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End User License Gems

satosphere writes "TG Daily has an article on EULA Gems, priceless statements that companies want you to agree to in their End User License Agreement." From the article: "You agree, if purchasing by credit card or charge card, that you permanently and irrevocably waive any and all right to cause a 'chargeback' ... You agree that, if you institute such a "chargeback", it constitutes a material violation of this license, and damages Company in ways impossible to calculate, and with long-term adverse effects to the Company."

36 of 546 comments (clear)

  1. BEFORE YOU POST by Anonymous Coward · · Score: 5, Interesting
  2. Something Awful by Anonymous Coward · · Score: 4, Interesting

    Reminds me of Something Awful's recent lampoon of the same subject. Nobody reads these things because they're all in legalese. No wonder companies think they can slide in anything. And what are the users going to do, not accept the terms?

    1. Re:Something Awful by badasscat · · Score: 4, Interesting

      And what are the users going to do, not accept the terms?

      Well, in the case of the chargeback example, they can accept the terms knowing what they've agreed to is completely unenforceable.

      Say you agree to that in a EULA, then the software won't install and you ask for a refund, which the company will not provide. You call the credit card company and say "they sold me a defective product and won't give me my money back" and the card company calls the software maker to see what's up. The software maker says "but the customer agreed not to do a chargeback!" You know what the CC company's gonna do?

      They're gonna laugh in the software company's face. Then they're gonna do a chargeback.

      Your relationship is with the CC company. You can't un-agree with a third party to something you've already agreed to with your CC company. Because the CC company is under no obligation whatsoever to abide by that; they haven't agreed to alter their policies to fit this EULA. Their only obligation is to their customers with which they have prior agreements.

      Now, IANAL, but I've got plenty of experience dealing with CC companies (including handling chargebacks) through previous jobs I've had, and this is pretty basic contract law anyway. Contracts are between two parties; if you've got a contract that you're trying to apply to a third party but that they haven't signed, it's meaningless. I can't write up a contract that says "you agree that your sister will never ask me to borrow money" and expect that that actually obligates your sister not to do anything, even if you do sign it.

      It's just worth pointing out that some people subscribe to this fallacy that anything you put in a contract is binding as long as it's signed. That's just not the case. You can't agree to something that's illegal, you can't sign away most rights given to you under the law, and you can't agree to something on behalf of a third party (unless that third party also signs, as in a guarantor type situation). The purpose of a contract is to get two people to agree in writing to something under the law. A lot of these companies are apparently using EULA's these days to get people to agree to things that are outside the law, but those EULA's just cannot be enforced.

      (This is not to say no EULA can be enforced; obviously, we've seen that they can be. But a EULA has to be written properly just like any other contract; you can't just stick random stuff in there.)

    2. Re:Something Awful by NoGuffCheck · · Score: 2, Interesting

      Say you agree to that in a EULA, then the software won't install and you ask for a refund, which the company will not provide. You call the credit card company and say "they sold me a defective product and won't give me my money back" and the card company calls the software maker to see what's up. The software maker says "but the customer agreed not to do a chargeback!" You know what the CC company's gonna do?

      In Australia the credit card companies/financial institutions do not call the retailer at all. They process the chargeback and send a letter at the end of the month with the date and time of chargeback and the amount. Then the retailer will/should pick it up when looking through their merchant account statement. Same result though.

      --
      serenity now!
  3. Breach Of Contract Is Not A Crime by John+Hasler · · Score: 4, Interesting

    Where do these doofuses get the notion that you can go to jail for failing to comply with the terms of a contract?

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
    1. Re:Breach Of Contract Is Not A Crime by tepples · · Score: 2, Interesting

      It has to be an exchange of things.

      Publishers of proprietary software would argue that the purchaser of a copy of COTS proprietary software agrees to an exchange when installing the software. The installer, which controls access to the copyrighted work contained in the encrypted .cab files, is classed as a technical protection measure under 17 USC 1201(a) and foreign counterparts. The exchange generally involves giving up the right to take necessary steps to make interoperable software, the right to collect damages from the publisher, and possibly other rights, in exchange for the right to decrypt the program.

      One side cannot simply tell the other side how it's going to be and give them no ability to back out. Both sides have to agree it's a fair contract.

