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CA Court Strikes Blow Against Hidden EULAs

vsprintf writes "Ed Foster's Gripelog has a story on California's ruling against some of our favorite software producers and software retailers. EULAs inside the shrinkwrap are no longer good enough. Retailers with rules against accepting returns of open software could be in for hefty fines or settlements. Finally, a break for the buyer. May this spread quickly to other states."

47 of 640 comments (clear)

  1. soggy frist psot by Anonymous Coward · · Score: 5, Funny

    by reading this post you agree not to moderate it down. only moderations of +1 insightful will be allowed.

    1. Re:soggy frist psot by Alsee · · Score: 4, Funny

      I always mod down the first post without bothering to read it.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  2. What next? by krautcanman · · Score: 5, Interesting

    What's next? Will we have to read and agree to the EULA before we can buy?

    1. Re:What next? by MrRuslan · · Score: 3, Funny

      In some cases that may not be a bad idea. What if the EULA says "by buying this u sign your left nut away to us to do with as we please.

    2. Re:What next? by zbuffered · · Score: 4, Interesting
      What's next? Will we have to read and agree to the EULA before we can buy?

      Yes. From the article:

      In addition, Symantec, Adobe, and Microsoft agreed to provide EULAs for the applicable software products on their web site and notices on their respective software packaging of the web addresses to such EULAs so consumers can review such EULAs prior to purchase of the software.
      --
      Synergy is your friend
    3. Re:What next? by Kyn · · Score: 4, Interesting

      What if I'm buying the software as a gift?

      How does that help things? /hates EULAs

    4. Re:What next? by cyberlotnet · · Score: 5, Informative

      No you moron, they expect you to read the package prior to opening it, SEE the reference to the EULA online. Go online and read it before opening the package..

      If you don't agree you can then bring it back and not have any issues because the package is not open.

    5. Re:What next? by anagama · · Score: 3, Insightful

      • What utter bullshit. They expect us to run to the store, look at the product, run home, read the EULA, then run back to the store to buy it? Yeah, right...

      Presumably, one could buy the product, see the EULA url through the clear plastic wrap, go home, read the EULA on the internet without opening the package, and then open the package and use it or decide to return it unopened. Although this is somewhat difficult if the software is an OS and there are no other computers available (knoppix to the rescue?).

      Alternatively, stores could put out a net connected computer that customers could use to read the EULA.

      As for the EULAs being understandable however as another poster hoped, I would hesitate to place even a penny or two on that bet.
      --
      What changed under Obama? Nothing Good
    6. Re:What next? by Firehawke · · Score: 4, Interesting

      Maybe, but most places I've seen won't even take wrapped packages anymore since it's so easy to rewrap these things. As early as 1991, a friend of mine at the former Babbages stores was ordered to not take returns on wrapped stuff if there was *any* question whatsoever.

    7. Re:What next? by NanoGator · · Score: 5, Insightful

      "If you don't agree you can then bring it back and not have any issues because the package is not open."

      Why do some think this is an acceptable business practice?

      --
      "Derp de derp."
    8. Re:What next? by sqrt(2) · · Score: 3, Insightful

      I guess it's the line of thinking that if you say something enough times it becomes true. Some people are just so used to being mistreated like this that they just accept it as the way things are.

      --
      If you build it, nerds will come. Soylentnews.org
    9. Re:What next? by AstroDrabb · · Score: 5, Insightful
      Hey moron, what if you are buying a _computer_ and you don't have access to the internet? Exactly how do you get online to see this "great" EULA?

      Also moron, is every "consumer" expeted to be a lawyer or hire one before each purchase? Have you ever read an EULA from MS or any other big corp? They are not written for the average user to understand. They are written in lawyer-speak. So exactly how is a _customer_ expected to get a fair-shake when they are required to _not_ purchase a product until they hired a lawyer who goes to the companies web-site and interprets the EULA for them?

