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Software Transferability? (or the lack of it)

BarefootClown asks: "We've all seen the stories about Microsoft forcing eBay to remove auctions hawking their software. Microsoft is certainly the most visible target, but there are others. Most every EULA includes a clause forbidding the transfer of ownership of software (there are exceptions, of course, and kudos to them). My question is, have these clauses been upheld in court?" What is so special about software (and their licenses), that allows it to avoid the protections consumers enjoy from more tangible products?

"I seem to recall hearing stories of courts overturning these schemes; does anybody have any specifics? Cases/judicial opinions, perhaps? I've checked FindLaw, Google, and others, but haven't found anything (haven't found anything upholding them, either...). Have these clauses ever even been to court, or do the companies just depend on FUD to bludgeon the end user into compliance? Anybody with experience, I'd love to hear it. Lawyers, your opinions? (Lawyers, would you be willing to fight one out in court, if given the chance?)"

As many of you may know, the concept of "owning" software is fallacy. You own nothing. What you do posess when you purchase your new piece of commercial software, is a corporate-skewed set of limited-use rights, which are getting more and more limited each day. For those interested, the latest print issue of Wired (October, 2001) has a big "article" on this (see p.170). It attempts to illustrate thru humorous example, what software has been seriously doing for decades.

No one would own (or lease) a car if the contract said, "You must not sell this car, in the event this car is no longer used, send it to the nearest junkyard.", so why is this true for software?

177 of 471 comments (clear)

  1. So if software is not transferable. by SpanishInquisition · · Score: 2, Funny

    We shouldn't worry about that GPL 'virus'.

    --
    Je t'aime Stéphanie
  2. because... by spacefem · · Score: 4, Funny

    Software is like prostitution. You got the product. You sell the product. You still got the product. The consumer doesn't get money back just because he's done with the product, it's a totally different concept than just buying tangible things.

    1. Re:because... by Anonymous Coward · · Score: 3, Funny

      And like prostitution, you sometimes get a little extra lasting effect, viral or otherwise. Just like IIS.

    2. Re:because... by Anonymous Coward · · Score: 5, Insightful

      Well, close, but not quite.

      Yes, MS can keep on selling the product, just like a prostitute can. However, the sale of software concerns a tangible good, whereas prostitution is a *service*.

      Since software is a tangible good, it is possible for the consumer to recover part of their initial investment by reselling ("transferring") it to someone else. This is what is prohibited by the EULAs, since the software vendors a) don't want old copies of their software out there and b) want everyone to upgrade to the latest version of everything.

      Since "transfer of title" clauses in EULAs have largely been ignored by consumers and unenforced by the courts and software manufacturers, they are now trying to figure out how they can accomplish a) and b). The answer is software *services*, or the ASP model. By doing this, everyone signs a contract saying "for $xxx my 50 employees can use Office 2005 for 1 year." Since the software is never distributed on CD-ROM, the service is never placed into a form that people can resell (transfer). Since people are forced to go to the manufacturer for the software, and since the manufacturer determines what versions are available when, for how long, and at what cost, they can accomplish both a) and b).

    3. Re:because... by Dman33 · · Score: 5, Funny

      So, is your software 'free' as in beer?

      Uh, no. It is costs money as in prostitute.

    4. Re:because... by linuxpng · · Score: 2

      well if it's because you were able to get things done with software, didn't you get from point a to point b in your car?

      if it's because you can make money with the software, doesn't your car take you to work? I don't see where this is any different.

      this seems to be companies trying to maximize their profits by 'asking for an inch.'

    5. Re:because... by ragnar · · Score: 2

      Is that because you get screwed?

      --
      -- Solaris Central - http://w
    6. Re:because... by blair1q · · Score: 2

      So what you're saying is,

      There's nothing more expensive than free software.

      --Blair
      "Except maybe an equity position in a can't-miss internet opportunity."

    7. Re:because... by dr-suess-fan · · Score: 2, Interesting

      The way I see it, the current EULA's assume you are a thief. In this light, it's wrong to sell the software and keep a backup. EULA's assume that everyone will do this. This may be closer to the truth, but to assume all your customers are thieves is crap.

      There should be nothing wrong with selling your copy of Word if you plan on buying a new copy or stop using Word.

      However, to keep sales up, Microsoft and others must write it into the contract that everyone must pay for the wedding whether they are divorced or not.

      MHO.

    8. Re:because... by blakestah · · Score: 5, Informative

      Software is like prostitution. You got the product. You sell the product. You still got the product. The consumer doesn't get money back just because he's done with the product, it's a totally different concept than just buying tangible things.

      Copyright protection allows full transfer and/or resale of copyrighted material and all copies made for personal backup. Software does not get an exemption .

      In Germany, this has been further extended. You can even resell your Microsoft Windows OEM license as a full blown license, provided you transfer all copyrighted associated material.

      In the US, the issue becomes more complex for EULA protected software. One issue is that the company claims the consumer agrees to a contract he never has a chance to read before purchase. The contract allows the consumer to be refunded for the software, but not from the software owner, Microsoft. No. You have to get the refund from the resaler. In practice this does not happen so you are forced into accepting a license whose terms you cannot read before purchase.

      There is some reason to think that EULAs of this form will ultimately be stricken as illegal, and software only protected by copyright. In fact, some people think this is already the case (read http://cr.yp.to/).

      So, to sumarize, software is not like tangible things. In some views, it is just like copyright, and is completely re-sellable. Even after use.

    9. Re:because... by dachshund · · Score: 2
      Software is like prostitution. You got the product. You sell the product. You still got the product.

      There are plenty of instances where this simply isn't true. I remember a few months back when some university or lab was selling an old Cray computer of theirs. The computer required a proprietary OS to operate, and they had a licensed copy (which cost them a buttload.) Unfortunately, they couldn't sell it to the new potential owner because of the licensing restrictions. In effect, they were left holding a $200,000 set of disks that were useless without the computer. At the same time, the new customers were forced to go deep into the hole to purchase this exact same software from the company.

      Seems like there're no issues there. In any case, software companies are developing increasingly sophisticated licensing and copy-protection systems for their products. If these systems work as advertised, one person can't copy the product and sell it off to somebody else. Of course all of these can be broken, but they can be broken regardless of whether software sales are allowed or not.

      To me, it seems like you could say exactly the same thing about a book or a CD. Both can be copied before being resold.

    10. Re:because... by Alien54 · · Score: 5, Interesting
      Since the software is never distributed on CD-ROM, the service is never placed into a form that people can resell (transfer). Since people are forced to go to the manufacturer for the software, and since the manufacturer determines what versions are available when, for how long, and at what cost, they can accomplish both a) and b).

      You know that someone is going to come along with a remake of the infamous Apple 1984 commercial, promoting a rebellion against the Beast. Maybe with a take on the old myths of hell, where all of the people think they are eating the finest grub, but instead are revealed to be eating ashes and slime from the Abyss. The number of Advertising campaigns that could be mocked up around this are amazing.

      And irony of Ironies, they could even be paid for by IBM. I can even imagine a voice over that says something like "hey we thought we were evil. Then we met Microsoft, evil on a scale that is simply awe-inspiring." Or mock commercials with the Ferengi advertising for Microsoft .Net

      All you have to do is push the idea of "Don't Get Suckered by Microsoft!"

      --
      "It is a greater offense to steal men's labor, than their clothes"
    11. Re:because... by debrain · · Score: 2

      You've thought about this way too much. And it shows. ;)

    12. Re:because... by Anonymous Coward · · Score: 2, Insightful

      I would argue that software is not a tangible item in the same way that the recording of a musician's performance is not tangible.

      Before there was recording technology, you paid for the services of a musician (either going to a concert or renting his services personally). When recording became possible, musicians made recordings of their music. This had benefits for both the musician and the people - both got what they wanted in a more convenient form.

      But there was a problem. When the musician performed live, he was in control of who listened to his music and what they did with it. So they made a license agreement to make sure that people did not do something with the performance that the musician didn't want them to.

      I believe that software is the same thing: it is the services of a bunch of people that can make your computer do something useful packaged conviently. It's no different from a musician's performance on CD.

      In the past, it was in the licenser's best interest to get as many copies out as they could. A person who used an older version of your software was better than the person who used your competitor's software.

      But things have changed. MS has been proven to be a monopoly. No competition means you care if someone's using an older version of your software. Technology is now permitting people to use works in ways that the original author never intended (eBooks and electronic versions of news articles for example). Plus, the economy has been heading down - so companies are looking at ways to prop up their profitability.

      Personally, I can only see license agreements to only get even more restrictive in the near future.

    13. Re:because... by cpt+kangarooski · · Score: 5, Insightful

      Any good could be considered as a service by that line of non-reasoning. (e.g. 'I bought a car' v. 'You bought the right to go places, not a car')

      No, the truth of it is that you bought a copy of a work. Rather like a book. And a hundred years ago, it was determined that copyright holders cannot, merely by virtue of their copyright, restrict in any way, people from reselling that work. It's called the First Sale doctrine.

      The question really is whether or not the licenses included with software are valid in whole, or in part, and if so, at what time do they become active? It has very, very little to do with software specifically, but rather contract law in general.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    14. Re:because... by billybear · · Score: 3, Interesting

      Please....If I purchase a bunch of paper with ink printed on it, it's still a book that I OWN. The author didn't provide the information provided in the book as a service. I purchased the information in that book the same way I purchased the information contained on my CD. I don't have the right to re-print more books, but I have the right to sell the book the same way I do my software. YOU may think of software as a service, but currently it is not sold as a service. When's the last time you went to the services department in Best Buy to pick up software? Can you feel the content of a book? Just because my brain in crunching the content, it doesn't make it any less of a *tangible* good.

    15. Re:because... by beejhuff · · Score: 5, Informative

      This is a horrible analogy. First of all, the First Sale doctrine DOES APPLY to recordings of Musical works - meaning when I buy a CD (admittedly it's a copy of a piece of art) I have the right to sell that CD to anyone whom I chose.

      Hence used CD shops all around the world.

      What's different about software is that you agree to the EULA before you open or install the software.

      The real question is whether or not that EULA is even a valid agreement, since it attempts to nullify certain rights the courts have traditionally upheld, such as First Sale doctrine.

      In a similar note, I remember reading about IBM getting into Anti-Trust trouble back in the 70's because they would NEVER sell their software or hardware. You HAD to lease it from them, meaning they never transferred ownership of anything to you.

      Of course, from a corporate standpoint this makes perfect sense. Economically, a firm will always maximize profits if it only leases (either rights of use or whatever) it's products and services. My question is why no one ever thought to bring this up in the Microsoft case.

      IBM was forced by the courts to sell products and software if they were also going to lease them. Of course, they continue to do both, but it's interesting that this was the focus of one of the most successful anti-trust cases in our nation's history, and yet somehow the DOJ missed it in the Microsoft Case.

      Anyone have any ideas on how this doctrine has held up in the courts and how it might affect the future of Software as Services???

      BJ Hoffpauir
      Sr. Systems Architect
      Time Trend, Inc.

      www.timetrend.com

      PS - I read about the IBM issue in "Proudly Serving My Corporate Masters" - a great book!!!
      http://www.proudlyserving.com/

      --
      Bryan "BJ" Hoffpauir
    16. Re:because... by Enigma2175 · · Score: 3, Funny
      You can't burn software.

      What are you talking about? I burn software all the time! I also burn movies, TV shows and system backups.

      --

      Enigma

    17. Re:because... by raddan · · Score: 2, Interesting

      Please....If I purchase a bunch of paper with ink printed on it, it's still a book that I OWN. The author didn't provide the information provided in the book as a service. I purchased the information in that book the same way I purchased the information contained on my CD. I don't have the right to re-print more books, but I have the right to sell the book the same way I do my software. YOU may think of software as a service, but currently it is not sold as a service. When's the last time you went to the services department in Best Buy to pick up software? Can you feel the content of a book? Just because my brain in crunching the content, it doesn't make it any less of a *tangible* good.

      I think you're missing something. The CD or disk that contains your software is NOT the software. Nor is the book the work. They are copies of a work, and thus the use of the tangible thing - the book, the CD - is governed by copyright law.

      As a matter of law (and that's really what we're talking about here - we're not arguing metaphysiscs), there's no particular reason why software could not be sold as a service. In fact, I think if someone were to dipute the legitimacy of 'software as service' concept in a high court, the ruling would come down on the 'software as service' side. Some kinds of software (i.e., AOL) are already a part of a service, so the model already exists, providing the precedent. And from a legal standpoint software-as-service would be highly practical since it would eliminate inconsistency in conception and enforcement.

      Not that I condone the software-as-service idea. Try working for a non-profit org with 50+ computers... and worrying about whether you have enough money to relicense your OS next year when you barely have enough money to do what you need to get done anyway!

    18. Re:because... by BitwizeGHC · · Score: 2

      The ironic thing about that statement is, back in the early nineties when IBM still thought they were the Evil Empire, they codenamed a version of OS/2 "Farengi", their justification being that the Farengi get what they want no matter what the means.

      --
      N4st0r, trixx0r h0bb1tz0rz! Th3y st0l3 0ur pr3c10uzz!
    19. Re:because... by cpt+kangarooski · · Score: 2

      Okay look, software is a red herring here. The fact that they're selling you software has absolutely nothing whatsoever to do with anything.

      They could be selling you a book, or a car, or anything. Doesn't matter.

      And there's no question that it is legal to agree to an explicit contract wherein it is stated that you cannot resell the good that was sold to you via that contract. That's perfectly legal, unless there were something else altogether that could void the contact.

      The question is are EULAs, because of the way in which, and the time at, they are presented, legal contracts.

      If you went down to the Ford dealership and they sold you a car, and in the glovebox was a slip of paper saying "by driving this car you agree that you cannot resell it" we'd be having the same discussion. Don't get hung up on software. There's nothing terribly special about software in this regard.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    20. Re:because... by cpt+kangarooski · · Score: 2

      The use of the thing is not governed by copyright law unless the use is a special one that involves wide dissemination, e.g. public performance.

      Specifically with regards to software, the creation of copies necessary in order to operate the software (e.g. copies from CD to HD to RAM) or to back it up, provided that it was otherwise purchased legally, and are not retained if the software is sold or otherwise disposed of, are legal.

      But this is largely irrelevant. We're talking contracts. Mostly, we're talking, are the EULAs valid contracts?

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    21. Re:because... by Billly+Gates · · Score: 3, Insightful
      So, to sumarize, software is not like tangible things. In some views, it is just like copyright, and is completely re-sellable. Even after use.

      Ahh, but here is the catch. The EULA license agreement was not between you and microsoft, but rather between Microsoft and your OEM. So in actuality if you sell your copy, oops I mean the OEM's copy of windows you commit theft. Your OEM paid for each os install and agreed to be bound by the EULA. The EULA agreement was provided by Microsoft as a service for OEM's, and not individuals to provide an OS for customers. This loophole means as a consumer you are powerless under protection of various consumer laws including first sale doctrine. After all, you never really paid for it. Your OEM is the true consumer who is eligable under these specific laws. Obviously the OEM's will not protest to the government. So your OEM is legally allowed to sell their copy of windows but if they do, MS will stop selling them any more copies. You legally have no protection at all whatsoever unless you buy the more expensive non OEM version. Oh wait! You agreed under the EULA not to do this when you bought it yourself! Remember if you buy it yourself then you must agree to the EULA. Great legal loophole, hu. :-)

      It seems those guys at Microsoft really put alot of effort and thought thru this to get away with everything from consumer protection laws, to first point of sale laws, to even wiping out potential competitors by having the OEM's decide for consumers which OS we use. Very clever trick. Bill Gates was a law student at Harvard before he left to found Microsoft. I am sure he learned some these tricks through there as well from his father who is a very sucessfull lawyer.

