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Blizzard Stomps Bnetd in DMCA Case

base3 writes "The EFF reported that the Vivendi/Blizzard vs. the good guys case has been decided, and it doesn't look good. Some highlights from the ruling are: A clickthrough EULA isn't unconscionable (and thus enforceable); Fair Use rights can be waived in a EULA; First Sale rights (!) can be waived in a EULA; The DMCA's interoperability provisions are not a defense. If this ruling is allowed to stand, it will allow one-sided EULAs to force the waiver of the rights of First Sale and Fair Use. This, combined with the Supreme Court's recent assent to perpetual copyright, a few decades at a time, will destroy any semblance of balance in U.S. copyright law. Fortunately, the EFF plans to appeal the ruling."

23 of 773 comments (clear)

  1. Well, we wanted a ruling on EULA's by nurb432 · · Score: 5, Interesting

    Now we have one. And they are legally binding...

    Joy Joy.

    Been saying all along you CAN waive rights via agreement of a contract..

    --
    ---- Booth was a patriot ----
    1. Re:Well, we wanted a ruling on EULA's by gcaseye6677 · · Score: 4, Interesting

      The EFF, or other concerned groups, needs to set something like this up. Form a corporation who releases a software product with an insane licensing agreement (you give up your first born, etc.) then have people buy the software. Try to enforce the agreement, and have these people sue. The court must either decide that all EULAs are OK no matter how ridiculous, or case law will be established which limits how far a software company can go. OK, maybe they shouldn't really ask for the first born, but a large sum of money instead. Or some severe usage restrictions. If nothing else, it would be a very uncomfortable decision for a judge to make approving something like this, so it would be quite likely that we would see some restrictions finally put in place.

  2. This is bad. by Breakfast+Pants · · Score: 5, Interesting

    You don't get to read the EULA before you have already purchased the software and many stores will NOT take back opened software. I see some lawsuits coming against said stores if this appeal doesn't work out. Imagine if when you bought a music CD you had to sign a contract saying you wouldn't allow anyone but yourself to hear any time you played it.

    --

    --

    WHO ATE MY BREAKFAST PANTS?
    1. Re:This is bad. by AeroIllini · · Score: 4, Interesting

      Imagine if when you bought a music CD you had to sign a contract saying you wouldn't allow anyone but yourself to hear any time you played it.

      The Hypothetical:

      Me: Hi. I'd like to purchase this CD.
      Clerk: Ok. That will be $14.50.

      **money changes hands**

      Clerk: Now, before you can take this home, the policy of this CD's publisher is that you sign a contract agreeing to their terms.
      Me: Ok, let me read the contract.
      Clerk: It's included with the liner notes.

      **I open the CD and pull out the contract**

      Contract: CDMusic Publishing, Inc. (hereafter referred to as the "licenser") licenses this music to be listened to by the buyer (hereafter referred to as the "licensee"). The licensee may not alter, copy, resell, give away, or otherwise do anything with this recording. The music belongs solely to the copyright holder, and the licensee waives all rights to listen to this music, except on a player manufactured by CDMusic Publishing, Inc., using headphones manufactured by CDMusic Publishing, Inc. at a volume that would not allow non-licensees to hear the music. All other use is prohibited by this contract.
      Sign: ____________________________
      Initial: ________
      Date: ___________

      Me: I don't like this contract. It doesn't give me any Fair Use rights. I want my money back.
      Clerk: I'm sorry, sir. Store policy does not allow me to give refunds on opened CDs.

      The uselessness of the EULA, seen with a different product, comes into sharp focus.

      --
      For security, the MD5 hash of this message and sig is 09f911029d74e35bd84156c5635688c0.
  3. for those of us who value fair use backups... by Anonymous Coward · · Score: 5, Interesting

    ...would it be legal to make backups of the software BEFORE agreeing to the EULA?