      --
      If Tyranny and Oppression come to this land,
      it will be in the guise of fighting a foreign enemy. -James Madison
    10. Re:What next? by mapmaker · · Score: 4, Interesting

      If the customer pays by credit/debit card, they could print the EULA on the receipt. Then when you sign the receipt you're also signing the EULA.

    11. Re:What next? by SirGeek · · Score: 5, Funny
      In some cases that may not be a bad idea. What if the EULA says "by buying this u sign your left nut away to us to do with as we please.

      Then, I'll have my wife buy it. If she as a left nut, she sure as hell doesn' need it ...

    12. Re:What next? by Anonymous Coward · · Score: 4, Funny

      Not sure I'd buy software off of someone whose daughters had nuts.

      --
      Grammer nazi's! I no!

  3. Frys by Cyberglich · · Score: 5, Funny

    i can't wait to put this to the test at frys

    1. Re:Frys by Shut+the+fuck+up! · · Score: 5, Funny

      i can't wait to put this to the test at frys

      To you and any other dirty hippy out there: If I am behind you in line and you try to explain this court ruling to a clerk, I WILL KICK YOUR ASS UP AND DOWN EVERY AISLE IN THE STORE.

    2. Re:Frys by DarkHelmet · · Score: 4, Funny

      Best.... slashdot username.... ever!!!!

      --
      /^[A-Z0-9._%+-]+@[A-Z0-9.-]+\.[A-Z]{2,4}$/i
    3. Re:Frys by I+WILL+KICK+YOUR+ASS · · Score: 5, Funny

      Shut the fuck up!

  4. EULAs are bunk by CrazyJim0 · · Score: 3, Insightful

    I don't care what they say, I just click ok to use the software. I don't abide by what they say. Its all lawyer talk anyway. In case your computer explodes, we don't want to be held responsible.

    1. Re:EULAs are bunk by pegr · · Score: 5, Insightful

      This is why you do not actually purchase teh software.

      Just a copy of it so First Sale doctrine does not apply.


      Here we go again...

      Ask Best Buy if it's a sale. (It is.) Ask Fry's if it's a sale. (It is.) Ask a Federal judge if it's a sale. (It is.) If it looks like a sale, it's a sale. You think Best Buy would refuse to sell software to my kid, who, being under eighteen cannot enter into a license agreement?

      Legally, there are certain requirements for a contract, which is what a EULA is. Trouble is, EULAs don't meet the criteria. (Must be able to negotiate, must be of legal age, must show proof of acceptance of terms, must actually know who you are entering into an agreement with, etc.) EULA's are totally fiction. How many court cases have there been to seek damages from someone who didn't uphold the EULA? How about zero? Why? Because the publishers know they would lose and that would deflate the perception that these things are meaningful in any way.

      Kind of weird, huh?

    2. Re:EULAs are bunk by rpdillon · · Score: 4, Informative

      Actually, courts are upholding EULAs (even those undisclosed at point of sale) as enforcable. I would love to back you and say "Screw EULAs!", but recent events like those on 30 Sept. are reminding us that courts are increasingly siding with the big companies on this one.

      More disturbing, it is extremely important to understand what the EULAs say more than ever before, because companies like Blizzard are injecting clauses into the EULA that explicity say that by clicking "OK" and using the software, you are giving up specific rights like your right to reverse engineer for interoperability, and your rights protected under the first sale doctrine. This came out in the recent decision in the Bnetd case.

      In fact, multiple provisions protected under copyright law and the DMCA that allowed certain actions are being specifically forbidden in EULAs because companies don't want you to reverse engineer their products, no matter what. Courts are allowing you to "sign" away these protections allowed for in federal law in EULAs, even if the EULA was not available at point of sale.

      This isn't a great forum to discuss this type of thing because it is really quite intricate, but I did write two pieces on this in my blog over at Etherplex that treat it in more detail. If you're not in touch with what the courts have been doing recently, it may be of interest.

