Are you allowed to resell games?

Are You Allowed to Resell Games?

In today’s gaming landscape, digital game distribution has become increasingly prevalent, raising questions about the ownership and reselling of digital games. While buying and selling physical games is straightforward, the legality of reselling digital games remains a topic of debate. In this article, we’ll delve into the complexities surrounding digital game ownership and explore whether reselling games is allowed.

Is the Initial Purchase a License, Not an Ownership?

To better understand the situation, it’s essential to understand the nature of digital game sales. In most cases, when you buy a digital game, you’re not buying an asset; you’re licensing a service from the game developer or publisher. The "sale" is often treated as a licensing agreement, which means the company owns the intellectual property, not the user. This concept is known as the First Sale Doctrine, a legal principle that governs copyright law in the United States. This doctrine allows consumers to resell items once they’ve purchased them, without breaching the original licensing agreement.

Licensing vs. Ownership

There are key differences between owning and licensing a digital game:

• Owning: With ownership, you have absolute control and rights over the asset. You can transfer ownership, modify, or destroy it without affecting the original creator’s rights.

• Licensing: Under licensing, you have permission to use a particular software or game, but you do not have the right to transfer, modify, or destroy it. The licensor maintains control and ownership.

EULAs and TOS

Before buying a digital game, most people agree to the End-User License Agreement (EULA) and Terms of Service (TOS), which contain provisions related to digital ownership. In many cases, these agreements clearly outline the restrictions on reselling and transferring the game.

For instance, Steam’s TOS state:

"The user license includes but is not limited to the license terms, payment terms, service usage rules, and all rules listed on the Steam Website (each a ‘Rule’). Failure to comply with any Rule is considered a material breach of the license. In such an event, we, in our sole discretion, may limit or cancel your user account and terminate or modify your license."

Case Study: Used Game Resale in Modern Times

The rise of used game reselling has led to questions about the legality of this practice. Take the PS5 case: while some people are wondering if it’s legal to sell photos of the PS5, others argue it’s not illegal if done explicitly in the description.

The outcome largely depends on the individual circumstance. If you’re simply re-selling a used copy of a game without altering its ownership, you’re within the scope of the First Sale Doctrine and unlikely to face legal repercussions.

However, intentionally altering or tampering with digital games can lead to DMCA (Digital Millennium Copyright Act) violations and potential legal consequences. Moreover, reselling digital games can be problematic if done through unofficial channels, as this often means bypassing the original copyright owners.

In Conclusion: The Complexities of Digital Game Ownership and Resale

The laws governing digital game ownership and resale are evolving. While some argue that it’s illegal to resell digital games, the First Sale Doctrine, EULAs, and TOS imply that reselling licensed content, in certain circumstances, might not violate copyright laws.

Before embarking on a used game reselling endeavor, consider the following:

• Be explicit about the nature of the resale and ensure it complies with EULA and TOS agreements.
• Check local laws and regulations governing the reselling of digital content in your jurisdiction.
• Avoid altering or tampering with digital games, as this may be considered a DMCA violation.

Remember, the digital game resale market is still developing, and guidelines can change over time. It’s crucial to remain informed about the legal implications and adjust your strategies accordingly.

Final Takeaways:

• Digital game purchases can be viewed as licenses rather than outright ownership.
• EULAs and TOS agreements govern the usage of digital content, including resale.
• Be transparent and compliant with EULAs, TOS, and local laws to minimize the risk of legal issues.
• Keep a pulse on evolving regulations and guidelines governing the resale of digital games.

In this uncertain landscape, it’s essential to remain proactive, informed, and respectful of digital game creators and owners to avoid potential legal repercussions.