    1. Re:for those of us who value fair use backups... by ScrewMaster · · Score: 4, Interesting

      I think the problem is that the word "sign" doesn't have the meaning that it used to. At no time in the past twenty-five years of purchasing software have I ever been required to "sign" anything. As in taking up a writing instrument and putting my signature upon a piece of paper. The whole point of "signing" a contract was that a. it verified that you agreed to the terms of the contract and b. provided undeniable evidence that you had done so. This whole shrinkwrap/clickwrap/EULA nonsense is so unbelievably offensive that it just makes you want to find your nearest lawmaker / judge / corporate attorney and throw up in his lap.

      There might be a business opportunity for a company that could provide insurance for people that want to buy software. Call it proxy-licensing. You pay a yearly premium to the insurance company, and whenever you buy a new piece of software one of their representatives (known as an "opener") stops by and deshrinkwraps the package for you. If it should be discovered, upon installation, that a clickthrough license is required, he or she would provide that service as well. That way you're off the hook (I mean, hey, you didn't open the box and you didn't click anything) and if the software vendor chooses to sue, the insurance company takes care of it for you.

      P.S. that was a joke but it makes about as much sense as anything else on this subject.

      --
      The higher the technology, the sharper that two-edged sword.
    2. Re:for those of us who value fair use backups... by 7-Vodka · · Score: 4, Interesting

      more importantly, what happens if you don't use the installer that came on the cd to install the software?
      That way you never get to see, much less agree to a eula and yet you have the software installed and running.

      --

      Liberty.

  4. Re:Plain Engrish? by brianosaurus · · Score: 5, Interesting

    It roughly translates to "Boycott Blizzard."

    This ruling gives publishers the ability to take away all consumer rights under copyright law. It basically overrules copyright law with whatever they put in their EULA.

    You can't play without clicking through the license. You can't read the EULA without opening the package and running the software. You can't return unopened software (to most stores, again for mostly copyright reasons).

    So unless you consent to the possibility of giving up all rights, you should not purchase any software. You have no idea what the restrictions of the license are until after you've given them your money.

    An extension of this could mean that any documents you create under a future version of MS Office could potentially be copyrighted by MS. Granted that would be a very stupid thing for MS to do, but this ruling seems to make it possible.

    --
    blog
  5. ouch. by focitrixilous+P · · Score: 3, Interesting
    This is bad. A Blizzard boycott is not likely, due to the quality of their titles overall. I won't be getting whatever they come out with next, but a million fanboys will.

    The solution? Someone comes out with a popular piece of software with some crazy clause in the EULA. Like "On October 31st, 2009, your right to use this software is revoked, along with your computer, which becomes our property on the date" or some such. People won't care, and when the enforcement lawsuits come to take your computers, we'll see if this curent decision isn't overturned. Bad news in the meantime, though.

    The GPL looks better and better every day.

    --
    SAILING MISHAP
  6. Re:Plain Engrish? by Zangief · · Score: 3, Interesting

    But you should be able to return it directly to Blizzard.

    Boycott Howto:

    *Get a lot of money (or indignated consumers)
    *Buy Latest Blizzard game in droves.
    *Open the box. Copy the game. Copy the CD-Key. Scratch the cds a little.
    *Return all the package to Blizzard, arguing you don't agree with the EULA.
    *Post Cd-keys somewhere on the net.
    *Repeat (since you got the money back, why not?)

  7. Re:sold down the river by Anonymous Coward · · Score: 5, Interesting

    If you want it to get better, you have to do something about it, not just sit on your ass and say "it will probably get even worse!"

    How monumentally naive. Thousands of people have stood up to do something about the ridiculous drug laws in this country. NORML has been working for 30 years to repeal the marijuana laws. They have had no success at the federal level. Imagine spending half of your life to overturn ONE stupid law, and meeting with failure. Face it. The system is unresponsive to the needs or desires or will of the people.

  8. If they won't give you a refund... by rollingcalf · · Score: 3, Interesting

    If you buy it, stop installing at the EULA, and attempt to get a refund within the 30 days but are refused, that should void the contract.