      That's why virtually all contracts include return clauses, stating that if the outer seal is broken but the inner seal is not broken, the purchaser still has the right to return the copy. It's a way to back out of the rights-for-decryption contract.

      There's also no proof you agree (clicking a button isn't proof, what if someone else clicked it?).

      Evidence that someone agreed is that the software has been decrypted and installed. The defense that you cracked the encryption on the .cab files is tantamount to an admission of guilt under the DMCA and foreign counterparts. So how can you show a preponderance of evidence that you did not agree?

    2. Re:Breach Of Contract Is Not A Crime by maxwell+demon · · Score: 2, Interesting
      when't the last time you tried to return the pre-installed software on a new machine for a refund? Oh, you can't.

      Try to give back the whole product you got (that is, including the computer it was pre-installed on). I guess if you buy a box of pralines and try to give back only the nougat pralines, you'll have problems as well.
      --
      The Tao of math: The numbers you can count are not the real numbers.
  4. Cannot believe... by Tamerlan · · Score: 2, Interesting

    It's har to believe that there are ppl that actually read them.

    It's strange there is no eulaeater.com site (like 419eater).

  5. Re:Go Blizzard by Tidal+Flame · · Score: 2, Interesting

    I'm pretty sure this also applies to packet sniffers and such, as they wouldn't want you to reverse engineer packets sent and received by the game in order to write a private server. Either way, they're basically saying that they can collect information on you and (I'd image) terminate your account, sue you, etc. if you're running programs they don't like.

  6. Great damage to the company by jrockway · · Score: 4, Interesting

    My cell phone contract contained similar language. It stated that cancelling the contract before the term was up would could "cause damage to the Company that is difficult to determine, but is approximately $150". I was ready to pay this (because US Cellular is the absolute worst phone company EVER... I live in Chicago and didn't even get good reception at US Cellular field!), until I read the whole contract and realized that my cell phone company screwed up -- they said my term was "0 months" (not 2 years like I thought). Needless to say, I called them and pointed this out. They said they'd call back, but I haven't heard from them in months. I haven't gotten a bill either, so I guess they just silently admitted defeat.

    Funny how the contract can actually screw the company over sometimes :)

    --
    My other car is first.
  7. Slightly offtopic, but..... by tsmithnj · · Score: 1, Interesting

    check out craigslist.org's EULA. They itemize fines you are subject to if you violate their terms of agreement.

    This whole thing is out of hand....

  8. Java by mcgroarty · · Score: 3, Interesting

    If memory serves, the Java user agreement requires you to acknowledge that any deaths resulting from Java use are on your own hands. The wording is less direct, working through the logic that Java isn't to be used where somebody's life is on the line, but it still makes me nervous. :)

  9. Sony by Space+cowboy · · Score: 4, Interesting

    There was a clause in an NDA I signed with Sony that said something along the lines of "In the event of You disclosing material which is considered proprietary under this agreement, the Company will seek maximum damages, and financial reparation may not be sufficient".

    That scared me slightly... I still signed though. And I made sure not to have any first-born (hah! As if I had the chance back then :-)

    Simon

    --
    Physicists get Hadrons!
  10. Re:Bad EULA's by Anonymous Coward · · Score: 1, Interesting

    The EULAs for GPL software are actually different than EULAs for traditional software. It's simply a statement of the copyright terms - any violation would be charged as a copyright infringement. A traditional EULA attempts to behave like a contract, and even worse it appears after you have purchased the product. With the GPL license, you know before hand what your getting, not to mention it doesn't pretend to be a contract.

  11. Chargebacks. by jcr · · Score: 2, Interesting

    The EULA clause that threatens you with $8 grand in damages if you dispute a credit card charge would certainly violate their merchant account terms. Somebody needs to report them to MasterCard, AMEX and VISA. I would, but I'm not a customer of theirs, nor would I ever be.

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."
  12. no habla ingles by davidwr · · Score: 4, Interesting

    Scenario #1:
    I asked my non-English-speaking friend to buy me a new computer and install OpenOffice.

