European court rules that downloads are resaleable

Licence agreements can't stop your statutory rights, the ECJ rules

The European Court of Justice has ruled that consumers have the right to resell downloaded software as "used", even if the software is sold under a license that prevents it.

The case (pdf) concerned Oracle, the enterprise computing company, which sued a German firm UsedSoft. Oracle allows customers who have paid for a license to download copies from their website for use on up to 25 computers, as well as offering free access to updates, and it does so under an agreement which gives the customer "a non-transferable user right for an unlimited period, exclusively for their internal business purposes".

UsedSoft allows that license to be resold, contravening Oracle's agreement. It buys the access to the download site from users, and sells that access on.

The court was asked to consider whether the European first sale doctrine applies to downloads. For physical goods, it has long been held that exclusive rights to distribution are exhausted after the first sale. So, for example, HMV can have the exclusive right to sell One Direction's new album, but they cannot prevent you buying the album and then selling it on yourself – even if they make you sign something beforehand. It decided that when a right to use software for an unlimited period of time is exchanged for money, that constitutes a sale, and thus the first sale doctrine applies.

Importantly, the court also ruled that the right to updates is sold on, preventing one possible route around the judgement. Oracle must treat owners of second-hand software the same as those who buy it new for the purpose of software updates.

The right to resell still requires the first owner to remove the software, and it doesn't allow you to "split" multi-user licenses and sell off unused capacity. But it is nonetheless a major blow for users in the digital age.

However, although the judgment gives users the legal right to resell software, it doesn't mandate that retailers make that right practical to exercise. If you want to resell your copy of Angry Birds, you'll have to give your entire iTunes account over to whoever wants to use it. A thriving resale market is unlikely to emerge anytime soon.

The eponymous "Angry Birds", whom you may now resell. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Why it's far too early to declare Ukip dead

The party could yet thrive if Brexit disappoints those who voted Leave.

"Nothing except a battle lost can be half as melancholy as a battle won," wrote the Duke of Wellington after Waterloo. Ukip can testify to this. Since achieving its founding aim - a British vote to leave the EU - the party has descended into a rolling crisis.

Theresa May's vow to pursue Brexit, and to achieve control of immigration, robbed Ukip of its political distinctiveness. But the party's greatest enemy has been itself. Its leader Paul Nuttall did not merely lose the Stoke by-election (despite the city recording the highest Leave vote), he self-destructed in the process. Contrary to his assertions, Nuttall did not achieve a PhD, was never a professional footballer and did not lose "close personal friends" at Hillsborough. Ukip's deputy Peter Whittle pleaded last weekend that voters needed more time to get to know Nuttall. No, the problem was that they got to know him all too well. A mere three months after becoming leader, Nuttall has endured a level of mockery from which far stronger men would struggle to recover (and he may soon be relieved of the task).

Since then, Ukip's millionaire sugar daddy Arron Banks has threatened to leave the party unless he is made chairman and Nigel Farage is awarded a new role (seemingly that of de facto leader). For good measure, Farage (a man who has failed seven times to enter parliament) has demanded that Ukip's only MP Douglas Carswell is expelled for the crime of failing to aid his knighthood bid. Not wanting to be outdone, Banks has vowed to stand against Carswell at the next election if the dissenter is not purged. Any suggestion that the party's bloodlust was sated by the flooring of Steve Woolfe and Diane James's 18-day leadership has been entirely dispelled.

For all this, it is too early to pronounce Ukip's death (as many have). Despite May's ascension and its myriad woes, it has maintained an average poll rating of 12 per cent this year. This is far from its 2014 zenith, when it polled as high as 25 per cent, but also far from irrelevancy. Incapable of winning Labour seats itself, Ukip could yet gift them to the Conservatives by attracting anti-Tory, anti-Corbyn voters (in marginals, the margins matter).

Though Theresa May appears invulnerable, Brexit could provide fertile political territory for Ukip. Those who voted Leave in the hope of a radical reduction in immigration will likely be dismayed if only a moderate fall results. Cabinet ministers who boasted during the referendum of their desire to reduce immigration have already been forced to concede that newcomers will be required to fill vacancies for years to come. Ukip will be the natural vehicle for those aggrieved by Brexit "betrayal". Some Leave voters are already dismayed by the slowness of the process (questioning why withdrawal wasn't triggered immediately) and will revolt at the "transitional period" and budget contributions now regarded as inevitable.

The declarations of Ukip's death by both conservatives and liberals have all the hallmarks of wishful thinking. Even if the party collapses in its present form, something comparable to it would emerge. Indeed, the complacency of its opponents could provide the very conditions it needs to thrive.

George Eaton is political editor of the New Statesman.