    22. Re:because... by blakestah · · Score: 2

      Bill Gates was a law student at Harvard before he left to found Microsoft. I am sure he learned some these tricks through there as well from his father who is a very sucessfull lawyer.


      Bill Gates didn't finish two years of college, much less approach anything reminiscient of a law student. This becomes obvious from the accounts of any of the CEOs who have had to deal with him. He is a shrewd dealmaker who acts like a four year old when he cannot make the deal go his way.

  3. easy to transfer windows by Anonymous Coward · · Score: 5, Funny

    i recently transferred several copies on windows to my garbage...no problems, no visits from the police. it keeps the vagrants out of your trash too.

  4. copying by Reckless+Visionary · · Score: 2, Redundant

    Well, for one thing, you can't make a perfect copy of the car to keep and then sell the original. You can with software. I'm not agreeing with the liscensing restrictions, but there is a difference between the nature of the products.

    --
    I think I'll stop here.
    1. Re:copying by swordgeek · · Score: 5, Insightful

      However, at present you can legally resell music that you legitimately buy, and you definitely can make a perfect copy of an audio CD.

      The only think that makes software 'special' is the license agreement saying, "You don't own this item. You have the right to use the contents of it according to our restrictions, and exactly nothing else."

      That's the key--not the copyability of it.

      --

      "People who do stupid things with hazardous materials often die." -- Jim Davidson on alt.folklore.urban
    2. Re:copying by 11thangel · · Score: 2

      But that process is a duplication without intent to keep as a legal backup. Which is already illegal. The licenses don't need to account for those. I think the real issue is not the sale of the software for itself, but the transfer of hte license. As soon as you register that software with their database, though the net or whatever, that license number is associated with you. Again, not saying that I agree with it, but the way the current licensing setup works with most of these companies, it becomes very difficult to argue something without them giving a just as valid counter argument. (even if it's not a truthful one)

      --

      I am !amused.
    3. Re:copying by Ser\/o · · Score: 2, Interesting

      Just because someone can, doesn't mean they will. If that were true, the world would be a lot less crowded. It's hard for me to stomach the accusation that I WILL do something illegal just because the possibility for it exists. I CAN steal a car, I CAN 'clear' my workplace of annoyances, I CAN copy CDs. . .

      I shouldn't be punished purely because I may do something I shouldn't. Let me at least have the chance to fuck up first...sheesh.

      --
      -Just because you're not paranoid doesn't mean they're not out to get you.
    4. Re:copying by ScuzzMonkey · · Score: 2

      I would guess that you're just trolling, but if not you seem to have missed the point. Even if you assemble a second car identical to the first, you still ended up paying for all the parts again, plus whatever labor went into it. It's nothing like duplicating software--with something tangible, duplication has the cost of materials tied into it. There are no legal problems because you HAVE paid for both 'copies' of the car. Duplicating software has no practical cost to it... which means the manufacturer of the individual bits gets nothing when you copy them.

      --
      No relation to Happy Monkey
    5. Re:copying by swordgeek · · Score: 2

      Exactly right. That's why I said, "At present."
      I'm not looking forward to the next iteration of audio media, because they'll make sure to license it more tightly every time.

      --

      "People who do stupid things with hazardous materials often die." -- Jim Davidson on alt.folklore.urban
    6. Re:copying by ScuzzMonkey · · Score: 2

      I disagree. The assumption that the software is the media is wrong, or at least vastly over-simplified. For starters, you don't actually need 'media' to transfer software, or any other sort of intellectual property (and that's the heart of the distinction, I suppose--software is IP, cars are Real Property). You need a medium, but it could as easily be RAM, or reading the code aloud, or whatever. So when you're comparing the physical manifestation of the two items, you're missing crucial distinction--the physical manifestation of a car, is the car. The physical manifestation of a piece of software, is NOT the software.

      And that argument has nothing to do with whether or not the replication of either item is legal or not. As I said, they are different sorts of property, and different laws apply.

      --
      No relation to Happy Monkey
    7. Re:copying by ScuzzMonkey · · Score: 2

      Jesus, there's nothing I hate more than people who tell you to read their comments who haven't read yours. Where exactly did I say I thought it was okay to build a replica of a car? And why on Earth do you think that's even what we're talking about? This is not whether it's 'okay' or not, it's about the ramifications of the analogy. You still don't seem to be able to grasp the difference between real and intellectual property. The fact is, buying a CD to duplicate software is not a necessity--buying the parts to assemble a copy of a car is. The plans for a car are the IP--the car is not. Duplicating the plans is analogous to duplicating software--duplicating the car is not. They are apples and oranges, which is the whole point--which makes your "...but if you condone one, you must condone both" sound not logical, but silly.

      And a 'medium' such as sound waves or electrical impulses is not the same as computer 'media'. I apologize if you didn't understand the distinction being made.

      --
      No relation to Happy Monkey
  5. It is because of piracy... by frleong · · Score: 3, Informative

    The reason MS stopped those auctions is because most of them are pirated software. Or it is software licensed to OEM (you cannot separate the software bundled with the hardware) at a much lower price. If it is a shrink wrap package, I don't think you have a problem reselling.

    --
    ¦ ©® ±
    1. Re:It is because of piracy... by maetenloch · · Score: 5, Interesting

      The reason MS stopped those auctions is because most of them are pirated software. Or it is software licensed to OEM (you cannot separate the software bundled with the hardware) at a much lower price. If it is a shrink wrap package, I don't think you have a problem reselling.

      Just because the shrink wrap packaging has been removed doesn't mean that it's pirated. I tried to sell an old personal copy of Office 97 on Ebay, and Microsoft had the auction stopped. And my copy of Office was not a pirated copy - I bought it directly from a store. There is an appeals process where you can get Microsoft to allow the auction to be reinstated. Unfortunately Microsoft wanted me to show them the original receipt (which I don't have anymore). They also demand that when you sell Microsofot software, you must include *all* the original packaging including the box. Basically they stop all non-shrinkwrapped auctions of Microsoft software, and make the seller prove it's legit. Bastard jerks. They deserve all the piracy they get after this.

    2. Re:It is because of piracy... by sphealey · · Score: 2

      "Unfortunately Microsoft wanted me to show them the original receipt (which I don't have anymore). They also demand that when you sell Microsofot software, you must include *all* the original packaging including the box. Basically they stop all non-shrinkwrapped auctions of Microsoft software, and make the seller prove it's legit. Bastard jerks. They deserve all the piracy they get after this."

      I am no big fan of Micro$oft, but I have a hard time seeing what is wrong with what you describe. Propriatary software is NOT free as in beer. While IMHO (IANAL) it is (or should be)perfectly legal for the original purchaser to re-sell his product (or license), it is also perfectly reasonable for the producer to enforce his right not to be pirated. If you don't have the original box, jewel case, and receipt, you very probably DON'T have a legal copy to sell.

      I have been keeping PC software boxes and disks since 1983 (160k floppies anyone?). When we are darn sure we don't need that product anymore, we destroy it all, or sell it all in the original box. No box - no license.

      Or am I missing something?

      sPh

    3. Re:It is because of piracy... by johnos · · Score: 2

      Uh Oh... You haven't been paying attention. This story from May explains how Microsoft and ebay are conspiring to make life easier for themselves. Hard to say if MS is conceding the point at hand, or if they are intentionally confusing the situation. In any case, they do not directly address what we are talking about here. The article does mention that MS is going after "infringing" software with no specific definition of what constitutes infringing.

    4. Re:It is because of piracy... by fishbowl · · Score: 2

      > If you don't have the original box, jewel
      >case, and receipt, you very probably DON'T have
      >a legal copy to sell.

      Baloney. I have lots of legit CD's, without
      the rest of that stuff. These guys aren't selling CDR's of Win98. They are trying to
      resell a product just like they do all their
      other merch.

      --
      -fb Everything not expressly forbidden is now mandatory.
    5. Re:It is because of piracy... by sphealey · · Score: 2

      "Your missing something. If I sell my refrigerator, I sure as hell don't need to provide the original sales receipt, packaging, and users manual. By your logic, it might be stolen, so I can't sell it"

      Your refrigerator cannot be duplicated by the thousands at essentially zero cost. If it could... well, Poul Andersen and Larry Niven, among others, have written stories about what would happen in that case. But in the physical world as it exists today, the reality is that entities that sell intellectual property-based products will take stronger measures to protect their right not to be pirated.

      Also, please note that if you lose the title to your car, you will have a devil of a time selling it, even if you have the car in your possession.

      sPh

    6. Re:It is because of piracy... by sphealey · · Score: 2

      "Yes: we don't all live in warehouses"

      That's your problem, not Microsoft's. Again, I don't like Microsoft's licensing policies, and I am this week investigating how to replace some of our M$ software with Linux and StarOffice. But if you lose the title to your car, you will have a hell of a time selling it, even if everyone and their brother "knows" it is yours.

      sPh

    7. Re:It is because of piracy... by WNight · · Score: 2

      Since when does a third-party to the deal (Microsoft) get to forbid something which may be illegal? If they think I'm breaking the law (selling warezed copies) then they need to call the police, who on seeing evidence, can investigate further.

      Besides, all I need to sell Windows is the CD it came on. Why should I need to keep original receipts to prove that the legit CD is legit?

      You're advocating guilt until proven innocent, and allowing MS to enforce the law without bothering with a trial.

      If MS thinks I'm selling a pirated copy of windows, they should buy it, and if I did, sue me. (Both for fraud as a seller, and copyright violation.) Otherwise they're out of luck.

    8. Re:It is because of piracy... by HiThere · · Score: 2

      Because MS has been able to get away with it.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
    9. Re:It is because of piracy... by Grishnakh · · Score: 2

      So the difference between this case and the eBay case is that in the first, the government is restricting how you use and re-sell an item. Of course, this is ok, since the government is an elected body that also writes our laws. But in the eBay case, the enforcing is done by Microsoft, which is not elected, and doesn't (theoretically) write laws for anything. So how is it ok for Microsoft to police software sales?

  6. Software is licensed, not sold by ljnelson · · Score: 5, Insightful
    I'm not arguing that this is correct, but strictly speaking software is licensed, not sold. That means you don't own it. If you don't own it, you can't sell or resell it.

    To take an example from another arena: if I write to one of the media syndicates and get permission to use a Peanuts cartoon in some publication I'm working on, I can't then grant others access to use that cartoon, because I don't own it.

    Again, I'm not saying I agree or disagree with this particular way that people use/buy/license software.

    1. Re:Software is licensed, not sold by Anonymous Coward · · Score: 5, Funny

      That's fine then, I can't sell the software, because I don't own it. No problem, I won't sell the software, but I'll sell my license to use the software. As an added bonus, I'll give you the disks with the software on it. What's wrong with that?

    2. Re:Software is licensed, not sold by Hard_Code · · Score: 3, Interesting

      No but you can sell the LICENSE...that is if it isn't explicitly prohibited *in* the license...which it looks like it is. So do licenses deserve the same status as property? I mean, do I *own* the license, or am I just a party to it??

      --

      It's 10 PM. Do you know if you're un-American?
    3. Re:Software is licensed, not sold by TheCarp · · Score: 3, Interesting

      However, that is not thew way in which most people come into contact with software.

      Software is, typically, sold just like books. You go to a store, you buy the book. Just like you go to the store, and you buy the software media.

      The book, like the media, is then owned by you. You have signed no binding contract, you are bound to no "agreements" beyond that of copyright law.

      You may not copy and redistribute the book, NOT because it says you can't in the first few pages (which it almost always does), but because copyright law says you can't.

      I would hold that this entire concept of ":licensing" and especially "shrink wrap" licensing where one is expected to be bound to a license AFTER having bought the software media in question, and without signing any formal agreement is a complete fabrication of software companies to foster this attitude.

      This goes on all the time. Hell, I have a book that I recently purchased from a major bookseller. It was written long ago and the copyright has long since expired, as such, it contains no copyright notice... however the publisher STILL put a notice in the first few pages to tell me that I may not copy this book, in whol eor in part.... a paraphgraph with exactly 0 legal force whatsoever.

      -Steve

      --
      "I opened my eyes, and everything went dark again"
    4. Re:Software is licensed, not sold by UnknownSoldier · · Score: 5, Insightful

      > but strictly speaking software is licensed, not sold.
      Correct.

      > If you don't own it, you can't sell or resell it.
      That's not entirely correct - IF the contract that you signed, gives you permission to sell/resell the thing you have licensed, then you can sell/resell it.

      The contract may also be a pseudo contract ("First Sale Doctrine")
      i.e. you have the right to sell music you buy, because it is "reasonable" that buyers have the right to sell what they purchase, even though you DIDN'T sign anything claiming privileges were transfered to the buyer.

      Things to think about:

      - If you don't own the software you have licensed, do you own the car you have "licensed" as well ?
      - Who owns your time and goods, if you need a "license" to engage in business?

      Remember, what does a license mean? Legal permission to do something, that normally you wouldn't have.

    5. Re:Software is licensed, not sold by dillon_rinker · · Score: 3, Insightful

      - If you don't own the software you have licensed, do you own the car you have "licensed" as well ?
      You buy the car and own it outright. The license gives you the non-transferable right to operate the car on public roads.

      - Who owns your time and goods, if you need a "license" to engage in business?
      You do. The license gives you the non-transferable right to operate the business. I'll granted that the gubmint controls your time and goods, but they do not own them.

    6. Re:Software is licensed, not sold by sphealey · · Score: 2

      "To take an example from another arena: if I write to one of the media syndicates and get permission to use a Peanuts cartoon in some publication I'm working on, I can't then grant others access to use that cartoon, because I don't own it. "

      No, but you can sell your entire publication, including your archive of past editions containing the Peanuts cartoon, to another publisher. Generally speaking (IANAL) as long as the new owner abides by the original license (e.g. pay UFS for each back issue sold) they can't prevent this transfer.

      sPh

    7. Re:Software is licensed, not sold by AaronStJ · · Score: 3, Insightful

      To take an example from another arena: if I write to one of the media syndicates and get permission to use a Peanuts cartoon in some publication I'm working on, I can't then grant others access to use that cartoon, because I don't own it.

      This anology isn't quite right. When you purchase software, you purchase the right to use it, not the right to dristribute it. It's more like if you bought a Peanuts book and read it. Don't you have the right to give the book to a friend?

      No lawyers are banging down the doors of used book stored, that's all I know.

      --
      Stupid like a fox!
    8. Re:Software is licensed, not sold by jonnythan · · Score: 2

      You're a PARTY to it. It is a license that (supposedly) you and the publisher agreed to. If you resell it, you can't transfer that license. They need to make their own agreement with the publisher.

