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UK Judge Rules COA is Not Evidence of a License

blane.bramble writes "In a ruling against a company selling counterfeit and genuine licenses, a UK judge seems to have ruled that the Certificate of Authenticity is not itself sufficient proof of license possession. This could have major ramifications for UK businesses that consider keeping the COA as proof of being licensed. The quote in question is 'Thus it can confer no license for the use of any Microsoft software by passing on the COA (certificate of authenticity), nor can the COA be evidence of, or itself confer, such a license'."

296 comments

  1. Get lawyers on staff by Trigun · · Score: 5, Funny

    And maybe a notary as well. Some videographers would help out for all those business deals.

    I think I'll go into the market of blood-filled pens. I think blood is still binding, but I am (thankfully) not a lawyer!

    1. Re:Get lawyers on staff by level_headed_midwest · · Score: 4, Funny

      It isn't the *lawyer's* blood in those pens...

      --
      Just "gittin-r-done," day after day.
    2. Re:Get lawyers on staff by Trigun · · Score: 3, Funny

      How are you going to pump blood out of creatures that have no heart?

    3. Re:Get lawyers on staff by neonprimetime · · Score: 1

      Hah, Lawyers

    4. Re:Get lawyers on staff by owlnation · · Score: 2, Funny

      Lawyers have blood?

    5. Re:Get lawyers on staff by surprise_audit · · Score: 1

      A big hydraulic press seems about right... Squish 'em flat and there'll be *some* kind of juice coming out, though I'll grant you it might not be blood.

    6. Re:Get lawyers on staff by Don_dumb · · Score: 2, Funny
      Lawyers have blood?
      Well obviously, they get hungry sometimes.
      --
      If this were really happening, what would you think?
    7. Re:Get lawyers on staff by caldodge · · Score: 1

      From the "Angel" episode "The Trial":

              Cordelia: You were just soulless, blood-sucking demons. They're lawyers!
              Angel: She's right. We were amateurs.

  2. Out of Context? You screwed buddy by neonprimetime · · Score: 4, Funny

    "I can do you an Office 2003 [Microsoft software] without a licence for eighty-five quid. The licensed version is one hundred and eighty-five quid. With the eighty-five quid one we're not lining Bill Gates's pocket. If he's installing it in a business or something he might want to do the licence. He might want to do it properly." Hill claimed that his remarks were taken out of context

    What? How possibly could this be taken out of context???? Unless of course you were saying something to the effect of "Well, if you want to get sued by Microsoft then I can do you an Office 2003 [Microsoft software] without a licence for eighty-five quid. The licensed version is one hundred and eighty-five quid. With the eighty-five quid one we're not lining Bill Gates's pocket. If he's installing it in a business or something he might want to do the licence. He might want to do it properly."

  3. Well, duh by kyouteki · · Score: 1, Insightful

    The Certificate of Authenticity is just that, it has never been billed as a Certificate of License. Why would anyone assume anything else?

    --
    A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
    1. Re:Well, duh by morgan_greywolf · · Score: 5, Informative

      Because Microsoft itself seems to imply that the COA will be your guarantee that you are using a non-pirated version of Windows. If you want to make sure that your software is licensed properly and not pirated, you need to check your COA, according to Microsoft.

    2. Re:Well, duh by ZachPruckowski · · Score: 1

      Um, the word "Authenticity" is probably going to confuse small businesses without a lawyer on staff. I mean, when I think "Authenticity", I think "authentic". I don't have a thesaurus in front of me, but I'm pretty sure "authentic" and "genuine" mean the same thing. The guy installing Office on his computer will stick a "Certificate of Authenticity" in his files, and maybe the EULA, thinking that a CoA proves he has a "genuine" (aka "real") copy.

    3. Re:Well, duh by m874t232 · · Score: 1

      Because Microsoft itself seems to imply that the COA will be your guarantee that you are using a non-pirated version of Windows. If you want to make sure that your software is licensed properly and not pirated, you need to check your COA, according to Microsoft.

      Even if all of that were true (which it is not), all that says is that you can use the COA to satisfy yourself of certain facts, not to use it as evidence in court.

      But it isn't true anyway. The COA tells you that your copy is "genuine", not that it is "licensed". For example, if you violate the terms of the license, you lose your license, but you still retain the COA.

    4. Re:Well, duh by Anonymous Coward · · Score: 1, Interesting

      The Certificate of Authenticity is just that, it has never been billed as a Certificate of License. Why would anyone assume anything else?

      Well, microsoft says so. During their audits, the fact that a business has receipts, cancelled checks and purchase orders for microsoft software isn't sufficient proof of legal software purchase. Microsoft wants the CoA.

    5. Re:Well, duh by Compholio · · Score: 2, Interesting

      But it isn't true anyway. The COA tells you that your copy is "genuine", not that it is "licensed". For example, if you violate the terms of the license, you lose your license, but you still retain the COA.

      Then how do you prove you have a license then? Keep the original receipt? How do you prove you haven't had your license revoked? Oh wait, we're talking about an artificial construct that Microsoft has utter control over and can use to screw you whenever they feel like it.

    6. Re:Well, duh by Wyzard · · Score: 2, Informative

      I just took a look at the COA for XP Home on the bottom of my Lenovo laptop. It actually has the words "Proof of License" printed on it, along the left edge, directly above the words "Certificate of Authenticity".

      However, it also has "Label not to be sold separately" printed along the right edge.

      This is in the US, though. Maybe they print different labels for the UK market.

    7. Re:Well, duh by Anonymous Coward · · Score: 0

      I guess I always assumed that the Microsoft board of directors was just filled with hologram and intaglio printing buffs, and they simply wanted to play around with their hobby by including pretty certificates with their products, kind of like cereal box prizes. Collect and trade each point release!

    8. Re:Well, duh by kyouteki · · Score: 1

      For our org, our proof is "CDW says so". We don't really have anything else.

      --
      A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
    9. Re:Well, duh by endx7 · · Score: 1

      Well, looking at the sticker (tiny print) that came on this dell...

      Proof of License
      Certificate of Authenticity

    10. Re:Well, duh by Anonymous Coward · · Score: 0

      I took a quick glance at the sticker version of the COA on a system preloaded with XP, and clearly written on it is "Proof of License - Certificate of Authenticity". A separate caveat on the bottom of the sticker states "Label not to be sold separately". So does that mean that the 'License' has no validity once removed from the system it was initially affixed to?

    11. Re:Well, duh by HTH+NE1 · · Score: 1

      you can use the COA to satisfy yourself of certain facts, not to use it as evidence in court.

      Because facts have no place in a court of law. It isn't, "I swear to tell the facts, the whole facts, and nothing but the facts," it's truth. Facts are for the cops. (Thank God it's Joe Friday.) Courts are a place for truthiness.

      And that's The Word.

      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
    12. Re:Well, duh by Mister+Whirly · · Score: 1

      "If you want to make sure that your software is licensed properly and not pirated, you need to check your COA, according to Microsoft."

      Actually I think their Windows Genuine Advantage http://support.microsoft.com/?scid=kb;en-us;892130 crap you need to install to get updates is what is used to determine if you are using non-pirated software...

      --
      "But this one goes to 11!"
    13. Re:Well, duh by Peter+Simpson · · Score: 1

      From the Microsoft Web site:

      Q: What is Proof of License?

      A: With the release of Windows XP Service Pack 2 the words "Proof of License" began appearing on COAs and Product Key labels. A genuine Microsoft COA or Product Key label with the words "Proof of License" indicates legal proof of ownership of the associated software. COA labels and Product Key labels should always accompany the product they are associated with and cannot be purchased separately.

    14. Re:Well, duh by Peter+Simpson · · Score: 1

      The BSA, however, according to numerous published reports, will not accept the COA as proof of license. Only the original purchase receipt with both the name of the buyer and seller is prrof of a valid license.

      Catch-22, anyone?

    15. Re:Well, duh by azhrei_fje · · Score: 1
      Here's the text describing what the COA is (in Microsoft's mind, anyway):

      A Certificate of Authenticity (COA) is a label that helps you identify genuine Microsoft software. A COA is not a software license it is a visual identifier that assists in determining whether or not the Microsoft software you are running is genuine. However, without it, you will not have a legal license to run Microsoft software. A COA should never be purchased by itself without the software it authenticates.

      The above quote is from http://www.microsoft.com/resources/howtotell/en/co a.mspx

    16. Re:Well, duh by ray-auch · · Score: 1

      So does that mean that the 'License' has no validity once removed from the system it was initially affixed to?

      Yes, it means exactly that.

      It is a license limited to the original system. It is not transferrable. That might feel unfair, but then again it almost certainly cost a lot less than a full retail license.

      MS have been pretty clear on OEM licenses and transfers, eg. ahref=http://www.microsoft.com/piracy/partners/You rPC_do.mspxrel=url2html-32541http://www.microsoft. com/piracy/partners/YourPC_do.mspx>. I find it hard to believe these guys didn't know.

    17. Re:Well, duh by Twanfox · · Score: 1

      It seems really sad that there's any validity to this method of restriction. To me, it's like selling a book to you and saying, "Since I'm selling it to you at $1, you can only read it in your bathroom. If you want to read it anywhere, that'll be $6.99"

    18. Re:Well, duh by 19thNervousBreakdown · · Score: 1

      Sold!

      --
      <xml><I><am><so><damn>Web 2.0</damn></so></am></I></xml>
    19. Re:Well, duh by dwandy · · Score: 1
      It seems really sad that there's any validity to this method of restriction. To me, it's like selling a book to you and saying, "Since I'm selling it to you at $1, you can only read it in your bathroom. If you want to read it anywhere, that'll be $6.99"
      That's exactly what it is, and it's only because we continue to give MS the monopoly power that it can dictate like this.
      If they felt it was in their financial interest, the EULA would state that the SOFTWARE must be used whilst standing on ones HEAD. And this would be enforceable.

      Fight back. Demand MS comply with anti-trust and anti-competative rulings.
      Fight back. Don't buy any more computers that include the MS tax. Ever.
      Fight back. Demand copyright reform.
      Fight back. Install Linux.

      --
      If you think imaginary property and real property are the same, when does your house become public domain?
    20. Re:Well, duh by m874t232 · · Score: 1

      Then how do you prove you have a license then? Keep the original receipt?

      That's certainly a sensible thing to do. Keep the COA as well, because it will protect you against accusations that you knowingly bought a pirated copy of Windows.

      How do you prove you haven't had your license revoked?

      Microsoft can't unilaterally "revoke" your license; if you can prove you purchased a license, the ball is in their court and they have to prove that you have acted in a way that caused you to lose your license.

      Oh wait, we're talking about an artificial construct that Microsoft has utter control over and can use to screw you whenever they feel like it.

      Spare us the fatalism. Microsoft has no power to enforce licenses, the courts have. And courts are going to be reasonable about it and decide on a case-by-case basis. A COA isn't sufficient to prove ownership, but a purchase receipt may not be necessary either. There simply is no single answer.

      If you're running Windows, keep all the documentation of your purchase and license you receive. Or, just run Linux instead; then you don't have to bother.

    21. Re:Well, duh by m874t232 · · Score: 2, Interesting

      Because facts have no place in a court of law

      No, it's because these are the wrong facts. The COA will protect you against claims that you knowingly purchased a pirated copy, but there are many other facts that need to be established in order to determine that you actually have a license (like the fact that you purchased the software at all).

    22. Re:Well, duh by HTH+NE1 · · Score: 2, Insightful

      there are many other facts that need to be established in order to determine that you actually have a license (like the fact that you purchased the software at all).

      And I'm sure everyone who has given someone a copy of Microsoft Windows XP Home Edition as a gift has always included a receipt, let alone one that was not printed on thermal paper which erases itself over time.

      I would think it would be Microsoft's burden of proof to prove I obtained the valid certificate illicitly, not mine to prove I obtained it legally. Hasn't the UK adopted the premise "innocent until proven guilty" yet? Even in US civil proceedings that is true; only the concept of proof is watered down to "preponderance of the evidence" instead of "beyond a reasonable doubt".

      Microsoft itself ensures there is a 1:1 correspondence between CoAs and licenses. That should be proof enough that ownership of a CoA conveys the right to agree to a license. The audit of operating copies provides the count of agreed-to licenses to compare to the count of CoAs.

      This judge is wrong.

      And the GP post was meant to be Funny (though to correctly invoke Colbert, I should have said "The Wørd"; I wasn't sure whether &oslash; was an allowed entity here).

      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
    23. Re:Well, duh by civilizedINTENSITY · · Score: 1
      According to MicroSoft:
      A COA should always be included with the accompanying license components such as the hologram media, manuals, and other documentation. End users are licensed only if all accompanying components are distributed with the COA.
    24. Re:Well, duh by Anonymous Coward · · Score: 0

      I would think it would be Microsoft's burden of proof to prove I obtained the valid certificate illicitly, not mine to prove I obtained it legally.

      If you use someone else's copyrighted software, the burden of proof to demonstrate that you have a license to do so is on you, not on anybody else. The COA is an entirely voluntary, extra thing Microsoft gives you; it doesn't affect your obligations in any way.

      Microsoft itself ensures there is a 1:1 correspondence between CoAs and licenses.

      No, they do not ensure that at all. I have about half a dozen COAs that I don't have corresponding licenses for anymore. That's a common and expected consequence of Microsoft's license structure.

      If you don't like Microsoft's licensing structure (I don't), or fear that you may be unjustly accused of not having a license, just don't use their software; it's that simple.

    25. Re:Well, duh by muzthe42nd · · Score: 0

      Nope, same thing on me Lenovo IBM Thinkpad in teh UK

      --
      Pfft - Sorry, what?
  4. Now that is ridiculous by drinkypoo · · Score: 4, Insightful

    But I guess it supports the idea that you don't buy software, you buy a license.

    I guess first sale law doesn't apply to software in the UK any more.

    The sad part is that aside from the receipt, with which microsoft (for example) might or might not give you a new code, the only important part of buying windows or other software is getting the COA with the reg code. The CD is utterly unimportant if all you bought was a license to use the software; you have a license, so you have a legal right to make backup copies. The CD that came in the package doesn't mean shit.

    Assuming you even got a CD...

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    1. Re:Now that is ridiculous by plague3106 · · Score: 1

      Ya, I'm not sure I follow.

      The bank pays X pounds for a piece of software, but don't use it because they have another licence through volume licensing. So they have a bunch of licenses they bought but don't use. It seems like they should be able to sell those licenses as they please.

    2. Re:Now that is ridiculous by Anonymous Coward · · Score: 0

      Perhaps the implication is a bit stronger than you think. If there is no way to prove that your software is licenseable, perhaps software *can't be licensed, only sold*.

    3. Re:Now that is ridiculous by fermion · · Score: 2, Insightful
      All of this is set up so that a transactions can be conducted in a reletively free and secure manner. As a firm, I do not have to go to the MS main office and buy a license. I can in fact pop down to the corner software vendor and purchase a license. This license should have certain security features, and as long as I have something that any resonable person would consider a valid license, I as the consumer of the product should be protected. Now, perhaps the vendor has done something wrong, but not me.

      If such a standard is not used, then why should I put myself at risk and use a product? If I am going to be hassled, when I have followed all procedures, what motivation do I have to follow legitimate procedures. If I am going to have trouble no matter what I do, why shouldn't I just buy a license out of the back of car.

      This is why the WGA, and BSA audits, are so stupid. If the vendors are forging certificates, then MS should go after the vendor. If a consumer has a issue, then perhpas some action is justified as long as it is not a fishing expedition. But there is no reason that I, as a paying customer, should be regularly hassled becuase a manufacturer has set up unwidely guidlines.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    4. Re:Now that is ridiculous by qwijibo · · Score: 1

      When you lay out the facts like that, it sounds reasonable. However, software companies like Microsoft didn't get where they are today by being reasonable. From their perspective, if you bought more licenses than you need, that's not their problem. They're not going to refund the extra copies, because you were stupid enough to purchase them. They're not going to allow you to sell your unused copies because that means there would be someone making use of that oversold software. What's the point of having salespeople if they can't con customers into buying things they can't use? =)

    5. Re:Now that is ridiculous by Philosinfinity · · Score: 1

      Not according to the judge. The judge decided that a license is not granted until the EULA is accepted. This means that the box does not contain a license, but rather a "nonrefundable nontransferable potential license."

    6. Re:Now that is ridiculous by Damastus+the+WizLiz · · Score: 1

      My Sticker that came with windows says "Proof of license" and "Certificate of Authenticity."

      --
      I often have trouble remembering which way is out of bed in the morning.
    7. Re:Now that is ridiculous by Philosinfinity · · Score: 1

      I don't see the words "Proof of License" on mine.

    8. Re:Now that is ridiculous by grahammm · · Score: 1

      As long as each instance of the licence is only 'invoked'/activated once, what difference does it make to the licenser who actually uses the licence? In the case of the banks, Microsoft have been paid for a licence to run Windows for each computer delivered, so if the banks do not need the licences and sell them then the transaction has no effect on the relationship between the number of licences issued and the number of systems running Windows. On the other hand, if they do not sell on the unwanted licences it does affect that relationship - it makes it that there are more licences issued (for which Microsoft have been paid) than systems running Windows.

    9. Re:Now that is ridiculous by julesh · · Score: 1
      I guess first sale law doesn't apply to software in the UK any more.

      Yep. The judge even quotes the statute which means it doesn't: Copyright, Designs and Patents Act 1988, Section 56 (Transfers of copies of works in electronic form). It's phrased like a grant of a right to transfer copies unless the copyright holder includes a term preventing it. But if you read between the lines, it clearly grants the copyright holder the right to include a term in the EULA which will effectively prevent transfers.

      The other theory which might apply is that software is useless without something that will enable you to copy it onto your hard disk / load it into the memory of your computer. The US has a law that specifically enables this. The UK doesn't, so over here, we have to rely on an implied term of the contract of sale that is a grant of this right (it would usually be held to exist unless you were specifically told at point of sale that you weren't being granted such a right, I suspect). An unauthorised reseller would not have authority to make such a grant, so couldn't legally sell the software (except with explicit instructions that it should not, under any circumstance, be used). Microsoft grants a limited right to resell in their EULA, but if you haven't accepted the EULA you can't rely on that. There has to be a chain of sellers, all of whom have accepted the EULA, leading back to MS, in order for a sale of MS's software to be legal.

      It's ridiculous, but it does seem to be the law of this country.

      The CD is utterly unimportant if all you bought was a license to use the software; you have a license, so you have a legal right to make backup copies.

      That, also, is a specific provision of US copyright law that doesn't apply in the UK. We don't have right to make backup copies, except as explicitly granted by the copyright holder. The Windows XP EULA doesn't mention backups.

      Also, quoting from MS's documentation on what the COA is:
      The Certificate of Authenticity (COA) is not a license to use the Microsoft software. The COA is a security device that accompanies legally licensed Microsoft software.

      Obtaining a COA does not in itself grant you a license to use Windows. You have to get the license transferred, which requires (according to MS's EULA) a transfer of everything, including source media and manuals. Tough luck if you're on an OEM softload.
  5. Should have been a different ruling by moorcito · · Score: 4, Insightful

    It would have been much better had the judge ruled that the EULA is not evidence of a license.

  6. Trust no one? At all? by zanderredux · · Score: 3, Insightful
    So, someone decided that, because contracts can be counterfeit, they cannot be trusted at all and therefore are legally void?

    How in the world you can prove legality of anything, then?

    What about the money in your wallet? Should it automatically lose its legal tender status just because some bills can be counterfeit?

    1. Re:Trust no one? At all? by truthsearch · · Score: 1

      Since when has anyone considered a certificate of authenticity to be a contract?

      The EULA is considered a contract, but that's not what's in dispute here.

    2. Re:Trust no one? At all? by Anonymous Coward · · Score: 0

      The EULA is nothing. Micro$oft is nothing. You are a sheep.
      BTW, do you dream of electric androids?
      :b

  7. Uh, so what's left? by jandrese · · Score: 4, Insightful

    If the certificate is not enough proof of your ownership of a license to run a particular piece of software, what is? The original recipt? I mean if the BSA raids my office and the certificates are not good enough, then we're totally boned, since it's the only thing Microsoft has ever given us to prove that we are legally running our software. If we fail to prove that we're legally running the software, the fines would be in the hundreds of millions of dollars given the number of OS installs we have on the desktops here.

    While I don't think MS would want to alienate their customer base, but if they wanted to they could really turn that ruling into a money factory.

    --

    I read the internet for the articles.
    1. Re:Uh, so what's left? by Mr.+Underbridge · · Score: 4, Insightful
      While I don't think MS would want to alienate their customer base,

      Why would they stop now?

    2. Re:Uh, so what's left? by Anonymous Coward · · Score: 0

      Hello jandrese,

      I was just wondering if you could tell me which company you currently work for?

