No one said buying/selling used gear is illegal. They said operation of 
the gear is illegal without a separate license from Cisco.

Jesse Preiner wrote:
> We buy and sell used Cisco routers and switches on a daily basis.  It is
> totally legal and hundreds of companies do what we do and thousands of
> companies (including large multi-nationals) buy and use used Cisco gear.
> The IOS is included in the purchase price of the router or switch since
> it was already paid for from Cisco when the unit was new (it's like
> buying a pc with Windows on it and reselling the pc).  
> 
> What you need to be aware of when buying used Cisco is:
> 
> 1.  Make sure the used unit you are buying has an IOS on it that will
> fit your needs and requirements.  If you need an IOS upgrade, you will
> need to purchase it.
> 
> 2.  You can not put all used Cisco on Smartnet.  Cisco does have certain
> requirements for putting Smartnet on used gear but it can be done and is
> done often.  
> 
> If buying and selling used Cisco WAS illegal in anyway, you would not
> see any on Ebay.
> 
> -----Original Message-----
> From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On
> Behalf Of David E. Smith
> Sent: Wednesday, June 03, 2009 4:39 PM
> To: WISPA General List
> Subject: Re: [WISPA] OT: Cisco 7200 Gigabit Ethernet Cards?
> 
> Matt Liotta wrote:
> [ more stuff about Cisco IOS licensing ]
> 
> Apologies for the wall of legalese.
> 
>  From the Cisco EULA at :
> http://www.cisco.com/en/US/docs/general/warranty/English/EU1KEN_.html
> 
>> Customer shall have no right, and Customer specifically agrees not to:
>> transfer, assign or sublicense its license rights to any other person 
>> or entity (other than in compliance with any Cisco 
>> relicensing/transfer policy then in force), or use the Software on 
>> unauthorized or secondhand Cisco equipment
> 
> 
> Cisco's terms of sale incorporate by reference the EULA, which
> incoprorates the software resale policy (as shown above), so the
> original buyer would definitely be in trouble. The second-hand buyer
> could be liable for use of Cisco IP (intellectual property, not the
> other IP) without a proper license; I don't know if there's any case law
> on this, but I'm in no hurry to set a precedent.
> 
> Matt: Unless you have evidence to the contrary, I'm gonna have to stick
> with original assertion, that random second-hand Cisco gear can't
> legally be used. I wish I were wrong, but I'm afraid I'm right.
> 
> David Smith
> MVN.net
> 
> 
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