Microsoft’s second-hand licensing appeal gets the brush-off

The ability to resell pre-owned software licenses has been affirmed, potentially lowering costs for some businesses.

Microsoft has been denied permission to appeal to the UK Supreme Court in its ongoing legal dispute with ValueLicensing. The Court of Appeal rejected Microsoft's application to challenge a November 2025 ruling that permitted ValueLicensing to resell pre-owned software licenses. This ruling, initially made by the UK's Competition Appeal Tribunal, sided with ValueLicensing's claim that Microsoft had unfairly restricted the supply of surplus Office licenses. Microsoft had attempted to reframe the case as a copyright issue, but this was rejected. The company has a 28-day window to apply directly to the Supreme Court, but would need to demonstrate a compelling reason for the Court of Appeal's refusal to be overturned. The case, which began in 2021, also involves a separate class-action claim seeking substantial compensation from Microsoft for its practices regarding pre-owned licenses. A recently published Consent Order requires Microsoft to disclose potentially damaging internal documents, including a 2013 presentation on second-hand software.

The UK Court of Appeal's refusal to grant Microsoft permission to appeal signifies a significant setback for the tech giant's strategy to restrict the resale of its software licenses. This decision reinforces the legal precedent allowing for the secondary market of software, which could lead to increased competition and potentially lower prices for businesses seeking to acquire licenses. Companies that previously operated in or benefited from this secondary market will see continued viability and market stability.

This ruling suggests a broader trend of regulatory scrutiny on major software vendors' licensing practices, particularly concerning their control over software distribution and resale. Microsoft's continued legal challenges, even after unfavorable rulings, highlight the high stakes involved in protecting its established revenue models against the secondary market. The upcoming disclosure of internal documents, especially the "Known Adverse Document," could reveal further insights into Microsoft's past strategies and potentially impact future legal or regulatory actions.