    9. Re:Software is licensed, not sold by Martin+Spamer · · Score: 2

      I'm not arguing that this is correct, but strictly speaking software is licensed, not sold. That means you don't own it. If you don't own it, you can't sell or resell it.

      This makes no difference [in the UK], you own one copy of the licence, which you can [re]sell. manufacturers or retailers cannot impose limitation or conditions that counter your statutory rights. Indeed the courts take a very dim view of those that try to limit your rights through unfair trading practices.

    10. Re:Software is licensed, not sold by mindstrm · · Score: 2

      Right.
      But I walk into a store, And I *purchase* something from them. Nobody tells me about any 'licence', and nobody tells me anything otherwise. I take the item I'm buying to the cashier, and give her/him money, and they give me my receipt for my purchase, and my product.

      Then AFTER I open it up.. I get this 'click here to say you agree to these terms to continue'...
      Of course, the store has a 'no refunds on open software' policy...

      So I'm fucked.

    11. Re:Software is licensed, not sold by Matrix14 · · Score: 2, Insightful

      So what? Someone is not trying to sell the liscense, they're trying to sell the physical disks. If I go to the store and buy a piece of software, I don't buy the liscense. I buy the physical disks and whatnot, and they're MINE! I won't be bound by the EULA till I actually break the seal on the disk. I can, if I so choose, resell the disks. For all I know, the buyer wants to use them to make pretty sparks in a microwave! It's similar to a book. If I buy a book, I can't copy and sell copies, and I don't own the copyright. I, do however, OWN the actual poaper and ink of which the book is made. When I buy software from the store, I don't sign anything that says that I am actually leasing the physical media and that I can't resell it. I am purchasing the media, and it becomes mine to do with as I please. The software is different story, but that which is sold, is actually and physically sold.

      -M

    12. Re:Software is licensed, not sold by T.+Bombadil · · Score: 3, Informative

      No, you are wrong. Grammatical corrections AND language translation have been held by case law in the US to not be copyrightable. Books such as Moby-Dick(written in 1850-1851), under US copyright law, have no copyright protection. They are in the PUBLIC DOMAIN. You can, by law, copy them as often as you wish and mail copies to every one in the US.

      Software, when purchased in a store is exactly the same. Before you are forced to read the shrink wrap lincense but after you purchase the product, you may sell it to whoever you wish. This is assuming that the shrink wrap lincense is legally enforcible.

      UCITA legislation recently passed in Maryland and Virginia. One of the purposes of UCITA was to make shrink wrap licences legally enforcable. If you live in one of those states they are. If you don't they most likely aren't. But the courts are still wrestling with this one.

      The best thing to do is to take a little time and go research the issues. You can find the laws online(no your laws[other than building codes, but thats another story] are not copyrighted!). You can find the case law on-line. Do the research and come to your own conclusions.


      --
      -- If you cast your bread on the water, sometimes it comes back angel food cake.
    13. Re:Software is licensed, not sold by Theodrake · · Score: 2, Informative

      Because the contract/license you agreed to prohibits it.

    14. Re:Software is licensed, not sold by haystor · · Score: 3, Interesting

      Well if you pay me, I'll install MY license on your computer. I'll also leave the disks over at your place too.

      The license will still be owned by me, and it will be operated on only one computer. How is this not legal?

      In fact even though I own the license there is nothing to stop you from doing the install yourself as long as ownership of the license remains with me. This would require a bit of trust, but doesn't seem to be at odds with transferring the license.

      --
      t
    15. Re:Software is licensed, not sold by Prong · · Score: 2, Informative

      Nice theory. And it works real well when there is a bilateral agreement to the contract between two known parties, but it falls over rather badly in the consumer arena.

      Scenario 1: ABC Corp. would like to use Windows whatever with the entire MS productivity suite across the entire company. MS rep shows up, delivers a contract, company lawyers strike this clause, add that clause, MS negotiates, both companies come to agreement, the check is written, the software is delivered. Now, if that contract denies ABC Corp. to transfer the licenses, it probably (all things being equal) can't transfer them without getting a rider.

      Scenario 2: Joe Sixpack goes and buys a copy of GruntPage from WorstBuy. Under traditional consumer law, the software publisher doesn't have a lot of recourse if Joe decides that GruntPage doesn't meet his needs. And neither does Joe. He can try to get a refund from WorstBuy, but they are only likely to give him a new copy of GruntPage, provided he shows them that his copy was materially defective, but he's not likely to get a cash refund on an opened software product. Joe can, however, sell his copy of GruntPage under First Sale doctrine, the EULA not withstanding. There is no current case law that I am aware of that allows the unilateral restriction of the transfer of copyrighted materials.

      I've said it before, but I can't really believe that MS or any other consumer software producer really believes that these click-thru, skrink-wrap, so-called "contracts" will really withstand a court test. The only thing that I've ever seen the BSA and similar orginizations go after are standard copyright violations, and I really don't have a problem with that.

      The usual IANAL disclaimers apply, and if anyone can point me to a link(s) to counter anything I've written, I'd love to see it.

    16. Re:Software is licensed, not sold by Twylite · · Score: 2

      Strictly speaking this is not correct. Gee, I've heard the line before ;) Licensing is analogous to letting or renting, not to a sale subject to limited rights. At least, it is in terms of software and most other duplicatable intellectual property.

      In the same way as you cannot sell a flat that you are letting, you cannot sell software that you are letting. In both cases you are bound to terms of agreement for the rental.

      This is the model that software has informally followed; MS's latest licensing attempts move to the letting route far more clearly.

      OTOH there are requirements for letting that place an onus on the owner; another aspect which has not been tested in court. If a flat is defective, it is the owner's responsibility to fix the problem in an acceptable manner and in a reasonable timeframe. By extension, software should be subject to the same requirements: bugs will HAVE to receive attention.

      One final nasty: if a flat is in such poor condition that the letter or his/her property is damaged, the owner can be held liable. How many billions of Dollars of damage did Codered, SirCam and Nimda (apparently) cause?

      --
      i-name =twylite [http://public.xdi.org/=twylite], see idcommons.net
  7. Caveat Emptor by HardCase · · Score: 3, Insightful
    No one would own (or lease) a car if the contract said, "You must not sell this
    car, in the event this car is no longer used, send it to the nearest junkyard.", so
    why is this true for software?


    It's true for software because the buying public has come to accept it as a condition for using the software licenses that they purchase. Obviously cars aren't software, particularly since when you buy a car, you buy the car. In a way, of course, a lease is like a license to use the car and, I suppose, the lessor could put that language in the contract, but the buying public wouldn't accept it. The bottom line is the subject line.


    -h-

    1. Re:Caveat Emptor by aozilla · · Score: 2

      In a way, of course, a lease is like a license to use the car and, I suppose, the lessor could put that language in the contract, but the buying public wouldn't accept it.

      They most certainly do. What car lease do you know which is transferrable? Car leases are almost always non-transferrable. They don't tell you to throw it in the trash, because not only can you not sell it, you have to keep it and make sure nothing bad happens to it. At the very most, on an open ended lease, you can return the car in perfect condition and stop paying your lease payments.

      --
      ok then your [sic] infringing on my copyright! Could you as [sic] me next time before STEALING my comments for your own?
    2. Re:Caveat Emptor by charon_on_acheron · · Score: 2, Informative

      Good point about the drivers license, I should have included it. But the government (state government in the US) does still own your car. Basically, the title and drivers license are both a EULA between the government and yourself.

      There is a legal procedure you can go through to get the actual legal ownership of your car. It involves some very technical forms, and is defined in international agreements. But unless you do, you don't own it.

      Ever try to buy a car from a junkyard? Not just a door, or engine, but the whole vehicle? In most states it is not allowed. Let's say that I sell my 1967 Camaro to a junkyard because the transmission is shot, and I don't have the money to fix it. The body and frame are in good shape, but no one at the time wants to buy it, so I junk it. They put it out in the junkyard with the other junk cars, and a year later you see it while looking for a fender for your 1970 Corvette. You see the Camaro is in good shape, and the note on the dashboard says "Bad transmission", but everything else looks great. You ask about buying it, and are told that they can't legally sell any vehicle in the junkyard. They can only sell parts from the vehicles, because the title has been turned in to the state.
      The junkyard owns the 'physical instance' of the 1967 Camaro, with its unrusted fenders, beautifully smooth leather seats, and working engine. It can sell any of these objects as used parts. But it cannot sell the 'vehicle' that is the 1967 Camaro, because the state owns it, and by law says it cannot be resold as a car.

      There are two different things that are being owned here, but they are the same physical items. Only lawyers could come up with something so complicated. Now, some states do allow junkyards to sell 'vehicles', so I am not saying the above situation pertains to everyone. But it is the case in some states, from my personal experience. I was looking for parts for one of my cars once, and saw a beautiful car (I forget the model), no rust, engine was clean, seats/dash/uphosltry was perfect. Note said "Bad tranny" (which meant the car's transmission in that case, not a personal reference). Everything else being OK, I asked if I could buy it for $1000 to work on, and was told that they couldn't because the state owned the title. They could sell everything from the vehicle except the VIN plates, but not the vehicle itself. Again, this is not the case in every state, but it is in most.

  8. Cause you never buy anything... by augustz · · Score: 2

    You only ever buy a license, never a product. That's always buried in the fine print somewhere, and is the difference that let's them restrict use 6 ways to sunday.

    1. Re:Cause you never buy anything... by Sloppy · · Score: 2

      So what if it's in the fine print? The fine print is never used in the actual transaction. I was never asked to sign anything prior to receiving the product.

      If I go to the corner bookstore, I can buy both books and software at the same place at the same time. There is no disinction made between them at the time of sale. I own that copy of the book and am allowed to resell it. No words printed inside the book (whether they are large print or fine print) are capable of changing that fact. The software purchase works identically.

      --
      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  9. How long before... by jmv · · Score: 2

    You end up licensing your dishwasher

    Your hamburger comes with an EULA

    1. Re:How long before... by jmv · · Score: 2

      Warning: under the DMCA it is illegal to reverse-engineer (or play with) your OREO cookies!

  10. In Germany you are allowed to do this. by tjansen · · Score: 4, Informative

    A German court has ruled that you can even sell your OEM versions, and Microsoft can't do anything against it (even though they tried). But in the US this is probably different, thanks to the DMCA...

    1. Re:In Germany you are allowed to do this. by Masturbating+Vulcan · · Score: 4, Insightful

      A German court has ruled that you can even sell your OEM versions, and Microsoft can't do anything against it (even though they tried). But in the US this is probably different, thanks to the DMCA...

      Your facts are legitimate, but your conclusion is illegitimate and downright wrong. The DMCA is a revision to copyright law that prohibits trafficking in circumvention devices. It has nothing to do with the enforcability of End User License Agreements. There is a law which is being supported at the state level called UCITA which deals with this topic.

      Obfuscating the purpose of the DMCA lessens the logicical correctness of our argument against it and in so doing weakens our cause. In the future, please be more vigilant.

      --
      I DO NOT GET EMOTIONAL ABOUT ANYTHING!!!!!!!!!!!!!!!
    2. Re:In Germany you are allowed to do this. by Teun · · Score: 3, Informative

      And in The Netherlands.
      Though I'm not absolutely sure about the latest licences, courts have in the past upheld that the licence in effect is nothing more than the right of the owner to run / use a single copy of the software at your own discretion.
      Anything else was considered frivolous.
      This means for instance that when you've bought a computer with a Dutch version of Windows there is nothing stopping you replacing it with a copied / borrowed English version. Because you do own a licence to run Windows.
      And the courts have clearly seen no tangible difference between the various language versions.

      --
      "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
  11. Legality doesn't matter by swordgeek · · Score: 5, Insightful

    "Hi, my name is Bill, and this is my 900lb gorilla. Although I really don't know what he's going to do, if you do something I don't like, I'll try to make him stomp on you. Do you want to take that chance?"

    In other words, unless you are guaranteed to win the case, you're not likely to take MS to court over their license agreement. At that point, the license agreement becomes a de facto law.

    --

    "People who do stupid things with hazardous materials often die." -- Jim Davidson on alt.folklore.urban
    1. Re:Legality doesn't matter by Anonymous+Brave+Guy · · Score: 2
      "In other words, unless you are guaranteed to win the case, you're not likely to take MS to court over their license agreement. At that point, the license agreement becomes a de facto law."

      Surely the question is whether you're prepared to risk having MS take you to court for licence infringement? At the moment, clearly they are, if they think it's worth it. Until someone rules that unreasonable licence conditions are uncontestably illegal, it will stay that way.

      By the way, that's "unreasonable" as in "You have to agree to something you haven't yet seen", not as in "I can't afford this, so I think I should be allowed to rip it off at others' expense".

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
  12. Ahhhh by drodver · · Score: 3, Funny

    So that explains why I feel so dirty after buying software!

  13. software AND licenses? by frknfrk · · Score: 2

    you seem to be missing the point. you are licensing the software, not buying it. it is a strange world, when you pay someone money and they ship you a physical thing, yet you do not own that thing, you own a license to use that thing.

    i was going to ask 'imagine if computer hardware was the same way' and then i immediately realised we are definately moving in that direction. ditto for televisions, etc, anything which can access digital media.

    zero-cost duplication is a beautiful thing. too bad it would destroy most 'modern' companies ability to function.

    remember when 'modern' meant something like 'forward-thinking'? now it seems to mean the opposite. the modern age is over. something else is here, and it may be a dark age of information if these 'modern' companies are able to hold onto the past as well as they are trying to.

    -sam

    --
    The REAL sam_at_caveman_dot_org is user ID 13833.
    1. Re:software AND licenses? by S.Lemmon · · Score: 5, Insightful

      This stikes a chord. Is it just me or are we moving into a kind of digital serfdom and an age of modern feudalism? It seems big corporations want do do away with private ownership altogether. Just like the pesants of old were tied to the land the aristocrats allowed them to use, we're held prisioner to software licenses that strip us of all rights and subject us to any corporate whim.

      As long as we "know our place", pay our Microsoft tax, and don't speak against our lord and masters, they'll graciously allow us to use their software. However, anyone who dares speak out risks loosing everything.

      With no real competition, large corporations can make demands that would have been unthinkable a few years ago - all we can do is accept. In the digital age, software is no longer a luxury, and it becomes increasingly difficult to function without it. Those who control that software and can dictate the terms will have more power than any government - and who do they answer to?

      Even a land-owning aristocrat could take pity on his peasants now and again, but a corporation is a soulless entity who's only concern is maximizing profit.

    2. Re:software AND licenses? by sheldon · · Score: 2

      Peasants of old were tied to the land because they had to accept the bargain or go hungry and die.

      Are you saying that if you don't listen to NSync while playing Quake you are going to die?

    3. Re:software AND licenses? by (void*) · · Score: 2

      If you had to use software X at work, and not using X means no work, and no food, yes.

    4. Re:software AND licenses? by HiThere · · Score: 2

      And this is why the GPL and associated licenses are so important.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
  14. doctrine of first sale by _|()|\| · · Score: 5, Informative
    You want to research the doctrine of first sale. A turn-of-the-century court case involving, essentially, EULAs in books established that a consumer has the right to transfer, in whole, a book, notwithstanding any statement to contrary by the vendor or manufacturer.

