The legal battle between Microsoft and software reseller ValueLicensing moves to the appellate stage on April 28. The hearing is being closely watched not only by the parties involved but also by those leading a massive £3.5 billion class action against the tech giant.
Last November, the UK Competition Appeal Tribunal (CAT) ruled that the resale of perpetual Microsoft software licenses is not illegal. Dissatisfied with the outcome, Microsoft moved quickly to file an appeal. The dispute dates back to 2021, when ValueLicensing sued Microsoft, alleging that the company used restrictive contract terms to prevent customers from reselling perpetual licenses, effectively forcing them toward more expensive subscription services.
Copyright Dispute Takes Center Stage
Throughout years of legal sparring, Microsoft’s defense strategy saw a notable shift in 2025. The company began focusing on copyright protection, arguing that software such as Office consists of more than just code—it includes auxiliary files and imagery, and therefore, the resale of such materials constitutes copyright infringement. The presiding judge rejected this argument, prompting Microsoft to seek an appeal.
Should Microsoft win the appeal, the UK’s secondary software market could be fundamentally reshaped. Such a victory would not only overturn the previous ruling but also have profound implications for the ongoing Alexander Wolfson class action. According to 2025 court filings, the case represents between 2.3 million and 2.7 million claimants, with total damages estimated between £1.3 billion and £3.5 billion.
Stewarts LLP, the law firm backing the class action, has been granted permission by the court to attend the appeal hearing as an intervenor. The claim covers a ten-year period from October 2015 to May 2025. At this time, Microsoft has declined to comment on the appeal, and Stewarts LLP has also remained silent on the matter.