      Many thanks,

      Phil Hall
      Senior License Auditor
      BSA

    3. Re:Uh, so what's left? by rolfwind · · Score: 1

      All else being equal, I wonder if this will turn more companies to Linux-BSD-whatever/OpenOffice. I mean, Microsoft/BSA seems to be your worst enemy right now even if you have real licenses so why even bother with pay-for software if it's not absolutely mandatory?

      BTW, what proves a real license right now if not the CoA? A CD doesn't prove it either anymore (or so I read) in some cases so I assume this ruling will be effective in stopping the transfer of second hand licenses period (legal wise). And for those people say "duh, it's a CoA, not a CoL" - well isn't that just semantics? One should be as good as the other.

    4. Re:Uh, so what's left? by Anonymous Coward · · Score: 0
      If the certificate is not enough proof of your ownership of a license to run a particular piece of software, what is? The original recipt?

      Basically, the judge said that the software is "licensed, not sold". If a computer comes with Windows pre-installed and you never used that copy of Windows, then you have no right to re-sell that unused copy of Windows. Because you never bought it in the first place, you only got a license for use on that specific computer. Too bad for you if you do not use it. Too bad for you if your vendor did not offer any PCs without Windows pre-loaded or if these PCs without Windows were as expensive or even more expensive than those with Windows pre-installed.

      The judge did not state that the certificate of authenticity was invalid and worthless. But that certificate is not a sufficient proof that you have a valid license to use the software. IANAJ, but a sufficient proof could have been the original receipt of the computer showing that it included a pre-installed copy of Windows. Which is something that these guys did not have, since they were installing these copies of Windows on other computers than the one they were supposed to be installed on.

    5. Re:Uh, so what's left? by Mister+Whirly · · Score: 1

      "All else being equal, I wonder if this will turn more companies to Linux-BSD-whatever/OpenOffice."

      If only even a few people did switch everytime someone on /. points out something "stupid" that MS did, about 127% of the population would be using Linux-BSD-whatever/OpenOffice by now.

      --
      "But this one goes to 11!"
    6. Re:Uh, so what's left? by mnbjhguyt · · Score: 1

      I'm sure that in Italy the *only* thing that counts is the original receipt. COAs, stickers and the like are worth nothing in case of an inspection.

      This lead in the past to very bad practices by small computer shops: they would install pirated copies of windows on customers' computers, which know nothing about COAs and think they are ok because they have an invoice stating that they paid for the software.
      This shops, in turn, make a 100% profit on the 'sale'.

      I remember a few years ago I was repairing some pcs at a customer's office, and I told them that it looked like they didn't have any license at all. When I explained to them about COAs, they just didn't care, since they said that in case of inspection they would held the shop responsible for any license problem.

      I'm sure that this kind of practice had a strong influence on introducing WGA kinds of activation.

      This also has some interesting side effects: since the law here requires you to keep receipt for at least (I think) 5 years, what if I'm still using office 97 on my office PCs? (I still am.) Can BSA or a similar entity ask me for a proof of license?

    7. Re:Uh, so what's left? by Reziac · · Score: 1

      The Official Word from M$, last I heard (and this was directly from M$'s own people, at one of their local seminars) was that when they go to check whether you're legit and fully licensed, neither the COA, nor the original CD, nor the retail box counts. ONLY the original purchase receipt counts.

      That's what they said... The receipt is the ONLY evidence they'll accept. So it behooves purchasing departments to hold onto those original receipts -- forever.

      And as to everyone else... time to start dumpster-diving!!

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    8. Re:Uh, so what's left? by julesh · · Score: 1

      If the certificate is not enough proof of your ownership of a license to run a particular piece of software, what is?

      If you read the EULA, you can transfer a license for Windows if you have accepted the EULA, and pass on the COA, the original discs (or system restore discs if you're on a softload) and the printed manuals that were supplied with the copy (usually only a little "getting started" pamphlet with Windows XP). To prove you have a valid license, you'll therefore need all of these things.

  8. interesting by sum.zero · · Score: 1, Insightful

    eula's are not valid in many parts of the usa, so how exactly are you supposed to acquire your license from ms in these states?

    sum.zero

    1. Re:interesting by truthsearch · · Score: 1

      In 1996 a federal court found that a shrink wrap license is an enforceable software license. Have some states passed legislation since then rendering them invalid?

      (I'm not trying to be a PITA, I actually want to know.)

    2. Re:interesting by WhiteWolf666 · · Score: 1

      No, the grandparent poster is suffering from a common myth.

      EULA's are, indeed, enforceable throughout the U.S. There maybe a provision here or there that a judge might have a quibble with, but on the whole there's no reason to think that the EULA would be found invalid.

      Yet Another Reason to Avoid Microsoft Software.

      --
      WhiteWolf666 an exBush supporter. All you new-school,compassionate,save the children Republicans can rot in hell
    3. Re:interesting by Alsee · · Score: 2, Insightful

      In 1996 a federal court found that a shrink wrap license is an enforceable software license.

      And 5 years later we have SoftMan Products Co. v. Adobe Systems Inc. 2001 stating that buying a box of software in fact gives you ownership of that copy, and that no EULA exists unless you in fact assent to be bound by that contract. Note the key letter A in EULA for agreement. If there is no agreement then there is no EULA and you are not bound by any of its terms. And of course that also means that you receive nothing the EULA offers.

      There are cases on both sides of the EULA issue, and many of them are decided on specifics of a case that have absolutely no bearing on the fundamental validity of EULAs in general.

      Two key points:
      1) An EULA is nothing but a contract offer. You are always free to decline any contract offer (and receive none of the benefits that contract offers).
      2) You generally do not need anything an EULA offers. If you have bought a copy of software US law explicitly states that it is not copyright infringment install and run that software, that you do not need any license at all.

      So all attempts to impose an EULA turn on the issue of finding some other non-copyright legal mechanism of cornering people into agreeing to that contract offer. Finding some legal angle to claim that the End User has chosen to be bound by that contract.

      And it is very important to note that any argument that EULAs are valid has absolutely nothing to do with copyright law and has abaolsutely nothing to do with software. Any legal rational for making EULAs binding would equally apply to Tomatos. According to the rational in the case you linked, your local supermarket could put a little sticker on a shrinkwrapped 6 pack of tomatos stating that the sale is subject to the enclosed EULA, and that you would be bound by the contract hidden inside that shrinkwrapped tomato pack merely by buying it with your daily groceries.

      So between our two links, we have one judge stating that buying a normal item off a store shelf automatically binds you to the terms of any and all contracts printed in or on that box, and another judge saying that buying a product is buying a product which just happens to have a contract offer printed on it.

      In my oppinion, the first judge's position is legally unreasonable and a disaster for the marketplace. That position also requires an insane Rube Goldberg / Schrodinger's Cat mess of logic and law where you become bound by the arbitrary terms of a contract you have never seen, but that is OK because you aren't bound by them because the contract might have some hidden terms allowing you to return the product and escape (some but not all) of the terms of the contract, but where the store is not a party to that contract and is perfectly free to refuse to accept any returns, in which case you may or may not be bound by that contract and you may or may not own that object.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    4. Re:interesting by dch24 · · Score: 1

      If you have bought a copy of software US law explicitly states that it is not copyright infringment install and run that software, that you do not need any license at all.

      Okay, but how do I use the software when it won't install unless I click "I Agree"? How do I get the media out without unwrapping the shrinkwrap? I'm not creative enough to find a way to actually install and run my software and circumvent the crippled package without doing something illegal.

      That's the nice thing about Free Software. Its value in the market is higher than Microsoft Software because the license allows usage in a way I can understand.

      Oh, and I'm not sure I agree that there is "no license at all," even without opening the package or agreeing to the EULA. The software license is the legal term used to describe the code which is intentionally copied from, say, the CD to the HDD, and then into the RAM and the Cache before it gets copied into the CPU and executed. These copies are part of the license, which may be a license of "Fair Use" as you say "if you have bought a copy of software." IANAL but I'm guessing the law draws the line when the same code is executed on behalf of two different users simultaneously. (From this, we get that it can't be installed on two machines, etc, etc.)

      You offer the tantalizing possibility of using the software and circumventing the EULA, but you go as far as to say no license is required. I'm not so certain. Explain, please.

    5. Re:interesting by Alsee · · Score: 1

      The software license is the legal term used to describe the code which is intentionally copied from, say, the CD to the HDD, and then into the RAM and the Cache before it gets copied into the CPU and executed

      The law I cited, US Code Title 17 Section 117 says:

      it is not an infringement for the owner of a copy of a computer program to make or authorize the making of another copy or adaptation of that computer program provided:
      (1) that such a new copy or adaptation is created as an essential step in the utilization of the computer program in conjunction with a machine and that it is used in no other manner, or
      (2) that such new copy or adaptation is for archival purposes only and that all archival copies are destroyed in the event that continued possession of the computer program should cease to be rightful.


      So backups are explicitly legal, and copying to HDD and into RAM are explicitly legal.

      "Fair Use"

      I would say it does fall under Fair Use - but that is an entirely moot point anyway. Said activities are explicitly covered by the above statutory authoriztion. No need to turn to Fair Use at all.

      How do I get the media out without unwrapping the shrinkwrap?

      You unwrap the shrinkwrap. It's your property and you have every right to melt, paint, vaporize, tear apart, or even eat your own sheet of plastic.

      The EULA is attempting to establish itself up by it's own bootstraps. It is circular logic. The EULA is the only thing that claiming that opening the shrinkwrap binds you to the contract. However none of the clauses of a contract offer are binding on either party - that clause of the contract offer is not binding upon you - if you have declined that contract offer.

      Imaging I hand you a sheet of paper - a contract offer - and that contract says you have to pay me $10 a day for the rest of your life - and that contract says that by painting your house red become bound by this contract - well you can decline contract and you are still perfectly free to paint your house red. I cannot remove your preexisting rights and abilities and freedoms merely by offering you a contract.

      Note that there are circumstances where contract can and do use clauses of that sort - and such an example should clarify the exact flaw in the EULA attempt. If I have a concert hall and I have a contract offer saying you can enter my property and watch a concert and has terms prohibiting X Y and Z, that contract offer can say that entering my property constitutes acceptance of the contract. That is legally valid because it is normally trespassing to enter my property - the only thing giving you permission to enter is the contract - so entering does legally imply use of that contract and therefore acceptance of that contract.

      how do I use the software when it won't install unless I click "I Agree"?

      I have two answers here. If one wishes to argue the second invalid, fine... just stick with the first answer.

      (1) It is entirely possible to install software while skipping the EULA code. You either need to be a skilled programmer, or you can simply download a utility designed to do that from some skilled programmer. You simply tell your processor to halt before throwing up the EULA, and then tell your processor to skip to the address of the code that carries out the rest of the installation. It's a hassle and a stupid game, but it proves my point. You are perfectly free to reject any and all contract offers and by law you need no license to install and use that software.

      (2) First a counter example... say you buy a copy of Everquest. You are perfectly free to install and run that software however you like - on your own. However *IF* you access their online service (which you could avode by routing your packets to your own server and by hosting yourself) and you do communicate with them and you do accept their online access contract and do proceed to utilize that online service further demonstrating use and

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  9. Re:When what is? by Kadin2048 · · Score: 2, Insightful
    What does the judge think the license is? Is it the receipt? The media? The license key? Or some/all of these combined? IMHO the COA is the piece of paper saying "you are license for this product". It doesn't matter what media or license key you use providing the COA is valid.
    I wondered the same thing. Okay, so when you buy software, you're not really buying the software, you're buying a license (or so they tell us). Fine; but where the hell is the license? What confers it? The purchase receipt? Possession of the original authentic media? The front page of the manual? The click-through license?

    If the silly certificate isn't the license, then what is?

    It's all well and good to say that I'm buying a license, but if that's the case, then I want to know exactly how it was conferred to me, and how I can transfer or sell it to somebody else.
    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  10. Implicit sadness by Sparr0 · · Score: 4, Interesting

    The real problem here is that this judge, if the quote is truly from a judge, implicitly acknowledges the concept of a license to use software, a right that is not (under US and UK copyright law) the copyright holder's to license.

    1. Re:Implicit sadness by saphena · · Score: 2, Informative

      The concept of a Licence to Use is firmly, unquestionably, established both in UK and US legal jurisdictions and is the basis on which ALL software is licensed including under the GPL.

      That is what you buy when you buy software from anyone, the Right to Use the software. The obvious exception to this rule would be if you purchased the Copyright itself.

    2. Re:Implicit sadness by roystgnr · · Score: 4, Informative

      That is what you buy when you buy software from anyone, the Right to Use the software.

      No, you buy a copy of the software. The right to use that copy is implicit; nowhere does copyright law restrict that right to copyright holders, and it's as fundamental as the right to read a legally purchased copy of a book. Software companies originally tried to use a "you can't use our software without making a copy in RAM, so you need a license!" argument, but in the USA at least that was made explicitly legal in Title 17 a. 1. 117.

      Of course, this is assuming that you walk into a store, pick out some software, hand them some money, and don't sign anything except a credit card receipt. If you buy anything by specifically agreeing to a license beforehand, then certainly the license terms apply.

    3. Re:Implicit sadness by Mprx · · Score: 1

      The GPL version 2 has absolutely nothing to do with use of software. It is only concerned with copying, and you are under no obligation to accept the licence if you do not distribute the software. This allows abuse such as modifying the software and then only providing it as a web service, so it is technically not distributed, which is one of the problems the GPL version 3 will correct.

    4. Re:Implicit sadness by Sparr0 · · Score: 1
      Says who? Can you cite any precedent? I will start you off, from Softman v Adobe:

      The Court finds that the circumstances surrounding the transaction strongly suggests that the transaction is in fact a sale rather than a license. For example, the purchaser commonly obtains a single copy of the software, with documentation, for a single price, which the purchaser pays at the time of the transaction, and which constitutes the entire payment for the "license." The license runs for an indefinite term without provisions for renewal. In light of these indicia, many courts and commentators conclude that a "shrinkwrap license" transaction is a sale of goods rather than a license.


      The law is very explicit on which rights are reserved exclusively to the copyright holder, and are thus theirs to license. Among these are the right to copy the work, the right to produce derivative works, and a few others, all with many explicit exceptions. Nowhere among these will you find the right to read or use the work. When you buy a book there is no restriction on your reading the book. When you buy a game there is no restriction on your playing the game (except where such playing consitutes a 'Public Performance').
    5. Re:Implicit sadness by JTL21 · · Score: 1

      It is explicit in UK law too. (Although I don't think the first sale doctrine is but that is another point entirely.)

    6. Re:Implicit sadness by Alsee · · Score: 1

      The concept of a Licence to Use is firmly, unquestionably, established both in UK and US legal jurisdictions and is the basis on which ALL software is licensed

      Who the heck modded this +4 Informative?

      Both US law and UK law explicityly state that YOU NEED NO LICENSE AT ALL to install and run software. I don't know the exact UK law citation, but the US law citation is US Code Title 17 Section 117.

      An EULA is a contract offer. No contract exists unless you choose to Agree to be bound by a contract. That's what the A is for in EULA, agreement. Of course if you decline an EULA contract offer, then you receive nothing that contract offers. But as I cited above, you do not need any licence at all to legally install and use software.

      is the basis on which ALL software is licensed including under the GPL.

      GAHHH! How the hell did THAT get modded +4 Informative?

      The GPL EXPLICITLY states the exact opposite. The GPL explicitly states that it is not a licence to use, and explicitly states that that you do not need to accept the GPL to use the software.

      The GPL is in fact a license offer - one which you are perfectly free to decline. What the GPL offers to licence to you is the right to create and distribute NEW COPIES. Copyright law prohibits you from creating and redistributing new copies (and public performances). Copyright law does NOT restrict the right to use. There is no such thing as a "right to read" a book in copyright law, no such thing as a "right to listen" to music in copyright law, no such thing as a "right to use" at all.

      You do not receive any license at all with a book/CD/whatever because you do not need any license at all. You only need a license for reproduction and redistribution and public performance. When you buy a book/CD/whatever, copyright law says that you are in fact the legal owner of that particular copy.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    7. Re:Implicit sadness by meringuoid · · Score: 1
      The concept of a Licence to Use is firmly, unquestionably, established both in UK and US legal jurisdictions and is the basis on which ALL software is licensed including under the GPL.

      Rubbish. The GPL is not a licence to use, it is a licence to modify, copy and redistribute.

      From the GPL itself:

      Activities other than copying, distribution and modification are not covered by this License; they are outside its scope. The act of running the Program is not restricted

      And, later on in the same document,

      You are not required to accept this License, since you have not signed it. However, nothing else grants you permission to modify or distribute the Program or its derivative works. These actions are prohibited by law if you do not accept this License.

      So, you need no licence to USE the software, any more than you need a licence to read a book. You only need the licence to modify it or redistribute it, activities which would otherwise be illegal under copyright law. You may use the software even if you reject the GPL entirely.

      --
      Real Daleks don't climb stairs - they level the building.
    8. Re:Implicit sadness by mpe · · Score: 1

      An EULA is a contract offer. No contract exists unless you choose to Agree to be bound by a contract. That's what the A is for in EULA, agreement. Of course if you decline an EULA contract offer, then you receive nothing that contract offers. But as I cited above, you do not need any licence at all to legally install and use software.

      To be valid an EULA must fit with that part of the "law of the land" which relates to contracts. Just because an EULA might state something does not, by itself, mean anything. Indeed it's quite common for all sorts of contracts to contain bogus terms as bluff.

      The GPL EXPLICITLY states the exact opposite. The GPL explicitly states that it is not a licence to use, and explicitly states that that you do not need to accept the GPL to use the software.

      The GPL is not an EULA.

      The GPL is in fact a license offer - one which you are perfectly free to decline. What the GPL offers to licence to you is the right to create and distribute NEW COPIES. Copyright law prohibits you from creating and redistributing new copies (and public performances).

      Unless you have permission from the copyright holder. Something like the GPL grants you conditional permission. Whereas EULAs often either enumerate copyright law or go on about things utterly irrelevent to copyright law. In a sane world no-one would accept them without running them past at least one lawyer. Especially if "you" are a corporation, since it is often unclear how these apply to "corporate people".

    9. Re:Implicit sadness by julesh · · Score: 1

      The real problem here is that this judge, if the quote is truly from a judge, implicitly acknowledges the concept of a license to use software, a right that is not (under US and UK copyright law) the copyright holder's to license.

      Actually, that's only true of US copyright law. This is the reason it isn't legal to use a games-console modchip in the UK to run imported titles: you don't have a valid license to make the necessary copy of the game in system RAM.

      In the UK, it is generally held that the right to use is passed as an implicit contract term at time of sale, but it isn't enshrined in statute like it is in the US. And note that that right *cannot* be passed by an unauthorised reseller.

    10. Re:Implicit sadness by julesh · · Score: 1

      Software companies originally tried to use a "you can't use our software without making a copy in RAM, so you need a license!" argument, but in the USA at least that was made explicitly legal in Title 17 a. 1. 117.

      But, as far as I can tell, it hasn't in the UK. And I've certainly read legal decisions (e.g. the PS2 modchip sales prosecution that occurred last year) that suggest that a license is required to make transitory copies of software in the UK, even if that is necessary for the functioning of the software.

    11. Re:Implicit sadness by julesh · · Score: 1
      It is explicit in UK law too.

      Can you provide a reference please? I believe you are mistaken.
    12. Re:Implicit sadness by JTL21 · · Score: 1

      I think I had read this bit of the 1988 copyright act. http://www.opsi.gov.uk/acts/acts1988/Ukpga_1988004 8_en_3.htm But on rereading it isn't as clear as I thought, incidental running can not be adaptation of the work but I'm not sure about whether a copy has been made. I do however suggest an alternative below based on the same page of the act but with regards to the definition of infringement by copying.

                      21.--(1) The making of an adaptation of the work is an act restricted by the copyright in a literary, dramatic or musical work.

      For this purpose an adaptation is made when it is recorded, in writing or otherwise.
              (2) The doing of any of the acts specified in sections 17 to 20, or subsection (1) above, in relation to an adaptation of the work is also an act restricted by the copyright in a literary, dramatic or musical work.

      For this purpose it is immaterial whether the adaptation has been recorded, in writing or otherwise, at the time the act is done.

              (3) In this Part "adaptation"--

                    (a) in relation to a literary or dramatic work, means--
                                (i) a translation of the work;
                                (ii) a version of a dramatic work in which it is converted into a non-dramatic work or, as the case may be, of a non-dramatic work in which it is converted into a dramatic work;
                                (iii) a version of the work in which the story or action is conveyed wholly or mainly by means of pictures in a form suitable for reproduction in a book, or in a newspaper, magazine or similar periodical;

                    (b) in relation to a musical work, means an arrangement or transcription of the work.