    I believe this was subsequently written into law for records, but this may have been turned on its ear by passage of UCITA, which gave EULAs teeth.

    1. Re:doctrine of first sale by bigdavex · · Score: 5, Informative
      Yes, it's been codified. The question, as others have pointed out, is whether of not the person owns the copy or just a liscense.
      This, I believe, is the applicable US law.

      U.S. Code, title 17, chapter, section 109:


      US Code as of: 01/23/00

      Sec. 109. Limitations on exclusive rights: Effect of transfer of particular copy or phonorecord

      (a) Notwithstanding the provisions of section 106(3), the owner of a particular copy or phonorecord lawfully made under this title, or any person authorized by such owner, is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy or phonorecord. Notwithstanding the preceding sentence, copies or phonorecords of works subject to restored copyright under section 104A that are manufactured before the date of restoration of copyright or, with respect to reliance parties, before publication or service of notice under section 104A(e), may be sold or otherwise disposed of without the authorization of the owner of the restored copyright for purposes of direct or indirect commercial advantage only during the 12-month period beginning on -
      (1) the date of the publication in the Federal Register of the
      notice of intent filed with the Copyright Office under section
      104A(d)(2)(A), or
      (2) the date of the receipt of actual notice served under
      section 104A(d)(2)(B), whichever occurs first.
      (b)
      (1)
      (A) Notwithstanding the provisions of subsection (a), unless authorized by the owners of copyright in the sound recording or the owner of copyright in a computer program (including any tape, disk, or other medium embodying such program), and in the case of a sound recording in the musical works embodied therein, neither the owner of a particular phonorecord nor any person in possession of a particular copy of a computer program (including any tape, disk, or other medium embodying such program), may, for the purposes of direct or indirect commercial advantage, dispose of, or authorize the disposal of, the possession of that phonorecord or computer program (including any tape, disk, or other medium embodying such program) by rental, lease, or lending, or by any other act or practice in the nature of rental, lease, or lending. Nothing in the preceding sentence shall apply to the rental, lease, or lending of a phonorecord for nonprofit purposes by a nonprofit library or nonprofit educational institution. The transfer of possession of a lawfully made copy of a computer program by a nonprofit educational institution to another nonprofit educational institution or to faculty, staff, and students does not constitute rental, lease, or lending for direct or indirect commercial purposes under this subsection.
      (B) This subsection does not apply to -
      (i) a computer program which is embodied in a machine or
      product and which cannot be copied during the ordinary operation
      or use of the machine or product; or
      (ii) a computer program embodied in or used in conjunction with
      a limited purpose computer that is designed for playing video
      games and may be designed for other purposes.
      (C) Nothing in this subsection affects any provision of chapter 9 of this title.
      (2)
      (A) Nothing in this subsection shall apply to the lending of a computer program for nonprofit purposes by a nonprofit library, if each copy of a computer program which is lent by such library has affixed to the packaging containing the program a warning of copyright in accordance with requirements that the Register of Copyrights shall prescribe by regulation.
      (B) Not later than three years after the date of the enactment of the Computer Software Rental Amendments Act of 1990, and at such times thereafter as the Register of Copyrights considers appropriate, the Register of Copyrights, after consultation with representatives of copyright owners and librarians, shall submit to the Congress a report stating whether this paragraph has achieved its intended purpose of maintaining the integrity of the copyright system while providing nonprofit libraries the capability to fulfill their function. Such report shall advise the Congress as to any information or recommendations that the Register of Copyrights considers necessary to carry out the purposes of this subsection.
      (3) Nothing in this subsection shall affect any provision of the antitrust laws. For purposes of the preceding sentence, ''antitrust laws'' has the meaning given that term in the first section of the Clayton Act and includes section 5 of the Federal Trade Commission Act to the extent that section relates to unfair methods of competition.
      (4) Any person who distributes a phonorecord or a copy of a computer program (including any tape, disk, or other medium embodying such program) in violation of paragraph (1) is an infringer of copyright under section 501 of this title and is subject to the remedies set forth in sections 502, 503, 504, 505, and 509. Such violation shall not be a criminal offense under section 506 or cause such person to be subject to the criminal penalties set forth in section 2319 of title 18.
      (c) Notwithstanding the provisions of section 106(5), the owner of a particular copy lawfully made under this title, or any person authorized by such owner, is entitled, without the authority of the copyright owner, to display that copy publicly, either directly or by the projection of no more than one image at a time, to viewers present at the place where the copy is located.
      (d) The privileges prescribed by subsections (a) and (c) do not, unless authorized by the copyright owner, extend to any person who has acquired possession of the copy or phonorecord from the copyright owner, by rental, lease, loan, or otherwise, without acquiring ownership of it.
      (e) Notwithstanding the provisions of sections 106(4) and 106(5), in the case of an electronic audiovisual game intended for use in coin-operated equipment, the owner of a particular copy of such a game lawfully made under this title, is entitled, without the authority of the copyright owner of the game, to publicly perform or display that game in coin-operated equipment, except that this subsection shall not apply to any work of authorship embodied in the audiovisual game if the copyright owner of the electronic audiovisual game is not also the copyright owner of the work of authorship.
      --
      -Dave
    2. Re:doctrine of first sale by aozilla · · Score: 2

      UCITA like DMCA is illegal and anti-constitutional because they don't respect jurisditions and other base constitutions laws (like 1st ammendment and more)...

      UCITA is state law. The constitution has very very few restrictions upon state law. The first ammendment is completely irrelevant anyway, because no state government is restraining free speech (you'd want to base it on the 14th ammendment, anyway, since the 1st ammendment does not apply to states, only to congress, except through the 14th ammendment's partial incorporation).

      --
      ok then your [sic] infringing on my copyright! Could you as [sic] me next time before STEALING my comments for your own?
    3. Re:doctrine of first sale by aozilla · · Score: 2

      This, I believe, is the applicable US law.

      IANAL, but I still guarantee you you are allowed to resell software under the first sale doctrine, as far as federal law is concerned. The problem is that contracts are generally governed by state law, and if an EULA is deemed to be a binding contract, you can still be sued under breach of contract (not copyright law). There are many many caveats though, not the least of which is that states cannot make their own copyright law, because the federal government has the exclusive right to make copyright law. If the states decide to try to enforce this is will be a long and hard battle. If the federal government tries to enforce it it'll be an open and shut case, and Microsoft will lose.

      --
      ok then your [sic] infringing on my copyright! Could you as [sic] me next time before STEALING my comments for your own?
    4. Re:doctrine of first sale by Arandir · · Score: 2

      The question, as others have pointed out, is whether of not the person owns the copy or just a liscense.

      In that case it depends upon how to aquired the software. If you signed a contract *before* Microsoft gave it to you, then you have purchased a license to use their software. BUT - If you walk into a store, buy a shrink wrap box and purchase it from a retailer, then the US Commercial Code considers you the legal owner of the copy.

      If M$ is claiming that you have only licensed the use of the software, then let's see their signature on the lease agreement.

      --
      A Government Is a Body of People, Usually Notably Ungoverned
    5. Re:doctrine of first sale by re-geeked · · Score: 2

      It looks like the applicable law, but it seems to specifically exempt software and music from sublease rights, in 109.b.1.A:

      ...unless authorized by .. the owner of copyright in a computer program .., neither the owner of .. nor any person in possession of a particular copy of a computer program .. may, for the purposes of direct or indirect commercial advantage, dispose of, or authorize the disposal of, the possession of that .. computer program .. by rental, lease, or lending, or by any other act or practice in the nature of rental, lease, or lending.

      Does that negate resale rights as well?

      Also, it appears this paragraph was a later revision. Anyone know when?

      I find the whole discussion somewhat mooted by the fact the proprietary software companies push upgrades fast enough to make old versions of the software almost valueless. I suppose it could matter to those who pay the MS tax, and don't want to pursue a refund.

      Although, for my money, the above provision is wrong, and I'd like to see right of resale maintained for all copyrighted work if only to maintain the original, limited, intent of the law.

      --
      "You can't get something for nothing." - my grandfather, on the stock market and Reaganomics.
  15. Car Leasing by wiredog · · Score: 3, Insightful
    No one would own (or lease) a car if the contract said, "You must not sell this car

    If you sold a car you were leasing you would be tossed in jail for grand theft auto, it's sort of implicit in the idea of lease. Which is why MS and others are moving (back to) a software leasing model.

    1. Re:Car Leasing by zerocool^ · · Score: 2

      what really throws a wrench into the mix is Tow Trucks.

      If you do something wrong, like place your car in the incorrect parking lot, the tow company will legally steal it. Isn't this where we're going with windows XP? Install it in the wrong place and they'll make it so it wont work, or something.

      I'm not sure exactly how it figures in, but there you go.

      --
      sig?
  16. Taking sides by Grape+Shasta · · Score: 2, Insightful
    Why are there so many laws (i.e. DCMA) to protect every imaginable right for these big content creation companies? Like they need the help to make billions of dollars. What I would love to see is a new law to protect the consumers, not the companies. Something that enforces common sense, like in this case: If you buy the right to use software, then you can sell at least your one copy of the software. The big companies should not have the right to put all sorts of weird restrictions on us because they feel like it.

    We could call it a new DMCA: Deny Monopolistic Corporations from being Assholes. :)

    --

    "I am a cipher, a cipher, wrapped in an enigma, smothered in secret sauce" -Jimmy James
    1. Re:Taking sides by jimhill · · Score: 2

      Because the big content creation companies bought the laws. It really is that simple. Through the system of soft money and campaign contributions, bribery -- for I shall forthwith commit myself to the practice of calling a spade a spade -- is an established part of "the system", a filthy and disgusting act that all acknowledge and few resist. If you dislike the DMCA, if you _really_ want to see it gone, there is exactly one thing you can do: raise more money than the IP industry and buy its repeal.

      Yes, I _have_ lost all faith. Why do you ask?

      --
      Learn to spell: nickel, missile, lose, solely, amendment, speech, kernel, probably, ridiculous, deity, hierarchy, versus
  17. You have to copy software to use it. by Dr.+Zowie · · Score: 5, Informative
    The legal basis for restrictive EULAs is that you have to make a copy of the software (in your computer's RAM) in order to use it. Copying is prohibited without explicit permission, and so, therefore, is use. Therefore the companies can ask you to sign whatever argument they want before allowing you to use the software. If the license is non-transferable then, sure, you can sell the source CD for the software -- but the poor schnook who buys it from you doesn't have a license to copy it, so he can't use it.

    Yep, I know it sounds stupid (and means, for example, that online documentation has more restrictions than the exact same information printed on paper). But there are federal legal precedents for that interpretaiton. Check out, for example, MAI vs. Peak Computer, from 1993.

    IANAL.

    1. Re:You have to copy software to use it. by ceswiedler · · Score: 2

      Books are copied before they are used, as well. In order to actually read a book, I have to shine a light on it, which throws a "copy" of the current page in the form of photons towards my eyes.

      Copying isn't copying if the data isn't rewritten to a different permanent medium than the original.

    2. Re:You have to copy software to use it. by FreeUser · · Score: 2

      Yep, I know it sounds stupid (and means, for example, that online documentation has more restrictions than the exact same information printed on paper). But there are federal legal precedents for that interpretaiton.

      You are, unfortunately, correct. However, one should seriously consider the implications of this relatively new, and terribly misguided, doctrine.

      The human brain is essentially a biological computer. In order to comprehend a book, it must first be "read," i.e. the content of book must be copied into the person's brain before it can be interpreted ("understood"). So, essentially, by the logic of our modern justice system (which has its collective intellect buried so far up its own posterior as to make any rational decisions with anything but the most negative effects on real human beings' lives virtually impossible) anything that can be read or comprehended could be subject to such a EULA by an absurd legal loophole which accomplishes exactly the opposite of what the laws, particularly the doctrine of First Sale, intended.

      Someone truly needs to bitchslap the people making, arguing, and interpreting our laws. Hard.

      --
      The Future of Human Evolution: Autonomy
  18. What bout music? by a42 · · Score: 2

    The DMCA and UCITA have given software licenses some bite where before they were nothing but bark. I fully expect to see a great deal more of this sort of thing.

    Buying software is more like buying a music CD/record/tape/etc. than it is like buying a car. You are buying the *right* to use the IP in a limited way. The difference is that the record companies have not yet managed to prohibit reselling of their media. Give them time.

    --john

    1. Re:What bout music? by a42 · · Score: 2
      You'e buying something that you can do pretty much anything with. There is no license on music.

      Not exactly true. I'm prohibited, for example, from public performance of the music. I'm not allowed to broadcast it via radio. License, law, whatever the fact remains that you do NOT own the music or the software. You own the medium and the right to do certain things with the content.

      --john

  19. the revolution will not be televised by frknfrk · · Score: 2

    it depends on joe sixpack. i would offer the idea that the average 'joe sixpack' wouldn't read the note. and even assuming the note was big and bold and could not be missed, i would offer that he would not read it. and even if he read it, he probably would ignore it. and even if he didn't ignore it, he probably wouldn't understand the ramifications of it. and even if he understood all that, more than likely he wouldn't care. he just wants the stereo to listen to his MPAA and RIAA productions.

    -sam

    --
    The REAL sam_at_caveman_dot_org is user ID 13833.
  20. Here is the skinny... by Distan · · Score: 5, Interesting

    I've sold my share of Microsoft software on eBay, and had my share of auctions cancelled by the beast, so I think I know how this works.

    I've considered suing Microsoft regarding all of this (seriously) but have put that on the back burner for now.

    Microsoft is of the opinion that they never sell their software, they only license it. Most people who have some MS CDs sitting around got them in one of two ways, either bundled with hardware or in a retail transaction. Those two cases are handled differently.

    In the case of bundled software, MS requires that it be resold with the orginal hardware. Since systems can be upgraded, they are pretty reasonable about what they will consider to be the original hardware. Since eBay can't police exactly what hardware is being sold with what software, you see people selling Microsoft Windows with broken hard drives and stuff like that. When I have to sell something and include some hardware, I usually tape a capacitor inside the envelope (no shit).

    In the case of retail packages, Microsoft requires that you sell the software complete with everything that was originally in the box. So if you threw away the friendly pamplet on "ten reasons you will love the talking paperclip" then you have rendered the rest of the package unsellable in the eyes of MS.

    One good way to get around all this is to use the "Buy-It-Now" feature of eBay. List your item with a reasonable BIN price and it can get snapped up quicker than MS can have it canceled.

    Asta!

    1. Re:Here is the skinny... by gmhowell · · Score: 2

      That's the likely outcome. But there is another potential outcome: Microsoft shows up and asks to move the case to federal court. Then you are pretty much stuck hiring a lawyer, just to figure out how to respond to federal court stuff.

      It's not impossible, but it is doable. IANAL, but my brother-in-law was telling me about this when he was in law school.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    2. Re:Here is the skinny... by ab762 · · Score: 2, Interesting

      has anyone ever gone after the resellers for hardware for not including the original bundled software? M$ is getting extra bucks - because the OS that they got paid for once that should have been resold to me with the hardware wasn't, and I get to go out and buy it again. Nice!

