Steam, GoG and Others Must Allow Reselling of Downloaded Games in EU

The European Union's Court of Justice has ruled that consumers within the EU can legally resell downloaded games and software, overruling restrictions in End User License Agreements (EULAs). This decision stems from a case between UsedSoft and Oracle, establishing the principle of exhaustion of distribution rights. Once a copyright holder sells a copy granting unlimited use, the right to resell is established, regardless of EULA restrictions.

This applies to games purchased through platforms like Steam, GoG, and Epic Games. The original purchaser can sell the license, enabling a new buyer to download the game. However, the seller must render their copy unusable upon resale to avoid copyright infringement.

The court clarified that while the distribution right is exhausted, the reproduction right remains. However, reproduction is permitted for the lawful user's intended purpose, allowing the new buyer to download and install the game. This right cannot be contractually overridden.

Importantly, the ruling does not extend to backup copies. Reselling backup copies remains prohibited. This is consistent with previous rulings, such as Aleksandrs Ranks & Jurijs Vasilevics v. Microsoft Corp.

The practical implications remain complex. The lack of a defined resale market presents challenges. Furthermore, the transfer of game registration remains unclear, particularly concerning physical copies linked to original accounts. Despite these uncertainties, the ruling establishes a significant precedent for consumer rights in the EU digital marketplace.