              (4) In relation to a computer program a "translation" includes a version of the program in which it is converted into or out of a computer language or code or into a different computer language or code, otherwise than incidentally in the course of running the program.

              (5) No inference shall be drawn from this section as to what does or does not amount to copying a work.

      -------------
      Note in the following definition of "Infringement of copyright by copying." that (2) says "reproducing in material form." - I would think it could be argued that a temporary in memory copy was not in "material form."

      Infringement of copyright by copying.

                      17.--(1) The copying of the work is an act restricted by the copyright in every description of copyright work; and references in this Part to copying and copies shall be construed as follows.

              (2) Copying in relation to a literary, dramatic, musical or artistic work means reproducing the work in any material form.

      This includes storing the work in any medium by electronic means.

              (3) In relation to an artistic work copying includes the making of a copy in three dimensions of a two-dimensional work and the making of a copy in two dimensions of a three-dimensional work.

              (4) Copying in relation to a film, television broadcast or cable programme includes making a photograph of the whole or any substantial part of any image forming part of the film, broadcast or cable programme.

              (5) Copying in relation to the typographical arrangement of a published edition means making a facsimile copy of the arrangement.

              (6) Copying in relation to any description of work includes the making of copies which are transient or are incidental to some other use of the work.

    13. Re:Implicit sadness by LainTouko · · Score: 1

      Surely if someone sells software to you then tries to tell you that you don't have the rights required to actually use it, they're guilty of selling a product which isn't suitable for the purpose advertised.

    14. Re:Implicit sadness by julesh · · Score: 1

      Yes. But that *doesn't* give you the right to use it.

  11. Certificates of Authenticity? by Anonymous Coward · · Score: 0

    We don't need no steenkin' Certificates of Authenticity.

  12. Boiling down my understanding by hanshotfirst · · Score: 5, Interesting
    The defence argued that if a large organisation, such as a bank, bought a large number of computers and never used the bundled Microsoft software and sold on the licences, that a company such as Digital could sell those licences, for which Microsoft had already been paid.

    The judge rejected the argument. "The fallacy in the argument is that if the bank does not accept the EULA [licence] terms [by operating the software and agreeing the terms], it receives no licence. Thus it can confer no licence for the use of any Microsoft software by passing on the COA (certificate of authenticity), nor can the COA be evidence of, or itself confer, such a licence. Thus, provided that the licensing system is enforceable in law, the circumstances exemplified cannot give rise to a legitimate trade in COAs."

    I'm trying to get my head around this ruling. On one hand it makes sense, on the other hand it doesn't. My question: if the bank receives no license because it paid money but didn't accept the EULA, then what did it receive for the money it paid?
    Possible answers I can come up with:
    1. The bank bought a computer, and chose not to use some software bundled with it, the same as if I "bought" Norton Antivirus with a new computer but never used it because I choose to use AVG. Dell won't refund to me their cost of the Norton software just because I don't choose to use it. Arguable, but not overly evil.
    2. The bank bought a computer which was probably loaded with an OEM "only for sale with a new computer" license for Windows. The license should travel with the hardware, then. Arguable, moderately evil because of the whole "only with a computer" distinction.
    3. ???
    4. The judge got it wrong, and the bank should be able to sell the unused license the same as if they bought too many office chairs and sold the ones they never used. Non-evil, but IANAL.
    Thoughts?
    --
    Why, oh why, didn't I take the Blue Pill?
    1. Re:Boiling down my understanding by Anonymous Coward · · Score: 0

      "Thus, provided that the licensing system is enforceable in law..."

      This phrase, though IANAL, is the judges let out clause. He rules *as if* the EULA is a legal way to offer a licence. It is my understanding that the legality of EULA's is open to doubt.

    2. Re:Boiling down my understanding by Anonymous Coward · · Score: 0

      I'm trying to get my head around this ruling. On one hand it makes sense, on the other hand it doesn't. My question: if the bank receives no license because it paid money but didn't accept the EULA, then what did it receive for the money it paid?

      Since, according to evidence produced by the defendent, a bare PC would have been more expensive, the bank effectively paid a negative amount for the windows licence. Whether that's a fair practice or not isn't really relevant to this case.

    3. Re:Boiling down my understanding by tokul · · Score: 1
      1. The bank bought a computer, and chose not to use some software bundled with it, the same as if I "bought" Norton Antivirus with a new computer but never used it because I choose to use AVG.
      Usually you don't buy NAV with new computer. You get free time limited version.
    4. Re:Boiling down my understanding by Jtheletter · · Score: 1
      What about:
      5. The bank buys the PCs with OEM Windows installs and accepts the licenses (and terms of the EULA). Then, it immediately installs it's corporate Windows version/license and resells the now unsed but perfectly valid OEM licenses as before.

      I think the judge messed up on this one. His argument seems ot rely ont he bank not accepting the EULA and therefore not technically obtaining the licenses. Correct me if I'm wrong but I don't believe there is a clause in the current MS Windows EULA that specifically says that you cannot resell the software with the license. So what is the bank doing that invalidates the EULA other than saying "We don't want the OS that came with this?"

      I agree though, that the proper solution is for the OEM to reimburse the bank (or whoever) the cost of the license that they don't want and aren't using. Sadly that option is missing from most every PC seller, and it's always amazed me how this fact somehow escapes all of the antitrust suits brought against MS.

      --
      -- I'm not a pessimist, I'm a realist. It's not my fault that life sucks so much. --
    5. Re:Boiling down my understanding by qwijibo · · Score: 1

      I think it's confusing because of the terminology used. The whole thing makes more sense if you think of it not as a license fee, but as a computer tax levied by a corporation. If you purchase a computer, you pay a tax. You're may use the OS, free of charge, if you agree to the terms. If you do not agree, you don't have a right to the OS. The only way to avoid the tax is to not buy a computer.

    6. Re:Boiling down my understanding by Gabrill · · Score: 1

      So how the fuck is this different from retailing said license? Is there a fundamental limit on how many hands may pass money before a license is officially laid on the final user? Do retailers have a specific and unique licence that that overturns this decision as it may apply to them?

      --
      Always going forward, 'cause we can't find reverse.
    7. Re:Boiling down my understanding by Bob9113 · · Score: 1

      1. The bank bought a computer, and chose not to use some software bundled with it, the same as if I "bought" Norton Antivirus with a new computer but never used it because I choose to use AVG. Dell won't refund to me their cost of the Norton software just because I don't choose to use it. Arguable, but not overly evil.

      Whoah - not so fast with that "not overly evil" statement. I'll buy that this fact in and of itself is not evil. But put it in context with "You cannot buy a computer from most major companies without Windows" and suddenly things start to get fishy.

      If MS is allowed to create contracts that depend on being paid for software on a per-computer-sold basis, rather than on a per-copy-of-software sold basis, then they are effectively inducing me to bpay for the software. That's fine, as long as I am in fact buying something that I can resell, or for which I can get a full refund. But if I'm being induced to buy, and I can't recover any value, and the company doing the inducing is doing so by leveraging its monopoly, then we have a problem.

    8. Re:Boiling down my understanding by torokun · · Score: 1

      I am not a lawyer yet, so don't rely on this as legal advice.

      You are having trouble understanding this because you don't have a proper understanding of what a license is...

      A license is permission to use another's property. A license agreement is a contract wherein one party gives a license (here, permission to use the software) in exchange for something (here, some promises) in return.

      Until the buyer agrees to the terms, he doesn't get the permission, or license, to use the software. The license is a legal right separate and apart from any physical paper. Thus, the COA really has nothing to do with the license -- it's really just a trademark and a warranty that the software is genuine. Do you see how the issue of genuineness of the software is separate from the issue of permission to use it?

      The answer to your question is most likely #1. They got a computer with something on it they don't have a right to use.

    9. Re:Boiling down my understanding by jrumney · · Score: 1

      Usually you don't buy NAV with new computer. You get free time limited version.

      I suspect it is even a negative cost. Norton pays Dell to preinstall the trial version of NAV on all the PCs they ship. This is not the case for Windows, Office and any other MS software that comes bundled with business PCs.

    10. Re:Boiling down my understanding by jkrise · · Score: 1

      as if they bought too many office chairs and sold the ones they never used. Non-evil, but IANAL.
      Thoughts?...


      Under the terms of the EULA, any unused chairs cannot be sold.... instead, they have to be sent to the Chair-Man's office at Redmond. Think a company like Microsoft would leave loopholes like this in the EULA???!!

      --
      If you keep throwing chairs, one day you'll break windows....
    11. Re:Boiling down my understanding by julesh · · Score: 1

      Correct me if I'm wrong but I don't believe there is a clause in the current MS Windows EULA that specifically says that you cannot resell the software with the license.

      There isn't, but there is one that states that you can only transfer the software and license if you transfer the original media, printed documentation AND certificate of authenticity, whereas the bank in question only transferred the certificates, therefore hadn't correctly transferred their licenses.

    12. Re:Boiling down my understanding by julesh · · Score: 1

      Thoughts?

      One of the other posters (who seems to be a law student) pointed in the right direction, but his answer isn't clear enough for my liking, so I'm going to answer again.

      The bank did not receive a license. They received an OFFER of a license, but they would have to accept the EULA in order to acquire the license. Licenses are transferrable (unless specifically described otherwise), but offers aren't. You can't resell software (in the UK) without accepting some kind of license to do so. Only MS and people authorised by MS can grant a license to Windows, therefore only authorised sellers can legally sell Windows. The EULA authorises you to sell your copy of Windows, if you accept it.

      But, it stipulates conditions on what you must do in order to do this, which weren't followed in this case, therefore any questions as to whether the EULA was or was not accepted are moot: there is only one way you can legally sell a copy of Windows in the UK, which is to accept a license from MS and then sell it according to those terms. If they didn't accept the EULA, they can't sell it (as the judge pointed out); if they did, they have to follow steps which weren't followed in this case to sell it (which the judge didn't bother pointing out again; he'd already outlined these steps in an earlier paragraph of the judgement).

      Licenses don't travel with hardware, COA, or even original discs. They follow the combination of COA, discs and printed manuals that the copy was originally supplied with; omit any of these in a transfer, and the license remains with the transferer, not the transferee. The reason they follow this combination is quite clear: it's what MS stipulates in the EULA. Anyone reading the EULA can clearly see that this is what must be transferred, so there's no excuse for not doing it.

      I don't think there's any evil at all going on here, unless it is the ever-increasing tendency of OEMs not to supply a Windows disc with the PCs they sell, an act which effectively prevents you from following MS's transfer conditions.

  13. ramifcations for microsoft by Anonymous Coward · · Score: 0

    most OEM windows products are only supplied with a COA and preloaded on the computer. does this mean that the vendor in selling the computer with preloaded MS o/s has insufficient evidence of being able to license it despite this regime having been invented by microsoft so we have to keep buying a copy of windows with every new computer even if we dont use the old licenses?

  14. Dump Microsoft by Attaturk · · Score: 4, Interesting

    I'm not trolling - we're in the same boat. We still have a few MS machines in our company but we've been slowly getting rid of them over the last couple of years. With Vista, Windows Genuine "Advantage" etc., MS licensing paranoia etc. it's pretty self-evident that simply owning Microsoft licenses is an increasing risk - not to mention added burden on your IT team. Dump them. The alternatives are there and it's definitely worth it, if only to be free from the yoke of oppression. ;-)

    1. Re:Dump Microsoft by drooling-dog · · Score: 2, Interesting

      At some point public companies that subject themselves to what has become unnecessary expense and legal exposure will have to explain to their shareholders why they continue to do so. Certainly there will be cases where the transition costs are prohibitive, but that's no reason not to be looking into it.

    2. Re:Dump Microsoft by cyber-dragon.net · · Score: 5, Interesting

      We are in the same situation at my company. Management did an analysis of risk and TCO of running windows, which thanks to me included probability of getting sued by Microsoft, security etc and decided it was not a good business decision to stay with them. And yes, I gave a fair an impartial analysis and was realistic about training and maintenance times caused by the switch. Over the last year we have been slowly replacing all computers with either Linux for engineers or Macs for execs. Well, some of the engineers wanted Macs after the first couple came in too.

      Bottom line... we have dropped IT costs in just machines and setup time by about 20k a year, and we are not a large company. It used to take one person an afternoon to set up two windows machines since they had to wipe and re-install to get rid of all the pre-installed crap. Then run bandwidth intensive updates, install and update virus software etc. We could not use an image as the hardware was always just enough different it did not work, but even if we did it would not reduce the time much as a lot if it is updates which need to be monitored.

      With Linux we have an image we copy from CD onto the machine which has everything pre-done and bam, one machine out the door in 20-30 minutes (10 of which was getting it out of the box).

      The Macs are just as easy... the only thing we install is Office (necessary evil for execs, they MUST have their powerpoint) and that is done via copying a folder and inputting a key. No complicated process. Hell it even picks up our wireless network during install (gigabit landline reserved for engineers) and considers it a native interface rather than a hack like Windows.

      Now instead of spending 80% of my day troubleshooting Windows I spend maybe 15% on maintenance tasks and the rest adding value to the company by implementing new things like the VOIP phones that we can use thanks to the network not having so much unnecessary traffic on it, which incidentally is going to save us another $5k a year or so while we pay for the hardware and $10k a year after.

      All made possible by dumping Microsoft Windows XP.

  15. Re:When what is? by Rude+Turnip · · Score: 2, Interesting

    "I wondered the same thing. Okay, so when you buy software, you're not really buying the software, you're buying a license (or so they tell us). Fine; but where the hell is the license? What confers it? The purchase receipt? Possession of the original authentic media? The front page of the manual? The click-through license?"

    More importantly, how is it that a *minor* (who cannot be legally bound to a contract) can walk into any store, hand over cash and receive a copy of Windows? Won't somebody think of the children?

    btw, I'm only half joking, the point being that if any kid can simply buy a copy of Windows in a store, then it's a freaking RETAIL TRANSACTION, not a contractual agreement. Here's another good question...since a software retailer takes copies of Windows into their inventory, shouldn't the supposed "license" be with the retailer and not Microsoft?

  16. then how the hell ??? by l3v1 · · Score: 1

    Thus it can confer no license for the use of any Microsoft software by passing on the COA (certificate of authenticity), nor can the COA be evidence of, or itself confer, such a license

    And it also says:

    there are circumstances in which disused or unwanted volume licences for some Microsoft software can be transferred; but this trade must be compliant with Microsoft's own transfer terms and conditions

    Rrrright. So, somebody, please, educate us, what _can_ be an evidence of us properly using our legitimately bought MS software ? And, also, what exactly are those transfer terms and conditions ? And what can prove that someone was complying to those terms and conditions ?

    --
    I am putting myself to the fullest possible use, which is all I can think that any conscious entity can ever hope to do.
  17. Not America by andrewman327 · · Score: 1

    This ruling was made in another country, therefore it does not have much standing in the United States. Supreme Court Justice Kennedy likes to use international opinion in his rulings (see Roper v. Simmons and Lawrence v. Texas) but one decision in one case across the pond is no reason for American businesses to fear that they will be sued for their legally purchased software.

    --
    Information wants a fueled airplane waiting at the hangar and no one gets hurt.
    1. Re:Not America by TobascoKid · · Score: 1

      This ruling was made in another country,

      yeah, in the country I live in. You do realize that slashdot is read by people who live outside the US, don't you?

      --
      At some point, somewhere, the entire internet will be found to be illegal.
    2. Re:Not America by andrewman327 · · Score: 1

      I do realize that there are international /. readers, but some of the early comments were specific to the USA.

      --
      Information wants a fueled airplane waiting at the hangar and no one gets hurt.
  18. Re:When what is? by davecb · · Score: 1
    It's necessary but not sufficient: a legal bill of sale is arguably sufficient, and I notice that when shaking down^h^h^h^h^h^h^h^h^h^h^h^h auditing customers the BSA requires a bill of sale.

    --dave

    --
    davecb@spamcop.net
  19. What about using paper currency? by rdmiller3 · · Score: 5, Interesting

    Instead of reinventing the wheel, companies could use an existing "certificate" with built-in anti-counterfeit measures... common paper currency.

    For example...

    To complete your registration, label an ordinary envelope,
    "WidgiCorp SuperApp Registration". Then choose a [US]$1.00 bill
    and enter the full serial number from that bill: _________________
    Press the "Register Now" button to send the serial number.

    Put this bill into the envelope and store it with your copy of
    the license agreement. This serial number will be added to a
    publicly accessible list of registrations so that posession of
    this bill will prove that you have licensed this software.

    And there you have a counterfeit-resistant, anonymous, verifiable proof of registration.

    1. Re:What about using paper currency? by gknoy · · Score: 1

      ... What's to stop someone from just making up a number? Or, having a bill of currency on hand, but no actual legal copy of the software (e.g., some ISO one's downloaded from the internet)?

      A made-up number could conceivably conflict with a future bill used for registration.

      Then again, this may not be any worse than the normal "enter the 45 digit serial number from the back of the CD case". I /do/ like that the bill itself is used as proof, hehe.

      Overall, it sounds clever, but seems to have weaknesses, not all of which I can identify.

    2. Re:What about using paper currency? by gorckat · · Score: 1

      Time to apply for a patent!

    3. Re:What about using paper currency? by 14CharUsername · · Score: 2, Insightful

      Well maybe they could give you an activation code when you license the software. So basically you download the software, go to the website and put in your credit card number and the serial number from your dollar and get an activation code. You get charged for the software and your serial number is stored in a database at the company at the same time. The activation code could be some kind of hash based on your serial number or whatever, depending on how paranoid the software company is.

      Then when its time for a BSA audit or whatever, you show them your dollar, they check the database and verify that you own a license. The dollar is legal tender and has security measures to prevent counterfeiting so its reasonably safe.

      You could make up a number when registering, but then when you get audited you have no proof you own the software, so its kinda going against your own interests.

      The main weakness is when the intern trades your license for thousands of dollars of software for a coke.

    4. Re:What about using paper currency? by exp(pi*sqrt(163)) · · Score: 1

      The software vendor could provide the $1 bill - that way guaranteeing it exists. Seems like it could work to me.

      --
      Doesn't it make you feel good to know that our freedoms are protected by politicans, lawyers and journalists.
    5. Re:What about using paper currency? by PMuse · · Score: 1
      If the license were a readily transferrable, physical object (like paper currency), an enormous market in resale of unused licenses would spring up overnight. There would be auctions. There would be brokers. It would be glorious.
      Seller: "Would you like your license for Windows new for $199 or used for $9?"

      Buyer: "Uh... Let me think about that."

      Of course, _all_ new licenses would shortly include a "nontransferable" clause, and the market would fall off as the old transferrably licensed software became obsolete.
      --
      "We reject as false the choice between our safety and our ideals." --The American President (20.1.2009)
    6. Re:What about using paper currency? by ulmanms · · Score: 1

      $1 bills are too easily counterfeited - they should provide a hard-to-duplicate 'certificate', possibly with a hologram to guarantee it's 'autenticity'. Then they could put the serial number on this 'certificate' of 'autenticity' and there you go...

      ...maybe you're too subtle, jokes on me if so.

    7. Re:What about using paper currency? by rdmiller3 · · Score: 1

      No, $1 bills are just as difficult to counterfeit as any of the older USonian bills. Aside from that, they have the advantage that nobody wastes their time making convincing counterfeits of small bills.

      Admittedly, small bills from other countries would be more secure but I'd avoid anything new like the Euro notes. Since every country in the EU is allowed to customize their currency, people don't have a solid idea of what they look like. There was a recent example where a marketing firm produced fake euro notes with pr0n on them and the things were being accepted at face value in stores. Something well-established would be better, which is why I suggested the dollar.

    8. Re:What about using paper currency? by Anonymous Coward · · Score: 0

      Umm, there are a few problems with this.

      1) How will I possess the $1 bill if I send it to the company? I no longer have proof.
      2) I can't spend it now. D'oh! Worse, the serial #s are sequential--you can just make one up.

    9. Re:What about using paper currency? by mpe · · Score: 1

      $1 bills are too easily counterfeited - they should provide a hard-to-duplicate 'certificate', possibly with a hologram to guarantee it's 'autenticity'. Then they could put the serial number on this 'certificate' of 'autenticity' and there you go...

      No doubt there are "Dollers" with all these (and more) security features, even if the USD is still playing catch up.

    10. Re:What about using paper currency? by jabuzz · · Score: 1

      The Euro notes are identical throughout the Euro zone. It is only one side of the coins that countries can customize. The problem is that the smallest Euro note is 5EUR and in the U.K. the smallest note is 5GBP, both of which are substantially more than 1USD.

    11. Re:What about using paper currency? by Anonymous Coward · · Score: 0

      1) You don't send it to the company. You "Put this bill into the envelope and store it with your copy of
      the license agreement".

      2) Consider it as part of the cost of software.

