Yes! Purchasing or selling licenses that are no longer required through the secondhand Microsoft licenses is completely legal within the EU/EEA, thanks to a landmark ruling by the Court of Justice of the European Union (CJEU). In the UsedSoft GmbH v Oracle International Corp (2012) case, the court ruled that software vendors lose exclusive distribution rights once a license has been sold, allowing for resale under the principle of copyright exhaustion—even if the software was originally downloaded rather than supplied on physical media.

Why don’t resellers talk about this?

Resellers are incentivised to sell new licenses, so they rarely promote the secondhand market. However, purchasing pre-owned licenses can offer significant cost savings over a new license.

What to know when buying or selling secondhand licenses

• No Software Assurance (SA) –Secondhand licenses don’t come with SA, but they function just like new—no scratches, mileage, or rust unlike buying a used car,
• Compliance Matters – The original owner must delete their copy before resale to ensure legal transfer.
• Due Diligence – Buyers should request transfer statements, original invoices, and serial-number logs to verify authenticity.

Why consider secondhand Microsoft licenses?

• Cost savings – Businesses can reduce software expenses without compromising functionality.
• Legal security – The UsedSoft ruling confirms that resale is protected under EU law.

Would you like guidance on navigating the secondhand license market? Let’s explore how it can benefit your organisation!

If your Microsoft 365 license count is exceeding your actual employee headcount, it’s time to review your license management strategy. Unchecked license assignments can lead to unnecessary costs and inefficiencies.

Common Issues We See:

• Leaver Licenses – Not removing assigned licenses for departing employees, resulting in additional license purchases and avoidable costs.
• Duplicate Licenses – Users assigned both M365 E3 and E5, leading to redundant costs.
• Admin Accounts with Licenses – Many admin accounts don’t require full licenses but still have them assigned.
• Service Accounts with Full Licenses – Some service accounts only need email functionality but are assigned M365 E3 or E5 licenses, increasing costs unnecessarily.

How We Can Help:

• License Audit & Cleanup – We review your license assignments to identify duplicates, unused licenses, and inefficiencies.
• Leaver Process Review – Ensuring that departing employees’ licenses are properly deactivated and reassigned.
• Optimised License Allocation – Matching license types to actual usage needs, preventing overspending.

By implementing a structured license management approach, organisations can reduce costs, improve efficiency, and ensure compliance.

Would you like assistance in reviewing your Microsoft 365 license estate to optimise costs?

Software Asset Management (SAM) can be a powerful tool for cost savings, but only if actively managed. Here’s how it can help your organisation save money:

How SAM Saves Money

• Avoiding Unnecessary Costs – Many organisations overspend on software licenses they don’t need. SAM ensures you only pay for what’s actually used.
• Preventing Vendor Penalties – Some vendors, like Broadcom, impose reinstatement fees for late renewals—up to 20% of the first-year subscription cost. Proper SAM prevents these unexpected charges.
• Optimising Renewals – Without active management, renewal dates can sneak up, leading to rushed decisions and missed opportunities for cost savings.
• Negotiating Better Pricing – Using multiple resellers and requesting competitive quotes ensures you’re not overpaying. Resellers often send quotes just before renewal to limit your ability to shop around.
• Understanding the Channel – Pricing varies depending on the reseller, distributor, and vendor. Without control, you’re likely paying more than necessary.

Managing Software Licenses Effectively

At The SAM Club, we use Monday.com for software license management. Our design provides a structured platform to track renewals, document savings, and ensure transparency. Over time, this will provide the evidence that your SAM strategy is saving more than it costs.

Would you like to explore how SAM can be tailored to your organisation’s needs?

While your Microsoft license reseller may assist with pricing, their primary goal is to sell licenses, not necessarily to optimise your software estate. An independent SAM service provides a neutral, strategic approach to ensure your organisation is compliant, cost-efficient, and fully aligned with its actual software needs.

Key Reasons to Consider an Independent SAM Service:

• Unbiased License Review – Resellers focus on selling new licenses, whereas an independent SAM service evaluates your existing licenses to prevent unnecessary purchases.
• Compliance Assurance – Have you completed an internal Microsoft license review in the last two years? If not, how do you know if you are fully compliant?
• Cost Optimisation – Independent SAM services identify unused or duplicate licenses, ensuring you only pay for what you need.
• Audit Preparedness – Microsoft audits are becoming more frequent. A proactive SAM strategy helps mitigate risks and avoid unexpected penalties.
• Strategic Vendor Negotiations – With a clear understanding of your licensing position, you can negotiate better pricing and avoid unnecessary renewals.

By working with an independent SAM provider, organisations gain greater control, transparency, and cost savings—beyond what a reseller can offer.

Would you like assistance in reviewing your Microsoft license estate to ensure compliance and cost efficiency?