Microsoft is seeking to appeal to the Supreme Court in a £270 million case regarding software resale.

      Microsoft is seeking the UK Supreme Court's permission to appeal the ValueLicensing ruling, which states that the resale of pre-owned software is legal. After losing at both the Competition Appeal Tribunal and the Court of Appeal, Microsoft hopes to overturn the decision. The Competition Appeal Tribunal determined in 2025 that the resale and subdivision of Microsoft licenses do not violate copyright law. After a second loss on July 7, an extended stay was granted on July 21 while Microsoft makes what The Register describes as “one more roll of the dice.”

      ValueLicensing filed a lawsuit against Microsoft in 2021 for £270 million, alleging that the company included contractual clauses to steer customers toward Microsoft 365 subscriptions and prevented them from reselling their perpetual licenses. Microsoft contended that reselling its software was illegal under copyright law, but both the CAT and Court of Appeal disagreed. The Court of Appeal highlighted that Microsoft's stance would lead to “odd results,” such as allowing the resale of CD-ROM software while prohibiting it for digitally delivered software, and noted that adding “some icons or clip art” to a program could circumvent EU regulations on secondhand software.

      The implications extend well beyond the £270 million claim. A related class action led by Alexander Wolfson shares several similarities with this case and could result in a multibillion-pound settlement. Should the Supreme Court decline to hear Microsoft’s appeal, or rule against it, the precedent would allow businesses throughout the UK and possibly Europe to resell unused Microsoft licenses freely. Microsoft's AI tools have detected a record number of vulnerabilities in its own software this year, but the legal issues surrounding its licensing model could prove to be more costly.

      The stay does not halt all proceedings, as ValueLicensing’s disclosure and confidentiality requests will continue, with a case management conference anticipated next month. Users left Google after an AI overhaul altered the product they relied on, and Microsoft’s transition from perpetual licenses to subscriptions parallels this forced migration. However, ValueLicensing claims that the transition was not merely a business decision but an illegal restraint of trade, a position supported by two courts. Microsoft must convince the third court to take a different stance.