      2b) It's used in place of the COA... "This serial number will be added to a publicly accessible list of registrations so that posession of this bill will prove that you have licensed this software" in case the BSA comes knocking on your door asking for proof of license. If you make the # up and you don't have the actual bill, you don't have proof of license.

  20. The licence is a legal construct by aurelian · · Score: 1

    Just like your GNU/Linux operating system comes with a licence associated with it, defined in the accompanying documentation and here online. Doesn't need a physical embodiment.

  21. Time for RedHat to move in for the kill by MikeRT · · Score: 3, Insightful

    "Buy Linux. We don't use licensing like some companies *cough*Microsoft*cough* use. When you buy our Enterprise platforms, you are also buying the peace of mind of knowing that we value our customers to not treat them like criminals. Buy Linux today and the only documentation you will ever need to have on hand is your support contract."

    1. Re:Time for RedHat to move in for the kill by KarmaMB84 · · Score: 1

      Except when IBM, RedHat, Novell and others get a judge to say "simply having a paper contract is not sufficient proof that a currently binding contract exists". Maybe you violated some terms and it's been revoked!

    2. Re:Time for RedHat to move in for the kill by geoffspear · · Score: 0, Flamebait

      Are you offering to sell me a copy of Linux without the GPL included?

      I'm not a lawyer, but I think you might want to avoid posting evidence of your criminally infringing copyright violations in a public forum.

      --
      Don't blame me; I'm never given mod points.
    3. Re:Time for RedHat to move in for the kill by Anonymous Coward · · Score: 0

      Now you're being an ass. A mutually signed document is the basis of all contract law. If that's invalidated then there isn't much left.

      Knock of the FUD-mongering and say something useful. If I were a mod today, I'd be looking for the -1, Shithead moderation.

    4. Re:Time for RedHat to move in for the kill by AlgorithMan · · Score: 1

      I guess thats what they want... invalidate all licenses to winXP, so people have to buy something new - FOR EXAMPLE our great NEW windows vista

      --
      The MAFIAA is a bunch of mindless jerks who will be the first up against the wall when the revolution comes
    5. Re:Time for RedHat to move in for the kill by Korin43 · · Score: 1

      The problem is that the price of Linux jumps from free to $1000+. The changes between free Linux and enterprise Linux aren't worth $1000.

  22. OEM preinstalled software by roman_mir · · Score: 2, Interesting

    So my Dell laptop came with WinXP preinstalled and on the bottom of the laptop there is this certificate of authenticity and there is nothing else. Does it mean I am actually not allowed to run the preinstalled WinXP on this machine legally?

    1. Re:OEM preinstalled software by botlrokit · · Score: 1

      Well, you can run it... until the activation runs out. Then you can turn it on from time to time, to tweak the BIOS, if necessary.

    2. Re:OEM preinstalled software by sjwest · · Score: 1

      Pay me $1 a day and I wont tell microsoft.

  23. Re:Out of Context? You screwed buddy by Anonymous Coward · · Score: 4, Insightful

    I assume by the "????" that you really, really want to know, but couldn't be arsed to read the next paragraph. When faced with significant cost or effort, most people are satisfied if they are at least obeying the spirit if not the letter of the law. If Microsoft has already been paid for a copy of software but the buyer cannot use it, should it then simply go to waste, or could it be passed on to someone else? (With the new buyer paying whatever was originally paid to MS to the original buyer of the software).

    No question that the letter of it is being broken in that MS has structured their EULAs and bulk purchase agreements in such a way as to restrict this, but this is different I would argue than flat out piracy or counterfitting.

    Have you ever purchased something expensive on a friend's Sam's Club card? Had a second rebate mailed to your friend's house for something you bought two of? Bought one of those "Do not sell Radio Promo CDs"?

    I'm not saying any of these things are right, but the context you can't seem to find is that this software was bought from MS (they got paid) and because they couldn't use it they then resold it to someone else (prohibited by MS). The selective quote by the salesperson makes it sound like what's going on is on the far side of wrong, but with context it seems to be one of those gray in between things instead. (Assuming what was related was true.)

    What Microsoft is doing here is taking legitimate software (they made it and they sold it) and by fiat converting it into pirated/counterfeit software solely by stint of how they have their EULA structured. The software hasn't been reproduced, isn't being used by multiple people, in fact the core of the argument rests on the fact that the software has been completely unused prior to the sale.

  24. Re:Hey, Windows/Linux Refugees! by Anonymous Coward · · Score: 0

    Translation: "I use a Mac because I'm concerned only with trying to look cool and stuffing Steve Jobs' wallet with my parents' money".

    Fortunately, I know some Mac users who *aren't* vapid, so I know you don't represent them all.

    P.S. I use Linux AND Windows, and my girlfriend makes the skanks in those photos look like boys. So there. :)

  25. Re:When what is? by Anonymous Coward · · Score: 0

    I've also wondered this for a long time.

    My organization has some sort of an umbrella purchase agreement with Microsoft. When I had to manage a vendor product that ran only on Windows and MSSQL ( version 2000 in both cases, I think), I ordered licenses under that agreement. Got the CDs. Got some piece of paper that said 'this is not a license. you can get your license by contacting your vendor'. Clearly no other piece of paper provided was a license. I pursued the matter with both the vendor and Microsoft. I never got a certificate of license. What did I actually pay for?

    Extend this question to every CD you've ever purchased, in the context of the music industry's ever-changing comments on what you bought from them. If challenged, how would you ever prove your right to any of it?

  26. What do you show the auditors? by dunstan · · Score: 4, Insightful

    This could have very far reaching implications: it has just raised the bar for corporate users in proving that they have no outstanding financial liability for software licensing. So before a company can have its books signed off, it must either prove the software licensing or go and buy new ones.

    It complicates the issue of licence management for a great many businesses, providing another incentive for using libre software instead.

    --
    The last scintilla of doubt just rode out of town
    1. Re:What do you show the auditors? by kent1146 · · Score: 2, Informative

      There is a very big difference between software licenses and software entitlements. Just becuase you purchased a piece of software in the past, does not mean that you are legally entitled to use it in the present. Buying upgrades may supercede your rights to use lower versions, failure to pay maintenance may invalidate your entitlements, etc. The way to determine what you are entitled to use today is to comb through your software purchase records with the goal of aggregating all of that data into a single report showing you what you are entitled to use. There is an entire industry niche, usually involving large teams of consultants or very specialized software, dedicated to doing just this. The other side of the equation is to determine the inventory you have deployed in the field. By providing an auditor with: a) A single report showing all of your software entitlements and b) A single report showing your inventory in the field, you get: c) A single report showing where you are overlicensed / underlicensed. If you show auditors that you are in such strong control of your licensing environment, then they will probably leave you alone and conclude that it isn't worth the cost to them to perform a full audit on you for the possibility of levying some license violation fees. The other way around the problem with audits is to overpurchase by a safe margin to reduce your risk of being slammed with license violation penalties. "I have 10,000 employees in my company, I bought 12,000 licenses to be safe" is also another line that auditors will accept. In that case, the auditors will also probably leave you alone, concluding that it isn't worth the cost to them to perform a full audit (and the fact that they already made their money off you when you overpurhcased your licenses by 20%).

    2. Re:What do you show the auditors? by rolfwind · · Score: 1
      Just becuase you purchased a piece of software in the past, does not mean that you are legally entitled to use it in the present.


      The key word is purchased, not leased. Can you explain to me how purchasing a piece of software does not legally entitle me to use it into eternity?

      The rest of your post really makes it sound like the mafia == BSA.
    3. Re:What do you show the auditors? by kent1146 · · Score: 1

      > The key word is purchased, not leased. Can you explain to me how purchasing a piece of software does not legally entitle me to use it into eternity? - I buy a copy of Windows 2000. I buy a copy of Windows XP Upgrade edition and install it over Windows 2000. I bought my copy of Windows 2000. However, I am not allowed to use my copy of Windows 2000 anymore (or install it on another machine, or transfer the license to somebody else), if I am currently running XP. - My organization engages in an enterprise licensing agreement with a software vendor. The licensing agreement requires annual software maintenance payments of 18%. My organization owns the software, but failed to pay maintenance. By the terms of my enterprise licensing agreement, my organization is not entitled to use it into eternity. The terms of enterprise licensing agreements usually always state that the vendor has the right to come in and audit you for license compliance purposes. The original purpose of the BSA and other anti-piracy orgs is to prevent piracy and ensure that software manufacturers get paid for their work, which I believe to be a noble cause. However, I prefer to view the way they approach this noble cause like a pack of hyenas instead of the mafia. Like hyenas, they scavenge for license violation fines. In response, you must treat them like hyenas and give them the impression that you aren't worth the trouble so they leave you alone.

    4. Re:What do you show the auditors? by HTH+NE1 · · Score: 1

      Can you explain to me how purchasing a piece of software does not legally entitle me to use it into eternity?

      By clicking the button labeled, "I agree".

      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
    5. Re:What do you show the auditors? by rolfwind · · Score: 1

      That's interesting and scary, thanks for taking the time to respond.

    6. Re:What do you show the auditors? by chris.evans · · Score: 1

      Corps want to bone the little guy of all his cash so bone them back and switch to open source software.

  27. Re:When what is? by Anonymous Coward · · Score: 0

    This is a very good point. Isn't it illegal for a minor to enter into a contract. Something like "corrupt a minor" or some such law? If so shouldn't it be illegal to sell Windows (or any software with a legally binding contract, such as a EULA) to a person under the age of 18 (or whatever the age for becoming an adult is in your country?).

  28. Re:When what is? by Anonymous Coward · · Score: 0

    A licence for these purposes is an abstract concept, not a physical object, though a physical object may be evidence that the abstract concept has been brought into being: in this case the physical object -the COA- was not sufficient evidence because it's received before the licence is agreed. It seems an utterly unremarkable judgment to me.
    But then, IAAL.

  29. I would understand... by tabrisnet · · Score: 1

    The idea I get is this, and this only applies to the OEM versions of Microsoft Software (where they provide a discount to the OEM).

    The judge says that businesses that have not used the Software Licenses, and thus aparrently not agreed to the license, cannot transfer the license. Only upon acceptance of the license terms does the ownership of the license begin.

    Further, the license terms forbid the transfer of the license w/o being attached to a piece of hardware (some businesses have gotten around this by attaching an IDE cable or network card).

    Thus, w/o acceptance of the terms one does not own, and the terms disallow transfer. This does assume that those terms are enforceable and legal, but that may not have been at issue here.

    1. Re:I would understand... by Lehk228 · · Score: 2, Funny

      in other news ebay is now flooded with sales of one jumper + OEM windows XP pro ($89)

      --
      Snowden and Manning are heroes.
    2. Re:I would understand... by Chatterton · · Score: 1

      Nearly that:

      XP pro: 403,67 TTC
      http://www.ldlc.be/fiche/PB00023592.html

      XP pro + Keyboard: 182,01 TTC
      http://www.ldlc.be/fiche/PB00020660.html

    3. Re:I would understand... by George+Beech · · Score: 1
      Further, the license terms forbid the transfer of the license w/o being attached to a piece of hardware (some businesses have gotten around this by attaching an IDE cable or network card).

      This used to be true, hell you used to be able to sell them a mouse + dicounted OEM software. But alas they have gotten stricter about this now. There is a fairly short list of what you can sell to qualify for the OEM software. Off the top of my head, it has to be sold with at least, an Hard Drive, or Motherboard, or obviously a full system. There may be more options to sell but I can't think of them off the top of my head right now.

  30. Re:When what is? by voice_of_all_reason · · Score: 1

    This reminds me of "I am Dennett" (http://www.cs.umu.se/kurser/TDBC12/HT99/Dennett.h tml)

    In short, if you scoop your brain out of your head and hook it up to a wireless network so it can communicate with a receiver in your now (otherwise empty) skull, where "are" you? What if they sectioned your brain and scattered it across the world, each still connected to the other parts (and your body) by the intranets. Then where "are" you?

  31. It's always been this way in the US by Kevinv · · Score: 2, Informative

    This has always been the case in the US. You need a receipt of purchase to prove licensing, not a COA or the original box or the CDs. Proof of purchase only.

  32. The basis of appeal by jav1231 · · Score: 1

    "The judge rejected the argument. "The fallacy in the argument is that if the bank does not accept the EULA [licence] terms [by operating the software and agreeing the terms], it receives no licence. Thus it can confer no licence for the use of any Microsoft software by passing on the COA (certificate of authenticity), nor can the COA be evidence of, or itself confer, such a licence. Thus, provided that the licensing system is enforceable in law, the circumstances exemplified cannot give rise to a legitimate trade in COAs."
    There in lies the basis for appeal and in my opinion where a class-action suit lies for all Windows OEM buyers. If I pay for something within the purchase of a system and don't use it what have I bought? The OEM has nested the purchase of a license I didn't accept, yet I "bought" it. This is where Microsoft has done a disservice to the computing industry and where OEM's continue to do so. Tying the the license to the machine, for one, and not allowing that license (unused) to be transferred or rejected for refund. In essence, Microsoft gets paid either way. For all of you "Microsoft is just doing good business" folks out there, they are not. They've set themselves up to, in this area, completely eliminate any risk in the marketplace. If a box ships, they're paid. Period.

  33. Microsoft will use the terms that it sees fit. by jbossvi · · Score: 3, Interesting

    For those who can't see this coming:
    BSA comes to your business for a audit.
    -You have COA? we will need to see the receipts.
    -You have receipts? we will affidavits from all persons who clicked the EULA.
    -You have COA, receipts, EULA's? we will need to see the CD's.
    -etc.etc.etc.
    repeat till you fail their never ending requirements of Proof of Purchase/Ownership/Bloodletting.

    1. Re:Microsoft will use the terms that it sees fit. by Anonymous Coward · · Score: 0

      For those who can't see this coming:
      BSA comes to your business for a audit.
      -You have COA? we will need to see the receipts.
      -You have receipts? we will affidavits from all persons who clicked the EULA.
      -You have COA, receipts, EULA's? we will need to see the CD's.
      -etc.etc.etc.
      repeat till you fail their never ending requirements of Proof of Purchase/Ownership/Bloodletting.


      Of course. That's what you get when you deal with organized crime.

    2. Re:Microsoft will use the terms that it sees fit. by Lehk228 · · Score: 2, Funny

      we microprinted our COA's onto the tips of this magazine of .50 cal machinegun ammo,

      please standby for document transfer

      --
      Snowden and Manning are heroes.
    3. Re:Microsoft will use the terms that it sees fit. by kent1146 · · Score: 1

      I think that is kind of taking it to the extreme. Every step that you mention costs money. Any auditor or auditing organization that sees that you have receipts, and proof that your install base does not exceed your allowable license base, will leave you alone. It simply isn't worth the cost to them to audit you further and try to "nail" you with some sort of license violation penalties when they realize that it is unlikely that you are out of compliance.

    4. Re:Microsoft will use the terms that it sees fit. by Wolfrider · · Score: 1

      +1 JTKirk solution :)

      (ST2:Wrath of Khan, 1982)

      --
      .
      == WolfriderV6 == I'm willing to admit that *I just might* be wrong... Are you??
    5. Re:Microsoft will use the terms that it sees fit. by Kjella · · Score: 1

      ziZwe microprinted our COA's onto the tips of this magazine of .50 cal machinegun ammo,

      I hope you use silver bullets, because.... well, just do it mmmkey?

      --
      Live today, because you never know what tomorrow brings
  34. Unwanted volume licences by Curmudgeonlyoldbloke · · Score: 3, Informative

    I'm not sure that the statement at the end

    > ... unwanted volume licences for some Microsoft software can be transferred; but this trade must be compliant
    > with Microsoft's own transfer terms and conditions.

    is entirely correct - it's a "feature" of UK insolvency laws. See here:

    http://news.com.com/Secondhand+Microsoft+software+ goes+on+sale/2100-1012_3-5944617.html

    http://www.openfree.org/opinion/?p=31

  35. COA != License and yet... by chicken_moo · · Score: 1

    So if this is true, why does my COA on my laptop specifically state "Proof of License" directly above where it reads "Certificate of Authenticity"? Is Microsoft lying about that now? Cuz if they are, and I get screwed for not having proof of license, they're gonna be hearing from me about it.

  36. Re:Out of Context? You screwed buddy by Anonymous Coward · · Score: 1, Funny

    Bought one of those "Do not sell["] Radio Promo CDs...?

    I can tell you this: I haven't sold any.

  37. Re:When what is? by Kadin2048 · · Score: 2, Interesting

    I don't think it's illegal for a minor to enter into a contract, it's just that their signature doesn't have any weight. It can't be 'illegal' for them to enter into a contract, because as far as the law is concerned, they can't do it. They don't have the necessary legal status (unless they've been legally emancipated).

    It's not a prohibition, like selling drugs (where you can do it, but it's illegal), it's just a nullification of their ability to agree to the terms. Thus, anything they'd sign would be unenforceable. That's why credit card companies don't give cards to minors -- you couldn't force them to pay up.

    IANAL, naturally...but I don't think that you could endanger the morals of a minor by making them click on a clickthru license (snarky anti-Windows comments go here); however you couldn't hold them to the terms of whatever they "agreed" to, because they can't legally enter into a contract.

    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  38. Re:When what is? by flooey · · Score: 1

    I wondered the same thing. Okay, so when you buy software, you're not really buying the software, you're buying a license (or so they tell us). Fine; but where the hell is the license? What confers it? The purchase receipt? Possession of the original authentic media? The front page of the manual? The click-through license?

    The license doesn't need to be carried through a physical object any more than the copyright that you're desiring to license. That's why it's called "intellectual property", it only exists in the collective mind of society.

    Now, if you want to prove to somebody that you actually have a license, some manner of physical object like a receipt would probably help. But that piece of paper isn't actually the license, it's just evidence that you have one.

  39. So COAs aren't worth the paper they're printed on? by Spluge · · Score: 1

    Someone should tell Microsoft, they don't need to pay for all that security on the rooms where they are printed. In fact, let's replace the COAs with photocopies of a a piece of paper saying "Fine, go ahead and run Windows if you must. But don't come crying to us when you break it."

  40. Re:Hey, Windows/Linux Refugees! by Anonymous Coward · · Score: 0

    Undoubtedly the type of boring, big-breasted blonde bimbo with which no Mac user would be caught dead. How much more white-bread can you get?

    If not, provide photographic evidence, or fail.

  41. Re:Hey, Windows/Linux Refugees! by KarmaMB84 · · Score: 1

    The majority of the development team for the almighty Mac probably look like a cross between RMS and Bill Gates. There might be some vapid artists designing the UI. Of course it's been toned down in nearly every release because it was just too damn artsy for their users' taste.

  42. Re:Out of Context? You screwed buddy by HTH+NE1 · · Score: 2, Interesting

    What Microsoft is doing here is taking legitimate software (they made it and they sold it) and by fiat converting it into pirated/counterfeit software solely by stint of how they have their EULA structured. The software hasn't been reproduced, isn't being used by multiple people, in fact the core of the argument rests on the fact that the software has been completely unused prior to the sale.

    I thought the EULA wasn't binding until agreed to. Until I install the software or break certain seals, I do in fact own that copy of the software, up until I agree that I don't via the EULA. I don't need a license until I agree to a license that says I need one. It's up to them to put the license agreement between me and ability to use it. And if I never agreed to a license that revokes First Sale Doctrine saying I couldn't resell it, then I sure as hell can resell it.

    (And if that flies, expect Microsoft license agreements to be amended with terms that say you agree that all Microsoft software requires a license and cannot be resold so that once you agree to one you've agreed to them all.)

    --
    Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
  43. More Implications by Anonymous Coward · · Score: 0

    If COAs cannot be traded without prior acceptance of the EULA then no entity that sells software is doing so legally. Stores that sell boxed software have not agreed to the licenses for that software and so cannot transfer licenses. If Dell loads a computer with software and sells it, they have not agreed to the license as evidenced by the fact that I have to click through the EULA when the machine boots up. This arguably makes selling software that you did not create illegal in the UK.

  44. Option #1 is Correct by mpapet · · Score: 2, Insightful

    They bought a computer, or maybe a software bundle that included an EULA to which they did not agree. That implies they do not have the right to transfer the license they did not agree to and therefore did not own.

    I believe the intention is to elminate the ability to transfer -any- license, even the one you have when you agree to MS's EULA. Thereby increasing consumption of new OS licenses.

    This is the logical step forward in a society that fully embraces capitalism. Microsoft/RIAA corporations own the content and allows you to use it temporarily and that's it.

