase by an owner. A licence is lawfully acquired, for example by a company or a private individual.
  • Lawful transfer. If the licence is no longer needed, it may be passed on. The previous owner then no longer uses it.
  • Inspection by the dealer. A reputable dealer tests the activation before the licence is resold and replaces a key free of charge should it ever fail to activate.
  • Resale with proof of purchase. The new buyer receives the key and a VAT invoice as proof of purchase.

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What are second-hand software licenses?

Licenses that have already been sold lawfully once and are now passed on. Technically they are identical to new ones, they do not wear out and have the same features.

Is second-hand software legal?

Yes. The principle of exhaustion permits the resale of lawfully acquired licenses. Confirmed by the ECJ ruling C-128/11, and governed in Switzerland by Art. 12 para. 2 URG.

Why is second-hand software cheaper?

Because it is second-hand. On the secondary market a price below the manufacturer's new price emerges, with no loss of quality whatsoever, since software does not wear out.
About Keywi24

Keywi24 is a Swiss online shop for verified pre-owned Microsoft and antivirus software licences. The team has in-depth market knowledge from over five years of experience. Our goal is not to become the largest licence shop, but the most trusted.

That’s why we don’t invest in marketing hype, but in 90 days of real technical support after every purchase. Legal basis: CJEU ruling C-128/11 (03.07.2012) and Art. 12 para. 2 URG.

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Second-hand software licences: what the term means | Keywi24