    3. Re:Here is the skinny... by bani · · Score: 2, Interesting

      Or you can file small claims in Washington State.

      Washington State has some VERY interesting small claims court laws, one of which is that HIRED COUNSEL CANNOT REPRESENT YOU -- YOU MUST REPRESENT YOURSELF. Of course, this doesnt mean you can't hire a lawyer to advise you, but you have to do all the speaking, paperwork, etc. yourself. I also believe that under washington state law, the venue for a small claims litigation cannot be changed to e.g. federal court for any reason.

      These facts have been used to really fuck over out-of-state spammers who had evil lawyers. Usually after finding out these "little" details about washington state law, they decided to settle, rather than hassle with it.

      You could really put the shits up M$ if you file small claims court in Washington State... their high powered attorneys wouldn't be able to subvert the proceedings...

  21. Tracking and Verification Next by DumbSwede · · Score: 5, Insightful
    Given the opportunity, I'm sure Ford, GM, Dodge, etc., would love to have a no resale clause. Book publishers have not always been happy with the existence of libraries. Software companies treat us this way because we let them, and because they have deep pockets to engage in lobbying and filing lawsuits until they get their way.

    It is true that software has a more ephemeral quality than other products of our modern civilization, but the trend is clear. The Music, Publishing, Broadcast, Cable and Movie industries are taking notes, and getting more viscous and devious in their pursuit of squeezing every possible dime of revenue from the public.

    What make this all the more insidious and timely is the tracking and invasion of privacy most of these schemes require to enforce. Encryption is a bandaid that will never work without tracking and verification. If companies offered a good product at a fair price that we had complete control of how we wished to use these products, software pirates, cable tappers, CD rippers, would be seen as petty criminals instead of modern day robinhoods.

    Mark my words in the wake of the WTC bombings, media companies of all types will jump on the band wagon of information tracking, where no individual may view or own any type of information without someone, somewhere, knowing what they are looking at.

    It doesn't get much more Orwellian than this.

  22. More like marriage... by Merk · · Score: 5, Funny

    But what about the nice box (ahem) that software comes (ahem) in? What about the manuals, the CD, and all the other goodies you get in a box of software? Why do you get it in a store, see a price sticker on it, give a cashier money for it, and walk out with it?

    MS wants software to be prostitution. They want you to pay each time you use it, and they want the US legal system to be their pimp.

    Chances are, whether we like it or lot, they'll get to do that. If we're lucky, however, there will be some alternatives in the form of Free software.

    The problem, as I see it, is that right now software is more like marriage. You find what you want, pay a big up-front cost -- the wedding -- and make a commitment for life. When new, improved versions become available you can go through a long, involved process to get them, but you can't recoup the original cost of the wedding. If someone wants your old version, you can't just give it to them, they have to pay for a wedding too.

    1. Re:More like marriage... by Ralph+Bearpark · · Score: 3, Funny

      > MS wants software to be prostitution.

      Open Source is easy, as in promiscuous.

      > [MS] want the US legal system to be their pimp.

      Linus wants you to sleep around.

      Regards, Ralph.

    2. Re:More like marriage... by trcooper · · Score: 5, Funny

      Hmmm... I like that comparison... MS is the whore who'll let you do anything you want to with them, so long you pony up the cash...

      But you can do all this yourself by writing your own software...several times a day...and...if you get tired of that, you can get married to the GPL...but then you just have to put up with that nagging bitch (RMS) all the time.

      Ok... back to 'writing software'

  23. FYI: In Germany selling OEM software is legal by egghat · · Score: 2, Informative

    Took years before MS lost the case, but now selling OEM versions was officially declared legal despite MS telling you the opposite. (The full shrink-wrapped edition could be sold legally before, despite MS telling you the opposite).

    But of course MS raised the bar and now nearly all preinstalled MS versions are delivered with "recovery only" CDs, which simply don't make sense on a different computer ...

    Bye egghat.

    --
    -- "As a human being I claim the right to be widely inconsistent", John Peel
  24. Re:License to drive by tycage · · Score: 2

    I have a license to drive a car. I cannot possibly transfer my license to another driver.

    You have a license to drive any car. (Actually, there are some restrictions, but it's basically the case.) That's very different from having a license to drive a 2001 Saturn SL2 with the serial number 0391948409402028. With a drivers license you can drive pretty much any car you come across. The assumption being that you will either own the car or have permission from the owner to drive it.

    A software license is really closer to leasing a car. If you sold a car that you had leased, you'd be in big trouble as well. I'm not saying it's right for software to be that way, only that it is.

    --Ty

  25. Why this has continued... by MathJMendl · · Score: 2

    Businesses, of course, make money from selling as many licenses as they can. A used software product is just as good as the original, and thus the companies do not want discounted used copies circulating. Plus, their business plans are sustainable. People don't buy software thinking about reselling it, they buy it for their own use! Plus, they often need this software (or think that they need it, not aware of alternatives), so they aren't in a position to negotiate. Thus, the license based system, while arguably morally wrong, is sustained.

    P.S. There have been studies showing that over 90% of software sold on ebay.com is pirated. Even if 10% should be allowed, if you were an honorable software company selling useful software, would you want these 10% to benefit while 90% being pirated software cutting into your revenues?

    P.P.S. I do not necessarily believe all of the preceding comments, I simply wish to advocate logically for a source that does not find much sympathy on this site.

    --


    "I have not failed. I've simply found 10,000 ways that won't work." --Thomas Edison
  26. EULAs on books and music by TheSHAD0W · · Score: 3, Insightful

    Oh, but record labels and book publishers would LOVE to limit sales of used product. There was recently a push to prevent music stores from carrying used CDs; see this article. Garth Brooks, the country singer, was particularly outraged that his CDs could be resold without his getting a cut of the profit.

    Further, book publishers have recently been getting miffed that public libraries let people read books without having to buy them, and are looking to set higher prices for public libraries, or worse yet, to ban libraries from making certain books available. (I'm having a problem finding a reference for this.)

    1. Re:EULAs on books and music by bnenning · · Score: 2
      Oh, but record labels and book publishers would LOVE to limit sales of used product.


      Which would actually work against their best interests. If I know that I can't resell a CD that I buy, I won't be willing to pay as much for it because its value has been decreased. Rational capitalists do not spend their resources trying to make their products less valuable. Of course, it is obvious by now that RIAA members are neither rational nor capitalists.

      --
      How to solve most of our problems: 1.Lots of nuclear plants. 2.Cure aging.
  27. Re:Ah but it is! by Oliver+Wendell+Jones · · Score: 3, Insightful

    Only as long as you didn't buy an upgrade licensed version of Office 97, or Office 2K. If you bought an upgrade, then you still only have the one license, and you can't (legally) sell or give away your previous version.

    --
    A computer once beat me at chess, but it was no match for me at kick boxing -- Emo Phillips
  28. LEGALITY OF LICENSES... by johngaunt · · Score: 2, Interesting

    In many states, the commercial code says that if a product is to be licensed or leased, (like a car) the full disclosure of the lease or license agreement must be available before the exchange of tender. If the agreement is not available, and a transaction takes place, then it is not a lease or license, but an outright sale. Since the EULA is only available to you after you purchase and open the product, would this not make it an outright sale? IANAL, however if it is an outright sale, shouldn't I be able to do as I please with MY product?

    --
    In the wild there are no dumb lions tigers or bears. Only humanity subsidizes the continued existence of the stupid.
  29. Just MS? by tb3 · · Score: 2

    Is this just Microsoft? I've sold some games on Ebay (in their original boxes, with all the docs) after I finished playing them, and no one complained. is this just another example of Microsoft being heavy-handed?

    --

    www.lucernesys.comHorizon: Calendar-based personal finance

  30. Here's what Microsoft is really afraid of by mttlg · · Score: 5, Funny

    The following is not necessarily based on any people, places, events, companies, or laws, real or imagined, and any similarity is coincidental. So there.

    Here's Microsoft's worst nightmare (assuming that Microsoft is a collective entity that can think and dream):

    Person A has a copy of Windows but doesn't want it. Person A just wants to get rid of the piece of junk, so Person A's asking price for the software and license is very low.

    Person B sees a good deal on Windows from Person A and takes advantage of it. Person B notices that there are more people like Person A, giving Person B an idea.

    Person C is being audited by Microsoft and is knee-deep in bovine excrement. Once the manure truck accident scene is cleared, Person C continues on to work, trying to figure out how to deal with the Microsoft situation.

    Person B saw Person C at the scene of the accident swearing about some "Microsoft bullsh1t." Noticing that the manure truck didn't have Microsoft painted on the side, Person B realizes that Person C is being audited by Microsoft. Person B decides that the time is right to act.

    Person B visits Person C's workplace and proposes a solution to the Microsoft problem. After some negotiation, Person B sells the necessary number of Windows licenses to Person C's company, at a substantial profit.

    Person A is happy to be rid of Windows, Person B made a nice profit, and Person C didn't have to pay Microsoft off. Microsoft loses "potential sales" and doesn't get to torture Person C's company anymore.

    Then Microsoft wakes up screaming, but realizes it was all a dream, making note to take action to prevent this horrible thing from ever happening. After reading "The Little Monopoly that Could," Microsoft was once more asleep, content that nothing could harm it.

    The End

  31. license to drive by TechnoWeenie · · Score: 2, Interesting

    OK, last week I went down to the DMV and bought a license to drive. Now I have the "right" to drive on the roads. This week I decide I don't want to drive any more so I sell the license to Joe Blow down the street.

    Does Joe Blow now have the "right" to drive?

    Software licenses work exactly the same way. You have the right to use, but not to transfer the right to use.

  32. Speaking of Licenses (read yours!) by krek · · Score: 2, Interesting

    I was looking for a new free popmail service and came across Juno. I, living in Canada, had to enter the address of some hotel in Atlanta, Georgia in order to download the software due to some new encryption export laws or something. Anyway, I decided to actually read the license agreement this time and this is some of what I found in it (I especially like how it is essentially a violation to not have your computer on and connected to the net all of the time):

    1.2. Please refer to your initial signup communications for specific information with respect to your service level. Juno may discontinue or alter any service level or aspect of the Service at any time, without notice, without liability and in Juno's sole discretion.

    2. Your Obligations

    2.4. You expressly permit and authorize Juno (and such third parties as may be authorized by Juno, subject to the Privacy Statement) to furnish you, electronically when you use the Service or by any other means selected by Juno, information prepared by Juno or by (or on behalf of) other entities, including advertising information and solicitations. You acknowledge that any such information, advertisements and solicitations are an inseparable part of the Service, and you understand and agree that the furnishing of such information, advertisements and solicitations to you cannot be terminated unless the Service is also terminated. Some third parties furnishing you with advertisements and solicitations through the Service may permit you to "opt out" of receiving such communications from them, in which case you can do so by following the instructions they provide. However, Juno is not responsible for any such party's failure to comply with its own "opt out" policies, nor does Juno endorse the views or content of any third party advertisements or solicitations. All such advertisements and solicitations will be understood to be "requested" by you through the act of using the Service, and each time you use your account reaffirms such request. Juno's policies relating to privacy and the collection and use of subscriber information are set forth in the Privacy Statement, which forms an integral part of this Agreement.

    2.5. You expressly permit and authorize Juno to (i) download to your computer one or more pieces of software (the "Computational Software") designed to perform computations, which may be unrelated to the operation of the Service, on behalf of Juno (or on behalf of such third parties as may be authorized by Juno, subject to the Privacy Statement), (ii) run the Computational Software on your computer to perform and store the results of such computations, and (iii) upload such results to Juno's central computers during a subsequent connection, whether initiated by you in the course of using the Service or by the Computational Software as further described below. In connection with downloading and running the Computational Software, Juno may require you to leave your computer turned on at all times, and may replace the "screen saver" software that runs on your computer while the computer is turned on but you are not using it. The screen saver software installed by Juno, which may display advertisements or other images chosen by Juno, is an integral part of the Computational Software and you agree not to take any action to disable or interfere with the operation of either the screen saver software or any other component of the Computational Software. Juno may set different requirements for different subscribers with respect to the Computational Software (including without limitation whether use of the Computational Software is required and the volume of computations required to be performed) depending on service level or other factors we determine. You agree that, as between you and Juno, you shall be responsible for any costs or expenses resulting from the continuous operation of your computer, including without limitation any associated charges for electricity, and that you shall have sole responsibility for any maintenance or technical issues that might result from such continuous operation. You agree that, as between you and Juno, Juno shall have sole rights to the results of any computations performed by the Computational Software, including without limitation any revenues or intellectual property generated directly or indirectly as a result of such computations, without further compensation to you. If your usage of the Service is infrequent, Juno's ability to obtain the results of completed computations may be impaired. Consequently, you expressly permit and authorize Juno to initiate a telephone connection from your computer to Juno's central computers using a dial-in telephone number you have previously selected for accessing the Service; Juno agrees that it shall exercise such right only to the extent necessary, as determined in Juno's sole discretion, to upload the results of completed computations to Juno in a timely fashion; and you agree that, as between you and Juno, you shall be responsible for any costs and expenses (including without limitation any applicable telephone charges) resulting from the foregoing. Any software, data, or other materials downloaded to your computer in connection with the activities described in this Section 2.5 will not be used to collect personal Identifier Information (as defined in the Privacy Statement) from your computer and will comply with Juno's privacy policies, as reflected in the Privacy Statement. You agree that you will not attempt to reverse engineer any such software, data, or other materials or transfer or disclose any such software, data, or other materials, or the results of any such computations, to any third party. You acknowledge that your compliance with the requirements of this Section 2.5 may be considered by Juno to be an inseparable part of the Service, and that any interference with the operation of the Computational Software (including, but not limited to, any failure to leave your computer turned on to whatever extent Juno requires of subscribers at your service level) may result in termination or limitation of your use of the Service. You acknowledge that Section 6 of this Agreement shall expressly apply to the activities described in this Section 2.5.

  33. Soon this won't even matter by briansmith · · Score: 2, Insightful

    Even if the courts decide that you may legally transfer your license, it won't matter. For example, Microsoft will have mandatory customer registeration of their software soon. Your software will ensure that you have registered your software and won't run otherwise. The registration process will ensure that only one person can register a given copy. This means that once you register your copy of your software, Microsofy will only let you use the software. You may be able to legally transfer your license to another party, but I believe that Microsoft wouldn't be obligated to ensure the transfered license is effective; that is, they aren't required to make the software work for the purchaser of the re-sold copy.

  34. Not true by bihoy · · Score: 2, Interesting


    I certainly don't accept it. I ignore it.

    One of my favorite places to buy software
    has been at used PC shops. They often had
    quite recent copies of used software, in-the-box,
    and with all the docs.

    I don't see MS running around trying to close
    these little shops down.