    --
    http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
    1. Re:Option #1 is Correct by Dun+Malg · · Score: 1
      I believe the intention is to elminate the ability to transfer -any- license, even the one you have when you agree to MS's EULA. Thereby increasing consumption of new OS licenses. This is the logical step forward in a society that fully embraces capitalism. Microsoft/RIAA corporations own the content and allows you to use it temporarily and that's it.
      It's really a stretch to call this "capitalism" at work. True capitalists want less government regulation. Copyright exists only because of government regulation. The courts tightening the screws and giving corps even more power by virtue of copyright is an increase in regulation. I think you need to expand your horizons beyond the dominant economic memes of the 20th century (capitalism vs socialism vs communism) and discover that there are many economic theories, and that this ruling has more in common with Mercantilism than anything else.
      --
      If a job's not worth doing, it's not worth doing right.
    2. Re:Option #1 is Correct by Anonymous Coward · · Score: 0

      They bought a computer, or maybe a software bundle that included an EULA to which they did not agree. That implies they do not have the right to transfer the license they did not agree to and therefore did not own.

      Not in the USA. There was a case where Adobe sued a guy who had bought legit Adobe software and was selling them cheap.

      Adobe claimed the resale was not allowed since the EULA disallowed it. The judge ruled that the guy had bought the software legally, but since he didn't install the software, he didn't agree to to the EULA, so the EULA didn't apply, and he was allowed to sell as he wished.

      Adobe lost.

    3. Re:Option #1 is Correct by Brandybuck · · Score: 1

      This is the logical step forward in a society that fully embraces capitalism.
      Copyrights have nothing whatsoever to do with capitalism. Please get a dictionary and look up the word. There are several meanings, but none imply that copyrights are a logical outgrowth.

      Copyrights (and patents) are artificial privileges granted by government. This ruling is NOT the result of a system of free and voluntary economic transactions based on the ownership of capital, but based on a fictious definition of property and the adhoc legal system that supports it.

      --
      Don't blame me, I didn't vote for either of them!
  45. It's a pretty disturbing ruling! by Anonymous+Brave+Guy · · Score: 1

    Unfortunately, he did exactly the opposite. From TFA:

    The judge rejected the argument. "The fallacy in the argument is that if the bank does not accept the EULA [licence] terms [by operating the software and agreeing the terms], it receives no licence.

    I'm not a lawyer, but it sounds disturbingly as though a High Court judge just ruled EULAs legally binding in the UK without even having the case go to court.

    --
    If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    1. Re:It's a pretty disturbing ruling! by Anonymous Coward · · Score: 0

      The BIGGER issue is, licenses (EULA's TOS's etc) that CHANGE AFTER you agreed to the intial one. Contract law would cover this (at least written signed contracts - vapour contracts I would hope are not legally binding).

    2. Re:It's a pretty disturbing ruling! by squiggleslash · · Score: 1

      Not exactly, but you're close. He said you don't have a license unless you agree to it (which is, by definition, true.) As the concept of "fair use" doesn't exist in Britain, any copying, no matter how harmless and in line with the intended use of a product, constitutes a breach of copyright law. That means that without agreeing to some form of license, the simple act of copying the software to your hard disk (otherwise known as installing it) is a breach of copyright.

      Britain and the US are very different countries with respect to copyrights. Most people in Britain violate copyrights all the time completely unintentionally, indeed the music industry is, unlike the US, pushing for a liberalization of copyright law so that certain basic operations, such as ripping a CD for personal use, do not require explicit licensing.

      --
      You are not alone. This is not normal. None of this is normal.
    3. Re:It's a pretty disturbing ruling! by Anonymous+Brave+Guy · · Score: 1

      Well, we do have fair dealing provisions, so your generalisation to "any copying" isn't quite true. But you're right, the system isn't nearly as liberal as under the fair use provisions in the US, and I can't see why installing software would in general constitute fair dealing.

      Of course, the Gowers review team is processing the reportedly rather large volume of submissions it received, and MPs have already been minuted as thinking certain copyright provisions are daft today (and not having much sympathy with the we-want-copyright-to-pay-our-pensions crowd supported by Cliff Richard recently). Methinks changes are afoot, and the music industry may just be smart enough here to realise that they're going to happen anyway, so it might as well play along and look for further business opportunities as a result.

      I can't speak for anyone else, but in my own response to Gowers, I indicated that I thought the legal status of EULAs should be clarified explicitly, and proposed various safeguards that might reasonably be imposed to protect the public from abusive conditions if EULAs and similar agreements are legally enforceable. Here's hoping someone in government agrees with me! :-)

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    4. Re:It's a pretty disturbing ruling! by julesh · · Score: 1

      I [...] proposed various safeguards that might reasonably be imposed to protect the public from abusive conditions if EULAs and similar agreements are legally enforceable. Here's hoping someone in government agrees with me! :-)

      I think it's quite clear from the history of a variety of decisions that under current UK law, EULAs are enforceable: as the parent pointed out, UK copyright law does not contain an exemption for copying that is necessary to use software (see, e.g., the PS2 modchip case from last year), so you cannot run software in the UK without a valid license, and the EULA is usually the only license that is offered.

      There are already a variety of safeguards available: the Unfair Contract Terms Act 1977 limits the rights of the vendor to disclaim warranties, for example, and the Sale of Goods Act (?) prevents the EULA from excluding warranties of fitness for a particular purpose, I believe. Standard UK method for deciding whether contract terms should be enforced or not includes a consideration of the "relative bargaining power" of the two parties -- I suspect in any case involving MS's terms, if they were even slightly unreasonable, a judge would side with the consumer.

      I'm not sure if this is something that should be included in a Copyright bill; a general consumer protection bill with a section relating to licensing would be more appropriate if any additional protection was deemed necessary.

      I'd certainly like to see a copyright act that provided a more robust set of exemptions, particularly something analagous to US "fair use" (UK "fair dealing" is, as you point out, much more restrictive).

    5. Re:It's a pretty disturbing ruling! by Anonymous+Brave+Guy · · Score: 1

      FWIW, the safeguards I was proposing were not really about the obviously unfair, as would hopefully be covered by the sort of general consumer protection legislation you mentioned. Rather, I was highlighting cases where the industry "pulls a fast one", such as by selling the original software with one licence agreement, but then attaching further conditions to an upgrade that is necessary to continue using the software effectively. For example, this would apply to a security patch for a music player that also incorporated new DRM technologies, or to an anti-cheating patch for an on-line game required by the servers before you can play that also scanned your system and sent information back to the game company. I think it is unethical for a software company to accept your money in exchange for using their software, only to force you to accept other terms or see the software rendered unusable; IMHO, this is analogous to a unilateral variation of contract terms.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
  46. Re:When what is? by Kadin2048 · · Score: 1

    Understood. I guess my question boils down to 'a tree falling in a forest.'

    If we create a legal construct, but there's no objective evidence of it being created or agreed to, then can the construct really be said to exist?

    If it's uncontested, it may not be an issue; but as soon as one party tries to contest some part of the construct, then whether or not there's evidence of the agreement/construct becomes a serious problem. That's why we have contracts and signatures -- not because they are legal constructs themselves, but because they're physical embodiments of them, setting out what has been agreed to, and the consent of the various parties concerned, in a way which is obvious to a third party.

    Particularly in regions where clickthru EULAs are not enforceable, it seems as though there's a shortage of the physical embodiments of the license 'agreement.'

    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  47. So I buy a Dell... by Demon-Xanth · · Score: 1

    ...and the ONLY proof that I would get of a license is that piece of paper. MS actively discourages manufacturers sending out CDs. So that can't be used as proof. The reciept? How many people keep those forever. Besides, I ordered it online, so the only reciept would be the packing slip. The sticker on the side of the case? Well, if the sticker on the paper with a bunch of legalease isn't enough, why would it being on a painted piece of sheet metal be enough?

    --
    If you think education is expensive, you should try ignorance -- Derek Bok, president of Harvard
    1. Re:So I buy a Dell... by Billly+Gates · · Score: 1

      I wish there was a way I could get a "legal" copy of Xp for my compaq. The default image contains spyware and bloatware that is mostly uninstalled but not totally. It pisses me off.

      I tried calling compaq and talked to Mike with a heavy Indian accent who spoke no english who said it was piracy and refused to ship the cd's.

    2. Re:So I buy a Dell... by Bent+Mind · · Score: 1

      Um, no. You are fine if you buy a computer from an authorized reseller. Dell is authorized by Microsoft to sell OEM licensed systems. Want to resell Microsoft software? Check out oem.microsoft.com. Selling used computers has been grey market for years because of Microsoft's OEM license.

      MS actively discourages manufacturers sending out CDs.

      Um, no. Just the opposite in fact. Only the largest resellers are allowed to resell Microsoft software without a holographic CD. The only reason they can is because they leverage their sales numbers.

      Basically, the COA, the receipt, and the ELUA are just measures to help restrict illegal trading. None of them are proof of license. Why? Because it is against the license to resell the software without authorization from Microsoft. An illegally sold piece of software is still illegal, even with COA, CD, and receipt.

      If you don't like Microsoft's restrictive licenses, don't buy Microsoft. It's one of the reasons Linux has so much support from large corporations.

      --
      Request a Linux Shockwave player here: http://www.macromedia.com/support/email/wishform/
    3. Re:So I buy a Dell... by Anonymous Coward · · Score: 0

      "Basically, the COA, the receipt, and the ELUA are just measures to help restrict illegal trading. None of them are proof of license. Why? Because it is against the license to resell the software without authorization from Microsoft. An illegally sold piece of software is still illegal, even with COA, CD, and receipt."

      And if I give it as a gift? (Think hard about this one...)

      all the best,

      drew
      (da idea man)
      -----
      zotz posting as AC

  48. Re:Hey, Windows/Linux Refugees! by Anonymous Coward · · Score: 0

    "Ultimately it comes down to taste. It comes down to trying to expose yourself to the best things that humans have done and then try to bring those things in to what you're doing. ... I think part of what made the Macintosh great was that the people working on it were musicians and poets and artists and zoologists and historians who also happened to be the best computer scientists in the world."
                                    — Steve Jobs

  49. SGI has been this way by Stonent1 · · Score: 2, Informative

    For much of their stuff, they consider that a license is invalidated by "transferring" it to another user and you'll have to repurchase it again, even if you have all the media. I found that out when trying to get some SGI software off Ebay.

  50. Been there, it's not fun. by steronz · · Score: 1

    I've already experienced this pain. At my last programming shop, I was tasked with gathering up all the licensing info for an upcoming USAF Unit inspection. For the most part, we had done a pretty good job of keeping receipts and original CDs/certificates. I figured I could make a good case for proving that we actually had licenses for everything, even though none of those is technically a license. However, we had some software from Borland that we purchased online and downloaded at an annual cost of $15,000. The only things I could produce, in fact the only things we ever received, were burned CDs, a registration key, and some email traffic which was saved as .txt files... not exactly convincing evidence. Of course, all we ever had to do was call Borland and ask them if we had the licenses, and they would have said "sure," but what if their records got corrupted? And how could I appease the management? Just by saying, "trust me," and "call Borland if you don't believe me." It got pretty ugly... luckily I left before the shit hit the fan.

    1. Re:Been there, it's not fun. by jimicus · · Score: 1

      At $15,000 per annum, I am quite sure that calling up Borland and saying "Our continuing to use your software depends on us being able to provide proof of licensing to our superiors. Write us a letter confirming the license or the $15,000 we give you per year will become $0 per year" would have the desired effect.

  51. Re:When what is? by wrook · · Score: 1

    IANAL and don't really know what I'm talking about. But if I were to guess, I'd say that the *agreement* between Microsoft and the customer is the "license" (otherwise known as a contract). So what signifies the agreement? Well as far as I know there doesn't have to be anything physical that indicates an agreement. A handshake or a conversation can be enough.

    So, again guessing, I think the point of the judgement is that the COA is not *necessarily* a proof of license. In the case here, there was clearly no agreement between Microsoft and the sellers of the software. Therefore no contract. Therefore no license, despite the presence of certificates.

    I think if MS were to say that the certificates were not proof of a license, then the case would hinge on the details of how the certificates were obtained. If they were obtained through a regular channel, then I think MS would have a *very* hard time showing that no agreement was entered into.

  52. Correct me if I'm wrong by Don853 · · Score: 1
    IANAL, but reading the article and the decision, it seems that what the guys were doing wasn't legitimate at all.

    Here's the description of the justification from the judge's decision:

    Mr. Lambert explained that the COAs obtained from the bank or its employees in the example could be purchased by Digital or other traders on the market for loose COAs and then sold with the relevant Microsoft media to a dealer in refurbished computers. If that were not permitted, the relevant software could not be used without the payment of a further royalty to Microsoft, in addition to the royalty paid in connection with the COA on the first use of the COA. In my judgment, there is no reason why Microsoft should not be paid a royalty for the use of its software in a refurbished computer. If that software were already licensed, there should already be a COA sticker on the computer. The objection was, I think, really to the payment by the bank of a price reflecting the royalty for software that it chose not to use. The question arose why the hypothetical bank should enter into such a transaction. Mr. Lambert submitted initially that computers without software were unobtainable. And the bank could not simply return the software since it would have to return the whole package, including the computer, to the OEM. He showed me by way of example condition 12 of the conditions imposed by Dell, a royalty OEM, which does indeed contain such a requirement. He later corrected his submission that computers without software were unobtainable. He adduced evidence, obtained by Edward Hill in part during the course of the hearing, that one particular supplier offered a range of laptops of which over 560 models had a Microsoft operating system and only two had no pre-installed operating system. The same piece of evidence also showed that owing to economies of scale computers with software installed were cheaper than those without. In my judgment, there is no real prospect that at trial the defendants would be able to establish that Microsoft's licensing system operates unreasonably in restraint of trade by reason of matters of the kind he exemplified, even if the example is realistic.


    Granted, it's a bit harder to get laptops without an OS than desktops, but it still certainly can be done, and I don't see any indication (though they don't really go into it) that they're not trying to get a bulk-liscence discount to sell to individuals under the table, which would be like me like college students selling off their personal OS liscence they got from paying their shcool tech fee.
  53. Turn it around - Prove I am NOT licenced by NotQuiteReal · · Score: 1
    What ever happened to the old "you can't prove a negative"?

    Seems to me in most matters legal, the burden is on the plaintif to prove the defendant did something. Said defendant is innocent until proven guilty, and need not testify on his own behalf... for or against himself.

    Lawyer: You are not licensed.
    User: Prove it.
    Lawyer: We have no record of you having purchased a license.
    User: I can't help it if you have shotty book-keeping.

    etc.

    --
    This issue is a bit more complicated than you think.
    1. Re:Turn it around - Prove I am NOT licenced by jimicus · · Score: 1

      Lawyer: We have perfectly good book-keeping. Your honour, we have good reason to believe that this person has pirated the software, we'd like you to issue this warrant so we can go in there and investigate.

  54. Re:Out of Context? You screwed buddy by Mister+Whirly · · Score: 1

    Have you ever purchased something expensive on a friend's Sam's Club card?"
    It is allowable by Sam's Club to bring a guest shopping with you.

    "Had a second rebate mailed to your friend's house for something you bought two of?"
    This is also okay - having two sent to the same household is what is not okay.

    "Bought one of those "Do not sell Radio Promo CDs"?
    Buying this is not wrong, selling it is.

    Baaaddd examples man...

    --
    "But this one goes to 11!"
  55. Depends... by doublem · · Score: 1

    That depends. Are you in the UK, where this ruling occurred?

    All kidding aside, it looks like this ruling would keep people in the UK from peeling that label off the laptop and transferring it to someone else.

    My old Thinkpad has a Windows 98 license key on the bottom. It looks like this ruling would prevent me from, for example, installing that copy of Windows 98 on a PC for my sister and giving it to her. It might even prevent me from installing that license in a copy of Parallels running on my Mac, or using it in a VMWare image on my work PC.

    --
    "Live Free or Die." Don't like it? Then keep out of the USA
  56. Yet... by Svartalf · · Score: 1

    You can bet your bottom dollar that they'll be trying it here next. Whether they get a similar
    ruling over here or not remains to be seen, but just because it's not happened yet over here
    doesn't mean it won't.

    --
    I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
  57. Who buys that? by Kadin2048 · · Score: 1

    Why the hell would anyone pay eighty-five pounds for an unlicensed copy of anything?

    Do people really think that the box and the manuals and the stamped CDs really cost that much? If you're going to get "unlicensed" software, why not just pay someone a couple of bucks to dupe the CDs? That's effectively what you're getting; a set of installation media without any right to use the software that's on it.

    I bet if you called up Microsoft as a licensed user and said that your dog had eaten your media, that they probably wouldn't charge you that much for a new set of media for use with your existing license. The "license" is the only thing that has any value -- the installation media and manual are just extras, worth maybe a few bucks, but certainly not a significant percentage of the 'retail price' of the software (with license).

    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
    1. Re:Who buys that? by jacksonj04 · · Score: 1

      I keep trying to explain this with Windows installation discs.

      "That's a pirate copy."
      "No it isn't."
      "Yes it is, you burnt that CD yourself."
      "Yes, and here's my MSDN licence key to use the software. Problem?"
      "... But it's illegal!"

      --
      How many people can read hex if only you and dead people can read hex?
    2. Re:Who buys that? by Tatsh · · Score: 1

      More like.

      "That's a pirate copy."
      "No it isn't."
      "Yes it is, you burnt that CD yourself."
      "Yeah, but here's my real copy of the disc, I simply customized Windows to not be so shitty with the default settings. Problem?"
      "...illegal!"

    3. Re:Who buys that? by Sparr0 · · Score: 1

      I am relatively sure that each MSDN License includes permission to produce one physical copy from another legally-produced physical copy. Been a while since I read all the MS licenses. I think the student license says the same thing.

    4. Re:Who buys that? by DaveHowe · · Score: 1

      My company's MSDN licence doesn't include *any* physical media - we have to download ISO images directly from MS.

      --
      -=DaveHowe=-
  58. What is proof of a license then??? by Pensive+Idiot · · Score: 1

    I keep my COAs as proof, if that is not the proof I need then what do I need to show Microsoft if they try to turn off my updates? Corperate Product Keys are having this problem right now.

    1. Re:What is proof of a license then??? by Todd+Knarr · · Score: 1

      Invoice showing the vendor sold that copy of Windows to you. Think of it this way: the COA is evidence that that copy of Windows is genuine, the invoice shows the link in the chain of custody that proves that you indeed paid for that copy and are the owner of it.

      Note that that doesn't address whether the vendor owned the copy or was otherwise authorized to sell it to you. That's what the judge was hinting at in his ruling.

  59. Re:When what is? by amliebsch · · Score: 1

    Isn't it illegal for a minor to enter into a contract. Something like "corrupt a minor" or some such law?

    No. But it is voidable, if the contract is not for "necessities." So presumably, a minor could argue that the licensing agreement was void, even if they clicked "I agree," and use the software in ways prohibited by the license.

    --
    If you don't know where you are going, you will wind up somewhere else.
  60. Judge: interesting statements by MobyDisk · · Score: 2, Interesting
    The judge made some very interesting statements in this judgement:


    if the bank does not accept the EULA [licence] terms [by operating the software and agreeing the terms], it receives no licence.
    That is interesting. The judge is saying that if the buyer does not agree to the EULA (even if they don't disagree with it -- if they just never install or use the software) that the license vanishes into nowhere. The company does not get a refund, nor do they get the license. That is pretty bizarre.


    Thus, provided that the licensing system is enforceable in law, the circumstances exemplified cannot give rise to a legitimate trade in COAs
    Whooahhh hold on...!!! So the judge made the ruling under the assumption that the licensing system is enforcable. But he doesn't state that it is enforcable. It sounds like he just told the defendants to claim that the licensing system isn't valid. That is also odd, since the defendent thought they were working within the system, and they weren't interested in challenging it. And the judge wasn ruling about how a system works, but hinting that the system isn't valid. Sounds like he should have let it go to trial.
    1. Re:Judge: interesting statements by Todd+Knarr · · Score: 1

      I've seen similar things. The judge is obliged to assume certain things, like the validity of the licensing scheme, unless one party or the other questions them. My bet is that the defendants here tried arguing within the assumptions of the EULA terms. In that case they'll lose. What they probably didn't do is argue that they never need to get to the EULA terms, they got a license from the actual purchase under the standard laws of commerce, that that license and contract of sale exist independently of the EULA and don't depend on acceptance of the EULA and that that's what the COA represents (since you get the COA without having to accept the terms of the EULA first). But since the defendants didn't argue that, the judge is constrained to work within what they did argue. You're right, he's hinting that if the defendants had argued differently he'd've come to a different conclusion.

      My advice is a bit specific to the US, but here it is: don't make a First Amendment or copyright-law case out of a simple Uniform Commercial Code contract case.

  61. Re:When what is? by Fulcrum+of+Evil · · Score: 1

    It can't be 'illegal' for them to enter into a contract, because as far as the law is concerned, they can't do it.

    Yes they can. They can turn around and break the contract without consequence. Of course, this is the UK - they may have different ideas.