    3. Re:EULAs are bunk by wiggles · · Score: 4, Informative

      How many court cases have there been to seek damages from someone who didn't uphold the EULA?

      Forgot about this one?

      Yeah, it's under appeal, but the bnetd guys lost big on this one, because the EULA was violated in the creation of a competing product. The lower court ruled that the EULA was absolutely enforceable, and that the bnetd guys were absolutely bound by it.

  5. Hooray? by Rie+Beam · · Score: 4, Interesting

    So I guess this means I get to save a few hundred bucks the next time I buy a PC that "luckily" comes bundled with a $200 copy of Windows XP that I have "purchased" by opening the top of the box?

  6. In-store EULA by Biomech+Dragon · · Score: 4, Interesting

    What this probably means is that the EULAs for all the products in the store will be available to be read before you buy the software. (If not on the outside of the box, that being too wordy for most pieces of packaging.) In other words, if you think you might have a problem with what the EULA is going to say, you'd better spend 15 minutes poring over it at Fry's.

    1. Re:In-store EULA by Nogami_Saeko · · Score: 4, Insightful

      Yup, all it means (from the article) is that the companies are now putting their EULAs on their websites and a sticker or label on the box that says "the EULA is here (insert URL), you may wish to check it before purchasing this product".

      Not exactly a vast improvement...

      N.

      --
      "Nothing strengthens authority so much as silence." - Charles de Gaulle
  7. Finally! by MrRuslan · · Score: 3, Interesting

    It's about time. Companies have gotten away with this for a very long time. What if someone buys a box with software and don't agree with the EULA. They can't return the box and they might have to go trough hell to get there money back. It wasn't right and I'm glad the government sees this now. Most likely other states will follow this ruling.

  8. On a related note... by Thunderstruck · · Score: 3, Interesting

    I've purchased a shrinkwrapped software package. It includes an installation program which requires me to accept the EULA to run. Instead, I snoop around on the CD and find the files I need, or otherwise find a way to make use of the software without using the install/eula program(me). I in any way bound by the EULA indirectly, or is my use of the software then only bound by copyright?

    If I am EULA free... anyone feel like writing a program that will install Windows from a CD?

    --
    Trying to use sarcasm in text-based forums does not work.
    1. Re:On a related note... by cambipular · · Score: 3, Insightful

      Unfortuneately, ignorance isn't an excuse that courts generally recognize. The software is copyrighted, and you, the user, are responsible for understanding the license before you USE it. The issue is that before this ruling, customers were deliberately prevented from reading the EULA before they purchased software, then not allowed to return it UNUSED.

    2. Re:On a related note... by Kjella · · Score: 3, Insightful

      As much as the funny legal theories on slashdot show up, no you can not circumvent an EULA that way.

      If you know there is an EULA in place, and you do some silly thing to avoid not clicking "I agree" like letting your cat or a minor click it or replace the licence text or copy the files directly or whatnot, it doesn't help.

      The only plead you can make is ignorance, that you had not been made aware of an EULA at all. If you take an action which will be seen by the court as a deliberate circumvention, you are going to be bound by it.

      Kjella

      --
      Live today, because you never know what tomorrow brings
  9. Ideally by nuggz · · Score: 5, Insightful

    Well in this case a few things could happen.

    1. Companies will make simple consumer readable EULAs.

    2. People will sign away all their rights without checking the fine print.
    2a Resulting in a raft of stupid consumer protection.
    2b Huge public backlash when the companies try to press their rights.

    3. Some people will not accept these agreements and the EULA might become a factor on what software you purchase.

  10. The Age of Wal-Mart by Wylfing · · Score: 4, Interesting
    I wonder how this will really affect anyone. The last time I was in a Wal-Mart I saw a sign by the service desk that said "Due to copyright laws, we cannot accept returns of opened software or music." I'm no lawyer, but that to me seems like a false statement. There aren't any copyright laws that prohibit merchandise returns. But good luck convincing Wal-Mart otherwise.

