Legal classification of a software license
March 6, 2024 | William MAK
In an important decision handed down on March 6, 2024, the Commercial Chamber of the Cour de cassation (French Supreme Court) ruled that the provision of a copy of a software program by download, and the conclusion of a related user license agreement aimed at making the said copy permanently usable by the customer in return for payment of a price, implies the transfer of ownership of this copy and its classification as a sales contract.
In practical terms, an open-ended license is a sales contract, not a rental/service contract!
Cass. com., March 6, 2024, no. 22-23.657
Lawyer - Founder