    --
    "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
  62. It's a money grab by Moraelin · · Score: 4, Insightful

    Well, in a nutshell, MS has a nice cash-cow selling software twice, and tries to protect it. The scam is sorta like this:

    1. Thanks to MS anti-piracy lobbying and differential pricing, it's not even possible to buy a PC without Windows on it from a major OEM any more. Or not without paying for Windows anyway: see Dell's Linux PCs or PCs without an OS, that cost exactly as much or more than the same with Windows. (And if you managed to get one without an OS anyway, it would get added to BSA's piracy statistics anyway.) And

    2. Most corporations prefer to have a small numbers of standard configurations, to minimize support and training costs. Mom and pop shops may just leave whatever OS was on that PC, but for a corporation supporting 10,000 PCs or more, they prefer to install their version of Windows, Outlook, Office, etc, on each of them. So they buy a corporate version of all that stuff.

    The problem is that in the process that corporation has paid twice for Windows and maybe for a few other programs too. E.g., they bought 100 new Dell computers with Windows XP Home on them, and then went and installed their corporate Windows 2000 image on each of them. It paid for both.

    And this is just one of the many episodes where MS tries to defend its right to fleece them twice. It tried repeatedly to get it its way that you can't stop paying twice by either:

    1. just buying your computers without an OS, if you have your corporate license anyway. (Believe it or not, it actually went on record as saying that the corporate licenses were some sort of "upgrade" to the Windows OEM license bought with the computer, and hence illegal to install on a blank machine.)

    2. selling your unwanted and unused OEM licenses (Like the bank in TFA did. This is all that this BS about COA not proving purchase is: being told that, nope, you're not allowed to sell those unwanted OEM licenses that you were forced to buy.)

    It's a money grab. Plain and simple. It's fucking stupid to pay for an OS twice. (And it's even more fucking stupid to pay for an OS once when you don't use it: e.g., being unable to sell that Windows OEM license that came with the computer, when you really wanted to install Linux on it.) But for MS it's more money if they can keep forcing you to do just that.

    And as long as they can, they and the BSA will do all they can to prevent people from finding a way out of this stupidity.

    And don't think that such lawsuits are the only thrust in that war. The BSA isn't just the enforcing arm, it's also a useful source of BS and FUD in that campaign. As I may have mentioned before, even if you did manage to establish your right to buy a PC without an OS, the BSA will write it as a PC running pirated software anyway. That's how they make their infamous statistics: pull an assumption of how many PCs should have also caused a sell of Software X, and anything lower than that is automatically piracy. So if your company bought 1000 PCs without Windows, Office, etc (e.g., because you're installing Linux and OpenOffice on them), it _will_ be written by the BSA as 1000 PCs that are running pirated software.

    Cue inflated statistics about rampant piracy and appeals to the governments and courts to give them more power.

    --
    A polar bear is a cartesian bear after a coordinate transform.
    1. Re:It's a money grab by BillTheKatt · · Score: 2, Informative

      That's a common misconception. I just had to deal with this situation, buying Dell PCs with Windows XP OEM licenses, but wanting to install the corporate/volume edition. I talked to my Dell rep and MS allows us to buy 1 corporate edition license and use it on all the systems as long as we continue to buy them with the OEM licenses.
            I wanted to make sure so I talked to the MS licensing rep at Dell and they confirmed this is do-able. Actually you have to buy 5 CALs and 1 media CD of volume edition, but only because that's the minimim. You don't have to pay twice for a Windows license.
            Now I've heard that Microsoft will eliminate the volume license key with Vista. That won't go over well with me. I don't have time to find and type in a unique key for every damn PC I setup. We're a big company with few IT staff.

    2. Re:It's a money grab by mpe · · Score: 1

      1. just buying your computers without an OS, if you have your corporate license anyway. (Believe it or not, it actually went on record as saying that the corporate licenses were some sort of "upgrade" to the Windows OEM license bought with the computer, and hence illegal to install on a blank machine.)

      If you did this it's perfectly possible to have licenced machines without a COA on. All you have is one piece of paper somewhere which says you can install on X machines...

    3. Re:It's a money grab by jimicus · · Score: 1

      Now I've heard that Microsoft will eliminate the volume license key with Vista. That won't go over well with me. I don't have time to find and type in a unique key for every damn PC I setup. We're a big company with few IT staff.

      From the direction Microsoft is going, if they do that my guess is the next version of Windows Server will include some kind of "license management" which extends to counting workstation OS licenses in lieu of having one license key per system.

      This is pure speculation based on the fact that maintaining Windows properly in any sizeable organisation these days requires at least one Windows server - for Windows Update Services. But it would make a lot of sense - after all, the target market for Windows Server is businesses, businesses don't particularly want to be messing about with one key per system and so will happily do something to avoid that - and ooh look, it means they now need to buy at least one copy of the next version of Windows Server. Strange how it always works out that way, isn't it?

    4. Re:It's a money grab by jimicus · · Score: 1

      selling your unwanted and unused OEM licenses (Like the bank in TFA did. This is all that this BS about COA not proving purchase is: being told that, nope, you're not allowed to sell those unwanted OEM licenses that you were forced to buy.)

      Actually, it's always been the case that volume license agreements only give rights to upograde versions of Windows.

      The idea is that if a new version of Windows comes out and you want to roll it out across the whole company, you don't have to rush off and buy a license for every workstation.

    5. Re:It's a money grab by Anonymous Coward · · Score: 0
      Thanks to MS anti-piracy lobbying and differential pricing, it's not even possible to buy a PC without Windows on it from a major OEM any more.
      Maybe not in America, but most major suppliers in other countries in the world allow you buy with something like FreeDOS and avoid the MS software tax. As this was a UK case and judge then there are definately UK manufacturers only to happy to ship a Linux capable server without the MS software tax being paid.

      they prefer to install their version of Windows, Outlook, Office, etc, on each of them. So they buy a corporate version of all that stuff.
      More correctly the smarter ones buy a VLK upgrade license which is substantially cheaper than the full VLK. It does however require that you have a 32 bit MS operating system to upgrade from. The corporation I work for buys it's desktops with a Home COA then installs a VLK Pro upgrade as part of the image. The saving adds up quite fast and is quite large when taken over 100,000 desktops.
    6. Re:It's a money grab by julesh · · Score: 1
      Like the bank in TFA did. This is all that this BS about COA not proving purchase is: being told that, nope, you're not allowed to sell those unwanted OEM licenses that you were forced to buy.

      Actually, I think you're misreading it. Nowhere does it say that you can't transfer an OEM license. It's just that the way of doing it that the defendant in this case was using is not a valid way of doing it, according to MS's EULA, which states:
      SOFTWARE TRANSFER. [...] to Third Party. If you are the person who initially licensed the Software, you may make a one-time permanent transfer of this EULA, Software and Certificate of Authenticity (if applicable) to another end user, provided that you do not retain any copies of the Software. This transfer must include all of the Software (including all component parts, the media and printed materials, any upgrades, this EULA, and, if applicable, the Certificate of Authenticity). The transfer may not be an indirect transfer, such as a consignment. Prior to the transfer, the end user receiving the Software must agree to all the EULA terms.

      Whereas the guy in this case was just transferring the COAs and claiming that that was enough. It isn't. You have to transfer the manuals and any discs (e.g. system restore disc) that were provided with the original PC also, and get a statement of acceptance of the EULA. The license thus transferred is probably only legally usable with a copy of the OS made from the system restore disc, so you can't take (e.g.) a Dell OEM license and use it with a copy of a retail XP disc. But if you had a Dell machine (or any other way of making the system restore disc function), you could then install the system on that machine. Subsequently, you could transfer the hard disc to other machines if necessary.

      It makes dealing in OEM Windows licenses a pain in the ass, but it doesn't prevent it entirely.
    7. Re:It's a money grab by AK+Marc · · Score: 1

      Now I've heard that Microsoft will eliminate the volume license key with Vista.

      They will never do away with some way of using a single install ghosted thousands of times. Multiple companies have an image that goes out 1000+ times. One volume license key works great for that. They can't get away from something with the same functionality, or they will lose all the big companies. Having to no longer use imaged machines will make it cheaper to make the expensive switch to Linux or something else. Images (and thus some way of the OS supporting it for licensing) are here to stay.

  63. Purchase Orders, Receipts, proof of payment req'd. by Anonymous Coward · · Score: 0

    I'm the network admin for a city government. We were audited by MS a couple of years ago (and passed with flying colors -- we actually had a small surplus of licenses above and beyond what MS software was actually deployed), and the only proof of license that was deemed acceptable was the combination of our archived purchase order paperwork, receipts plus the archived cancelled checks to our MS software vendor (a state contract vendor) showing we had actually ordered and payed for all the MS licenses. Thank goodness we keep all our paperwork archives for seemingly forever (public records retention law requirements).

  64. Blimey! by everett · · Score: 1

    Does the United Kingdom even have a constitution?

    --
    Sig withheld to protect the innocent.
    1. Re:Blimey! by nogginthenog · · Score: 1

      Yes

    2. Re:Blimey! by Anne+Thwacks · · Score: 1

      Yes - however its not written down - it is just tradition. People can argue all night what it says because it says everything and nothing.

      --
      Sent from my ASR33 using ASCII
    3. Re:Blimey! by trewornan · · Score: 1

      Depends what you mean by a constitution, if you mean something in writing then - no.

    4. Re:Blimey! by stonecypher · · Score: 1

      What they call their constitution is actually a block of codified law. Their equivalent to the US Constitution is called the Magna Carta.

      --
      StoneCypher is Full of BS
  65. corrected link by ray-auch · · Score: 1

    dunno wtf. happened to that url, should have been:

    http://www.microsoft.com/piracy/partners/YourPC_do .mspx

  66. Re:When what is? by Anonymous Coward · · Score: 0

    "IANAL and don't really know what I'm talking about"
    Please, don't let that stop you from posting.

  67. How were these transcripts obtained by rs232 · · Score: 1

    "Among the evidence produced were transcripts of conversations which Microsoft claimed took place between a test purchaser, Kenneth Anderson, and Edward Hill"

    How were these transcripts obtained? Did either of the parties know they were being recorded. Did the test purchaser lead Edward Hill into making incriminating statements.

    Re:Out of Context? You screwed buddy

    --
    davecb5620@gmail.com
  68. This was taken out of context... by lunchman · · Score: 1

    The actual article says: "The three were found to be selling counterfeit software and of selling 'loose' certificates of authenticity - i.e. certificates not attached to computers - in breach of the licence terms of the software." Thus COA's are proof of license, but they have to be attached to the computer.

  69. Re:Out of Context? You screwed buddy by Anonymous Coward · · Score: 0

    "Bought one of those "Do not sell Radio Promo CDs"?
    Buying this is not wrong, selling it is.


    There is nothing wrong with selling promo CDs. Just as there is nothing wrong with selling items labeled "Not for individual sale."

    Laws are not enacted by printing words on a package. You will not go to jail for refusing to wash, rinse and repeat.

  70. OR ... by CagedBear · · Score: 2, Insightful

    They could allow anyone to download, install and use their software for free for personal use. Charge a reasonable, transferable licensing fee for commercial use and OEM distribution. And make the real money on support, training and customizations. It just sounds so much simpler, doesn't it?

  71. Re:Hey, Windows/Linux Refugees! by Anonymous Coward · · Score: 0

    "White-bread"? LOL. As a matter of fact, she's anything but. There aren't too many blonde Thai women. And no, I'm not posting her photo - find your monkeyspank-fodder elsewhere, loser.

    And I'm supposed to be impressed by waif-girls who wear too much makeup and pretend-engrave themselves with corporate logos, right. That's not creative, that's boring at best and at worst it's just pathetic.

  72. Re:Economics 101 by mpapet · · Score: 1

    It's really a stretch to call this "capitalism" at work. True capitalists want less government regulation.

    1. The "true capitalist" does not exist. Please do a search for the "no true scotsman" argument.
    2. Capitalism has no mechanism for the distribution of wealth. It promotes the opposite. In this situation, you are given only the rights explicitly given to you in the EULA. It's their software to sell to you at a price they see fit to charge you for its limited use. Furthermore, Microsoft is allowed to change the EULA terms as they see fit. That's capitalism. And it works great for Microsoft. Not so much for the individual.

    --
    http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
  73. Re:Hey, Windows/Linux Refugees! by 19thNervousBreakdown · · Score: 1

    ... look like boys.

    ... boring, big-breasted blonde bimbo with which no Mac user would be caught dead.

    Dude, I know. She has those ... boobs ... getting in the way. I bet she doesn't even have a penis. How boring can you get?

    P.S.
    You're gay.

    P.P.S.
    Not that there's anything wrong with that.

    --
    <xml><I><am><so><damn>Web 2.0</damn></so></am></I></xml>
  74. Re:When what is? by Anne+Thwacks · · Score: 1
    This is similar to keeping a cat trained to click thro EULA's.

    AFAICT, the cat is not legally responsible for the consequences of its actions.

    See EULA kitty,

    Click EULA kitty,

    nice kitty - here is a piece of catnip!

    --
    Sent from my ASR33 using ASCII
  75. Re:Hey, Windows/Linux Refugees! by Tatsh · · Score: 1

    says the Anonymous coward

  76. What comes in the shrink wrap? by Philosinfinity · · Score: 1

    Someone help me here. The judge states that the COA is not proof of licensing and that a license is not granted until the EULA is agreed upon. Because of that, an end user is not allowed to sell their license for X software (because they don't have a license until the EULA is agreed). The only way this seems possible is if the software manufacturer never sells a license. This means that the shrink wrapped box includes software and a nontransferable ownership of a license to the purchaser. It isn't a license until the purchaser agrees to the EULA, however. So basically (by this logic), I cannot buy software as a gift for a friend. Once I purchase the software, the license can only be granted to me (as the purchaser).

    Since that doesn't seem reasonable, where I am interpreting this incorrectly?

  77. Well, that's fucking stupid by Moraelin · · Score: 4, Insightful
    This has always been the case in the US. You need a receipt of purchase to prove licensing, not a COA or the original box or the CDs. Proof of purchase only.


    So let me get this straight...

    I've made a point to buy all software I use, if buying a license or CD is even possible. So, yes, even the SuSE Linux 10.0 that I'm writing this on is bought and I have the CDs and manual next to me. (Hey, lip service is cheap. I prefer to vote for OSS with my wallet.) I also have bought a copy of Windows for each of my two computers, because I do play games a lot. At any rate, I have the COAs and CDs and everything. I also have these three bookcases full of games I've bought. With original case, CD, manual, whatever. I've also bought all music I'm listening to, and I can show you an original CD for any MP3 you might find on my hard drive.

    So now you're telling me that someone could come and say that in the eyes of the law I'm a bigger pirate than Blackbeard? Just because I didn't keep the receipts from EBGames and whatnot? That someone could look at all those hundreds of games in their original cases and all, and count them _all_ as pirated software?

    Nothing personal, and please understand that my anger isn't directed at _you_, but I find that bloody stupid and offensive. Essentially then the US is calling me a pirate and a thief, in spite of my efforts to be a honest lawful gamer, and in spite of the ample evidence to the contrary. I find it utterly insulting.

    Whatever happened to innocent until proven guilty, ffs? It seems to me like the current attitude is basically the exact opposite: you're by default a pirate, and from there it's your uphill battle to prove yourself innocent. And, oh, let's also make it nearly impossible to prove that. You may have the original CD, the box, the manual, the certificate of authenticity and everything else that a sane person would have guessed would be enough, but if you can't find the receipt you're a thief anyway. I mean, seriously, wtf?

    And what next? Should I expect that my washing machine or TV also count as stolen, because I threw away the receipts once they got out of warranty? Should I start keeping the receipts for the groceries I buy, or be considered a thief that lived on stolen food for the last decade? WTF?
    --
    A polar bear is a cartesian bear after a coordinate transform.
  78. Re:When what is? by Anonymous Coward · · Score: 0

    Of course, Microsoft would claim that without accepting the license they have no right to use the software at all, even though copyright law does not give them the power to say so.

  79. UK Constitution by goodben · · Score: 1

    Sort of. They don't have a written constitution, but they do have constitutional law. This is derived from a collection of laws, traditions, and precedents that dictate how the UK government runs. They don't have a system where an Act of Parliament can be declared unconstitutional, as far as I know, so it's not like the US Constitution in that respect.

  80. Re:Hey, Windows/Linux Refugees! by Anonymous Coward · · Score: 0

    Hi. Everyone's had an Asian girlfriend. We're not impressed.

  81. Did anyone actually read TFA? by lelitsch · · Score: 1

    I don't like Microsoft licensing as much as the next person, but--unless there are some hidden implications for case law--, I don't think the judge was far off. The company who sold these licenses knew exactly that what they were doing was wrong, or at least not covered by the license agreements. Please lets not make them into victims or crusaders for free software just because their lawyers tried to come up with some justification after the fact.

    Anyone who tells a customer: "I can do you an Office 2003 [Microsoft software] without a licence for eighty-five quid. The licensed version is one hundred and eighty-five quid. With the eighty-five quid one we're not lining Bill Gates's pocket. If he's installing it in a business or something he might want to do the licence. He might want to do it properly." knows 10000% that he's doing something that's not entirely kosher.

    Or do you think someone who tells you: "I can get you a BMW without a title for $10,000 in cash" is entirely legit?

    1. Re:Did anyone actually read TFA? by Anonymous Coward · · Score: 0

      Article? What article? I've been reading /. for years and this is the first I've heard about any article. I thought we were just supposed submit uninformed comments and shit.
      Damn, man. You totally ruined my day.

  82. Software is like glue ... by Quiberon · · Score: 1

    Just becuase you have a valid licence, that's no guarantee the software will be useful to you. Same as buying glue; I'm sure the shop has every right to sell you that tube of glue, but they don't guarantee that it will stick anything. You're making that leap of faith yourself. To get a 'stick it' guarantee, you have to pay extra for a 'glue application service'.

    1. Re:Software is like glue ... by jimicus · · Score: 1

      Same as buying glue; I'm sure the shop has every right to sell you that tube of glue, but they don't guarantee that it will stick anything.

      Er... what? This case was in the UK, and here we have this little thing called the Sale of Goods Act - goods must be fit for the purpose for which they are sold.

      Glue is obviously sold to fix things together, if it doesn't then it's not fit for purpose.

      I see these analogies sometimes on here - come on, it cannot seriously be the case that in the USA you can't return faulty goods, no matter how faulty they are?

  83. Well that just about does it by popsicle67 · · Score: 1

    Who is the jackass that thought this boner up. The COA is supposed to be the be-all end-all otherwise there is no use for it. I don't get just what they want now, A reciept maybe? Good luck finding that. I think it's time to really consider a court strictly for computers. We don't have enough time to train the knuckledragging oafs sitting on the bench presently. They aren't smart enough to poor piss out of a boot with the instructions on the heel so we need a geek court. You don't have to be a lawyer to become a judge and you can consult anybody that isn't involved in any particular case in front of you for guidance.

    1. Re:Well that just about does it by jimicus · · Score: 1

      A reciept maybe? Good luck finding that.

      If you're running a business, you damn well should be keeping your invoices/receipts.

      Of course, if the invoice simply says "Twenty (20) HP (insert random model number) computers at £400 each, total £8000" and doesn't specifically mention "Includes license for Windows XP Professional" then I forsee a problem with the BSA.

  84. something to this by pruss · · Score: 1

    There does seem to be something to this. If someone steals a COA, surely that doesn't make it illegal for me to continue using the software. Just looked at the XP Home EULA. The EULA prohibits reselling the software without the COA, but it doesn't prohibit using the software if one's COA has been lost or destroyed. So the license does not consist in the COA.

    Moreover, if the COA were to confer license, one would get the ridiculous result that each copy of XP (I assume Pro has a similar EULA) automatically is licensed for two computers. For you could give away your COA and continue using your copy (the EULA doesn't prohibit giving away or selling the COA), and then the recipient could use the COA as a license for his copy.

  85. Something interesting about this... by cr0sh · · Score: 3, Insightful
    In America, the receipt of purchase is also meant to prove ownership of physical items purchased, in addition to "proof of licensing". Where this gets "interesting" (and most people have no clue about it) is when it comes to automobiles. Do you have the receipt of purchase for your automobile?


    Most likely, you don't. What you probably have, if you have anything, is receipt of purchase from the dealer - not the receipt of purchase from the manufacturer. This document is known as the "Manufacturer's Statement of Origin" (MSO).

    Most people "purchase" their vehicles through a dealer, via a loan or credit. A payment schedule is set up, a down payment is made, and the new "owner" drives off with the vehicle and a dealer "receipt". The MSO (among other documents) is transferred to the Motor Vehicle Department of the owner's state of residence. When the loan is paid off, the owner may get a copy of the MSO sent to him, but more likely he just gets a note and/or receipt saying the loan is paid in full. The state still has the original MSO. The dealer receipt is not valid proof of ownership of the vehicle - only the MSO is. If you don't have the MSO, and the state does, guess who really owns your vehicle?

