JJH Enterprises Ltd (trading as Valuelicensing) v Microsoft Corpn

Subject Matter

COPYRIGHT — Infringement — Computer software — Defendants selling bulk perpetual licences for software products — Products incorporating non-program works — Defendants disputing legality of claimant’s sale of pre-owned licences — Application of copyright exhaustion to bulk licences of software — Effect of contractual terms prohibiting further transfer — Whether first online sale exhausting rights of non-program works incorporated in software — Parliament and Council Directive 2001/29/EC, art 4(2) — Parliament and Council Directive 2009/24/EC, art 4(2)

[2025] CAT 75; [2025] WLR(D) 582, CAT

AI Summary & Issues

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In the Competition Appeal Tribunal case involving JJH Enterprises Limited (trading as ValueLicensing) and Microsoft, the Tribunal resolved two preliminary issues concerning the resale of Microsoft software licences. It determined that Microsoft's distribution and reproduction rights do not prohibit the subdivision and resale of user rights from bulk licences. Furthermore, it concluded that the initial sale of Microsoft Office and Windows, along with related non-programme works, exhausts the copyright owner's rights under the Software Directive, permitting resale under certain conditions.

Issues

• Did the Tribunal determine whether the distribution right enjoyed by Microsoft was exhausted upon the first sale of its software products, allowing for resale by the first acquirer?
• Was it permissible for VL to subdivide and resell user rights obtained from bulk licences under the Enterprise Agreements, despite Microsoft's claims of contractual restrictions?
• Did the Tribunal find that the first sale of Microsoft Office and Windows, including non-programme works, exhausted the distribution and reproduction rights under the Software Directive?