can digital products be bought and resold?

Hello and Good Evening Everyone,

           I am wondering if digital products can be bought and resold.  

           Thank you

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Joe Winograd, Fellow&MVEDeveloperCommented:
Hi George,
It depends entirely on the licensing agreement. For example, here's a verbatim quote from the END-USER LICENSE AGREEMENT (EULA) of a major software company:
Except as otherwise expressly permitted in this Agreement, Licensee may not: ... (d) redistribute, encumber, sell, rent, lease, sublicense, or otherwise transfer rights to the Software; ...
I removed items (a)-(c) in the paragraph above, as they are not relevant to your question.

On the other side of the coin, here's a verbatim quote from a different EULA:
Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software...
Both of those talk about software, but, of course, license agreements may apply to other digital products. So, the answer is...Yes and No...depends on the contract. Regards, Joe

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I know that it is probably not specifically what you asked about, although "digital products" can mean several things, but here is an example that concerns reselling hardware that came with software.

I have a fairly old USB Audio Interface device made by a company called Line6.  It allows you to connect musical instruments like guitars and keyboards and microphones to a computer in such a way that the device acts as an external soundcard with its own level knobs and outputs for monitor speakers.  It also allows you to interact with installed software named Gearbox that supplies a range of guitar amplifier simulators and digital effects as would be available in hardware form to a guitarist.  The user can then use any multi-track recording software to capture and record the inputs.

To use the Gearbox software you need to register it with Line6 and enter the licence key.  When it comes to reselling the hardware device, the manufacturer makes provision for the seller to de-register the Gearbox software so that the new owner can then register it in his or her own name and enter a licence key.  I can't recall whether they issue a new licence key or reuse the original one.  This makes sense, because the hardware device is severely handicapped without the software, and the software is tied to the hardware.  The licence is not likely to be abused by installing the software on multiple computers because you need the hardware to use it.  I would imagine that the same licensing transfer may apply to portable Sat-Nav/GPS devices that qualify for ongoing map updates.

Software only products, however, suffer from licensing abuse and you would be less likely to find the same de-registration and transfer of licence for the purposes of resale unless the software actually checks the computers it has been installed on in a similar way to the Windows hardware verification.
GMartinAuthor Commented:
Hello and Good Afternoon Joe and Bill,

            Thank you so very much for your thorough and easy to follow comments.  Without a doubt, my question has been answered from all perspectives.   As always, I greatly appreciate the care and time put into your answers.

Joe Winograd, Fellow&MVEDeveloperCommented:
You're very welcome, George, and thanks back at you for letting us know that your question has been answered. Regards, Joe
Thank you George
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