    The only way (that I know of) to get the MSO of a vehicle is to buy the vehicle directly from the manufacturer, and not the dealer. You can pay cash, credit, or have a private loan to do this, but you will need a trailer to move the vehicle, since it isn't licensed in any way. Actually, this is somewhat false - in theory, you can drive it, without insurance or a license, under the doctrine of "Right to Travel" - but you must have that MSO with you to have any chance of beating this in court when you are hauled in.

    As far as I have been able to research, this is all true. It is simply way more obscure than even the whole FIJA (fully informed jury) issue. "Right to Travel" is yet another one of those areas of law which make judges and the states seethe at the mere mention of it, because it is a Constitutionally protected sovereign right of a free man who owns property. At a certain level, it removes control of the state from an otherwise law-abiding person. This angers the state, but they are (currently) unable to do anything about it.

    What has been done about it is a nearly institutionalized form of slavery of perpetual indebtedness of citizens via "easy credit" and loans, among other measures (such as the separation of selling mineral rights from property rights, for instance). If a man does not actually own his own property - is he really free, or is he merely another form of a slave?

    Licenses, DRM, the DMCA, etc - it is all a part of a very real pattern to control the populace via removal of property ownership rights. Unfortunately, most of the citizens - er, consumers - are playing right along. It is even at a point now where people look at you strangely when you tell them you are paying off your credit, or you use cash, etc - a form of peer pressure to conform to economic slavery. You are suspected if you don't play along, or if you play differently (such as by "living within your means" instead of racking up credit debt). These are sad times we Americans live in - what is pathetic is that most people aren't even aware of what is happenning, and nearly ostracize you if you so much as suggest it...

    --
    Reason is the Path to God - Anon
    1. Re:Something interesting about this... by Anonymous Coward · · Score: 0

      Wow, someone who knows that driving is a right (not a privelege) AND knows about jury nullification. I smell a fellow libertarian.

      Of course, even the very basis of this discussion is wrong, because in America there is actually no private ownership of property whatsoever. If I own something then no one else owns it, nor does the state. That means that it cannot be taxed; enforced taxation would be pure theft. But in our country anything can be taxed and therefore nothing can be owned. So, next April 15th, send the IRS a little thank-you note that they left something in your pocket. They didn't have to.

    2. Re:Something interesting about this... by Richard+Steiner · · Score: 1
      In America, the receipt of purchase is also meant to prove ownership of physical items purchased, in addition to "proof of licensing". Where this gets "interesting" (and most people have no clue about it) is when it comes to automobiles. Do you have the receipt of purchase for your automobile?

      Both Minnesota and Georgia (and I presume other states) require the issuance of a formal state Certificate of Title for any motor vehicles that you own, and those Certificates of Title are used as proof of ownership.

      When my wife and I moved to Georgia, we had to convert the Certificates of Title for both of our automobiles to the local (GA) variant from the MN variant.

      --
      Mainframe/UNIX Bit Twiddler and long time Windows/Linux Hobbyist.
      The Theorem Theorem: If If, Then Then.
    3. Re:Something interesting about this... by wol · · Score: 1

      I almost don't even know where to start on this one. No! this is not insightful. The poster starts off completely misunderstanding title transfer in car purchases and end ups complaining about personal debt. I'll limit my comments to the car purchase and ignore the rest of the incoherent rant.

      The dealer buys the car from the manufacturer. (Dealer franchising laws in most, but not all, states prevent the manufacturer from selling directly to the customer.) The dealer sells the car to you. You get a receipt from the dealer indicating that you purchased the car. The Title indicating ownership interest in the car is documented by the state, but that is only documentation of the fact that you are the owner of the car. The state has no property interest in the car at all.

      How you finance the purchase of the car from the dealer also has nothing to do with ownership of the car. If you borrow from a bank, finance company, or merely agree to pay the dealer over time, the lender gets a collateral interest in the car, but that is not ownership.

      Licensing the car has nothing to do with ownership interest in the car, it merely gives you the legal right to drive the car on roads owned by the state. Different question than whether you own the car.

      The Manufacturers Statement of Origin is not a title document and has nothing to do with having an ownership interest in the car. The statement of origin has to do with various combinations of consumer protection laws and customs duties. The MSO also has nothing to do with right to travel, use the roads or anything else in this post.

      --
      If you think deeply enough, you will have no single direction for your outrage.
    4. Re:Something interesting about this... by DHam · · Score: 1
      How you finance the purchase of the car from the dealer also has nothing to do with ownership of the car. If you borrow from a bank, finance company, or merely agree to pay the dealer over time, the lender gets a collateral interest in the car, but that is not ownership.
      This is a side issue to the original somewhat bizarre assertions by the grandparent but it's not true to say that a secured loan has nothing to do with ownership. The lender's colateral interest in the car is actually a property right and does go directly to the question of ownership. Depending on how the loan is set up, the individual may have legal title to the car with the lender having an equitable property right entitling them to posession in certain circumstances. Alternatively, the situation may be as in a mortgage. In that case the lender has the legal title and the debtor owns an equitable right to exclusive possession of the property and the right, in the event of reposession, to the surplus value of the property at sale after the debt is paid. The details of who owns what rights are a bit below the radar for most people since they don't typically directly affect the practicalities of their loan (they get the car, they make the payments and everyone is happy). You do hear it in general conversation about mortgages: people will talk about their equity and, of couse, there is the situation of "negative equity". The key point is that in a secured loan, both the lender and the debtor have a property (which is to say ownership) right in the colateral.
  86. Re:Hey, Windows/Linux Refugees! by Anonymous Coward · · Score: 0

    "White-bread" was in reference to you, an assessment you've supported with your miscarried defense; being attracted to the exotic Other, ceteris paribus, is even more typical of square culture than being attracted to Pamela Anderson. Congratulations on your failure.

  87. What IS evidence of a licence? by Sloppy · · Score: 2, Insightful
    The judge rejected the argument. "The fallacy in the argument is that if the bank does not accept the EULA [licence] terms [by operating the software and agreeing the terms], it receives no licence. Thus it can confer no licence for the use of any Microsoft software by passing on the COA (certificate of authenticity), nor can the COA be evidence of, or itself confer, such a licence. Thus, provided that the licensing system is enforceable in law, the circumstances exemplified cannot give rise to a legitimate trade in COAs."

    One of the funny things about EULAs, is that there never is any direct evidence of a license. The copyright holder never has any evidence (i.e. a signed contract) that the user agreed to the terms. The user's only evidence, is a piece of paper which doesn't even say to whom the license has been granted, so they really don't have any serious proof either.

    EULAs are a nearly invisible contract that one side never consents to, and neither side can proove exists.

    So while this case appears to be a win for Microsoft, I think this is a double-edged sword. EULAs were already pretty shady, and now a judge has gone on the record, saying that the COA is not proof of a license. This is another nail in the coffin of all EULAs' appearance of legitimacy.

    In fact, there are circumstances in which disused or unwanted volume licences for some Microsoft software can be transferred; but this trade must be compliant with Microsoft's own transfer terms and conditions.

    I also think it's hilarious that a bank can't transfer a license but a retail software store can. Neither party is Microsoft, neither party has a direct relationship or contract with Microsoft, neither party even breaks a seal with a sticker on it that says "by breaking this seal, you agree to..." and neither party clicks on a "by clicking on 'install' you agree to.." button. And yet they also (in addition to the end user) are bound by a contract that they have never even seen? EULAs are so cheesy and fake-looking, that I can't believe anyone takes them seriously. Wake up, judges. If fake contracts can be applied to people without their knowledge, how do you know I'm not going to make up a contract and apply it you you?

    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  88. slashdotters continue to defend piracy by Anonymous Coward · · Score: 0

    You guys are really something else.
    You are actually defending organized crime here. Vendors selling software with unattached (i.e. illegit) COAs at blackmarket prices, and you defend that because you guys defend piracy in general.

    1. Re:slashdotters continue to defend piracy by TobascoKid · · Score: 1

      You are actually defending organized crime here.

      I don't see many posts defending the defendant, most posts are about the ruling that a certificate of authenticity, the piece of paper that MS and the BSA have for years been telling us is proof of our licence isn't, in English law, proof of a licence. So now there is a lot of confusion about what exactly is proof.

      --
      At some point, somewhere, the entire internet will be found to be illegal.
  89. it is not a myth by sum.zero · · Score: 1

    eula enforcement is not consistant across every state in the usa. in some cases they have been ruled as enforceable, in others not.

    sum.zero

  90. Re: So there is no proof of license at all?!?!?! by dkarma · · Score: 1

    What then proves you are licensed to use software if the COA isn't proof that you have authentic (therefore licensed)software?

    This is why I don't pay for MS products. I'd love to see someone get taken to court by MS for not having licensed software. The user's defense could easily be...well according to this the license doesn't actually exist.

    Someone needs to write an EULA destroyer that removes EULAs from proggies.

  91. Re:Out of Context? You screwed buddy by squiggleslash · · Score: 1

    So far as I'm aware, Britain doesn't have a first sale doctrine. Otherwise, I believe you'd be right.

    --
    You are not alone. This is not normal. None of this is normal.
  92. Re:Out of Context? You screwed buddy by CerebusUS · · Score: 3, Interesting

    I thought the EULA wasn't binding until agreed to. Until I install the software or break certain seals, I do in fact own that copy of the software, up until I agree that I don't via the EULA

    From the article:

    The defence argued that if a large organisation, such as a bank, bought a large number of computers and never used the bundled Microsoft software and sold on the licences, that a company such as Digital could sell those licences, for which Microsoft had already been paid.

    The judge rejected the argument. "The fallacy in the argument is that if the bank does not accept the EULA [licence] terms [by operating the software and agreeing the terms], it receives no licence. Thus it can confer no licence for the use of any Microsoft software by passing on the COA (certificate of authenticity), nor can the COA be evidence of, or itself confer, such a licence. Thus, provided that the licensing system is enforceable in law, the circumstances exemplified cannot give rise to a legitimate trade in COAs."


    So, according to this judge, in the UK, if you don't agree to the licenses, you don't, in fact, own anything, even if you've paid for it.

    Kinda scary.

  93. OK, what is this really saying? by itsdapead · · Score: 2, Insightful
    I hate to sound like I support M$, but I think the stuff about COAs is just FUD.

    IANAL of course.

    All I think this is saying is that if person A sells you a "license" - and it then turns out that A had no right to sell you such a license - then you do not have a license, regardless of how many hologram-encrusted bits of paper person A gave you.

    Now, say A aquired that paperwork along with a PC from vendor B, and B tried to impose on him a ridiculous Catch-22 clause that purports to say "you can't resell that as a license because you haven't accepted the license, and if you do accept the license you have to agree not to resell it". That stinks - but if A doesn't like it he needs to take that up with B - not sell the disputed item on to you. You can't take it up with B later because you are not party to any agreement with them.

    For added complexity say that A was probably buying hundreds of computers under a negotiated commercial contract (i.e. not retail) and your dealings with them are actually indirected through allegedly-shady software dealer C and you have a right mess.

    Note that the defence here was a long shot involving EU competition law, and that the Judge left a big caveat about "if the license is legally enforceable". It doesn't sound as if the actual fairness and enforcablility of the original OEM license was ever tested.

    --
    In a survey of 100 programmers, 111111 thought that duck-typing was a good idea.
    1. Re:OK, what is this really saying? by kimvette · · Score: 1

      Let's substitute just one word to show how absurd this is:

      All I think this is saying is that if person A sells you a "banana" - and it then turns out that A had no right to sell you such a banana - then you do not have a banana, regardless of how many hologram-encrusted bananas person A gave you.

      Think about it. Microsoft did not develop Office 2003 under contract for you. They offer a COMMODITY GOOD sold OVER THE COUNTER/OFF THE SHELF. It is a commodity good and as such you have every legal right to resell it as you please (providing all media/backups/etc. accompanies it).

      If the COA is not proof of a license, and the media isn't, then what exactly IS evidence of such? (the ridiculous notion of a commodity good being licensed" notwithstanding)

      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    2. Re:OK, what is this really saying? by itsdapead · · Score: 1
      All I think this is saying is that if person A sells you a "banana" - and it then turns out that A had no right to sell you such a banana - then you do not have a banana

      Nope - what they've sold you in this case is a piece of paper with "1 Banana" written on it.

      Or, alternatively, if someone steals a banana and purports to sell it to you, then even if you have physical posession of that banana you don't own that banana. But I didn't use that argument because it plays into the "intellectual property = physical property" fallacy.

      They offer a COMMODITY GOOD sold OVER THE COUNTER/OFF THE SHELF. It is a commodity good and as such you have every legal right to resell it as you please

      RTFA - the hypothetical "you" in this case did not buy any "commodity good" (which would be a Windows CD, sealed, open, secondhand or new). You bought a second-hand hologram sticker that someone had peeled off their PC and tried to claim that this entitled you to use a copy of windows obtained from another, undefined & possibly illicit, source. Plus, these stickers are typically coming from corporate customers who probably obtained them through a commercial tendering process to which many consumer laws do not apply

      If the COA is not proof of a license, and the media isn't, then what exactly IS evidence of such?

      The "license" is the chain of contractual agreements between the user and the copyright holder. The COA is usually pretty good evidence that such a license exists, but the only "proof" is to follow the paper trail.

      You're trying to have it both ways here - the "license" between the original buyer can be ignored because you don't like it, but your little hologram sticker is above question.

      the ridiculous notion of a commodity good being licensed" notwithstanding

      No - treating "software" (in the broadest sense - i.e. programs, books, music, video) the same way as the aforementioned banana became impractical as soon as the cost and effort of copying them and moving them between media became negligible (and became an itegral part of "using" them). What is ridiculous is that the law is still focussed on the act of copying (rather than distribution); that consumer protection law is still predicated on the sale of tangible goods and hasn't adapted to a world where consumers are increasingly buying licenses and service contracts; and that where the law has changed, it has been kludged and big business has been allowed dictate the terms.

      --
      In a survey of 100 programmers, 111111 thought that duck-typing was a good idea.
  94. Right to Use by saphena · · Score: 1

    I'm sorry, my use of capitals has suggested too much weight given to the letter of the law as opposed to the concepts.

    When you purchase an intrinsically physical item such as a book, the valuable commodity purchased is (mostly) the physical item itself. The user commonly derives the benefit of the book by reading it but there are other valuable uses: doorstop and table leg leveller being the obvious ones.

    When you purchase a piece of software there are only two valuable uses: using it and learning from it. Some learning uses are simply by-products of normal use and can be treated as normal use; other techniques such as reverse engineering are generally outlawed one way or another.

    Microsoft Windows XP Professional retails at $299. http://www.microsoft.com/windowsxp/pro/howtobuy/pr icingretail.mspx/ It's hard to imagine that the physical media might be worth that or anyone might pay that to merely "own a copy". The only reasonable commodity trade surely is the right to use the software.

    1. Re:Right to Use by Anonymous Coward · · Score: 0

      No, it is the *ability* to use the software that you are buying. You can't otherwise get the opportunity to use the software, because due to Copyright restrictions no one else can distribute it to you. You are purchasing the means to an end, exactly as in the case of a book. Bound paper with characters on every page aren't physically worth anywhere near $24.95 either.

    2. Re:Right to Use by damium · · Score: 1

      Some learning uses are simply by-products of normal use and can be treated as normal use; other techniques such as reverse engineering are generally outlawed one way or another.

      Well, I think you are confusing law with contract (EULA). Reverse engineering is perfectly acceptable unless you have agreed to a contract that forbids it. This is why many software titles in recent publication requires you to agree to a EULA before you USE the software (and when you install it).

      All that aside, your argument about worth and cost of physical items is flawed. Some books cost much more than they are worth as an object. I've had books that cost $300 for school. You do not need an EULA to protect your software, you only need it to limit liability and/or limit your customers use of said software. As a contract they are judged on a case by case basis as to enforceability and if the user agreed to them.

    3. Re:Right to Use by saphena · · Score: 1

      My final contribution on this matter before retiring to the pub is:

      1) I accept that US copyright law appears to employ the concept of a copy owner, with associated rights.
      2) I withdraw my comments about the GPL.
      3) I cite below the relevant sections of the relevant UK law "The Copyright (Computer Programs) Regulations 1992"

      New permitted acts in relation to computer programs
      8. After section 50 insert--

      Computer programs: lawful users

      "Back up copies.
      50A.--(1) It is not an infringement of copyright for a lawful user of a copy of a computer program to make any back up copy of it which it is necessary for him to have for the purposes of his lawful use.

      (2) For the purposes of this section and sections 50B and 50C a person is a lawful user of a computer program if (whether under a licence to do any acts restricted by the copyright in the program or otherwise), he has a right to use the program.

      (3) Where an act is permitted under this section, it is irrelevant whether or not there exists any term or condition in an agreement which purports to prohibit or restrict the act (such terms being, by virtue of section 296A, void).

      Decompilation.
      50B.--(1) It is not an infringement of copyright for a lawful user of a copy of a computer program expressed in a low level language--
      (a) to convert it into a version expressed in a higher level language, or
      (b) incidentally in the course of so converting the program, to copy it,
      (that is, to "decompile" it), provided that the conditions in subsection (2) are met.

      (2) The conditions are that--
      (a) it is necessary to decompile the program to obtain the information necessary to create an independent program which can be operated with the program decompiled or with another program ("the permitted objective"); and
      (b) the information so obtained is not used for any purpose other than the permitted objective.

      (3) In particular, the conditions in subsection (2) are not met if the lawful user--
      (a) has readily available to him the information necessary to achieve the permitted objective;
      (b) does not confine the decompiling to such acts as are necessary to achieve the permitted objective;

  95. Re:Out of Context? You screwed buddy by damium · · Score: 1

    With a bulk license you agree to the terms before they sell you the software. One of the terms is no-resale.

  96. according to M$ my action pack is illegal now by Anonymous Coward · · Score: 0

    I'm signed up as a Microsoft Partner, and I paid good money to purchase the Microsoft Action Pack with is basically a not for resale bundle of all of microsoft's current software. this bundle is updated quarterly with new software and software upgrades coming to you several times during the year that your "action pack" subscription is active. I only used 1 of my 10 Microsoft Windows XP Professional licenses and 1 of my 10 Microsoft Office 2003 Professional licenses during the 2 years that I paid for my subscription. At the end of 2 years I was not financially able to renew my Subscription because I was unemployeed.

    about a month or so after I let my subscription lapse I was send a legal notice from microsoft that I was to destroy all software and licenses that was sent to me by Microsoft while my Action pack subscription was active and that as a gesture of good faith they would assume that I had complied with their request, but that I could be audited later.

    My response to this was to say Bull crap, I paid for this software and since I never used it or activated it, It's mine to do with as I see fit, barring me reselling it which I agreed not to do when I signed up for my action pack subscription. I still have the Binder with ALL of the software and licenses and Terminal Server CAL Licenses that they sent me. I may never use any of the other software besides XP but I'll be damned if I will just throw it away.

    1. Re:according to M$ my action pack is illegal now by kimvette · · Score: 1

      You cannot use the software after the subscription expires? WTF?

      At least with MSDN, the result of the end of the subscription is just that they do not send you more updates - you still retain the "right" to continue running the software ("right" limitations by licenses aside, considering that commodity goods being "licensed" is bogus to begin with) forever.

      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    2. Re:according to M$ my action pack is illegal now by Anonymous Coward · · Score: 0

      yes,

      according to M$ my licenses were only valid while my subscription was active. some of the software is special versions where you have 1 or 2 license key codes and these codes will only activate on up to a certain number of systems, some software that is sent to you is OEM version software for you to use to get familiar with OEM preinstallation methods,etc. for example in my kit it came with xp pro action pack labled CDs with key codes that are in the xxxx-770-xxxx-xxxxx range when you look at the product ID after installing the software. these codes are the ones that only activate a certain number of times. other than this it's full software. but in addition to these versions most of the software comes with 1 OEM version with 1 license and this version can be reactivated however many times you can convince M$ to let you activate them. The only exception to this was some of the software like the windows xp Professional X64 software which came with 10 single activation licenses. I do not know if any of the non OEM OS software can be reactivated after the limit has been reached, even on systems that they were previously activated on. I do know that the single activation per license version of office 2003 professional you can't reactivate a previously used license on the same system even if the config is idential to when it was previously loaded. It was after I found this out that I quit using Office 2003 and switched my system over to StarOffice 8 which I was given a "FREE" license for by Sun a while back.

      If not for my company having open licensing with Microsoft for our Corporate Windows XP software I'd probably be back to running Windows 2000 Pro on my home system. And while windows 2000 Pro still works great in my opinion, I know that it's on life support by microsoft and isn't as well supported for bug fixes,etc.

