If party A purchases a software license from party B, and party B sells all of its rights relating to the software, what happens to the license party A has? Must the new owner still honer the agreement? When party B sells the rights, must they inform the purchaser that such a license exists? For example could it happen that party C, the new owner of the rights, finds party A using their software and considers it stolen, but then party A is able to prove they received a license from party B. What's the best way party A can protect itself?

1 Answer 1


The overwhelming majority of software licenses are non-transferable. The buyer would need to take out their own licenses with the software owner.

For those that are transferable, the contract selling the business should address this.

  • How does making a license non-transferable protect that licensee? Does that just means the licensee can't give it to someone else?
    – swandiving
    Nov 10, 2017 at 3:43
  • @swandiving that’s exactly what it means
    – Dale M
    Nov 10, 2017 at 6:13
  • 1
    @DaleM: I think you confused who is selling what. This is about say end user A buying software with license from software developer B, and B sells his complete business including all copyrights to another developer C.
    – gnasher729
    Nov 10, 2017 at 22:18

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