Software and other digital products may be reclassified under UK consumer laws to give consumers the same rights they have when buying 'tangible' goods.

A resolution passed by the European Parliament on Thursday, which endorsed a Green Paper on EU consumer laws, stops short of actually saying the definition of software should be extended.

However, the Parliament has now asked the European Commission "to examine the matter in detail so as to determine whether it is appropriate to propose one or more specific rules or to extend the rules" for software that are currently set out in the EU's Consumer Sales Directive.

The issue of consumer rights with software is a difficult one for the lawmakers as the consumer does not usually own the software but licences it.

Under the EU Directive, implemented in the UK under the Sale and Supply of Goods to Consumers Regulations 2002, which for the most part amended existing UK legislation, notably the Sale of Goods Act of 1979 and the Supply of Goods and Services Act of 1982, goods are defined as 'tangible, moveable' items.

However, the UK law does not take into account digital downloads and, when it comes to regarding software, is ambiguous by comparison to the European Directive.

David Woods, a lawyer specialising in IT disputes at Pinsent Masons, the law firm behind Out-Law.com, said: "It's an out-dated definition. It is generally believed that packaged software is 'goods' while bespoke software and digital downloads are services.

"At the moment, legislation like the Sale of Goods Act is unhelpful when it comes to working out the legal status of software. If the EU forces the UK Government to re-think the legal protections afforded to software and digital downloads, we might get some clarity here, which should be helpful to everyone. "

The European Commission also sees the need to address the issue because there had been several consumer complaints regarding software, for example with music downloaded from the internet.

However, the Consumer Sales Directive is not the only law to limit the rights of those who buy software.

Another key piece of consumer law, the EU Distance Selling Directive, gives consumers a cancellation period for most purchases. However, the right to cancel is excluded for the supply of audio or video recordings or computer software which have been unsealed by the consumer.

The rationale behind the exclusion is that DVDs and CDs can otherwise be unsealed, copied and returned for a refund.

This exclusion remains in the UK's implementation of this directive and presents a practical problem for consumers who do not agree to the terms of the software licence agreement.

Consumers have to break the seal to see the conditions, so they must rely on laws of contract if they want a refund, perhaps arguing that conditions were attached to the sale that were not made known to the consumer at the point of placing the order.

The Commission also expressed concern that if software and digital data continued to be excluded that it "may prompt professionals to try to avoid responsibility for possible damages/non conformity of such products through conditions in End User Licence Agreements (EULAs). If this happens it prevents consumers from making claims."

Software trade bodies gave a cautious welcome to the proposals. However, an extension of the scope of the Directive may require specific rules since digital content is usually licensed rather than sold to the consumers.

The Business Software Alliance (BSA) said it was keen to liaise with policymakers to move the issue forward.

Francisco Mignorance, BSA Director of Public Policy Europe, said in a statement on Out-Law's website: "We look forward to working with the EU Commission to examine whether there are circumstances under which existing consumer protection rules and software customer assistance - including reimbursement, warranties, product replacement, technical support, and customer assistance - do not provide redress."