I think the court means he didn't have a legitimate copy and license for the software, therefor he couldn't sell his copies. That last paragraph threw me, I thought I knew what they were saying before, but that changed it.
It sounds like the guy, Vernor, bought copies from a company hired to destroy those copies, but sold them instead. He got the disks, but no user licenses. In essence he had stolen software. If he had obtained good copies with user licenses then he MIGHT have been able to sell said licenses. Maybe. I'm not sure on that point.
I think the company that was supposed to desetroy the disks should be sued, too. They were playing both sides and taking money for something they didn't own, were just in charge of destroying.
But I also wonder if this could later be used to prevent someone from selling their used game, video or even book.
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