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Court Finds Online Software License Not Binding

An Anonymous Coward writes: "The U.S. District Court ruled on Specht v. Netscape Communications Corp., 00 Civ. 4871, saying that a license that users don't even have to see before downloading online free software isn't binding. Calling these "browse-warp" licenses (as opposed to click-wrap), the court found that since usersdidn't have to look at them, users didn't assent to the terms. Netscape's use of SmartDownload, practice of harvesting information through SmartDownload with out an effective license is now suspect as since there is no license, and no assent, there is no agreement. See a report of the case at Law.com Or try to find the rulings at Find Law."

5 of 137 comments (clear)

  1. Wonderful News by ewhac · · Score: 5

    This is absolutely fantastic news. I find it astonishing that any court would consider these so-called "contracts" valid at all, but we have to take our victories where we can. This could be "camel's nose in the tent" that will lead to the invalidation of all shrinkwrap and clickwrap "agreements". For an explanation of why shrinkwrap agreements should not be allowed to exist, see my five-year-old editorial on the subject.

    Those who worry that this decision may weaken the GPL, or any other Open Source/Free Software license, need not fear. Shrinkwrap "agreements" purport to constrain your right to use the software, whereas the GPL simply constrains your ability to copy and redistribute the software. In other words:

    • GPL: You may use this software in any way you wish, but copyright law prohibits you from making and distributing copies. If you wish to make and distribute copies, here are the terms you must agree to.
    • Typical shrinkwrap "agreement": You must agree to these onerous terms and conditions, or we won't let you use the software you just paid for at all.

    Which one is the product of a less childish mind is left as an exercise for the reader.

    The effect of striking down a shrinkwrap "agreement" would be that the default terms of copyright law would apply, which is that you would still be free to use your software, and you still wouldn't be allowed to make copies of it, but all the other "rights" the vendor granted themselves would vanish. This means that the spyware the vendor installed on your machine without your consent would now be actionable.

    The effect of striking down the GPL would be that you'd still be able to use your copy of the software but, legally, you wouldn't be entitled to make and distribute copies anymore. However, the practical effect would likely be nil. By releasing under the GPL, the authors are representing that they won't go after you if make and distribute copies of the source. It is likely they would continue to make that representation even absent an enforceable GPL. And they would still have the right to go after people who distribute binaries absent source (since binaries are considered a protected derivative work). That means Linus could still go after Microsoft -- and, to be fair, any other organization -- that tried to loot Linux.

    All in all, this decision is a good thing for consumers and users everywhere.

    Schwab

  2. URL for the decision by Froomkin · · Score: 5
    The full text is online in .pdf at the U.S. District Court for the Southern District of NY.

    While this is certainly an anti-"web wrap" decision, it's important to understand that the court gets there in part by suggesting that "clickwrap" is OK, then contrasting webwrap unfavorably with clickwrap.

    A.Michael Froomkin
    Professor, University of Miami School of Law
    Coral Gables, FL, USA

    --

    I have a blog.

  3. Wow... by Snowfox · · Score: 5
    ...I'm turning off my monitor during the license agreement portion of my next Windows install.

    "I didn't see a thing. I only clicked the mouse a few times thinking it might turn the display back on, your honor..."

  4. Re:Danger GPL Danger by MrGrendel · · Score: 5

    Remember that the GPL is a distribution license, not a usage license. The assumption in copyright law (as I understand it) is that you never have the right to redistribute a copyrighted work without permission. If a person redistributed without bothering to read the license and a court case resulted, the judge would probably treat it as a copyright violation, not a license violation. As the GPL states, nothing else gives you the right to redistribute or modify the code, so a failure to agree to the license terms via a failure to read the license means no permission to distribute was ever granted.

  5. Re:Danger GPL Danger by Drone-X · · Score: 5
    You might want to try reading the GPL:
    5. You are not required to accept this License, since you have not signed it. However, nothing else grants you permission to modify or distribute the Program or its derivative works. These actions are prohibited by law if you do not accept this License. Therefore, by modifying or distributing the Program (or any work based on the Program), you indicate your acceptance of this License to do so, and all its terms and conditions for copying, distributing or modifying the Program or works based on it.
    In other words, if you do not accept the GPL you're granted the same rights as the default copyright, which is more restrictive than the GPL.