A UK company is suing Microsoft for £270 million in damages in the UK High Court, and claims that a US company is trying to break a billion-dollar market with a used version of its software.
ValueLicensing upgrades IT or buys used Microsoft software licenses from companies that become stale and then resells them throughout the UK and Europe.
The company claims on its website that customers can save up to 70% by buying used software, pointing to the NHS Trust, which is known to have saved £1 million using Microsoft Office 2019 rather than the latest version of the Office tools suite. Do it.
Jonathan Horley, founder of ValueLicensing, accused Microsoft of hurting competition in the used software market by convincing businesses to give up their perpetual licenses, often in exchange for discounts on Microsoft’s cloud-based software such as Office 365.
“Microsoft has an incentive to move to a new cloud-based model and remove existing licenses from the market, so customers have no choice but to switch to a subscription model,” Horley said in an interview with The Financial Times.
He accused Microsoft of “abusing its power” and depriving businesses of the option to buy cheaper IT tools. He added that the value of software license owners is declining as the resale market shrinks.
Microsoft said, “We can’t comment on the ongoing legal case.”
In February, Microsoft made major changes to the perpetual version of Office, including shortening the support period for the product to 5 years, unlike the support period Office 2016 received for 10 years.
In 2013, Microsoft announced that it would limit the resale and sharing of Xbox games by requiring gamers to install the game on their Xbox One console before playing the game, and watermark each copy to the owner in the process. It was later tracked back after gamers cry.
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