    So go ahead, buy it, open it, and return it. If you get back your money, fine. If you don't get back your money, the agreement is broken by them and you can do whatever you want.

    --
    ---------
    There is inferior bacteria on the interior of your posterior.
  9. Re:EULA is a contract by Anonymous Coward · · Score: 5, Interesting
    It think it's this clause in the Warcraft III License that they are referring to:

    9. Limited Warranty. Blizzard expressly disclaims any warranty for the Program, Editor, and Manual(s). The Program, Editor, and Manual(s) are provided "as is" without warranty of any kind, either express or implied, including, without limitation, the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. The entire risk arising out of use or performance of the Program, Editor, and Manual(s) remains with the User; however, Blizzard warrants up to and including ninety (90) days from the date of your purchase of the Program that the media containing the Program shall be free from defects in material and workmanship. In the event that the media prove to be defective during that time period, and upon presentation to Blizzard of proof of purchase of the defective Program, Blizzard will at its option 1) correct any defect, 2) provide you with a product of equal or lesser value, or 3) refund your money. Some states do not allow the exclusion or limitation of implied warranties or liability for incidental damages, so the above limitations may not apply to you.


    You'll note that the only thing that you get when you purchase Warcraft III is a working CD. The manual can crumble to dust upon opening the package. The software can do absolutely nothing at all, or for that matter it can cause your monitor to explode and ruin both your eyes, and as long as the CD is good, then Blizzard owes you nothing. In the event that the CD doesn't work Blizzard can at their option send you a Tootsie Roll(TM) Blow-Pop and that's it. If this license is binding then Blizzard has the option of taking your $50 and giving you a blank CD. Seems like bullshit to me.
  10. Re:EULAs by rpdillon · · Score: 4, Interesting

    This is not new. I used to game on a Kaypro PC back in the late 80's and I played a flight sim called "Jet". I was quite young (10-11) and I asked my dad (who *is* a lawyer) how much the game had cost (there was the main game plus add-on packs that added scenery). He replied with the amount and I think I said something like "Wow that's a lot of money just to own the game." He then sat me down and explained something:

    "You're not buying the game. You're buying a license to use the game on this computer. So you don't own it, and you cannot do anything you want with it. You *do* own the disk that it's on, but you don't own that data. See what I mean?"

    I understood at the time only somewhat, but my dad was good to explain, because I still remember that.

    My position to this day is that while I do own the disk (cdrom, whatever), I *paid* for the license to use the software; the disc should essentially be free. So this ruling is not merely a "technicality" based on ownership. The judge understood the principle my dad had explained to me. This is not new - this principle has been at work at least since the mid 80's.

    IIRC, I think my dad actualy pulled out the piece of paper that was the license and explained bits of it to me.

    This of course does not address what the license *says* or whether it can take away certain fundamental rights like fair use.

  11. Backups probably *AREN'T* fair use! by isaac · · Score: 4, Interesting
    ...would it be legal to make backups of the software BEFORE agreeing to the EULA?

    Who says backups are fair use?

    There are four factors that judges use to make a fair use determination under copyright law:

    1. The "transformative" factor - have you added any value to, or transformed, the original work? Consider a parody - the original is transformed - or the case of commentary, research, or education where the original work is the subject of commentary or used to illustrate a port. A backup copy of software does not transform the original work - indeed, the whole purpose of the backup is to make an exact (or functionally exact) copy of the original.
    2. The nature of the copyrighted work - it is considered a public good to disseminate factual information. Your software might contain facts (e.g. an encyclopedia on CDROM), but you're simply duplicating the original work, not excerpting and disseminating its factual content. This goes to the next point,
    3. The amount and substantiality of the portion taken. In the case of a backup, you're copying the entire work. Backups fail this test, too.
    4. The effect of the use upon the potential market. By making a backup of your software, you are potentially depriving the copyright owner of a second sale in the event your original media are destroyed or otherwise rendered unreadable.

