UPDATE 2-Autodesk wins copyright appeal

* Court reverses ruling against software maker

* Third parties cannot resell licensed software -court
(Adds comment from plaintiff lawyer)

SAN FRANCISCO, Sept 10 (BestGrowthStock) – Software manufactured by
Autodesk Inc (ADSK.O: ) cannot be resold on eBay Inc’s (EBAY.O: )
online auction network by a man who bought a copy at a garage
sale, a federal appeals court has ruled.

The 9th Circuit U.S. Court of Appeals reversed a lower
court ruling that had allowed plaintiff Timothy Vernor to sell
Autodesk’s computer-aided design software for architects. Since
Autodesk licensed the software to its first purchaser, federal
copyright law does not allow resales by individuals like
Vernor, the court ruled.

“Autodesk retained title to the software and imposed
significant transfer restrictions,” 9th Circuit Judge Consuelo
Callahan wrote for a unanimous three-judge panel. “It stated
that the license is nontransferable, the software could not be
transferred or leased without Autodesk’s written consent, and
the software could not be transferred outside the Western
Hemisphere.”

Greg Beck, an attorney for Public Citizen, which
represented Vernor, said he planned to seek review by a larger
Ninth Circuit panel.

“I think it’s safe to say most people don’t own most
software under this decision,” Beck said.

Autodesk spokesman Greg Eden said the company was pleased
with the opinion “in which it unanimously affirmed the
long-standing industry practice permitting the licensing of
software copies to users.”

Autodesk shares closed 1.9 percent higher at $30.96 on
Nasdaq.

The case in the 9th Circuit in San Francisco is Vernor v.
Autodesk Inc, 09-35969.
(Reporting by Dan Levine; Editing by Gerald E. McCormick, Gary
Hill)

UPDATE 2-Autodesk wins copyright appeal