The Settlement Agreement provided that CTA would adhere to an Autodesk Software License Agreement, which in turn granted only a 'Non-transferable License to Use' the program, and expressly barred 'transfer all or part of the Software.' The copies at issue were originally produced by Autodesk and transferred to an architectural firm, Cardwell/Thomas Associates ('CTA'), as part of the settlement of an unrelated dispute. He sued for declaratory relief of non-infringement and for unfair competition. Vernor possesses two further copies of AutoCAD which he wishes to sell. After this happened four more times in 2007, eBay suspended Vernor's eBay account for repeat infringement, and Autodesk threatened to 'take further action' should Vernor attempt to continue to sell copies of AutoCAD. eBay reinstated the auction, and Vernor sold the Autodesk software. Vernor lodged a counter-notice, to which Autodesk did not respond. When he offered lawfully-made packages of Autodesk's AutoCAD software for sale, Autodesk sent eBay a DMCA take-down notice, claiming Vernor's sale would infringe its copyright, and eBay ended the auction. Although an agreement with an earlier purchaser barred resale, and contract remedies would be available against that party, the agreement's 'ban on transferring the software is of no consequence under the Copyright Act,' ruled the Court, and the first sale doctrine allows a subsequent purchaser to auction the software on eBay. Rejecting the authority of a trio of more recent Ninth Circuit cases on the ground that their holdings could not be reconciled with an earlier Ninth Circuit decision, a Washington District Court has held a transfer of computer software to represent a sale, not a license. District Court Holds Software Transfer Not a License, Okays Downstream eBay Auction Under First Sale Doctrine

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