    Of course he got the English-language MS-Windows and of course he had to walk through all the EULA and activation stuff. He'd watched someone else do it before so he knew what buttons to press but didn't understand a word of what was on the screen.

    He didn't know enough to tell me he'd just signed away a bunch of rights on my behalf.

    Who if anyone is liable if I violate the EULA - the very EULA that neither me nor my friend is aware of.

    Scenario #2, except instead of me asking him, he did it on his own and gave me the PC w/ OO installed for Christmas.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  13. Re:The real question here, is... by tktk · · Score: 2, Interesting
    To make it hard to read. From my vague memory from a graphic design book...

    Text is both legible and readable. All caps is very legible but not very readable. Legible text to catches your attention. That's why newspaper headlines are all caps, to catch your attention. Reabable text helps the process of reading, going from word to word and phrase to phrase.

    Companies really don't want you to really read the EULA. So they put it in all caps and it's hard to read without making the user suspicious. There are other ways to make text less readable but all other methods tend to stand out and look strange to the average person. Personally, I also think all caps also seem to suggest an air of legality.

  14. email EUL's by timmarhy · · Score: 3, Interesting
    one thing that has always amused me is company's polices of putting notices at the bottom of emails stating things like "you may not disclose the contents of this email to 3rd parties" etc etc.

    firstly, i do not agree to any of these terms prior to recieving said email, so they aren't binding in anyway. it's like trusting a contract in my face and claiming now that i have seen it, i most obey it.

    if someone sends me something, that email is my property, i'll do what i bloody like with it.

    --
    If you mod me down, I will become more powerful than you can imagine....
  15. Re:Go Blizzard by Buran · · Score: 2, Interesting

    I wonder if this isn't crossing the line into illegality -- this sounds an awful lot like spyware that monitors what you're doing and reports back to someone else without telling you about it. If spyware is being outlawed, why isn't this sort of thing? ("you agreed to it when installing"? People "agree" to install spyware buried in long EULAs all the time, and the law is still cracking down)...

  16. EUL inside by timmarhy · · Score: 3, Interesting
    i remmeber once i got this piece of software with a notice "by opening this packaging you agree to the EUL contained inside"

    just ponder that shit for a moment. the contract is inside, they aren't letting you view it before claiming you agree to it. i'd be willing to bet if you voilated some part of it and they took you to court they would quickly find ALL their EUL stipulations would be thrown out for basic breaches of contract law.

    --
    If you mod me down, I will become more powerful than you can imagine....
  17. Re:And if I edit the contract? by SpacePunk · · Score: 2, Interesting

    "As to your million dollar example the EULA would almost certainly state that modification is not allowed, and by modifying the EULA you are actually making a new offer. Since the copyright holder has never agreed to that offer (by conduct or otherwise) you would be in violation of copyright as you never accepted the holder's only offer of license."

    How about this. A copy of the modified EULA is mailed to the software company with a note enclosed that reads "By opening this envelope, you agree to all terms enclosed in this envelope regarding SOFTWARE."

    Seems as watertight as a EULA.

    Seriously.

  18. Per machine vs per user licensing by WIAKywbfatw · · Score: 4, Interesting

    The reason for this is because Microsoft licenses for Windows XP (and all of its operating systems) are per machine (or per processor), whereas its licenses for Office and other applications are per user.

    Hence, it's permissable for an individual to install a single copy of Office on both their desktop and laptop without requiring more than one license, as long as both aren't used simultaneously. However, installing Windows XP on both those machines would always require two licenses, regardless of how the machines are used.

    One side effect of this is that people who use Office at work can normally buy a copy of Office to use at home for a nominal fee. For example, under the terms of Microsoft's licensing as it applies to her mid-sized employer, my girlfriend is entitled to purchase a copy of Office for around £10, which covers the cost of media, postage and packaging and processing her request.

    --

    "Accept that some days you are the pigeon, and some days you are the statue." - David Brent, Wernham Hogg
    1. Re:Per machine vs per user licensing by ultranova · · Score: 2, Interesting

      Under the terms of the license, you can't use Office on your laptop at the same time as someone else uses the same single license copy of on the desktop.

