TIGA Press Releases
Huge rammifications likely following digital license law
Publish Date: Wednesday 4th July 2012
trade association representing the UK video games industry, believes an EU law
which ruled it illegal to prevent the sale of used digital licenses will have
huge rammifications for the software industry.
The Court of Justice of the European Union cast its judgement over a case involving Oracle which sued UsedSoft for selling used copies of digitally downloaded software. In stating that a software author cannot oppose the resale of ‘used’ licenses, it has in effect made it legal to sell used licenses for downloaded software in all European Union countries.
There is a danger that the ruling will create a lucrative market for second-hand enterprise software licenses affecting games, software, film, music and ebooks. The ECJ ruled that once Oracle had sold its software, it had exhausted its exclusive distribution rights.
The judgement stated: "The exclusive right of distribution of a copy of a computer program covered by such a license is exhausted on its first sale.”
Dr Richard Wilson, CEO of TIGA, said:
"This ruling has potentially huge ramifications not just for gaming and software but also music. Additionally, what impact will it have for car licenses and so on? "The second hand market has long been a contentious one and it's well known that many traditional publishers are against it. They have taken their own steps to lessen its impact on the high street - such as restricting online play to the original purchaser - but the speed at which digital distribution is becoming the norm means developers and publishers will need to constantly innovate ways to ensure the original licenses retain their value for players. Digital is too engrained in gaming culture now for this kind of ruling to discourage developers from such a distribution route. The fact remains that this court is not the supreme one so we imagine this ruling will be appealed against in the near future."
Notes to editors:About TIGA:
TIGA is the trade association representing the UK’s games industry. The majority of our members are either independent games developers or in-house publisher owned developers. We also have games publishers, outsourcing companies, technology businesses and universities amongst our membership. TIGA won 10 business awards and was nominated a finalist for 9 other awards during 2010 and 2011. In 2010 TIGA won two business awards including ‘Trade Association of the Year’ from the Trade Association Forum. In 2011, TIGA won eight business awards including ‘Trade Association of the Year’ from the Trade Association Forum, ‘Outstanding Organisation’ from the Chartered Management Institute and two Global Business Excellence Awards, including ‘Outstanding Marketing Campaign’. Richard Wilson won the ‘Leadership Award’ from the Trade Association Forum and the ‘Outstanding Leader’ award from the Chartered Management Institute. TIGA is an Investors in People organisation.
TIGA's vision is to make the UK the best place in the world to do games business. We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members. This means that TIGA members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.
For further information, please contact Dr Richard Wilson, TIGA CEO on: 07875 939 643, or email email@example.com.