Software license qualification 

Unfair proof, reversal by the Cour de cassation

In an important decision handed down on March 6, 2024, the Commercial Chamber of the French Supreme Court (Cour de cassation) 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

Associate lawyer