      It is the meaning of the expression "at the same time" that is unclear. According to the Theory of Relativity, two observers who move relative to each other do not neccessarily agree on whether two events were simultaneous or not. From one observers point of view, the laptop and desktop were used at the same time; from another observers view, the laptop was used first, then the desktop was used after the laptop use had already ceased; and yet another observers view, the desktop was used first, then after its use had ceased the laptop was used.

      According to Relativity, all of these observers are correct, and none of them is special in any way. Therefore, whether laptop and desktop were used at the same time or not depends entirely on whom you ask; therefore, any clause that forbids such simultaneous use also must specify what frame of reference to use: the rest frame of laptop, the rest frame of desktop, or some other frame ?

      Since the EULA lacks this specification, it can be proven both that the laptop and the desktop were used simultaneously, and that they were not used simultaneously, depending on what frame of reference is used, rendering the whole concept of simultaneity meaningless, and therefore rendering any clauses referencing it also meaningless.

      One might say that this is splitting hairs; however, it has been argued that running the program requires a license from the copyright holder, since the program is copied from the hard disk into the computers RAM in order to run it, so I'd say that common sense and copyrights parted ways long ago.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

  19. From the Fedora Core EULA by Anonymous Coward · · Score: 1, Interesting

    http://download.fedora.redhat.com/pub/fedora/linux /core/development/i386/eula.txt

    1. THE SOFTWARE. Fedora Core (the "Software") is a modular Linux
            operating system consisting of hundreds of software components.
            The end user license agreement for each component is located in
            the component's source code. With the exception of certain image
            files containing the Fedora trademark identified in Section 2
            below, the license terms for the components permit User to copy,
            modify, and redistribute the component, in both source code and
            binary code forms. This agreement does not limit User's rights
            under, or grant User rights that supersede, the license terms of
            any particular component.

    First of all, it ain't hundreds, it's thousands.

    According to this EULA, I am responsible to download thousands of source RPMs, extract them, and scan all the files for their copyrights and see if anyone (like TrollTech or MySQL) is trying to f*ck me.

    Is it GPL or not? Can I use it for any purpose or not? Trolltech and MySQL are the obvious sore thumbs, but I only know about those via word of mouth. How do I know there are not others in the thousands of source files this EULA says it is my responsibility to examine?

    What the hell happened to "No front or back cover text" in the GPL? Isn't that exactly what TrollTech and MySQL are doing to the GPL, adding additional clauses that change the rights given under the GPL? I'm USING their software, not modifying it and redistributing it.

    If anyone wants to bitch about EULAs potentially hosing people or their employers, look no further.

  20. Statutory damages? by tepples · · Score: 2, Interesting

    It is called "mitigation of damages" and if you think you have been damaged, you have a duty to mitigate, and can only seek relief for unmitigated damages over and above those you *could* have mitigated had you not sat on your thumbs.

    Then please explain things such as the $750 to $150,000 per work "statutory damages" available to successful plaintiffs in a copyright infringement suit.

  21. Re:Depends on who initiated the chargeback by dgatwood · · Score: 4, Interesting

    In this case, it's more like "you agree to not ask your sister to borrow money from me, even though I am under a binding contract with your sister not to ask you not to ask her."

    In other words, report these clowns to Visa and they're likely to get their merchant account revoked. I strongly suspect that attempting to circumvent the terms of your merchant account agreement would constitute a violation of the terms of said agreement....

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  22. MS Front Page License? by commodoresloat · · Score: 4, Interesting

    Didn't MS have a license with Front Page for a while that said that it violated the license to use the product to create web pages critical of MS? As I recall they took the clause out after people complained about it, but the fact that they even had the audacity to consider it is troubling.

  23. Re:MBFS has an EULA for their website too by Bwooce · · Score: 3, Interesting

    Their EULA has actually toned down since 1998...

    In some of them it says:

    "You agree that, even after the ten-year non-compete period listed above, that
    any product you may create will not in any way resemble or act like the Software,
    will not be able to read or convert the databases created or used by the
    Software, will not use any of the same methodologies employed in the creation
    and operation of the software, and will not use any trademark, logo or name
    used in the Software."

    So if you thought the DMCA was bad...try this guy. I'm afraid this all helps to form my opinion that John Tamburo is a dickwad. Apparently a serial bankrupt dickwad.

    http://66.160.129.140/scoop/story/2004/5/13/0529/9 7735 is interesting too.