  35. It seems to me... by jgerman · · Score: 2
    ... that I just read recently about some court decision that basically told a company that tried to sue over the resale of their product to go fuck themselves. This should apply to software as well. Of course from reading the other comments I see the common thread that you are licensing the software, not buying it. In a sense this is true, UCITA and the DMCA try to make sure of that, however un-constitutional they may be. But I do own the packaging. The box, the papers in it, the cd itself, they are all mine even if I'm just leasing the information stored on them. This is all certainly true just as it's true for any book that I've bought. In a capitalistic society it's my right to try and make money off of things that I own, and if I want the money from reselling software you can be damn sure I'm going to do it. I don't care if it is easier to copy software than it is a book, that doesn't take away from my rights in any way, shape or form. If they want to protect their software from being copied they must find other legal (and moral means) of doing so other than trying to restrict the rights of normal people.


    Ever since UCITA passed here in MD I've been tempted to go to stores and buy copies of Windows, and return them opened the next day. Since I'm bound now by the license in the box, and I must open the box to see the license I am legally in the right to return the product if I refuse to agree to the license. It shouldn't matter what the return policy of the store is.

    --
    I'm the big fish in the big pond bitch.
    1. Re:It seems to me... by jgerman · · Score: 2

      I figured there may be something like that, but I'm sorry that doesn't work for me, it may be weeks before they refund me my money. I want my money back the instant I see that the product I bought was unusable. If I have to wait I want interest on my payment.

      --
      I'm the big fish in the big pond bitch.
  36. modifications by aozilla · · Score: 2

    No one would own (or lease) a car if the contract said, "You must not sell this car, in the event this car is no longer used, send it to the nearest junkyard.", so why is this true for software?


    No one would own (or lease) a car if contract said, "You must not make modifications to this car and sell it unless you give the instructions on how to make those modifications to the new owner". Or if it said "You cannot add a stereo system to this car, thus creating a derivitive work, unless you release that stereo system under the GPL".


    So why is it that the GPL tries to do this for software?


    --
    ok then your [sic] infringing on my copyright! Could you as [sic] me next time before STEALING my comments for your own?
  37. because you'll still buy it by rebug · · Score: 2, Insightful

    Microsoft has proven time and time again that no matter how hard they're giving you the shaft, you're still buying the software. Thank you, sir, may I have an upgrade? It seems to me that this is needless controversy. Speak with your dollars. If you don't agree with the license, don't buy the software. It's no use complaining after you've already signed the contract. I wish companies would make license information easily availible online, so that we could find out what we're getting into before we lay down the dough.

    --

    there's more than one way to do me.
  38. Bad analogy by Perianwyr+Stormcrow · · Score: 2

    I'd be more than glad to tell the guy who buys said fictional car how to engage the James Bond smokescreens and the autocannon that I put on in a moment of paranoia, and how to take them off if he doesn't want to be liable for carrying military hardware. But those can be added and removed freely, like modules. The GPL says that you can indeed make closed modules. And so it would be the same if the fellow put his stereo in the car after I sold it to him, because a stereo component is a module.

    I imagine there might be a case for a lawsuit if you made your car run on Russian rocket fuel or some such thing and didn't tell the guy you sold it to. So, integral modifications are already covered.

    Can we get away from comparing apples to socket wrenches?

    --

    What we call folk wisdom is often no more than a kind of expedient stupidity.-Edward Abbey

  39. Software Donations by GrEp · · Score: 2

    Why not set up a non-profit oganization to donate your old software to? Going to throw out that old PII box? Why not donate the software and wipe the drive before you sell it for parts?

    Maybee the EFF could set this up. You would be able to buy great software like Excel97 for peanunts, and M$ would get the shaft. Licence management would be tricky, but as long as you have the origninal CDs and certificate of authenticity I doubt M$ could have any valid legal claims.

    --

    bash-2.04$
    bash-2.04$yes "Don't you hate dialup connections?"| write USERNAME
  40. First sale doctrine, etc. by markmoss · · Score: 5, Interesting

    As someone with a very strange cognomen pointed out earlier, a long time ago some book publisher tried this "licensed, not sold" stuff with a contract printed on the flyleaf of the book. The courts disallowed this, and created the first sale doctrine. That is, when you sell it, you have no say over what they buyer does with it.

    The difference with software is less because of the less tangible nature of the product (bits aren't tangible, but the CD and manuals certainly are), but that judges are over-impressed with arguments that cyberspace is different. And precedents concerning software license agreements were set several decades ago, when the judges were not sure whether copyright law covered bits at all, and software patents were even more dubious, so the (then generally quite reasonable) license agreements were the only real protection software writers had. Since then the copyright law has been amended to clearly protect bits, the old ban on patenting mathematical algorithms has somehow disappeared, and so software does not need license agreements to protect against piracy. But they are still putting out those license agreements, and getting more unreasonable about the terms every year.

    Maybe eventually enough technical savvy will filter into the courts that the judges will decide that software should sell under the same rules as everything else. That does not imply just the first sale doctrine -- what would really hurt MS is if the courts decide to apply the UCC's mandatory warranty of merchantibility to consumer software sales -- that is, if software follows the usual rules, the software vendor would be responsible for the software working _right_ in home computers. Given that possibility, their continued pushing of egregious license agreements and on-line activation seems almost like a corporate death wish, an attempt to push until they fatally tick off some judge.

    But right now it might be more effective to agitate for legislative action, instead. The software vendors may be flooding Congress with contributions, but the corporations that buy software instead of selling it outnumber them many times, and they are getting hurt by this !@#$%^.

    We need an anti-UCITA:

    First Sale: Purchasing an individual software distribubution gives you the right to put it on any one computer of your choosing, to resell it, give it away, or even loan it as long as you can ensure it is operable on only one computer at a time. (Note that this does not apply if it is leased, not purchased, but the package had better make it clear that this is a lease for a specific time period. Also, it does not apply to site licenses, IF the full licensing agreement is presented before the sale.) Nor can individually purchased software be locked to the first computer you install it in, or shut itself down after a time period. If the vendor chooses to install and use a remote-shutdown feature to combat piracy, then if they shutdown a legal copy, they are liable for $100/hour until it's back up, and all incidental and consequential damages.

    Implied Warranty: The UCC law makes many common "limited warranty" clauses null and void, like one saying that if the steering linkage falls off your car, your heirs are entitled only to a new steering linkage. Per UCC, the carmaker is responsible for the accident, too. Putting software fully under that now would put software vendors out of business, but as long as they get off scot-free for bad quality and even get to charge you for the bug-fixed version, most of them won't improve their quality. We need at a minimum the right to take the software back and get a full refund if bugs, which prevent it from operating as advertised, are not fixed promptly and at no cost. Also there should be compensation for phone bills and time and hold, and punitive damages when tech support tells you it isn't a bug and they already know about it.

    1. Re:First sale doctrine, etc. by SuiteSisterMary · · Score: 2

      Microsoft SMS has a similar thingy; you registier a piece of software, tell it how many licenses you own for that software, and any SMS client in it's admin domain will ask before it lets you run said software. The problem is that I've never actually been able to figure out if Microsoft licence terms on their own software; i.e. office, visio, etc etc, allow you to use such a system; install X amount of times, but only allow Y copies to run at any given time.

      --
      Vintage computer games and RPG books available. Email me if you're interested.
  41. Article in Wired October 2001 by falloutboy · · Score: 2

    Does anyone know where the article mentioned in the story actually is? I have the October 2001 issue of Wired, and page 170 is music reviews.

  42. Re:doctrine of first sale UTICA by Avla · · Score: 2, Informative
    Just attended a lecture where the lawyer said UTICA was passed in Virginia and Maryland.

    An article about the Uniform Computer Information Transactions Act

  43. 'You cannot own software- but we can own YOU' by tenzig_112 · · Score: 2
    Transferring ownership is one thing. Transferring from an obsolete box to a shiny new one is another.


    Microsoft 1990: "Keep using Windows because you'll have to buy all of your old software again if you switch."


    Microsoft 2001: "Users do not and cannot own software. Transferring from one computer to another requires a special license and transfering ownership is prohibited."


    You may have noticed that most commercial software is so bad that users wouldn't want to transder it onto a new machine.


    There's also the issue of registry faults as an inadvertant form of copy protection...

  44. Re:license to drive by haruharaharu · · Score: 2, Insightful

    Software licenses work exactly the same way. You have the right to use, but not to transfer the right to use

    No they don't.

    • the DMV is a state agency licensing use of public roads. Software is private property and is licensed by companies.
    • You have to agree to the contract before you get a driving license. No such requirement exists with shrinkwrapped software.
    • The driving license is specific to you. the software license is not.
    --
    Reboot macht Frei.
  45. "Software as a Service" by analog_line · · Score: 2, Insightful

    ...is Microsoft's real response to this. They know they're on shaky legal ground with this whole thing, and the only way to get off it and onto something solid is to not sell any licenses. And the only way to stay in business after they stop selling licenses doing that would be to sell subscriptions to use their software.

    After this changeover happens (when/if it happens) they'll probably provide freely downloadable thin clients for Word, Excel, etc, and you'll have to pay whatever they determine the market will bear (because even Microsoft has to consider what the market will bear, whether they are correct or not is another topic) per month, per product you want to use.

    In this situation there's no tranferrable license you need to worry about because you give away the only software you distribute to anyone for free, as it's useless to those who don't subscribe. You control the only software with any functionality and no one other than yourself will possess that software. Anyone else running a server that allows people to use Word that you haven't specifically allowed couldn't have bought it anywhere because you don't sell it, then you're well within your rights to throw them in jail for theft.

  46. This is very uncapitalistic by SIGFPE · · Score: 4, Insightful
    In a capitalist economy I can try selling product X to A and B but if I overcharge A and not B then A can get B to buy it and then buy it off B. This keeps prices in check. This is one of the key elements of a capitalist economy that makes it work so efficiently for both buyer and seller. It seems to me that EULAs put much more of the power into the hands of the seller than the buyer and we actually lose many of the great benefits of capitalism.


    IMHO one of the great things about ebay is that it brings capitalism to the masses. Millions of people all over the world can now now make their lives more efficient (in an economic sense) by trading even the most trivial things that they own. It's a grand bazaar where everyone profits. So it's not surprising that we see EULAs in conflict with the philosophy of ebay.


    EULAs are anti-capitalist. They are the product of a lobby economy - one where people who bribe politicians get to determine where resources in an economy should go.

    --
    -- SIGFPE
    1. Re:This is very uncapitalistic by SIGFPE · · Score: 3, Insightful
      Yes, you're right. This is still capitalism. But I think that capitalism has changed in meaning over the years.


      There are, as far as I can see, (at least) two ways to view things like constitutional rights. Either they exist because they are basic 'natural' human rights that exist for their own sake - or they are a means to an end. For example I think property rights are a good thing not just because individual people want to have them for themselves. They are also good because private property and the right to trade it gives an economy where people try to maximise their utilities and the net result seems to produce a far better (by many standards) allocation of resources than, say, a command or feudal economy.


      The reason we have things like intellectual property rights is similar - it encourages innovation and it means that everyone as a whole can get to use intellectual property to the advantage of lots of people.


      But it seems to me that we've shifted towards the former view more. Companies aren't interested in innovation etc. They are interested in protecting their 'rights' (whatever the 'right' of an abstract entity means). I believe we have lost sight of the reason for having a capitalist economy in the first place. So in a sense I think that practises like EULAs are turning us away from what capitalist economies are meant to be for.

      --
      -- SIGFPE
  47. What happened when I sold my Everquest CD on Ebay by jjn1056 · · Score: 2, Informative

    I was able to sell the CD, but the auction winner could not use it because the CD key was tied to my credit card number and sony online account. Sony refused to transfer the account or reset it. They claim it's to stop people from auctioning ebay characters or items, but since I only played the game for a few hours and then deleted the characters this was not an issue. They really want to force people to buy the new Everquest CD. I suspect to be seeing a lot more of this in the future.

    --
    Peace, or Not?
  48. Specifics by hysterion · · Score: 2
    "I seem to recall hearing stories of courts overturning these schemes; does anybody have any specifics? Cases/judicial opinions, perhaps? I've checked FindLaw, Google, and others, but haven't found anything"
    Searching Google for software + first sale doctrine returns 2060 hits, with this case among the first few:
    Adobe Systems, Inc. v. One Stop Micro, Inc.

    BACKGROUND

    Adobe is a software development and publishing company. Among other things, Adobe makes educational versions of their software, which are available to students and educators at a significant discount. Defendant One Stop buys and sells computer hardware and software on the open market. Adobe alleges that One Stop improperly acquired an educational version of Adobe software, which it then adulterated and sold as full retail versions to non-educational users. In its complaint, Adobe alleges that the agreement was a licensing agreement and not an actual sale, that One Stop infringed Adobe's copyright, and that One Stop infringed Adobe's trademark.

    DISCUSSION

    The court found that the Off Campus Reseller Agreement, which governs the educational seller's relationship with Adobe, was a licensing agreement and not an actual sale. Because the first sale doctrine, implemented by the defendant, is triggered only by an actual sale, and because a copyright owner does not forfeit his right to distribution by entering into a licensing agreement, this factor weighs in favor of the plaintiff. The OCRA is a licensing agreement. Thus, contrary to One Stop's assertions, the OCRA does not represent a first sale between the seller and Adobe. One Stop's failure to trace its Adobe products to a sale renders the first sale doctrine inapplicable and subjects One Stop to potential liability under copyright law.

    The court also found that One Stop committed copyright infringement as a matter of law under Section 501(a). By obtaining Adobe software from a party to an Adobe licensing agreement, One Stop was bound by any restrictions imposed by that agreement. Thus, One Stop committed copyright infringement.

    Lastly, the court found that One Stop did not infringe Adobe's trademark. Although Adobe attempts to parallel its case to Shell Oil, the Court found Shell Oil distinguishable. The court found that the mere distribution by One Stop of admittedly unadulterated software is insufficient to establish trademark infringement.

    CONCLUSION

    In Adobe Systems, Inc. v. One Stop Micro, Inc. the Northern District of California held that the agreement under which software was distributed was a licensing agreement, not subject to the Copyright Act provision that copyright did not extend to resale of copyrighted items following their initial sale. The court also found that the license agreement applied to the distributor, even though it was not signatory. Last, the court held that the distributor committed copyright infringement by violating the licensing agreement.

    1. Re:Specifics by markmoss · · Score: 2

      It's not entirely clear, but this case doesn't seem to hinge on a shrinkwrap EULA. The court decision as reported doesn't even say that One Stop ever saw a EULA -- they weren't installing the software, but reselling it, so if the on-screen license is the only notice, they wouldn't have. It looks like the court just seized on "licensing" as a way to avoid thinking about the tougher issues. And One Stop might do just as well to take their lumps for license infringement rather than taking the case to a smarter judge who might find other grounds to leave them on the hook for copyright infringement, and also wonder whether selling the educational version as the full version was fraud.

      The "Off Campus Reseller Agreement" seems to be a contract which was actually _signed_ by Adobe's educational distributor. One Stop "bought" discounted software from that distributor in bulk and sold it on the open market as the full, not the educational, version. So without thinking about licenses at all, One Stop was claiming that it's purchase gave it rights that the unnamed distributor does not have to sell. An analogy here is that an innocent buyer of stolen property is still out his money and the property -- and it's a whole lot worse if the judge decides that your behavior shows you weren't all that innocent...

