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Google Forbids Google Glass Owners From Selling the Device

Thursday, 18 Apr 2013 | 12:30 PM ET
Source: google.com

If you are one of the first owners of Google Glass don't even think about trying to sell the device.

Google is being very clear to buyers of its Internet-connected glasses that they are forbidden from selling the device to anyone, or they risk having the service canceled.

(Read More: Google, Emulating Apple, Restricts Apps for Glass)

In its terms of service posted on the Google website, the tech giant said that Google Glass owners may not commercially resell the device and people can only order a single pair of the devices.

"You may not commercially resell any device, but you may give the device as a gift. Recipients of gifts may need to open and maintain a Google Wallet account in order to receive support from Google. These terms will also apply to any gift recipient," Google said in its terms of service.

Further down in the terms of service the company adds, "If you resell, loan, transfer, or give your device to any other person without Google's authorization, Google reserves the right to deactivate the device, and neither you nor the unauthorized person using the device will be entitled to any refund, product support, or product warranty."

(Read More: Earnings Preview—Google & Microsoft)

Google knows if the device has been transferred to someone else because the eyewear is registered with each buyer's Google account.

It's worth noting that software and digital media also are products that cannot be sold, but are rather licensed out to the consumer for use. And while Google's no-reselling policy may raise some anti-trust concerns, the company may be able to get away with it because the market is still so nascent, said Eleanor M. Fox, a law professor at New York university who focuses on anti-trust.

Google Glass is still a very new product. Currently, not just anyone can buy the eyewear. Earlier this year, Google selected people who applied for the opportunity to purchase the device before it hit mass market. Selected applicants still had to pay $1,500 for the device and just recently did the selected buyers begin to receive the Google Glass Explorer editions in the mail.

Fox said that because Google Glass is really the first product in such a nascent market, it can argue that it has a strong business purpose for banning the resell of the device because the company is still trying to get consumers to trust and like the product.

(Read More: Google Earnings: What to Watch For)

However, it's argument could lose its edge if the product takes off.

"It's hardly a product now. The anti-competitive aspect looks minimal at this moment, but that could change very fast if it becomes something everyone wants," Fox said.

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