    Any rational analysis of these rules suggest that backup copies are not, in fact, fair use of copyrighted work under the present code and caselaw. Sad, isn't it?

    -Isaac

    --
    I am not a lawyer, and this is not legal advice. For Entertainment Purposes Only.
  12. No the big problem is... by NigelJohnstone · · Score: 5, Interesting

    "The big problem most people have with EULA's is that they aren't presented at the time of purchase. "

    No the big problem is, people don't and can't be expected to enter into a contract (which is what an EULA purports to be) for a minor purchase for a few $$.

    Realistically these densely worded contracts you would have to get professional advice in order to know your rights and loss of rights. You can't do that for every $40 purchase.

    What's more is, its impractical to obtain that legal advice when your in a shop, even if you were presented with the contract just before purchase.

    What I think you should do is this:

    Write a letter saying that regardless of what the EULA says, you do not accept it, will not read it and are not entering into a contract with the publisher. If they don't like it, they can arrange to collect their software from you at a convienient time and give you a full refund.

    Send the letter off to them, THEN INSTALL IT.

    If they can impose terms after the sale on you, you can impose terms after the sale on them. If its reasonable for them to expect you to return to the shop at your expense, its reasonable for the shop to collect it from you at their expense (or the publishers).

  13. Re:EULA is a contract by arkanes · · Score: 3, Interesting

    This is untrue - I have never seen (retail) software where the full contents of the EULA were accessible without running the installer (or at least opening the package). There's a small sticker with something to the effect of "there's an EULA for this somewhere". That's totally aside from the point that I cannot see how any judge can reasonably claim that an EULA has any standing. It's clearly not a contract. The only case law I've read seems to have the judge saying that he thinks the software industry derserves to have this sort of extra power, so he's going to let them have it. With all the retorical whining about activist judges, why don't people pick on this sort of nonsense?

  14. Pretty devastating ruling by Fnkmaster · · Score: 4, Interesting
    This ruling is wrong on many fronts, and it is devastating to the software world as a whole if these interpretations were to be considered precedent. Here's a summary of the relevant parts of the decision itself:


    The decision acknowledges that an EULA is a contract of adhesion, but rejects that prohibitions against investigation or reverse engineering of a product are unconscionable terms and thus the fact that it's a contract of adhesion is irrelevant (they partially base this on the fact that the party to this dispute was smart enough to reverse engineer the product, and thus should have known well enough to read and understand the terms of the EULA, unlike a normal user - no, I'm not kidding on this).


    They then go on in the next section to state that fair use rights don't apply here since the EULA waives them - again, they've already asserted that there is nothing unconscionable in the EULA, and they fail to consider whether waiver of fair use should be considered unconscionable in a contract of adhesion, they just assert it indirectly (basically their argument states by implication that Joe Average doesn't care about his fair use rights, and thus their prohibition in a contract of adhesion is not a radically unexpected or unconscionable term and is thus PERMITTED).


    As for EULA terms constituting copyright misuse, they don't really make any assessment to speak of other than to say that this may be an affirmative defense to copyright violation, but that portion of the case has been dismissed already, and this doesn't have much to do with the fact that there was a contract formed by the EULA.


    With respect to the DMCA, the court rejects completely the notion that 1201(f) (the reverse engineering exception in the DMCA) is applicable unless the relevant party has permission to circumvent it. This makes no sense, since even the DMCA doesn't state that, they infer it from another case. In essence, they interpret the word 'use' in the DMCA to mean 'use as permitted by the EULA', and thus breaking the EULA contract now AUTOMATICALLY means you are no longer permitted to take advantage of the reverse engineering exception of the DMCA under any circumstances, regardless of your intention to circumvent copyright.


    The next part - where they find that they state that bnetd was not an 'independent program' according to the DMCA is completely wrong. They say it fails to be independent because it replicates features from the existing server program created by Blizzard. This is a definition of 'independent program' that only the most twisted logic could accept.


