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Hilco Streambank Microsoft Licence Brokerage

Hilco Streambank provides second hand Microsoft Licence Brokerage services on behalf of both companies and insolvency practitioners in distressed scenarios. We have a tailored, tried and tested process for identifying, preserving, and extracting value from unused and redundant Microsoft Licences for our clients. We aim to achieve the maximum return for our clients by carrying out comprehensive market research and tapping into our bespoke network of Microsoft Licence resellers, creating competitive tension within a bidding process where necessary.

Second Hand Microsoft Licence Market

The market for second hand Microsoft Licences is relatively new. It emerged from the basic ‘Principle of Exhaustion’ where under the European Software Directive 2009/24/EC - Article 4(2), the licensor of a computer programme loses its right to control onward distribution of a copy of that programme when that copy is first sold in the EU. This was reaffirmed in the landmark case of Oracle in July 2012 where the ECJ restated the legality of secondary software resale in Europe. The ECJ ruled that the ‘Principle of Exhaustion’ also applies to intangible/digital software, which includes software within Volume Licence Agreements sold by vendors such as Microsoft. The confirmation by the court that it is legal to trade these licences on a second-hand market means that these licences are a valuable asset to organisations much like property, IT hardware and office equipment.

Microsoft Licences can be rendered useless to clients after a migration to the cloud, through M&A, a cancellation, resizing project or insolvency. These unused licences are a valuable asset to buyers that have an additional need for licences in response to an increase in activity, the arrival of new employees, or change in infrastructure. 

Since the Oracle ruling the market has grown substantially as the legality of reselling Microsoft Licences has been reaffirmed. The number of Microsoft Licence resellers has grown considerably, with new resellers continuing to emerge. Hilco has built a network of resellers and continues to connect with new market players, consolidating our network of purchasers. 

Hilco Streambank’s Sale Methodology  

  • Utilise our third-party network of buyers who identify the licences for sale through direct communication with Microsoft. 
  • Instruct our third-party network of buyers to review the licences for compliance with the relevant legislation allowing second hand sale.
  • Obtain the appropriate documentation which includes the Licence Agreement details, media and Volume Licence Keys. 
  • Create marketing documentation detailing the licences. 
  • Market the licences to our network of Microsoft Licence resellers. 
  • Deal with expressions of interest with a view maximising the return. 
  • Close the deal. 
  • Manage the efficient and proper transfer of the licences to the purchaser. 

Hilco Streambank prides itself on incentive-compatible structures. To learn how to Hilco can extract value from you or your client’s underused Microsoft Licences, contact Jack Gillespie at jgillespie@hilcoglobal.eu or Nat Baldwin at nbaldwin@hilcoglobal.eu.

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