Microsoft wins stay in UK software resale case as it seeks Supreme Court appeal
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Microsoft has won an extended stay of proceedings at the UK Competition Appeal Tribunal, buying time as it prepares to seek permission to appeal its software resale case to the Supreme Court. The decision pauses parts of the case, which involves a £270 million claim by reseller ValueLicensing and could expose Microsoft to billions in parallel actions. The stay comes after Microsoft’s copyright argument—that Office icons and clip art place it outside exhaustion rules—was rejected for a second time.
The Stay Ruling
Microsoft secured an extended stay from the UK Competition Appeal Tribunal (CAT) after indicating it will seek permission for a Supreme Court appeal. Chair Justin Turner KC balanced potential cost waste against delay, noting it is unknown whether permission will be granted. The CAT paused parts of the case first filed in 2021 by JJH Enterprises, trading as ValueLicensing, which claims £270 million in damages.
Legal Arguments
Microsoft initially defended the case as a competition matter but in 2025 recast it as a copyright dispute, arguing that Office includes icons, user interface elements, and clip art subject to different copyright rules without exhaustion. Both the CAT and Court of Appeal rejected this, finding it would produce “odd results,” such as allowing resale of CD software but not identical downloads. ValueLicensing relies on the 2012 CJEU UsedSoft v Oracle ruling that a perpetual license exhausts distribution rights even for downloaded software.
Potential Financial Exposure
The jurisdiction ruling matters more than the £270 million claim, as it clears the way for a parallel collective action that could expose Microsoft to billions. A separate class action lawsuit seeks up to £3.5 billion on behalf of as many as 2.7 million members. The Supreme Court’s decision on whether to hear the appeal could determine the fate of these parallel proceedings.
What's Next
Microsoft must now formally apply for permission to appeal to the Supreme Court, with the CAT awaiting a decision. It remains unclear whether the Supreme Court will hear the case, but if it does, the ruling could reshape the secondary software market and determine billions in claims.
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Microsoft wins stay in UK software resale case as it seeks Supreme Court appeal