  97. that is no different than with books or music by Trepidity · · Score: 1

    It costs about $0.50 to manufacture a CD, not $15-20. Nearly the entire cost of the product is the right to own a legal copy of the music; the fact that it comes on a physical disc is not particularly relevant.

    You are not however purchasing a "right to use". You are purchasing a legal copy of the music, which you can then do whatever you want with.

    Similarly with software you are purchasing a legal copy of the software. It even comes on a disc, the exact same media that music CDs do!

  98. Re:Out of Context? You screwed buddy by HTH+NE1 · · Score: 1

    "The fallacy in the argument is that if the bank does not accept the EULA [licence] terms [by operating the software and agreeing the terms], it receives no licence."

    That is not in dispute. The issue is that the only thing that grants validity to the license is the agreement to it. You can't enforce terms of an unsigned contract. Upon resale, one is not conferring a license, one is conferring ownership which carries with it the option to license in order to use. It is selling of the opportunity to agree to the license, not the license itself.

    Even if the licensing system is enforceable by law, one cannot be bound by an unsigned contract, especially one you can demonstrate have had no opportunity to read (e.g. by not breaking the seal).

    The CoA has a 1:1 correspondence to the number of licenses offered by Microsoft. It is thus a prima facie artifact of a presence of a license, and its absence a lack of a license. Whether or not the license was agreed to is evidenced by the number of actual installations matching or being fewer than the number of CoAs.

    That a judge would not agree to that smacks of corruption and a willful ignorance of the facts and of reality.

    I would wish UK vendors would pull all Microsoft products off their shelves and force Microsoft to sell their OS direct to the consumer, and for consumers to demand proof from every vendor on their authorization to convey to them the opportunity to agree to the contained license agreement.

    --
    Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
  99. GPL not based on EULA law! by ChaosDiscord · · Score: 1
    The concept of a Licence to Use is firmly, unquestionably, established both in UK and US legal jurisdictions and is the basis on which ALL software is licensed including under the GPL.

    You are deeply mistaken. The GPL is not based on EULA law in any way, shape, or form. The GPL itself makes it clear: you do not need to agree to the GPL. "You are not required to accept this License, since you have not signed it. However, nothing else grants you permission to modify or distribute the Program or its derivative works." If you don't, you're under basic copyright law. You're still free to use GPL licensed software. You only need to be aware of an obey the GPL if you plan on distributing copies. Normally copyright law forbids that; the GPL grants you a license to do so provided you agree to some restrictions.

    1. Re:GPL not based on EULA law! by mpe · · Score: 1

      You only need to be aware of an obey the GPL if you plan on distributing copies. Normally copyright law forbids that; the GPL grants you a license to do so provided you agree to some restrictions.

      If you are not distributing copies of software the conditions in the GPL arn't relevent. It only becomes relevent when you want to distribute (or create a derived work). Rather than at the point of making a copy. Where as EULAs often claim to restrict your permission to make a copy.
      The GPL is really only concerned with matters related to (traditional) copyright. Whereas EULAs tend to be a complete mixture of legal claims.

  100. Re:Economics 101 by Brandybuck · · Score: 1

    Capitalism has no mechanism for the distribution of wealth.

    You are quite incorrect. It doesn't have a *coercive* mechanism for distributing wealth, but distributing wealth is one of the foundations of capitalism. The consumer transfers part of his wealth to the producer in exchange for goods, and the producer transfers part of his wealth to the employee in exchange for labor and skills, and the employee goes and buys a new computer, restarting the cycle.

    Voluntary economic transactions increase the wealth of both parties. When you buy a bag of apples for one dollar, it is because you value the apples more than the dollar, and so you are wealthier. The seller values the dollar more than the apples, and so he is wealthier. It is not a zero sum game, you both end up wealthier.

    --
    Don't blame me, I didn't vote for either of them!
  101. The MSO conspiracy doesn't exist. by ChaosDiscord · · Score: 2, Informative
    What you probably have, if you have anything, is receipt of purchase from the dealer - not the receipt of purchase from the manufacturer.

    And? When I buy a book I get a receipt of purchase from Barnes & Noble, not from O'Reilly and Associates.

    This document is known as the "Manufacturer's Statement of Origin" (MSO).

    The MSO is not a receipt of purchase. It's exactly what it claims to be, a statement of origin. "This car came directly from us." It's essentially a title to the vehicle.

    When title in a car (or, say, a house) is transferred, the state wants to make sure that the previous title is gone. Otherwise two or more people could have titles and claim ownership. So to apply for title you typically need to turn in the old title. If you buy a car from me, I sign my title and give it to you. you go to the DMV and turn in my old title. The DMV issues you a new title.

    Essentially the MSO is the original title for a vehicle. It gets sent to the state so the state is free to issue you the real title.

    Your theory also fails if you get your auto loan from someone other than your auto dealer (as I did). In that case the dealer transferred the title to my credit union. At that point the MSO was gone and the credit union had a title. When I paid off the car they told the state (and turned in their title) and the state issued me a new title in my name.

    If you have the title (in your name) to your car you own your car.

    Actually, this is somewhat false - in theory, you can drive it, without insurance or a license, under the doctrine of "Right to Travel" - but you must have that MSO with you to have any chance of beating this in court when you are hauled in.

    This will go down in practice about as well as attempts to not pay income tax. You'll get the occasional lucky people who manages to find a weird loophole or sloppy prosecutor, be most people trying this stunt will lose in court. Reasonable, non-discriminatory licensing of vehicles is no more infringing on your right to travel than licensing of broadcast airwaves infringes your right to free speech.

    1. Re:The MSO conspiracy doesn't exist. by Anonymous Coward · · Score: 0

      Reasonable, non-discriminatory licensing of vehicles is no more infringing on your right to travel than licensing of broadcast airwaves infringes your right to free speech.

      How is it not a presumption of guilt? The state only has the right to restrict my activities if I am violating the rights of others, such as by recklessly endangering them. I should not have to prove that I am NOT endangering anyone, the state should have to prove that I AM. And before you mention ownership of the roads, I would point out that the right to travel on the "King's Highway" unmolested and without leave is as old as the Magna Carta.

      But you are correct, none of this means anything in court today.

  102. I must laugh! by ratboy666 · · Score: 1

    The judge rejected the argument. "The fallacy in the argument is that if the bank does not accept the EULA [licence] terms [by operating the software and agreeing the terms], it receives no licence. Thus it can confer no licence for the use of any Microsoft software by passing on the COA (certificate of authenticity), nor can the COA be evidence of, or itself confer, such a licence. Thus, provided that the licensing system is enforceable in law, the circumstances exemplified cannot give rise to a legitimate trade in COAs."
    -----------

    Let's break it down, shall we? The original purchaser receives software. She has no intention to every use it, and further never installs, operates, or agrees to terms, she cannot "pass on the license" as an offer. Never opened, and yet useless.

    Interesting, and so I checked the Microsoft EULA FAQ. Googled "microsoft eula faq", first hit doesn't exist, second is:

    http://www.microsoft.com/piracy/activation_faq.msp x

    the section of interest is

    "Licenses for Office XP or Office 2003 acquired preinstalled on a new PC are single-PC licenses that cannot be transferred or installed a second time on another PC or laptop computer".

    I couldn't be bothered digging down further.

    So, such software is "locked" to a specific CPU, and is not transferable. Of course, I may not have known that, and re-sold what I had received (and I did so, once. Bought a cheap computer for a BSD project. They wouldn't sell it WITHOUT around 15 CDs of useless, to me, software. Turned around and sold the lot "over $500 worth of software included!" to someone for $50 and a beer). It wasn't Office XP or Office 2003, and I have no idea what the license would say.

    Crap; I may guilty of breaking the law! Who the fuck reads EULAs for software you are NOT going to install? And, what if the EULA DOESN'T show up UNTIL you install it? Isn't that Catch-22?

    Ratboy

    --
    Just another "Cubible(sic) Joe" 2 17 3061
  103. Been pricing a Dell server recently... by mi · · Score: 1
    Thanks to MS anti-piracy lobbying and differential pricing, it's not even possible to buy a PC without Windows on it from a major OEM any more. Or not without paying for Windows anyway: see Dell's Linux PCs or PCs without an OS, that cost exactly as much or more than the same with Windows. (And if you managed to get one without an OS anyway, it would get added to BSA's piracy statistics anyway.)

    I had a choice of Windows 2003 R2, Windows 2003 R2 64bit, RedHat with different lengths of support, SUSE with different lengths of support, and no OS (for $800 less, than the Windows 2003 R2 option).

    Not sure, if choosing "no OS" would've been added to BSA's statistics, but I don't care for them anyway.

    --
    In Soviet Washington the swamp drains you.
  104. I used to think the law was an ass... by clickety6 · · Score: 1

    ... but now I realise that in fact my ass is an ass and the law is instead the big sharp pointy stick being inserted into it !

    --
    ----------------------------------- My Other Sig Is Hilarious -----------------------------------
  105. Not terribly suprising... by spiritraveller · · Score: 1

    The judge rejected the argument. "The fallacy in the argument is that if the bank does not accept the EULA [licence] terms [by operating the software and agreeing the terms], it receives no licence. Thus it can confer no licence for the use of any Microsoft software by passing on the COA (certificate of authenticity), nor can the COA be evidence of, or itself confer, such a licence. Thus, provided that the licensing system is enforceable in law, the circumstances exemplified cannot give rise to a legitimate trade in COAs."

    The judge is saying that a "certificate of authenticity" is just what it says... a certificate that you can use to evidence that your software is genuine and not counterfeit.

    The COA is not a license, but merely evidence of a license. If you take someone else's COA and put it with your counterfeit copy of the software, you have not "received a license".

    The people who sold the COA never accepted the license, so they could not have transferred a license that they did not have. This is similar to the way the GPL works... you either agree to the terms and abide by them, or you don't have a license.

  106. Re:Out of Context? You screwed buddy by jimicus · · Score: 1

    That a judge would not agree to that smacks of corruption and a willful ignorance of the facts and of reality.

    That a judge has not agreed to that smacks to me of a guaranteed problem with the Business Software Alliance. You seen all your invoices from computer purchases lately? I bet you anything you like they don't give a detailed breakdown of everything including the fact that a Windows license was included - which means that without an invoice showing that, and the CoA "not being sufficient", it is not physically possible to use Windows and get through a BSA audit intact.

    (That being said, I suspect companies with unbranded white box desktop PCs rather than a whole bunch of nice'n cheap Dells or HPs are at higher risk of being on the wrong end of an audit anyway).

  107. re: Not as clear as you say, though.... by King_TJ · · Score: 1

    A big problem here lies in what constitutes a given system. To the typical end-user, the "original system" is the computer they purchased, no matter how many components in it eventually get replaced either under warranty, or as paid repairs after the warranty expires.

    To Microsoft, however, the "original system" seems to mean the original motherboard used in the PC. If a user has a dead motherboard 3 months into ownership of the computer, and it's swapped out with a different model (happens all the time, the way motherboard manufacturers discontinue product lines and release new ones every time you turn around!), all of a sudden, XP thinks it's loaded on a different PC and activation fails.

  108. Re: MOD PARENT UP by dch24 · · Score: 1
    Yes, Parent is already at +4. However, I had never heard these things. Are you a lawyer? Wow, time to pay off my loans and change the way I keep my books! Is there any way to get the MSO from the State?

    starts googling like crazy

  109. Re:Avoid headaches by civilizedINTENSITY · · Score: 1

    I don't think that suggesting draconian licenses will lead (at least eventually) to the natural marktet selection of a more user friendly license, is "flamebait". Come on, people. Lets be fair.

  110. I have to stop playing Warcraft by EvilDrew · · Score: 1

    Am I the only person who read that headline as "UK Judge Rules Curse Of Agony is Not Evidence of a License"?

  111. Re:Out of Context? You screwed buddy by Anonymous Coward · · Score: 0

    by the judges logic, the next person who buys the unopened software secondhand, and does agree to the EULA, and opens the box, does recieve a license. if the license is given at time of agreement to the EULA, then it still works fine.

  112. Seems reasonable by smallja · · Score: 1
    At the risk of coming to the defense of M$, the situation seems different than what is being protested here, assuming that you believe that shrinkwrap licenses have any validity.

    The issue is that some bank got a special deal for their M$ licenses. They paid a whole lot less than retail, and in consideration they agreed to restrictions in what they could do with the software. They then went and broke their part of the deal.

    This wasn't some innocent end-user who didn't read the EULA. I am sure the bank has a large and expensive team of lawyers who can read. Similarly, I am sure the bank has a professional IT staff who as professionals should understand software licensing, and who can also read.

    The only thing in all this chatter that resonates with me is how to avoid doing business with M$ when buying the computer, or barring that, how to buy one copy of the software instead of 1.1 copies (the (discounted) volume license and the OEM license).

    I thought the judge's ruling was spot on. If you think about it, the bank (or the reseller) can only sell two things: the software license or the tangible media. If it is a license, then the terms of the license agreement apply (i.e. you should know what you are selling). If just the media, then the unfortunate end-user has a hunk of plastic which they can't use. If the end-user *thought* they were buying a license, then the reseller misrepresented what they were selling. I don't see how the bank/reseller can have it both ways by pretending that they are selling a tangible in one case (and can ignore the EULA), but the end-user is getting a license.

    If you don't agree with a business practice of someone else, don't try to hide behind lawyers to get around their intent, just don't do business with them.

  113. Where do I stick COA if I run Windows in VMWare? by Anonymous Coward · · Score: 0

    Inquiring minds need to know!
    On the VMWare box?

  114. Re: Not as clear as you say, though.... by ray-auch · · Score: 1

    If a user has a dead motherboard 3 months into ownership of the computer, and it's swapped out [...] activation fails.

    Don't mix up activation with what is a legal license. Activation is a relatively crude enforcement tool which is why it can be overridden (which is what they do over the phone). MS specifically differentiates between replacement of a defective motherboard (no new licence required) and upgrade (new licence required - old one stays with the old, not dead, board).

    Conversely, you can successfully activate copies which are in violation of the eula - as in the case in TFA.

  115. Re:When what is? by Anonymous Coward · · Score: 0

    ...and how I can transfer or sell it to somebody else.

    That information would be described in the specific license for the product. They are usually pretty straight forward (even Microsoft's).

  116. Re:Hey, Windows/Linux Refugees! by Anonymous Coward · · Score: 0

    Nice attempt to dodge the bullet, Ace, but no dice.

    The fact is that you have to compensate for your own emptiness and meaninglessness through elitism and deconstructionism. Since you have no sense of purpose or self-worth, you hide in your own little ingrown, made-by-and-for-the-media world and proclaim just a bit too loudly about how "special" it is.

    That's pretty sad.

  117. Re:When what is? by tftp · · Score: 1

    You are at the point where your inputs (eyes, ears etc.) are, and where your mechanical actuators (arms, legs etc.) are. It can be, probably, possible for such a cyborg to comfortably "move" his viewpoint along the surface of the Moon, while petting a cat in a house somewhere. This is not any different from looking through binoculars, for example. People associate their "being somewhere" with the place they see because that's usually a very good starting point. An FPS gamer may tell you that during the game he is "in" the map, not in his chair.

  118. Re:Hey, Windows/Linux Refugees! by Anonymous Coward · · Score: 0

    Reread my first response. It's clear what I meant. And do you even know what "deconstruction" means, you poser?

  119. Re:Out of Context? You screwed buddy by complete+loony · · Score: 1

    This argument makes no sense at all. At what point does a purchase of software stop being transferrable? Does this ruling mean that noone can re-sell microsoft software? not even OEM's? If I buy a pc with XP Home & Office, tommorrow can I sell it to someone I know? Or is it because the license to use the software is supposed to be bound to the system it was sold with?

    --
    09F91102 no, 455FE104 nope, F190A1E8 uh-uh, 7A5F8A09 that's not it, C87294CE no. Ah! 452F6E403CDF10714E41DFAA257D313F.
  120. Re:When what is? by gronofer · · Score: 1

    A license, if it was going to be a reliable legal construct, would be a document on paper that said "I, Microsoft Corporation, hereby grant a license to Joe Blogs to use one copy of Microsoft Office Super Pro on the computer with ethernet card MAC Address ############ and CPU ID ################## subject to the following extensive limitations..." and signed by an authorised representative of Microsoft Corp.

    If the license isn't exactly in this form, it should somehow be logically equivalent to this form using information which would be valid in a court of law at each step.

  121. Re:Out of Context? You screwed buddy by julesh · · Score: 1
    What Microsoft is doing here is taking legitimate software (they made it and they sold it) and by fiat converting it into pirated/counterfeit software solely by stint of how they have their EULA structured. The software hasn't been reproduced, isn't being used by multiple people, in fact the core of the argument rests on the fact that the software has been completely unused prior to the sale.


    Not quite. If you read the judgement, what the defendant was doing was:

    1. Taking legitimate COAs from machines where the installation had never been used because the purchaser had reinstalled a different OS from the one supplied by the OEM
    2. Supplying these COAs for use to supposedly validate multiple installations where only one original disc was in posession of the installer.


    MS's argument is that a license is only present if both the COA and the original source media and documentation bundle are transferred together, and that the COA is only valid for an installation from that source media. Of course, if your OS is an OEM softload package you're out of luck... due to these restrictions, you can't sell it.

    The judgement quotes a rather nasty piece of law:

    Copyright, Designs and Patents Act 1988
            56. Transfers of copies of works in electronic form

            (1) This section applies where a copy of a work in electronic form has been purchased on terms which, expressly or impliedly or by virtue of any rule of law, allow the purchaser to copy the work, or to adapt it or make copies of an adaptation, in connection with his use of it.

            (2) If there are no express terms--

                    (a) Prohibiting the transfer of the copy by the purchaser, imposing obligations which continue after a transfer, prohibiting the assignment of any licence or terminating any licence on a transfer, or

                    (b) Providing for the terms on which a transferee may do the things which the purchaser was permitted to do,

            anything which the purchaser was allowed to do may also be done without infringement of copyright by a transferee; but any copy, adaptation or copy of an adaptation made by the purchaser which is not also transferred shall be treated as an infringing copy for all purposes after the transfer.


    The effect of this law is to enable copyright holders to block or impose arbitrary conditions on the resale of their copyrighted works. I didn't know this existed, but it does look bad for the defendant. It basically means that he has to abide by MS's restrictions, which he didn't. Hence the judgement against him.
  122. Re:Out of Context? You screwed buddy by bigpicture · · Score: 1

    I think I read a while back that there was a university student in the same sort of situation. He had bought a student discount version of Office, and when he could not get a refund at the university library where he bought it, he put it up for sale in E-Bay or something.

    When the MS spies saw this, they tracked him down and sued him, and he counter sued under some fraudulent business / anti-trust practices laws. Because of all the anti-trust stuff going on with MS, I understand that they backed away and settled. This was in the US though not in the UK, so the laws may be somewhat different.

  123. Re: Not as clear as you say, though.... by King_TJ · · Score: 1

    I understand what you're saying, BUT, I don't think it's made *clear* at all that this is the case. Windows Activation is made out to be the end-all ,be-all of authorizing or denying you the right to use a particular copy of Windows XP on a system. Yes, you can call Microsoft by phone and request a new activation code -- but that's a big pain. You have to read off the huge key code on your screen to a voice-recognition system on the other end, only to have it run through another time and fail to recognize your key as valid. Then you get put on hold while being forwarded to a live human, who AGAIN asks for the first part of that key on your screen. Then you get grilled about things like 'Is this a retail or an OEM version of Windows?" and "Do you have this copy installed on any other machines?", and "What is the make and model of the PC you're using?" After you answer to their satisfaction, you're finally given another key which has to be painstakenly keyed in as they read off the letters to you.

  124. Re:Reality VS Theory by mpapet · · Score: 1

    In theory you are correct.

    The real world differs drastically. Sharecropping, slavery, prostitution, desktop OS's, so-called "energy markets", telecomm markets all exhibit market behavior that defy the theory.

    Mostly because humans are greedy and will do anything to maximize their profit-making systems.

    --
    http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
  125. Re:Reality VS Theory by Brandybuck · · Score: 1

    Nonsense. Sharecropping- the result of racism, not capitalism; Prostitution- an illegal occupation in most jurisdictions; desktop systems- the result of grants of privilege by the government (ei. copyright); energy markets- a micromanaged and overly regulated industry (the so-called "deregulation" was anything but); telecoms- the result of decades of government mandated monopolies.

    Though this sounds like a bunch of excuses, it's because the present system in the US is NOT true capitalism, and it's participants are NOT wholly rational. But just because there is some grit in the rice, it does not follow that rice is inedible.

    --
    Don't blame me, I didn't vote for either of them!