  24. Danger Will Robinson by Anonymous Coward · · Score: 1, Interesting

    Parent's post is comforting, but erroneous in a number of ways.

    1. EULA's are classic contracts of adhesion. As such, some courts disfavor them, but they are not per se invalid because of their form. Consideration (a benefit detriment relationship or exchange) is indeed required in contract law, but this can be pretty minimal and contracts of adhesion do not fail this test. Ability to use software can be enough of a benefit for consideration to exist.

    The big hullaballoo surrounding contracts of adhesion is that one party does not play a significant role in negotiating it. This is why they are occassionally disfavored, but again they are often upheld even when seemingly remarkably unfair.

    2) I frankly don't understand this point. EULAs do have to be accessible for reading before they take effect. Thus, they get put on the shrinkwrap or in the installer. If they aren't readable before they become binding, then courts will likely hold them invalid. But, contrary (I think) to the parent, this is almost always the case (i.e. they usually are readable before binding), so this point is no real help.

    3) Contracts do not require a witnessed signature to be enforceable. A witnessed signature is merely a way to show that a contract was agreed to, but any number of other articles of evidence may be used, such as opening a box with a clear license over the seal or installing software that required you to read something before moving on. One side can indeed tell the other how it's going to be (though this is just an instance of the general argument against contracts of adhesion that the parent makes throughout). The law has no per se restriction on unequal bargaining power. It takes more for a contract to be unconscionable and therefore unenforceable. Granted, some of these provisions may pass that test, but courts are still hesitant to find such contracts unconscionable (the whole freedom to contract thing).

    4) This is again an argument against contracts of adhesion. No dice.

    Settled case law is that you can exchange money for a box, read what is on the box and decide to take it back with no offense to contract law. Just because you already spent money does not mean you agreed. Opening a box or installing software that you didn't have to is the key point. Now, some courts are sympathetic to the pain of returning an item, but not all that sympathetic.

    Not that anyone is using slashdot for legal advice, but the parent is dangerously off-base. Contract law is considered binding law as to the parties agreeing. Provisions are enforceable in most cases (again, with quite narrow exceptions for unconscionability) just because the parties agreed, not because they "enumarate [sic] the laws that govern software anyhow"

    AC

  25. Re:Heh. by atrus · · Score: 2, Interesting

    You've never read an Oracle license then (or was it Oracle?). Basicly any review needs to be first approved by Oracle before it can be published.

  26. Re:And if I edit the contract? by Anonymous Coward · · Score: 1, Interesting

    Not in the least. Everyone agrees that a EULA has to be readable before binding.

    Further, the EULA likely does not even have to state that it can't be modified.

    AC

  27. One EULA turned me into an employee! by karl.auerbach · · Score: 2, Interesting

    I came across one particularly egregious EULA that (besides not actually licensing anything) said that it made me an employee of the vendor and that I waived several of my rights as an employee that are granted to me under Federal laws such as COBRA and ERISA.

    Some employers are unwittingly doing this to their employees when they hire certain outside HR services companies.

  28. Re:Go Blizzard by Durzel · · Score: 2, Interesting

    What interests me about EULAs like this are the vagueness of the terms.

    "Monitor", for example, what is Blizzards intended definition of monitor? Obviously in the context of WoW it means it will look for known third-party WoW-hack fingerprints, but the semantics could equally mean it could scan your memory continuously to the point where your system degrades as a result. Is this permissable?

    Strictly speaking, Windows itself would "mine" information fron the WoW process as part of its own internal memory/pagefile management system. Similarly at the very technical level Windows must assign processor timeslices in a manner that keeps the OS running smoothly. How can it do this without mining information from the WoW process?

    My gut feeling with EULAs like this is that they are meant moreof as a deterrent to casual cheaters than as a legally binding document. It's feasible that people who would otherwise consider cheating might think twice if they thought Blizzard could (and would) be checking their PCs and would automatically cancel their accounts.