    --
    Our intelligent designer has never created an animal that we couldn't improve by strapping a bomb to it.
    1. Re:The Age of Wal-Mart by darnok · · Score: 3, Insightful

      I live in a Wal-Mart-free country, but what's the issue here? Returning unsuitable merchandise is OK just about everywhere, and any store pretending otherwise hasn't got a legal leg to stand on. They can put up all the in-store signs they like, but that doesn't override my right to a refund.

      I return opened-but-not-installed software after refusing to accept the EULA terms, and some spotty Wal-Mart checkout person refuses to give me a refund. I then call his supervisor, and continue until I either get someone who says "OK" or I've spoken to the most senior Wal-Mart person in the store. If I don't get the OK, I get my lawyer and we take it from there.

      Yep, I'll be potentially taking on the combined legal might of Wal-Mart, so maybe I should be very very scared. However, in such a clear cut case against such a big corporation, I'd have no trouble finding legal representation that'd be happy to work on a pro bono basis - think of all those class actions against huge tobacco and asbestos companies over the years.

      Downsides for me, assuming it goes down this path:
      - have to search through phone book for legal rep
      - pain of dealing with legal people in general
      - time, stress and general mental wear and tear (all claimable as damages *when* I win)
      - loss of access to my refundable money while it all gets cleared up

      Downsides for Wal-Mart, assuming it goes down this path:
      - bad PR (and any legal person working on this on a pro-bono basis would be doing handstands to get this case on TV and in print media. "Big bad corp versus downtrodden individual" still makes press headlines...)
      - loss of availability of its people while they're tied up with legal stuff
      - possibility of a class action suit emerging
      - possibility of more serious charges (racketeering?) being brought after they go down this path beyond a certain point
      - possibility of consumer-protection government agency intervention (e.g. ACCC in Australia)

      With Wal-Mart presumably being staffed by non-drones at some level of seniority, I'd have to think they'd work out that just giving me the refund I've requested in a timely fashion would be much less painful for them.

  11. Re:URLs are good enough? by vsprintf · · Score: 3, Insightful

    Either accept returns or disclose the license prior to purchase.

    The article says that under the settlement they have to do both.

  12. Common sense... by darnok · · Score: 4, Insightful

    ...says that EULAs should have to be signed prior to the forking over of the loot. I pick up a box containing software, walk to the shop counter, pay my money and from that point on the software is mine to use as I wish (save for the protections granted by copyright to the seller, and various "fair business" obligations that serve to protect the buyer).

    If there's some legalese that I'm supposed to agree to before installing and using the software, then it should be presented to me before I hand over the money.

    Intellectual property isn't THAT much different to real property: when I buy a washing machine, I don't take it home, plug it in and then find out that it's illegal to use it to wash blue clothes...

  13. Hidden EULAs by OverflowingBitBucket · · Score: 5, Interesting

    Not only is it ridiculous to attempt to change the terms of sale after sale with hidden EULAs, AFAICT it is generally not legally binding to do so, unless specifically legislated to do so. I seem to recall specific legislature in some state in America, easy mod points to those who know it.

    IA-definitely-NAL but in a very-very-light commercial law subject I took at Uni we looked at cases where terms and conditions were displayed inside a carpark (which you can't see unless you purchase the ticket). When something went wrong, the ones trying to enforce the terms and conditions lost their cases quite convincingly.

    Morally (and with any luck legally) you shouldn't be obliged to go to the hassle of returning something because it contained a EULA or similar that you didn't know about (or weren't told about) that you disagree with. The transaction of cash for product ended when you handed your money over for the product and got the product in return. You shouldn't have to chase your money back because they chose to alter the deal afterwards. *does best Vader breath*

    Of course things may be very little different if you obtained something for free or were presented with the agreement before purchase. A new trick used in car parking is to say it is subject to the terms and conditions, and if you don't agree, you can leave without charge in the first half hour. These were the first car parking terms I ever actually bothered to read, as they may actually stand up in court. I am guessing the GPL is pretty solid too, being a distribution license that gives you rights above what you already have, should you choose to accept it.

