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Used software licences – Frequently asked question

General

Microsoft software licences are legal agreements between the licenser (in this case Microsoft) and the licensee (user) that allow users to employ Microsoft software. These licences cover a wide range of products, e.g. operating systems, office applications and server software.

Company closures: when companies close, surplus licences may appear on the market.

Licence overstocks: companies sometimes purchase more licences than required. In the best case, surplus licences are resold to release budget for other projects.

Restructuring: customers may sell software licences if they change their IT infrastructure or are no longer in need of the software.

Upgrades: when switching to new systems, older licences may no longer be needed and are possibly resold.

Insolvency: in the event of insolvency, assets – including software licences – can be liquidated.

The use of Microsoft software licences extends across various scenarios and settings:

Business settings: companies purchase volume licences to license software on multiple devices. This enables efficient administration and licensing within the corporate network.

Educational institutions: schools and universities purchase software licences for educational purposes in order to use software in classrooms or in school networks.

Government organisations: government authorities purchase licences to use software for various public administration applications.

Server settings: Microsoft server products require specific licences for operation in server settings. This may include the installation of Windows Server or other server applications.

Development environments: developers purchase licences for software development tools to create applications and programmes.

Cloud services: Microsoft also offers Cloud-based services such as Microsoft 365, which allow licensing on a subscription basis and flexible use in the Cloud.

It is important to be aware of the licence conditions and to ensure that the usage complies with the respective regulations in order to avoid legal consequences.

Purchasing used Microsoft software licences can have various advantages for companies.

1.

Cost savings: used licences are more cost-effective than buying new ones, which is particularly attractive for companies with limited budgets. This enables efficient use of resources.

2.

No wear and tear: unlike consumer goods, software licences do not wear out. With a used software licence, you are buying a fully functional licence.

3.

Flexibility: the used software market allows companies to purchase the licences they need without having to purchase their own volume licence contract. This creates flexibility and adaptability.

4.

Fast availability: used licences are often available immediately, which can speed up the implementation of new software. This enables companies to respond quickly to their software requirements.

5.

Support of older systems: for companies that require specific older software versions, used licences represent a cost-effective solution. This enables the continued use of older systems if this is necessary for business reasons.

However, it is crucial to pay attention to the reliability of the provider, legal compliance and transferability when purchasing used licences in order to avoid legal problems.

In principle, there is no difference between the use of pre-owned Microsoft software licences and that of new licences, provided the licence transfer has been carried out lawfully. Here are some points to consider:

Software functionality: the functionality of the software remains unchanged, regardless of whether the licence is new or used. You have access to all the functions and features of the respective Microsoft application or operating system.

Updates and support: Microsoft generally offers updates and support for all licensed products, regardless of whether they are new or used licences. It is important to ensure that the licence is eligible for updates and support.

Compliance: using pre-owned licences requires the same compliance with the licence terms as with new licences. Make sure that the licence transfer complies with the applicable terms and conditions to avoid legal consequences.

Activation and installation: the activation and installation process remains the same: simply enter the product key and use the software in accordance with the licence terms.

Here, too, it is essential to pay attention to the reliability of the provider, the transferability of the licence and legal compliance when purchasing used licences to ensure that their use meets the regulations.

There are various rulings from different courts (e.g. the European Court of Justice and the German Federal Court of Justice) that confirm that trading and acquiring used software licences is legal. You can find more detailed information on this in the section ‘Legal information’ (https://s2-software.de/en/legal-information/legal-trade-in-used-software-licences)

In its judgment in the case I ZR 129/08 in July 2013, the German Federal Court of Justice ruled that trading in used software licences is legal in the EEA. For more information, please refer to the section„Legal information“

Yes, the installation process for used Microsoft software licences is generally the same as for new licences. After successful licensing in accordance with Microsoft regulations, the Microsoft software is activated by the product key. Regardless of whether the licence is new or used, the installation is carried out in a similar way:

Enter product key: during the installation, you will be asked to enter the product key associated with your licence. This code is used to authenticate and activate the software.

Activation: after entering the product key, the activation takes place online. During the activation process, an online query takes place to check if the product key is valid.

Software configuration: once the activation is complete, you can configure and customise the software as required.

When purchasing used licences, you should make sure that the sale is legitimate and that all the necessary transfer documents are available to ensure a smooth installation and activation. Please also mind the individual installation instructions for the respective software version.

Yes, insofar as Microsoft still offers support here, you will receive regular updates. As soon as mainstream support has expired, extended support usually begins. With extended support, solely security updates are available. When extended support ends, the licences are no longer GDPR-compliant and a new licence is required.

Yes, as long as the licences still have mainstream or extended support.