  29. Re:The real question here, is... by Hazzl · · Score: 2, Interesting
    THIS IS THE USUAL REASON! http://www.law.cornell.edu/ucc/2/2-316.html

    Very interesting reference! Thank you! However, if you read it without any further knowledge the law you cite says nothing at all about that would require SHOUTING. Is there some common interpretation that justifies the use of ALL CAPS for clauses excluding implicit warranties? Because, from my own experience, I must say that I find it hard to read these sections of the EULAs, mainly because I can't stand the shouting.

  30. But you KNOW what to do! by ajs318 · · Score: 3, Interesting
    If you don't like the licence, don't use the software -- and tell the vendors what you think about it. Bitch about the terms by all means, but at least make sure someone is listening who can do something about them.

    I made the decision awhile ago to use only software that guarantees me my Four Freedoms. The chances are that such software will come under either the GPL or a BSD-like licence. Both these licences are easy to understand and do not seek to abridge your statutory rights.

    The only way EULA madness will be brought to an end, is when people stop accepting it. Otherwise it's going to come to something like this:
    1. You do not own the SOFTWARE. You have purchased a temporary, limited licence to use the SOFTWARE contingent upon your meeting certain conditions set by the LICENSOR. The LICENSOR may revoke this licence at any time.
    2. You may install the SOFTWARE on one (1) computer, which shall become the property of the LICENSOR. You may not make or attempt to make any backup or archival copies. You may use the software only for the purposes approved by the LICENSOR and described in the accompanying documentation.
    3. The SOFTWARE contains the proprietary secrets of the LICENSOR. You may not reverse-engineer, disassemble, decompile, de-obfuscate or otherwise attempt to understand the SOFTWARE, nor by any means attempt to make the SOFTWARE comprehensible to a human being or any other living organism.
    4. You are not permitted to develop software which competes directly or indirectly with the SOFTWARE nor any other product supplied by the LICENSOR. Direct competition includes without limitation any software which attempts to perform one or more functions which could be performed using the SOFTWARE or any other product supplied by the LICENSOR. Indirect competition includes without limitation any software which attempts to use any key combination, mouse movement or other technique identical or similar to a technique found within the SOFTWARE or any other product supplied by the LICENSOR to perform a similar or different function.
    5. The instructions and techniques for using the SOFTWARE are the proprietary secrets of the LICENSOR. You are privy to such knowledge only as long as you remain bound by this licence agreement and only to the extent that you may use the SOFTWARE in a manner approved by the LICENSOR. You may not communicate to any third party any details concerning the operation or use of SOFTWARE irrespective of whether or not such party may be independently licenced to use the SOFTWARE.
    6. The operational details of the SOFTWARE are the proprietary secrets of the LICENSOR. You are not permitted to use any technique to attempt to discover any fact connected with the operation of the SOFTWARE. Examples of prohibited acts include:
      1. Reading the directory listing from the media upon which the SOFTWARE is delivered.
      2. Quantitatively or qualitatively examining data travelling into or out of the computer upon which the SOFTWARE is running.
      3. Attempting to measure the speed of the computer upon which the SOFTWARE is running.
      4. Measuring the temperature of any electronic component in the computer while the SOFTWARE is running.
    7. Everything you create with the aid of the SOFTWARE shall be the property of the LICENSOR. All Intellectual Property rights embodied in anything you create with the aid SOFTWARE shall be deemed to belong to the LICENSOR but may at the LICENSOR's sole discretion be licenced back to you so long as your licence to use the SOFTWARE remains in force.
    8. This licence may be terminated at any time by the LICENSOR, for any reason and without prior notice. Upon termination of the licence, you must immediately:
      1. Cease using the SOFTWARE and destroy all copies, including the documentation, together with the computer upon which the SOFTWARE has been installed, to the satisfaction of the LICENSOR.
      2. Forget everything you know about the SOFTWARE.
      3. Attempt
    --
    Je fume. Tu fumes. Nous fûmes!
  31. Re:The real question here, is... by codeman38 · · Score: 2, Interesting

    Glad to know I'm not the only one who finds it difficult to wade through capitalized disclaimers; I'm glad when they let me paste it into a text editor so I can lowercase it.

    I know I've seen at least some EULAs that use bold text to make a section more 'conspicuous'; it's still not the most readable, but it's a whole lot easier to process than all caps.