Brick Court - Microsoft fails to strike out claims by ValueLicensing

Mr Justice Picken has refused applications by Microsoft Corporation and its UK and Irish subsidiaries aimed at preventing ValueLicensing (“VL”)’s claims against them from proceeding to trial.

VL purchases and resells pre-owned perpetual software licences in the UK and EEA (where purchasers of perpetual licences have statutory rights to resell them). It says that Microsoft, as the dominant provider of new licences and subscriptions in the same markets, has sought to stifle competition from the pre-owned sector, including by, in effect, paying customers switching to subscription not to resell their old perpetual licences. VL claims that Microsoft has thus breached UK, EU and EEA competition law. Microsoft has yet to plead a defence, but has indicated that if so required it will dispute the substance of VL’s claims.