A volume licence is a licensing model for fee-based software that allows the purchase and use of multiple licences, or ‘multi-licensing’. Organisations can purchase these in larger quantities to optimise costs and enable efficient administration.

Over-licensing occurs when companies own more software licences than are actually needed. This can lead to financial loss as unused licences tie up capital. Over-licensing can be avoided through effective licence management, which requires regular examination and adjustment of licence holdings. Good IT licence management includes elements such as identifying unused licences, regularly reviewing software usage, as well as avoiding impulsive licence purchases.

Sub-licensing refers to a situation in which a company or organisation holds fewer software licences from Microsoft than are actually needed to legally cover all software usage. This means that the software is used by more users or on more devices than are covered by the licences purchased. This situation can have legal consequences in the event of an audit by Microsoft.

Depositing used software licences in the VLSC is not technically possible and also not necessary. The licence will, of course, remain 100% valid. Microsoft reserves the use of the VLSC for its active contractual partners only.

Software Assurance is available only with new purchases of volume licensing programmes and can be obtained either in a bundle together with a licence or as a Software Assurance renewal.

Disclosure of the legal chain is not possible for data protection reasons (GDPR). You have received a 100% valid licence from us including invoice and licence transfer. In the event of an audit (of licences supplied by us) by Microsoft, we would also provide you with an expert to assist you.

Questions about s2-Software purchasing licences

You wish to buy used software licences? This is what the purchase process at s2-Software looks like:

1. Needs assessment:

To start with, a thorough needs assessment is carried out to rule out over- or sub-licensing. Our experts will help you identify exactly the software licences that best meet your business needs.

2. Offer by s2-Software:

After the needs assessment, you will receive a customised offer from s2-Software. This includes all relevant details concerning the desired software licences as well as transparent information on the legal aspects.

3. Transfer of the licence & delivery of the product key:

As soon as you decide to purchase the software, the licences are transferred in accordance with the law. The product key is sent securely and rapidly to enable a quick installation.

4. Installation and activation:

Our instructions will guide you through the installation and activation process. If you have any questions, our support team is available to ensure a smooth procedure.

5. Free support in the event of a software audit: Softwareaudits:

In the event of a software audit, we will provide you with free support. Our support team is available to assist you with expert advice to ensure that your licence inventory meets requirements and that you are legally covered at all times.

A wide range of target groups can benefit from used software licences with s2-Software. These include:

Small and medium-sized businesses:
Small and medium-sized businesses – regardless of industry – can purchase Microsoft software licences from s2-Software in order to cost-effectively expand or update their IT infrastructure.

IT service providers and IT experts::
IT managers, including IT service providers and IT experts, will find a wide range of software solutions at s2-Software to cover the needs of their company and/or their customers.

Self-employed and freelancers::
The self-employed and freelancers can benefit from the competitive prices for used software licences and thus update their business tools at a low cost.

Municipalities and public institutions::
Municipalities or public institutions such as schools, universities or government agencies can purchase software licences from s2-Software to optimise their software resources while keeping costs low.

Non-profit organisations::
Non-profit organisations have the opportunity to reduce their software costs by purchasing used licences from s2-Software.

It is important to note that s2-Software is taking care that the sale of used software licences is carried out in accordance with legal requirements to ensure that customers in various sectors are legally covered.

Questions on the sale of licences to s2-Software

In principle, any company or public institution that has a volume licence contract (at least 100 licences) and wishes to sell them can turn to s2-Software. The sale of used software licences can be carried out by various parties:

Business and corporate customers: Companies, regardless of size, that no longer need or want to update their software licences.

IT service providers and system houses: companies in the IT industry that sell or redistribute software licences as part of their services.

Public institutions: institutions in the public sector that wish to sell their software licences.

However, it is important to consider the exact requirements and conditions of s2-Software to ensure that the sale is in line with the applicable guidelines and regulations.

Do you want release budget by selling used software licences to s2-Software?

Get an overview here:

1.

Purchase scenario – determining the data basis
Redundant licences are identified.

Determine the data basis: s2-Software performs a thorough analysis to determine the exact data basis for the purchase.

2.

Internal review and submission of offer according to market conditions
Internal review: s2-Software performs an internal review to ensure that the requested software licences meet the quality standards.

Submission of offer: on the basis of the internal review and the current market situation, an offer is submitted to the customer.

3.

Upon acceptance, final review of all relevant documents and contracts
Customer approval: the final review takes place after the customer has given their approval.

Document review:
s2-Software examines all relevant documents and contracts to make sure that the purchase meets legal requirements.

This process ensures that the sale of used software licences to s2-Software is transparent, thorough and legally secure.

Legal check: make sure that the sale of used software licences is permitted in your country and in accordance with EU directives. Check the rulings and provisions of national and international courts regarding the trade in used software licences.

