Actually it's pretty clear. When you download a product you pay for a license to use that product, you cannot just pass that license on to someone else to make some money. It you pass on that software, it comes under the distrubution category as the original owner of the software makes no money from their work. I think it's fair to say you'll be wide open to a lawsuit.
Technically it's the same for CD software.
It's never all that clear. "distibution" can/does imply making copies to distibute to a larger market and that is certainly illegal. Passing on the original, licensed copy is not the same as making multiple copies to distribute freely or sell for profit. In the matter of "transfer of a license" it gets considerably more varied. As much as it's a pain to read the legal gobbledygook in the EULA you can find a lot of variance. For example, this is the relevant part of the EULA of CFS3:
· Software Transfer. The initial licensee of the SOFTWARE PRODUCT may make a one-time permanent transfer of this EULA and SOFTWARE PRODUCT only directly to an end user. This transfer must include all of the SOFTWARE PRODUCT (including all component parts, the media and printed materials, any upgrades, this EULA, and, if applicable, the Certificate of Authenticity). Such transfer may not be by way of consignment or any other indirect transfer. The transferee of such one-time transfer must agree to comply with the terms of this EULA, including the obligation not to further transfer this EULA and SOFTWARE PRODUCT.
So in this case Microsoft states it's ok for the original purchaser to
'transfer' the license and no prohibition is placed on the seller's right to recover the original cost in the transfer.
The reason you don't see stores selling used software comes from this part of the above:
Such transfer may not be by way of consignment or any other indirect transfer. That would not be the "initial licensee" making a one-time transfer...
As I said, each program EULA is different. Some software apparently even allowed (when it was new) rental - usually types that could not be 'copied' onto a system but required an original card, disk or other media but that's not the issue here. If the EULA prohibits any transfer and/or resale then that is that. If the EULA reads like the CFS3 one, it can be transferred ONCE and then the onus is on the new licensee to abide by the one-time-only rule. The onus is also on the original licensee to remove the software from his comuter(s) to remain 'legal'.
In the case (again, Micrososft) of an OEM version of Windows pre-installed on a computer the EULA states:
16. TRANSFER TO A THIRD PARTY. You may transfer the software directly to a third party only with the licensed device. You may not keep any copies of the software or any earlier version. Before any permitted transfer, the other party must agree that this agreement applies to the transfer and use of the software. The transfer must include the Certificate of Authenticity label.
So I can sell my 'device' with Vista installed as long as all the bits go with it and none stay behind for my use.
If there is no included EULA then the license agreement is most likely posted on the vendor's website or otherwise available. Different companies take different approaches so it is a case of **** (RTFA?) and take it seriously.
Rob
PS. Downloaded software can be very different than 'hard media' products. Since there is no "original" (even OEM software requires a hard copy in most cases) it's all in what the EULA says. Bear in mind that there are people who do check sites for illegal distribution/sale/resale so if you can't prove it's legal to pass it onward it should be considered 'illegal'.
Note: in hinch's original post he said:
I have read through most of the EULAs and come up with a list I'm pretty sure I can sell-on
so it's pretty clear he is aware of the differences