  14. Re:Hmmm by wookyhoo · · Score: 4, Interesting

    It's things like giving them permission to check your computer for their software that I couldn't handle.

    For example, I signed up for a hotmail account many years ago, before most people had any idea what hotmail actually was. Recently the 30 or 60 days or whatever had elapsed between me actually looking at the my mail there (mail? spam!), and so the account expired. I was given the opportunity to keep my account name, but I had to agree to a Microsoft EULA. So, I actually read it.

    Basically, signing it gave Hotmail (and MS) permission to search my computer to make sure the software I was running was "legitimate" or something and then act on this information if they found anything.

    Screw that!

    Of course they wouldn't actually have been able to *do* that, and I don't run any MS software anyway, but buggered if I'm giving them permission to have a look at some point if they work out a way to do so.

  15. Spyware makers next by Billly+Gates · · Score: 4, Insightful

    If the EULA's are no longer valid, than spyware can be interpretted as a worm or trojan horse which would make the programmers and companies who write teh software liable for criminal and civil damages.

    Ouch. And good for us.

    I was under the impression any license agreement was not valid anyway without a notary present for a signature. Clicking a botton can not be interpetted as signing a document. Especially if no lawyer or notary is present.

    I think the whole concept of a EULA is bs. MS who started this with average joe consumer knew it too but gave it a shot.

    Corporate customers who sign legal agreements is a whole different matter.

  16. Plain English Campaign by Smiffa2001 · · Score: 4, Interesting

    "But Baker did something most others before her had not - she went and got a lawyer."

    I mean this is the US right??!? And NO-ONE had gotten a lawyer before...? I thought you guys sued if someone looked at you funny. Or made posts like this... Ooops..

    Seriously though, it's a great point but EULA's aren't ever in plain english. I accept that the legalese is to an extent needed due to interpretation worries and the like but you could get the folks at he Plain English Campaign http://www.plainenglish.co.uk/ to turn these damn things into something that we might actually read and understand. EULA's might not be something most of us want/need to 'get by' on a daily basis but it'd certainly increase the chances.

  17. This doesn't sound like a victory. by mcc · · Score: 5, Insightful

    It sounds like here the entire issue was not the enforceability of the EULAs, but the idea that you could be presented with this contract and not be given the ability to return it to the store. This is not a victory; this just predicts a situation where persons objecting to terms in EULAs will be universally responded to with well why don't you just take it back to the store.

    A victory would be something saying that first sale rights apply to software, just like they do to books, and if you take a piece of software to the front counter of a store and purchase it you just bought a copy of that software, even if the software vendor includes a piece of paper saying that you didn't.

  18. Australia has the ACCC by CypherOz · · Score: 3, Informative
    Most software EULAs are not fully legal in .au due to the Australian Competition and Consumer Commission and associate trade practice law which lets a consumer return goods if faulty or do not work as specified.
    Quote:
    Under the Act the consumer is entitled to expect to enjoy quiet possession of the goods and to own the goods outright, subject to lawful restrictions made known to the consumer before purchase.
    As a consumer, goods that you purchase must:
    * be of merchantable quality--goods have to meet a basic level of quality and performance given the price and description of the goods
    * be fit for the purpose--goods must do the job you made clear to the supplier you wanted them to do or that are implied from the circumstances in which you purchased the goods
    * match the description or sample given to you before purchase, whether through a catalogue, labelling, packaging, on a website or in person.