  49. Retail businesses have been put out of business by iplayfast · · Score: 2, Interesting
    I knew someone who was in the business of selling software. He business revolved around the idea that you could try out the software (for a small charge) first. If you liked it, then you paid for it. If you didn't like it, you took it back to the store and it was put put back on the shelf at a discounted price. Eventually the price was discounted to the point where someone would buy it. The Software Publishers Association went after his little store and 3 others that were doing similar things, in order to establish case law. They of course went out of business because of all this, and the end result was that less software was sold.

    This is in Canada, but the actions occurred because of bi-lateral trade agreements, that said something to the effect that software could not be rented (presumably because people are too dishonest to remove it from their systems when they were done with it.)


    Personally, (and I write software for a living) I though it was a great way to increase sales. I think people who took it back wouldn't have bought the software in the first place, so those sales wouldn't have taken place in the first place. He was moving product, where other stores weren't.

    It's things like this that make me think that capitalism is dead for the little guys in the world.

  50. My Sis by Marcus+Brody · · Score: 3, Insightful

    My sister has, for the last few years, been running a "grey import" company. Basically, some guy in the states buys up a load of microsoft products which are marked purely as OEM, not for resale, not to be sold outside of the US etc. As far as I understand it, the guy in the US is basically classified as a villian, even though he buys most of his stock from US system builders who have gone bust. However, my sister buys his stock after he has shipped it to the UK, where all these dumb clauses aren't applicable under EU law. Therefore her company is completely ligit - a publicly owned company, with a 'net presence etc., and able to sell microsoft products at a vastly reduced price to normal retail outlets.
    A few years ago, microsoft were really trying to stamp out companies selling grey imports: Basically turning up at the office of some tiny company one monday morning with 15 lawyers and 70 boxes of legals. These companies closed down pretty darn quick. However, I think one of these companies took the case all the way to the EU court and won! Hence, my sister is now safe in her business.
    I'm sorry I cant rember the exact details, but my sister has this great legal schpiel whenever anyone accuses her of being a crook - EU case numbers, reference subsections, grand judge rulings (I'll try and get her on slashdot later to fill in the details). All I can remeber about her little diatribe is that it usually ends with the sentence "Microsofts license is almost as buggy as its software".
    She has allways been a good bussinesswoman & salesperson (she even managed to flog me one of those millenium bug kits, convincing me my computer would die otherwise, even though I know for a fact ahe actually knows nothing about computers!).
    A while back she was approached by one of the major linux distributors about being their UK distributor. She took one look at the GPL and almost died laughing. I remember her words:

    "How the fuck am I supposed to make money selling this? It makes the MS licence look good."

    As I said, she's allways been a good bussinesswoman!

  51. Re:Ah but it is! by The+Terminator · · Score: 2, Interesting

    Hi,

    at least in germany those clauses are void. The former company Nixdorf, now part of Siemens was forced to allow transfer of Software some 20 years ago. AFAIK there has been no other ruling ever since.

  52. Here's why..it's an ongoing battle. by mindstrm · · Score: 4, Interesting

    And here's the root of the problem.

    To Microsoft, you are not 'purchasing' a product. You are *licencing* software. This is fundamentally different than buying a car, or a book, or anything else, where there is a definite product. This is how they try to tell you you can't re-sell it.

    Now.. the problem is, according to the average consumer.. it LOOKS like a product, you can walk into the store and buy it off the shelf.. there are no negotiations, no lawyers involved... just a click-wrap agreement that we all know nobody reads.
    Stores *Treat* it like a product.....

    So it's a deception.

  53. That's very, very different. by mindstrm · · Score: 2

    Software contracts regarding the original purchase & support & software for that Cray were not shrinkwrapped click-through agreements sold in a box at computer-city. They were agreed to by lawyers, principals of the university, accountants, etc.. there were negotiations, and a contract was agreed upon for the use of the software.

    This is what MS is trying to claim happens when you walk into the store and buy MS Windows.
    The problem is... although the contract might be there.. the perception to joe average is that he bought a product off the shelf.. and the click-through is really deceptive.

  54. If software vendors... by rnturn · · Score: 2

    ... could pull it off you'd hear accounts like:

    ``...This court orders the defendent to use -- daily -- the software that was bundled with the personal computer that they purchased and further orders that the defendent cease use of any software that may be freely obtained from the Internet...''

    Methinks that software vendors need to GET REAL! At a company where I used to work several years ago, new PCs were routinely wiped and loaded with whatever software was actually needed for the task for which the PC was purchased. (Lord only knew what crud had been loaded and what horrors in the registry awaited the unsuspecting user.) Sometimes the PC was purchased to run Linux or Novell. Do they think that someone's would actually toss out the Windows CD that came with the box? Har har har.

    --
    CUR ALLOC 20195.....5804M
  55. Right. by mindstrm · · Score: 2

    And, although I can't speak to licencing issues...
    When I buy the win2k kit at London Drugs.... I *OWN* the media, books, everything else I just purchased. The clickwrap 'license' only appears when I use it.
    Ergo.. I have a de-facto right to RE-SELL what I initially purchased.

  56. Re:You never buy software by blang · · Score: 2
    This is not unusual for special-purpose professional software, where the customer is still important enough to have a say in the contract.
    The last phase of a sale is the legal departments of the buyer and seller working out the contract. The contract covers how the software must perform, what kind of support you get, size of penalties if software or patches are delivered late. How the parties may break the contract. It is even usual to have a clause about escrow. A third party keeps the source code in escrow, so that the customer receives the source code if the seller fails to honor the support agreements or goes out of business.


    When you buy a shrink wrapped software package, the contract is one-sided, and somehow Microsoft is able to do that even against the largest corporations. That's why it's called a monopoly. These large organisations are hostages of Microsoft, and must pay whichever price is asked.


    They don't even have the guts to challenge MS contracts, since anything that hurts Microsoft may eventually hurt the quality of a product that they depend on.

    --
    -- Another senseless waste of fine bytes.
  57. Re:Nothing is special... by ichimunki · · Score: 5, Interesting

    It does apply to tangible goods. People lease cars, the phone company used to own your actual phone, my cable modem belongs to RoadRunner, and just about anything in the world can be rented to own. The real difference with that stuff is that you have to actually sign a contract that clearly states the terms and agreements-- and you get to read the contract before you pay the money to the vendor. But in most of those lease cases, one of my terms of agreement is that I can keep the item in question by paying a fee (which would allow me to later sell it).

    However, if I buy software from Best Buy or Fry's or Computer City without signing a lease agreement, in standard retail parlance I haven't leased (or licensed) anything. I *bought* it. I don't think we need to worry about Joe Sixpack revolting, Joe Sixpack will just bitch about it over Buds during commercials on TV. What we need is for corporations and businesses and people with legal ability to take a stand against this sort of crap, instead of knuckling under when the BSA comes calling with their extortion racket.

    --
    I do not have a signature
  58. Used CDs by sulli · · Score: 2

    ... And there will be a big boom in used CDs if/when Universal's copy-protected shite hits the stores. Good!

    --

    sulli
    RTFJ.
  59. Lets just accept it for what it is... by Archfeld · · Score: 2

    the software companies addmitance that their SW is GARBAGE, and that what you are really getting is a time limited access to support to try and make their crappy SW work. When you move on to another piece of SW, the support time has been used up :)

    --
    errr....umm...*whooosh* *whoosh* Is this thing on ?
  60. Real crux of the matter - What IS software? by dpilot · · Score: 3, Interesting

    Clearly Microsoft (and most of the software industry, not to single out just Microsoft.)is trying to have it both ways. They want to sell it like a product, but continue to collect revenue on it like a service. Another model says give away the software, and sell the service. Unfortunately that model hasn't worked very profitably so far.

    But just because the 'software as a service' model hasn't worked yet doesn't mean it's wrong. Nor does it make 'software as a tangible good' or 'software as a tangible + continuing revenue' good.

    In practice, it appears that after taking a considerable amount of time to bring a given piece of software up-to-snuff, it really is mostly done. Then, in order to treat it as a 'tangible + continuing revenue' product, you have to keep overdeveloping it, adding features and junk to 'justify' the continuing revenue stream. Hence the mess we call MS Word today, dancing paperclips and all.

    The historical side of all of this is that software is sufficiently new, and the hardware it sits on has evolved so much that we've barely reached 'maturity' on anything. So thus far, software has had the appearance of tangible goods. I suspect that MS Office may be one of the few/first pieces of software to move past that category.

    We're really talking about something fundamentally new in the past 20 years: Revenue for IP. Up until 20 +/- years ago, IP was sufficiently bound into some form of matter (books, records, etc) that it wasn't commonly distinguished from something physical. Now it is, due to super-cheap media like CDs and the ease of electronic distribution of the Internet.

    Publishing (music, text, software, what-have-you) has always had two aspects, content creation and duplication/distribution. In a very fundamental way, the duplication/distribution part of the publishing industry is as obsolete as a buggy whip. But the duplication/distribution side is where most of the publicly perceived value lies.

    Therefore the publishing industry is hanging on to that role as hard as they can, trying to keep their buggy-whip in the pre-automotive model, and using the government and copyright law to do it.

    They're simply making too much money to let go of that revenue stream.

    Same as prostitution.

    --
    The living have better things to do than to continue hating the dead.
    1. Re:Real crux of the matter - What IS software? by dpilot · · Score: 2

      But that's really my point...

      They're trying to hang onto the role, but not the job. You're exactly right, they want to get rid of the inefficient part, keep the price right where it has been to sustain physical media, and keep the difference as profits.

      Unfortunately eBooks have a good role model in the music industry. Where else can you take something (the CD) that is SOOOO cheap that AOL uses it, and for that matter it comes as a freebie in Cheerios, and charge more for it than cassettes, which actually have moving parts and non-negligible duplication costs. I presume we've all read "Courtney Love Does the Math".

      --
      The living have better things to do than to continue hating the dead.
    2. Re:Real crux of the matter - What IS software? by jiheison · · Score: 2

      As much as I hate to say it, I must admit that the creation of the content is where it's true cost lays. Most readers/listeners/software users judge the value by the media is is distributed on. This, obviously is not an accurate perception, as it does not account for the cost of producing the content.

      What I do have a problem with is the control issue. I would pay the same price for an eBook as a paperbook if I could use it in the same ways. The convenience of portablilty, and searchablilty would make up for not reducing the price. However, this "service" nonesense significantly degrades the value of the product to me. If I can't copy it or recoup my costs by transferring it when I no longer need it, I won't pay the same prices.

    3. Re:Real crux of the matter - What IS software? by HiThere · · Score: 2

      Actually, it has a hugely lower worth. I rarely resell used books. Usually I give them away. So that's not why I hate the e-books. But the idea of a time-limited or playback-limited version ...
      The whole thing is quite distasteful. I frequently go back to books that I bought over a decade ago. I'm not about to trade this for something that stops working unpredictably, and then can't easily be replaced. That's nearly worthless in comparison. And you are talking to someone who has a huge book habit. I've been known to spend over $200 in a single week. But forget e-books. They are trash.

      Also, I haven't met anyone this year who would willingly purchase one. I haven't been looking, but I haven't met anyone.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
  61. Re:buy & sell by Oliver+Wendell+Jones · · Score: 2, Funny

    Everything you can buy legally, you can
    also sell legally


    Including prescription drugs and controlled substances?

    --
    A computer once beat me at chess, but it was no match for me at kick boxing -- Emo Phillips
  62. Re:Like a Driver's License, Software is Licensed by (void*) · · Score: 2
    Excuse me, a driver's license implies that there is a central authority to consult on who is licensed and who is not. I could go to the DMV and ask if someone is licensed to drive a certain vehicle.


    Do you think MS maintains a registry of all the users of Windows? If not, what kind of "license" is it? If they don't keep track, it means that the identities of the licensees don't matter to them. And if they don't care, why should they worry about transfers?

  63. Re:Other ad campaigns by Alien54 · · Score: 2
    You could do a similar spot against Windows ME saying "Windows ME: why 2001 won't be like 2001."

    Or a documentary type of commercial, showing how the multitasking technology was sat on by Microsoft for about ten years, anyhow. Squeezing as much profit out of as little technology gain as possible.

    "Does your computer live up to your expectations? The role of MS in keeping technology down ..." Roll the film of all those companies that died, or were absorbed. Just the facts. All those technologies that never saw the light of day.

    It could be like a political campaign commercial.

    --
    "It is a greater offense to steal men's labor, than their clothes"
  64. Shopping... by Vermithrax · · Score: 2, Insightful

    Just a small question that I think backs up your position,

    Do shopkeepers have to buy a special licence to sell software on to us or by the terms of M$'s own licence are all upgrade copies of all their software illegal because we have bought them from shops. Surely if we follow the line of reasoning in their licences then when the retailer buys a copy of windows from them then they are not allowed by law to sell it on to anyone else.

    If this isn't true then somehow at some magical point then the package that you have acquired in the shop undergoes a transformation from Item of goods to work of art. and so is covered by copyright licensing rather than object sales laws.

    If you want to follow this to a really convoluted end then It could be argued that Software pirates are not doing anything illegal as long as they never install the software on their computer

  65. Time to get the CA AG again by cprael · · Score: 4, Interesting

    Interesting. About 4 years ago, Microsoft was doing this, and I got a little tired of it. A quick restraint-of-trade complaint to the CA AG's office, they talked to eBay, and Microsoft shut up and went home. Looks like eBay needs to be reminded of this, and have it pointed out that that they've already had their hands slapped on this once.

  66. Ha-ha! by T1girl · · Score: 2

    (Assuming target clientele=female) as if any girl would pay for it!

    In either case, the 'client' could come (pardon the pun) away with a tangible good.. It would just take 9 months.

    More likely she would come away with a tangible liability, and you'd spend the next 18 yrs. paying for it!

    -- What would Missy Elliott do? --

  67. The Public's Perception by 4of12 · · Score: 2

    I think the public's perception with regard to software is more along these lines:

    If it came with MyPC instead of jewel-cased CD, then it's probably too hard to get off the hard drive and would be too hard to get to work with the new MyPC, which comes with a new OS anyway (no choice, there), so it's not worth hassling with.

    In other words, the software comprising the OS is regarded much like any other piece of hardware that comes with MyPC. The analogy to hardware becomes more complete because there is an element of obsolescence, that ties the old OS to the old hardware, makes it hard to run on new hardware, makes running the new OS with old hardware difficult, etc.

    OTOH, if I buy a jewel-cased CD with manuals, etc., I sure would like to able to use it on my new PC. If I can't, then maybe I'll buy Rev N+1 that runs on my new OS that came with the new MyPC.

    From what I've seen, average consumers haven't given much thought to the details of software licenses/use/ownership issues.

    But I have seen rumblings that indicate that they do not much care for having to rent software that expires and causes their computer to cease functioning unless more money is paid. That starts to resemble an essential utility, like electric, phone, or, in this era, the Internet Service Provider.

    I can't tell yet whether the average consumer will make such a transition easily, or will look to see if there are any alternatives to the software subscription model.

    --
    "Provided by the management for your protection."
  68. Re:Vaguely offtopic by John+Murdoch · · Score: 2

    Hi!

    Yup--it's off-topic. But it's a good question.