First placing of the licence on the market: the original software licence must have been placed on the market in the territory of the EU or another EEA contracting state with the consent of the software manufacturer. The software manufacturer must have granted the first purchaser the right to use the computer program without temporal limitation.

Permanent licence: this should be a permanent licence that grants the first purchaser usage for an unlimited period of time.

Remuneration for use: use must be in return for remuneration corresponding to the economic value of the computer program.

Deactivation of copies: before resale, all copies must be rendered unusable by the previous owner.

Transfer of information: the seller should inform the buyer in a suitable manner about the rights of intended use and, where applicable, hand over the original licence contract.

Transparent terms and conditions: clear and transparent terms and conditions between buyer and seller should be established to avoid possible misunderstandings.

Traceable origin: in the event of an audit, the seller should be able to prove that the licence was first placed on the market in the EU or another EEA contracting state.

Checking certifications: a reputable seller would be able to show certifications and partnerships that confirm their legitimacy.

Checking reviews: if possible, check the seller's reputation by reviewing their ratings on different platforms.

It is advisable to seek professional legal advice before the sale to ensure that all legal requirements are met.

  • Microsoft contract with signature sheet (if available)
  • Screenshots from the M365 Admin Center (formerly VLSC) with the following information: customer, product, quantity, licence and enrolment number
  • Details of the licence keys, including any downgrade keys for Windows, Office and Server products.
  • Customer's declaration of destruction (template can be provided by s2-Software)
  • Purchase invoice from Microsoft or the distributor (amounts may be blacked out)
  • MLS Microsoft Licence Statement (if available) – this is a summary of the licences that can be used and installed
  • proper sales invoice

Reseller

As a reseller for s2-Software, you have the opportunity to sell our used Microsoft software licences and to profit from attractive margins. You act as an agent between us and your customers by marketing our products in your own network or business environment.

As a reseller, you have access to a broad portfolio of high-quality Microsoft software licences at competitive prices. In addition, we offer our resellers professional support and advice to help boost your sales success. With our partnership, you can expand your offering while earning attractive margins.

The process of becoming a reseller for s2-Software is uncomplicated. Simply contact our team and express your interest in becoming a partner. We will assess your request and inform you of the next steps to becoming part of our reseller team.
You can find more information and contact details here.

We are generally open to all those interested in becoming a reseller. Ideally, you have already gained experience in the field of IT and/or Microsoft licences. However, what is most important is that you are committed and provide the necessary resources to successfully market our products and satisfy your customers.

Of course, you can also place orders with us directly for your end customers. If you wish, we will happily register your end customers directly as licensees.

Special conditions are possible and will be offered individually in advance upon request.

Installation and activation

You can only use a licence for one PC at a time. If you want to install the software on multiple devices, you must purchase a licence per device.

To activate Remote Desktop Services, you need to inform us of your licence server ID.

Prerequisite for the licence server ID is that the server is already activated.

How to search for the licence server ID:

1. Open Remote Desktop Licensing Manager on the licence server. To open Remote Desktop Licensing Manager, click Start, point to Administrative Tools, point to Remote Desktop Services, and then click Remote Desktop Licensing Manager.

2. Right-click the licence server whose licence server ID you want to display and then click Properties.

3. Click the Connection Method tab. The Licence Server ID is listed at the bottom of the dialogue box.

This is how you install client access licences for remote desktop services using the web browser:

1.

Open Remote Desktop Licensing Manager on the licence server. To open Remote Desktop Licensing Manager, click Start, point to Administrative Tools, point to Remote Desktop Services, and then click Remote Desktop Licensing Manager.

2.

Verify that the connection method for the Remote Desktop License Server is set to Web Browser by right-clicking on the licence server on which you want to install the client access licences for Remote Desktop Services (RDS-CALs) and then clicking on Properties. On the Connection Method tab, change the connection method if necessary. Make sure that the correct country or region is selected in the ‘Select country/region’ list, and then click OK.

3.

Right-click the licence server on which you want to install the RDS CALs, and then click Install licences. The Licence Installation Wizard starts.

4.

Click Next.

5.

In the Licence Installation Wizard, on page Request Key Pack for the client licence, enter the licence key pack ID that you received from us and then click Next. The RDS CALs will be installed on the Remote Desktop License server.

6.

Click Finish to complete the process. The Remote Desktop License Server is now ready to issue RDS CALs to clients connecting to a Remote Desktop Session host server.

You do not need to call Microsoft for this anymore.

Please visit the website https://installation-der.software. You will a detailed instruction for the installation and activation of your licence(s) here. If you have any further questions, we will happily assist you. Here you can also use the direct chat function for our support. Go to contact form

Please note that s2-Software GmbH & Co.KG does not offer an installation service.

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