The long-running battle between Microsoft and ValueLicensing intensifies as a disclosure application targets the From Software Assurance program, which allegedly choked off the secondhand license market during the company's pivot to Microsoft 365.
Microsoft's legal troubles over software licensing practices have escalated with a new disclosure application targeting its From Software Assurance (From SA) program. The program, which ran from 2014 to 2024, is now at the center of allegations that Microsoft deliberately designed it to prevent customers from reselling perpetual licenses, thereby stifling competition in the secondhand market.
The From SA Program: A Bridge to Cloud or a Market Block?
From SA was a maintenance program for business customers with volume licenses. It provided upgrades without additional cost, license mobility, training vouchers, and virtualization rights. The scheme allowed customers to shift perpetual licenses with Software Assurance to Microsoft's cloud services at a discount, representing a bridge to the company's Microsoft 365 subscription model.
However, the program contained a critical restriction: customers had to retain their corresponding Qualifying Licenses throughout the From SA subscription period, prohibiting the resale of those old perpetual licenses. This requirement appears in the company's February 2021 Product Terms documentation.
Jonathan Horley, CEO of reseller ValueLicensing, explained the impact: "VL believe the 'From SA' program was designed and intended to keep perpetual Office and Windows licenses off the market at precisely the point Microsoft was shifting everyone to Office/Microsoft 365, stifling competition. This affected VL directly and everyone having to buy or sell those products from 2014 to 2024 across the UK and Europe."
Legal Battle Background
The case, currently before the UK's Competition Appeal Tribunal (CAT), began in 2021 when ValueLicensing lodged a complaint seeking £270 million in damages. The claim centers on alleged restrictive licensing practices that prevented Microsoft customers from reselling their perpetual licenses in exchange for discounts.
In November 2025, Microsoft attempted a new legal strategy by claiming that reselling secondhand software licenses infringed its copyright. The company argued that companies selling only a portion of their licenses were not permitted to do so. The CAT rejected this argument, and Microsoft has indicated it will appeal the judgment.
Disclosure Application and Stay Request
The current disclosure application follows Microsoft's request for a stay of proceedings. According to documents, Microsoft sought the stay to allow all appeals to be heard before the case resumed, presumably to avoid procedural delays. However, paperwork suggests cost factors were also involved.
Horley characterized the stay application as part of "a long list of delaying tactics used by Microsoft since 2020." The claimant is now resisting the stay and pushing for more detailed disclosure about the From SA program's design and implementation.
Global Impact and Broader Implications
The From SA program was global in scope and played a significant role in funneling customers toward Microsoft's cloud services. The disclosure request substantially increases the stakes in the case. Microsoft's pivot to a copyright claim may have backfired, as it has prompted deeper scrutiny of the From SA program's internal design and intent.
If the disclosure reveals evidence that Microsoft intentionally designed the program to block license resales, the company could face significant liability. The case also has broader implications for software licensing markets and the rights of customers to resell purchased software.
What Changes
The disclosure application could force Microsoft to reveal internal documents and communications about the From SA program's design goals. If ValueLicensing's allegations are substantiated, the outcome could reshape how software companies structure volume licensing programs and affect the legal rights of customers to resell software licenses.
The case continues to wind through the UK legal system, with Microsoft facing the prospect of substantial damages and potential changes to its licensing practices. The company's decision to pursue a copyright-based defense may have inadvertently opened the door to more intensive examination of its business practices during the critical transition period to cloud-based subscriptions.
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