I'm curious if this has ever been challanged.
First sale doctrine might cover it were you could.
The
first-sale doctrine is a limitation on
copyright that was recognized by the
Supreme Court of the United States in 1908 (see
Bobbs-Merrill Co. v. Straus) and subsequently codified in the
Copyright Act of 1976,
17 U.S.C. § 109. The doctrine allows the purchaser to transfer (
i.e., sell or give away) a particular lawfully made copy of the copyrighted work without permission once it has been obtained. This means that the copyright holder's rights to control the change of ownership of a particular copy ends once that copy is sold, as long as no additional copies are made. This doctrine is also referred to as the "right of first sale," "first sale rule," or "exhaustion rule."
The first-sale doctrine as it relates to computer software is an area of legal confusion. Software publishers claim in their
End User License Agreements (EULA) that their software is licensed, not sold, thus the first-sale doctrine does not apply to their works. Courts have contradicted.
Bauer & Cie. v. O'Donnell and
Bobbs-Merrill Co. v. Straus are two related
U.S. Supreme Court cases.
Washington District Court in
Vernor v. Autodesk, Inc. the court followed
United States v. Wise,
[1] in which films distributed by a studio that were not expected to be returned were deemed sold, and ruled that
Autodesk software was sold, and thus eligible for the first-sale doctrine.
[2][3]
Federal district courts in
California and
Texas have issued decisions applying the doctrine of first sale for bundled computer software in
Softman v. Adobe (2001) and
Novell, Inc. v. CPU Distrib., Inc. (2000) even if the software contains an EULA prohibiting resale. In the Softman case, after purchasing bundled software (a box containing many programs that are also available individually) from
Adobe Systems, Softman unbundled it and then resold the component programs. The court ruled that Softman could resell the bundled software, no matter what the EULA stipulates, because Softman had never assented to the EULA. Specifically, the ruling decreed that software purchases be treated as sales transactions, rather than explicit license agreements. In other words, the court ruled that California consumers should have the same rights they would enjoy under existing copyright legislation when buying a CD or a book.
In a more recent case involving software EULAs and first-sale rights
Davidson & Associates v. Internet Gateway Inc (2004)[1], the first sale reasoning of the
Softman court was challenged, with the court ruling "The first sale doctrine is only triggered by an actual sale. Accordingly, a copyright owner does not forfeit his right of distribution by entering into a licensing agreement." However, the point was moot as the court found the plaintiff's EULA, which prohibited resale, was binding on the defendants because "The defendants .. expressly consented to the terms of the EULA and Terms of Use by clicking 'I Agree' and 'Agree.'"
Food for thought
Mark