    The book industry has business rules that date (literally) back to the time of Gutenberg. Among those business rules are a standard trade practice of permitting bookstores to return books for full credit up to a year after the date the bookstore bought the book from a publisher or wholesaler.

    For most publishers returns are a colossal pain in the neck. You have to inspect the books to determine if they are damaged, you have to restock the book into the warehouse location, you have to handle a bunch of accounting grief--the list goes on and on. For most "trade" publishers return rates average from 5% to 15% of books shipped.

    For mass-market publishers the business rules are a bit different. Mass-market publishers use substantially cheaper materials, and print in substantially larger volumes--they will release lists of titles each month, and will only anticipate a selling season of one to three months. When the bookstore pulls the book from the shelves it does not return the entire book (there's no point: the publisher has declared the book out of print). Instead the bookstore rips the front cover off of the book and just returns the cover for credit. The bookstore is then supposed to dump the body of the book in the trash.

    However, if you browse the sidewalk stands in midtown Manhattan you will notice hundreds if not thousands of paperback books that are missing their front covers. What happens is that a bookstore (or clerk) sells the stripped bodies out the back door to the sidewalk merchant. It might be for a few cents per copy; it might even just be to avoid the cost of paying a trash hauler to take the books away. But that stripped book has been declared to the publisher as having been discarded, and the author does not receive any royalties for the sale.

    Years ago I was the business manager of a small publishing house (where I installed Netware 86 in 1983). My little company still does software development for publishers and warehousing companies.

    And since I just noticed that you're at Lehigh, I should mention that I'm in Wind Gap, twenty miles north of you.

  69. I wouldn't mind so much if... by michael_cain · · Score: 2
    I got the same kind of terms for the software that I get for everything else that I lease:
    • Well-defined period of time for which I am licensing it,
    • Assurances that the software does what the vendor claims it does (love those phrases saying that the "product" may not be good for any purpose),
    • Agreement by the vendor to replace damaged media at cost (what's that, 25 cents plus shipping these days?) in a timely fashion during the period of the license,
    • Various conditions that cover my ass should the vendor go out of business (eg, full disclosure of file formats if that happens),
    • No changes in terms without consent of both parties,
    • Etc.

    Ditto for DVDs and the DMCA; if I'm just licensing the right to view the flick, then I damn well expect the studio to replace damaged media at any point during the term (indefinite?) of the lease.

  70. You really are buying it! by Fujisawa+Sensei · · Score: 2, Insightful

    A serious case could be made that you really are purchasing the software, because you don't see the EULA untill 'after' the exchange has been made. So effectively the EULA is changing the purchase, a transaction between you and the store, to a licensing agreement after the fact.

    The fact is that you never signed the EULA before making the purchase.

    This is entirely different from the legacy EULAs and licenses because because the contract was agreed to and known before the money was exchanged.

    Clearly MS is doing a bait and swap with their software. As far as I know that's illegal.

    --
    If someone is passing you on the right, you are an asshole for driving in the wrong lane.
  71. Copy software to use, Printing Press Plate resale by Odinson · · Score: 2
    "The legal basis for restrictive EULAs is that you have to make a copy of the software (in your computer's RAM) in order to use it. Copying is prohibited without explicit permission, and so, therefore, is use. Therefore the companies can ask you to sign whatever argument they want before allowing you to use the software."


    This seems to compare to map making, which was one of the primary arguments in favor of copright law existing at all. A software cdrom could be compared to a set of plates for a printing press to make a map. If those plates should be availible by licence, so should computer software. That seems to be the logic here.


    But this is a symptom of practical constraints more than moral ones. Printing presses were always very expensive and belonged to business before. But the situation has changed now as many people own their own personal printing press(computer), and the plates to print one map(software).


    So the real moral question is, should people be allowed so sell their plates along with any licence to make copies of their maps. (legal number of 1 in ram plus more recent fair use protected backup of 1)


    So the question really is... Can you resell copyright based licences so long as the number of copies allowed by the licence is honored.


    I say yes. That reselling printing press plates with the number of copies allowed by licence is moral and would have been allowed had it come up.


    Any lawers with a good understanding of copyright history in the mix?

    Are their any legal precidents set? Did reselling printing press plates along with an allowed number of copies ever come up?


    For example: A publishing house bought plates and the right to print say 800 maps for resale. They land a contract for printing a best selling book and make more money printing copies of that. Rather than sitting on the plates until the map is inaccurate they resell the plates with rights to print 300 unprinted maps remaining. The map desinger takes them to court, claiming he never gave them permission to do such a thing.


    What happened?

  72. Re: liable for $100/hour by markmoss · · Score: 2

    You seem to be associating my $100/hour proposed charge with a lot more than I intended. It's for (shrink-wrap purchased) software remotely shut down by the vendor in error -- that should be a rare occurrence. I think $100 is fair for a home user that's been deliberately shut down, if they fix it promptly. If a vendor has their tech support screwed up, so the hours tick away -- that deserves a much bigger cost. If they screw up so many times that this bankrupts them, putting them out of business is probably a good thing. If the possibility of such a screw-up persuades software vendors to leave out the remote shutdown "feature", that's even better, IMO. But I don't like just flat out banning it.

    I didn't consider the possibility that it might not be the vendor shutting software down in the mistaken belief that the software is pirated, but malicious hackers instead. E.g., if Microsoft puts that into their server version of Windows, a lot of people would think it served them right to have it used to crash their own servers. (Oh wait, some of them are still running *nix/Apache...) If the hackers weren't satisfied with that and hit third parties -- what should MS's liability be???

    I do know there are servers where the cost of an unscheduled shutdown might be far over $100/hour, maybe even $100K/hour. I'd expect that in that case (1) you won't use an OS that has such vulnerabilities, and (2) you ought to be negotiating the license and warranty terms with the vendors rather than relying on the warranty that's sufficient for Joe Sixpack's porno browser.

  73. Re:Just Say No! by HiThere · · Score: 2

    The kicker is that having the M$ "Proof of Authenticity" is not proof of ownership, at least for a business. A business has to be able to show purchase orders or receipts for the software.

    I thought it was the other way round. Are you sure? I seem to remember reading about this city in South Carolina that had the purchase orders, but not the holographic seals, and got shut down for a while.

    --

    I think we've pushed this "anyone can grow up to be president" thing too far.
  74. Re:Ah but it is! - not really by hillct · · Score: 2

    There are many cases where licenses are non-transferable, particularly in the case of corporate licenses of intellectual property, but I believe (IANAL) most licenses are transferable by default, unless specifically stipulated otherwise. As I recall some states require consumer product licenses to be transferable (stating that non-transfer clauses are not enforcable within that state). I'm just not certain in which states this is true. The UCITA makes ajustments to the transferability rules, but the site I'm referencing here is not an even-handed analysis of that legislation (primarily because I don't have time to look for a better analysis). If you find what's written there to be disturbing, remember that it's decidedly pro-UTICA so an even handed analysys would be even more disturbing.

    --CTH

    --

    --Got Lists? | Top 95 Star Wars Line
  75. I don't get it. by twitter · · Score: 2
    what's this transfer thing?

    apt-get transfer does nothing for me.

    --

    Friends don't help friends install M$ junk.

  76. Re:Which begs the question... by swordgeek · · Score: 2

    Read my original point.

    When you have a 900lb gorilla, threatening people is usually effective enough, and much easier.

    Even a 90% chance isn't good enough for MS to go to court unless someone was _really_ a thorn in their side. Even a guarantee of winning doesn't negate the fairly substantial costs of actually going through the process.

    MS doesn't want to go to court unless they have to, and they have a VERY big gorilla to discourage anyone from forcing their hand.

    --

    "People who do stupid things with hazardous materials often die." -- Jim Davidson on alt.folklore.urban
  77. Who Really holds the "license"? by Dr.+Evil · · Score: 2

    Microsoft demands that you have a license for all your applications. Microsoft gives you a Certificate of Authenticity, they give you original media, they give you an End User License agreement... which one of these constitute a license?

    I don't think a single one does. The EULA tells you your rights. The Certificate just prevents counterfeiting.

    A receipt represents evidence that you purchased the software from an authorized dealer. The EULA guarantees that you cannot resell that software and break the train of proof-of-license which the receipt provides. If you could sell software, people could shuffle silly paper licenses around whenever an audit occurs... there would be no way to proove that anybody owned anything at any particular time.

    From what I hear, an OEM license isn't even valid unless you can prove that the software was purchased at the same time as your CPU, HDD and Motherboard.

    1. Re:Who Really holds the "license"? by SuiteSisterMary · · Score: 2

      The EULA takes the right of resale away. Took me a while to wrap my head around EULAs vs the GPL, but here it is. The GPL says 'here's some software. Legally, you can't copy it, but I'll GRANT you the right, assuming you agree to these conditions. Otherwise, use it all you want, but standard copyright applies.' In other words, it grants rights you don't legally get automatically. The EULA, on the other hand, says 'here's some software. Before you use it, you must agree to GIVE UP the following legal rights you probably already have..no resale, blah blah blah.' In other words, as a precondition to using it, you need to surrender rights. And that's the rub. Of course, with things like UCITA, if I recall the acronym correctly, EULAs becone a bit more kosher.

      --
      Vintage computer games and RPG books available. Email me if you're interested.
  78. EULAs for Commercial Software... by sfe_software · · Score: 2

    ...have all sorts of rediculous clauses. What other industry makes you agree to a license which states that there is NO guarantee that it will even work out of the box for any purpose? You pay good money and can't even get some assurance that it will function. Naturally, the license isn't printed on the outside of the packaging, and you must actually make the purchase before even seeing this, but that's another issue.

    Something else that occurred to me: what about when you sell a used PC to someone? You might have tons of software licensed on that box, and provided you aren't keeping a copy of any of it, you shouldn't be required by law to format the drive and sell them a doorstop, should you?

    I've often wondered about the legality of some of these EULAs (like the FrontPage thing discussed a few days ago). We're always discussing the GPL and other open-source licenses, debating whether or not they'd hold up in court; commercial software licenses haven't really been tested in courts much (to my knowledge) either.

    I suspect the GPL might actually have a bit more legal ground than most EULAs, simply because of the way the license is presented to the end user. A box pops up, requiring you to click 'Accept', and most people don't read them. The GPL is in the top of every source file, and it's not easily over-looked. Plus developers should have a bit more responsibility than end-users when it comes to using someone else's code...

    In my opinion, if commercial software vendors want my business, some of these clauses must go and they must take some accountability (eg, MS is not liable in any way for CodeRed/Nimda/etc thanks to these EULAs). Otherwise, I have no reason to purchase software when I can get much more favorable terms -- for free. The GPL is strict, but from an end-user perspective (and for any responsible developer) it's great.

    --
    NGWave - Fast Sound Editor for Windows
  79. Selling Licences by os2fan · · Score: 3, Interesting
    Software is like any other copyrighted stuff.

    When you buy some software, or a book, or a record, you own the distribution media, and a licence to use the material contained thereon. Even though I don't own "Amipro" or "Imagine" or "Regular Polytopes", I do own a licence to use a copy of it on my machine. Buying any of these do not give me the right to set myself up as a redistributer.

    So, technically, you don't own the copyright to the software, you do own the right to use a copy of it, and to hold such backups of the media as allowed in the agreement.

    And it is that right that you might transfer under the cover of sale.

    --
    OS/2 - because choice is a terrible thing to waste.
  80. Not the law. RTF{Statute} by werdna · · Score: 2

    First Sale is codified at 17 U.S.C. section 109. It is available, unfortunately for your theory, only to "the owner of a particular copy or phonorecord lawfully made under this title."

    Show that you own title to the copy, and you're in. Merely being a "consumer," as you say, won't cut it. Unfortunately, you won't be able to in the case of Microsoft software -- your transactional documents will show that you are the licensee to use a copy, not the owner thereof.

  81. FLEXlm by Pseudonym · · Score: 2

    FlexLM, the bane of many a sysadmin's life, is very similar.

    A lot of graphics software (e.g. Maya, Photorealistic RenderMan) in particular is licensed with FLEXlm. This form of licensing is particularly badly suited to this kind of product, because a) managing 1000 licences is a logistic nightmare, and b) you tend to only use your "maximum" number of licences during certain peak times (when you get close to delivery).


    --
    sub f{($f)=@_;print"$f(q{$f});";}f(q{sub f{($f)=@_;print"$f(q{$f});";}f});
  82. German Law by phooka.de · · Score: 2, Insightful

    Over here, they went to court once or twice. However, even OEM-Windows may be sold without computers.

    Here, Software is a product and once it left microsoft's hands, whoever owns it may sell it in any way he likes.

    Don't have the details, though.

  83. What if you selected NO by Fred+Fletcher · · Score: 2, Insightful

    What if you selected NO on the EULA? I have not found a store that will let you return software if you read the GD EULA and find it to be a unacceptable. Seems like it may be a hard agreement to enforce since you can not refuse to buy the product if you do not like the agreement cause you can not read the agreement unless you buy the product and then it is too late to return.

  84. Re:Shrinkwrap licenses by SuiteSisterMary · · Score: 2

    Contract law states you get something in return for something. You get the software in exchange for money. Great. Then you open it up, and the EULA suddenly takes away a bunch of rights. No quid pro quo, no meeting of the minds, no upfront intent. Ooops.

    --
    Vintage computer games and RPG books available. Email me if you're interested.
  85. The DMCA is much more than you say by alienmole · · Score: 2
    The DMCA is a revision to copyright law that prohibits trafficking in circumvention devices.

    The DMCA also deals with fair use of digital materials; service provider liability and the takedown clause that allows copyright holders to shut down web sites that they believe violate their copyright, without trial or prior review; protection of copyright management information; digital "performances"; allowing copying related to maintenance and repair of computers; and more. The DMCA consists of five separate "Titles" each dealing with a different area, of which anti-circumvention is only one. See this summary, for example.

    Obfuscating the purpose of the DMCA lessens the logicical correctness of our argument against it and in so doing weakens our cause. In the future, please be more vigilant.

    Pot, meet kettle!

    1. Re:The DMCA is much more than you say by alienmole · · Score: 2
      Your comment is illogical and NOT FUNNY

      It wasn't intended to be funny. Are you OK? You seem a little on edge. Take a deep breath, and stop being so hard on yourself...

  86. Well. by mindstrm · · Score: 2

    You do good on the soapbox.. feel free to borrow it anytime!

    It strikes me as odd, sometimes, how little people understand their rights as far as returning products.

    As far as the law goes (in general, dunno about each state)... a store is not really required to have ANY return policy. A sale is a sale is a sale.. with the following exception:
    A product must be fit for purposes sold.. there cannot be deception. If the salesman tells you 'this pipe-bender, sir, can bend pipe up to 3/4 inch thick' and you try, and it can't.. then they MUST take it back, as they sold it fraudulently. Similarly, with software....
    If a store clerk tells you 'Sir, this works under windows 2000' and it doesn't.. they MUST take it back, they have no choice.

    But as for stores simply accepting returns.. it's really a courtesy that they do so at all, in order to please their customers. They could quite legally say 'All sales are final', and as long as they don't deceive people.... not have to take returns, ever.

  87. Re:Not the law. RTF{Statute} by werdna · · Score: 2

    Not. ProCD v. Zeidenberg.