    As to their overall conclusion that the defendents were trafficking in a circumvention device as defined by the DMCA, they come back to their rejection of the reverse engineering defense - since they reject that, and have already stated that the action of creating bnetd constitutes 'copyright infringement' (meaning presumably violation of the DMCA), there can be no doubt that it is a cirumvention device (though they don't seem to address section E(2)(A) directly - what was the primary purpose of the device).


    I understand that it's hard to argue that the primary purpose of Bnetd wasn't to allow circumvention of copyright, and on that point I can understand where the court's hands are tied by the poor legislation. The rest of this decision is filled with misunderstanding, misinterpretation and half-truths.


    Anyway, this was a quicky analysis and I'm sure I missed stuff in here, so feel free to correct or add to this where I made mistakes.

  15. Re:EULA is a contract by FLEB · · Score: 3, Interesting

    It makes me wonder what the legality is on pre-editing, deleting, or "wedging" a new EULA in before you run the installer.

    --
    Information wants to be free.
    Entertainment wants to be paid.
    You just want to be cheap.
  16. Re:Right of First Sale in 2001 by rpdillon · · Score: 4, Interesting

    OK, I just got back from reading the entire ruling. The point you bring up is probably the most interesting part of the whole decision. The court concluded that right of first sale did not apply because Blizzard never sold the software - they sold a license to use it. Therefore, since there was no "sale", it canot apply.

    This really pisses me off, but I'll try to stay cool. The problem is obvious: what the hell does right of first sale apply to if not copyrighted computer games?? This was the main point in the decision that didnt make sense to me - and I wonder how it got written in that way. In my book, if I pay $50 to play a game, that's a sale. The court is essentially saying I paid for the license, not the game, so therefore right of first sale only applies to the license itself, not the game.

    It is quite interesting, because if right of first sale would then, using this *same, exact* logic prohibit the right of console game buyers to "sell back" or "trade in" games at a game store without the express consent of the game manufacturer. Most people may not know this (I didn't), but it is right of first sale that allows people to do what they want (more or less) with their copy of a work, like a CD, console game or PC game (like sell it back without having to get the consent of the game publisher). The fact that right of first sale specifically deals with this issue and the court said it was irrelevent seems a bit suspect to me.

    If you care about this stuff, the finding is actually quite readable, and at 36 pages (double spaced) I read the whole thing in about 20 minutes.

  17. We need to bypass the EULA by Todd+Knarr · · Score: 4, Interesting

    I think the case that needs brought isn't one based on the enforceability of an EULA. In all but a handful of states sales are governed by the terms of the Uniform Commercial Code and there's no exception for software. If the seller didn't make you sign an agreement before or when they accepted your money and gave you the goods, the UCC defines the terms of the sale and the rights you and the seller have after the sale. What we need is a case brought on the grounds "I bought this software. No other agreement was demanded at the time of the sale, so the terms of sale are those of the UCC. Since I declined the after-the-fact EULA and it's changes to the terms, what it says is irrelevant and the terms of the sale remain the terms of the sale at the time it was made. Judge, either make them justify their case under the terms of the sale or make them stop harrassing me by demanding I adhere to terms that aren't part of the contract.". This would really damage the case of companies like Blizzard, probably fatally. It'd also put them in the position of either having to forget about enforcing those unreasonable terms in the EULAs or require every mass-market sale to be preceeded by paperwork neither the customers nor the stores would find acceptable.

  18. Do what I do by earthforce_1 · · Score: 3, Interesting

    Pay to have a 12 year old purchase and install the software on their own PC, and leave the room while they do it. (They are the ones who will be playing the game anyway) Minors cannot be legally bound to any contract.

    --
    My rights don't need management.
    1. Re:Do what I do by jonabbey · · Score: 3, Interesting

      Yeah, but if you leave aside the 'paying the 12 year old to click the button' part, where is the flaw here? If Blizzard et al really want the EULA to be a contract, that implies that 12 year olds cannot, of their own accord, install their software, plain and simple.

      Or is it simply that they want a right to have their EULA given force without regard to tort law?