Is it legal to resell software I built from purchased source code?
Usually yes — if your licence names that right explicitly. A standard source-code licence lets you run the software for your own business, not charge other people to use it. Charging customers to use the product you built (a SaaS/resale licence) and reselling the source code itself to other developers (a redistribution licence) are two separate grants, priced and worded differently, and most marketplace purchases include neither by default.
Written by ZoopCoder, who build and sell SaaS source code. That makes us an interested party in this answer, so we have kept it to things you can verify yourself.
The numbers
2 different rights
Resale vs redistribution
Charging users to use it is not the same as reselling the code.
Default: neither
What a base licence grants
Most marketplace licences are single-business-use only.
On the invoice
Where the right must appear
A seller's verbal "sure, go ahead" is not enforceable.
The three licences that get confused
Every source-code purchase sits on one of three licence types, and they are not interchangeable. The name a marketplace gives them varies, so read what each one grants rather than trusting the label.
| Licence type | What it lets you do | What it does not |
|---|---|---|
| Standard / single-use | Run the software for one business you own | Charge other people to use an instance of it, or give the code to anyone else |
| Extended / SaaS / resale | Run a multi-tenant instance and charge your own end customers a subscription or fee | Resell or redistribute the underlying source code itself |
| Reseller / white-label distribution | Sell the source code (rebranded or not) to other developers or agencies as a product | Anything not spelled out — this is the rarest grant and is usually priced far above the other two |
A product can be white-label (your brand on the front) without carrying SaaS rights (permission to charge for access), and it can carry SaaS rights without redistribution rights. All three are separate lines a seller can grant or withhold independently.
What to check before you take a single payment
- Read the licence document, not the sales page. Marketing copy that says "start your own SaaS" is not a contract term. Find the clause that names resale or multi-tenant use explicitly.
- Get the extended/SaaS right in writing on the invoice or a signed addendum. A chat message from a support rep is worthless if the vendor disputes it later.
- Ask what happens to accounts you have already sold if the vendor later says the base licence never covered resale. A written answer before you launch is cheaper than a takedown after.
- Separate "may I charge users" from "may I resell the code." Most buyers only need the first. Confusing the two leads to overpaying for a redistribution right nobody asked for, or underpaying and launching without the one right that matters.
Where to go next
These pages carry the detail this answer summarises.
Frequently asked questions
What actually happens if I resell without the right licence?
Outcomes range from a forced upgrade at the seller's price to a takedown notice to your hosting provider or domain registrar. Marketplaces like CodeCanyon actively police licence violations because it protects every seller on the platform, not just the one you bought from.
Does "commercial use" on the licence badge mean I can charge users?
Not necessarily. "Commercial use" commonly means you may use the software to run your own commercial business — it does not automatically mean you may charge third parties to access it. Read the actual licence terms, not the badge.
Can I add SaaS rights after buying the standard licence?
Often yes, as a paid upgrade, but the price and terms vary by seller and are not guaranteed to exist. Ask before you build a customer base on the assumption you can upgrade later.
Does open-sourcing my modifications change anything?
It can create a separate problem: if the base code carries a licence that forbids redistribution, publishing your modified fork (even for free) can itself be a violation, independent of whether you charged for it.
Get a quote or a guided demo
Tell us your use case and we'll send pricing, a live demo walkthrough and licensing options for SaaS source code. Usually a reply within one business day (IST).