    Remedy or appropriate action

    If you believe that one of these conditions or warranties has not been met, you have a choice of possible actions that may be available depending on the circumstances. If you find you have a problem with goods or services, you should stop using the goods and approach the seller or the service provider as soon as possible to explain the fault or problem. You can also explain your preferred remedy to the situation or problem, taking into account that the Act is not designed to protect consumers who are careless or unreasonable in their demands.

    You may want to ask the service provider to repeat the service, or pay for the service to be repeated. You may want to ask that the goods be repaired or replaced or pursue a refund. Sellers are not required to provide you with a refund if you have simply changed your mind or you find a similar or the same item more cheaply elsewhere.
    Also under .au common law you cannot contract out of negligence. Simply: If you software is faulty, and the vendor knows (or can reasonable know about the fault) and does damage then the vendor is liable.
    --
    You want a signature? You can't handle a signature!!
  19. not shrinkwrap... by ecalkin · · Score: 4, Interesting

    Because a shrinkwrapped jewel case is *way* too easy to reshrinkwrap. Shrinkwrap isn't that hard to come by and all you need to find to make shrinkwrap work is hot air (hairdryer).

    Many, many, many years ago I worked for a regional computer retailer (way out of business). They had a roll of shrink plastic and mounted blow dryer. They had nicknamed it the relicenser.

    Paper containers with gummed flaps are a much better way of detecting an opened package.

    eric

  20. Keep the EULAs at the service counter? by HockeyPuck · · Score: 4, Interesting

    Could a store post a sign at the front door or somewhere in the aisle that says "All EULAs are available at the service counter"?

    Now you don't have to open the box, you just have to go to some counter and ask specifically for the EULA. Though, what happens if someone gives you the software as a gift? You would now have to go to the store and get the EULA prior to opening the box as the giver of said gift, probably didn't read the EULA...

    Its kind of like the "Nutritional Information" signs at McDonalds... you really have to press to get the information... then once you do, you don't want to eat there.

    HockeyPuck ---> .

  21. Why license agreements aren't always valid. by laughingcoyote · · Score: 5, Interesting

    (written on the back of a check prior to entering CompUSA)

    "By cashing or depositing this check, CompUSA agrees to give me anything I want in the future for free, or, if they refuse to fulfill that requirement, to pay me five million dollars."

    "If CompUSA does not agree to this requirement, they should send the check back to the address printed on it without cashing or depositing it. If they do so, they will not be bound by this agreement."

    Raise your hand if you seriously think such a thing would stand up in court.

    --
    To fight the war on terror, stop being afraid.
  22. Online only useful IF you've got Internet Access.. by Svartalf · · Score: 5, Insightful

    Not everyone's online. Furthermore, that is skirting the legal requirements to begin with- how do you know you're reading the agreement that the software's supposed to have, how can you be sure that others didn't get a better deal than you?

    Therefore, in order to fufill the requirements of the settlement, they're going to have to prominently place it in a manner that can be read with the ability to return it to a retailer- period. If that means putting it on there so it'll fit on the outside packaging, so be it.

    --
    I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
  23. The 20% off-topics by MyLongNickName · · Score: 3, Interesting

    To those who modded the parent down: Please voluntarily stop modding posts. This was not only on topic, but funny as well. It points out how ludicrous the current EULA situation is. I have to agree to things which are not rational if I want to do the most mundane things.

    --
    See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
  24. Re:Online only useful IF you've got Internet Acces by Svartalf · · Score: 4, Informative

    You're confusing EULA and Copyright- which are completely two different things.

    Copyright deals with the production and distribution of literary and other works of art. Nothing more, nothing less.

    An End User License covers whatever in the hell the licenseor wants. It covers usage, etc.

    Big damn difference there. With pure Copyright, the rules for use are anything that doesn't infringe- including copying snippets and even copying your friend's instance of the work for your own purpose if it's music (American Home Recording Act covers the compulsory license to be able to do so...). With an EULA, they can prohibit you telling anyone you're a user, whether or not it performs as well as they claim, and so forth.

    Come on, wise up.

    --
    I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas