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Court Says First Sale Doctrine Doesn’t Apply To Licensed Software

September 10th, 2010 09:38 admin Leave a comment Go to comments

An anonymous reader wrote to tell us a federal appeals court ruled today that the first sale doctrine is “unavailable to those who are only licensed to use their copies of copyrighted works.” This reverses a 2008 decision from the Autodesk case, in which a man was selling used copies of AutoCAD that were not currently installed on any computers. Autodesk objected to the sales because their license agreement did not permit the transfer of ownership. Today’s ruling (PDF) upholds Autodesk’s claims: “We hold today that a software user is a licensee rather than an owner of a copy where the copyright owner (1) specifies that the user is granted a license; (2) significantly restricts the user’s ability to transfer the software; and (3) imposes notable use restrictions. Applying our holding to Autodesk’s [software license agreement], we conclude that CTA was a licensee rather than an owner of copies of Release 14 and thus was not entitled to invoke the first sale doctrine or the essential step defense. ”

Source: Court Says First Sale Doctrine Doesn’t Apply To Licensed Software

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