Microsoft seeks to appeal to the Supreme Court in the £270 million software resale case.

      Microsoft is requesting permission from the Supreme Court to appeal the ValueLicensing decision, which ruled that the resale of pre-owned software is legal. After losing at both the Competition Appeal Tribunal (CAT) and the Court of Appeal, Microsoft is seeking what The Register has termed "one more roll of the dice." The CAT had determined in 2025 that the resale and subdivision of Microsoft licenses did not violate copyright laws, and Microsoft suffered another defeat on July 7. An extended stay was granted on July 21 for Microsoft to pursue this appeal.

      In 2021, ValueLicensing filed a £270 million lawsuit against Microsoft, alleging that the company included contractual clauses that directed customers toward Microsoft 365 subscriptions while preventing them from reselling their perpetual licenses. Microsoft contended that reselling its software was against copyright law, but both the CAT and Court of Appeal rejected this argument. The Court of Appeal pointed out that Microsoft's stance would lead to "odd results," creating a scenario where CD-ROM software could be resold freely, while digitally delivered software could not. It also noted that minor modifications to a program could allow circumvention of EU rules on second-hand software.

      The financial implications extend beyond the £270 million in question. A related class action led by Alexander Wolfson shares several elements with the case and could lead to a payout in the billions. Should the Supreme Court decline to hear Microsoft's appeal, or if it rules against the company, it would set a precedent allowing businesses throughout the UK—and potentially Europe—to resell unused Microsoft licenses without restriction. Despite Microsoft’s AI tools identifying an unprecedented number of vulnerabilities in its software this year, the legal challenge to its licensing model might prove to be a costlier concern.

      While the stay applies to the appeal, it does not encompass all proceedings. ValueLicensing’s applications regarding disclosure and confidentiality will continue, with a case management conference anticipated in September. Users shifted away from Google following an AI overhaul that altered their depended services, and Microsoft's transition from perpetual licenses to subscriptions mirrors this forced migration. However, ValueLicensing claims that this shift was not merely a business tactic but an unlawful restriction on trade, a position that has been supported by two courts. Microsoft now seeks a third court to take a different view.