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eBay Seller Sues Autodesk for $10 Million

Miasik.Net writes "A lawsuit has been filed in Federal Court (US District Court for the Western Washington District C07-1189 JLR) that alleges Autodesk, Inc maker of the industry standard AutoCAD software and their attorney Andrew S. Mackay have devised an illegal scheme to have used copies of their software removed from the eBay site using the Digital Millennium Copyright Act. Finally someone decided that non-transferable licenses must be stopped." While proving $10 million in damages might prove difficult, the reasoning behind the case is pretty sound.

26 of 318 comments (clear)

  1. California Bar Investigations by Harmonious+Botch · · Score: 5, Insightful
    From TFA:

    Autodesk's attorney Andrew S. Mackay is currently under investigation (# 07-24456) by the California State Bar Association for his actions in this matter. Strictly speaking, that sentence is true. But here in California, all complaints about a lawyer are investigated. There is no screening process. So you can alledge that a lawyer has kidnapped Elvis and locked him up in his basement along with a bunch of alien corpses stolen from Roswell and the bar association will open an investigation.

    A far more relevant statement would have been:

    The plantiff has filed a complaint about Mackay with the California State Bar Association for his actions in this matter. The merits of the complaint are unknown.

    Furthermore, the plantiff lacks standing. In the state of California, to sue for fraud, party A must alledge that party B defrauded party A. If A claims that the money comes from C, then he has no standing to sue, even if his statements are correct.

    1. Re:California Bar Investigations by spacefrog · · Score: 4, Informative

      In the state of California
      This is a federal suit. From TFA:

      A lawsuit has been filed in Federal Court (US District Court for the Western Washington District C07-1189 JLR)
  2. New business model by davetd02 · · Score: 5, Funny

    1) Buy software from eBay
    2) Copy onto hard drive
    3) Re-sell on eBay
    4) Profit!

    Easy enough for me!

    1. Re:New business model by langelgjm · · Score: 4, Interesting

      Interesting how similar this story is to this one, from a while back, about restricting the sale of used CDs. In both cases you have the manufacturer wanting to restrict the first sale doctrine's rights in order to sell more of their product.

      Actually, now that I think about it, I use some high-priced manufacturing software that, IIRC, states much the same thing: you don't own the software (nor the hardware dongle required to run it); it is all property of the manufacturer. There was even a clause in there about selling used software - they stated that you were allowed to do it, but it had to be for a specified amount, and they got a fee out of it. It all sounds fairly bogus to me.

      --
      "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
    2. Re:New business model by jmorris42 · · Score: 5, Interesting

      > There was even a clause in there about selling used software - they stated that you were allowed to do it,
      > but it had to be for a specified amount, and they got a fee out of it.

      Not really, sound pretty fair. You see, you ARE allowed to resell software and AutoDesk is going to get smacked in court but support and upgrades aren't part of the First Sale Doctrine. By your vendor specifying a procedure and fee to transfer ownership of the license along with the title to the copyrighted work it means the buyer gets upgrades, bug fixes and the same level of tech suport you have now. If the fee is reasonable it would be very fair, especially when dealing with specialized software that needs support.

      --
      Democrat delenda est
    3. Re:New business model by JVert · · Score: 4, Interesting

      Reminds me of when I called Nevada DMV and asked if this rumor was true that there was no tax on used vehicles. They plainly said, "we already collected tax on that car when it was first sold, why would we need it again?".

      Aww fuck I though, I should have left California a long time ago.

  3. I don't think... by jd · · Score: 5, Funny

    ...lawyers bother taking on lawsuits under $10 million these days - they can't make enough money on the small claims.

    --
    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
  4. The question by DTemp · · Score: 5, Interesting

    Which is it:

    1) Does the seller have the "burden of proof" to prove that he uninstalled his copy and is not violating his license or

    2) Is the seller to be given the "benefit of the doubt" and assumed to have uninstalled his copy, unless information is found to indicate otherwise?

    note: I am probably using legal terms like "burden of proof" incorrectly. but you get my question.

    1. Re:The question by sodul · · Score: 5, Insightful

      1) Does the seller have the "burden of proof" to prove that he uninstalled his copy and is not violating his license or

      Guilty until proven innocent?

      2) Is the seller to be given the "benefit of the doubt" and assumed to have uninstalled his copy, unless information is found to indicate otherwise?

      Innocent until proven guilty.

      So which one is applied by the modern court system?

    2. Re:The question by WaltBusterkeys · · Score: 4, Informative

      So which one is applied by the modern court system? In criminal law one is innocent until proven guilty. In civil law (like this), the scales are even with just a feather on the side of "not liable" (since one can only really be "innocent" of a crime).

  5. Re:Fixed! by Orthuberra · · Score: 5, Funny
    Fixed that for you!

    1) Buy software from eBay 2) ??? 3) Re-sell on eBay 4) Profit!
  6. IT's about time that some stands up for First-sale by Joe+The+Dragon · · Score: 4, Insightful

    IT's about time that some stands up for the First-sale doctrine. Now we need to get the right to move windows from system to system or owner to owner.

  7. Motorola does this too. by Anonymous Coward · · Score: 5, Insightful

    I had an auction of mine canceled by Motorola. I was selling some radio cryptography devices that are not classified or secret in any way (they are used by security companies, etc.)

    Motorola had their legal dogs tell eBay to cancel my auctions because they violated their "VeRO" program policies. The "VeRO" program is for people violating someone's IP rights or the DMCA. They would have a legitimate claim if I was selling knockoff items or bootleg copies of their software which is what the program is for, so the manufacturers or IP holders can ask eBay to take down their auctions.

    Well, the asshats at Motorola are sour on the fact that their stuff is getting sold for cheap on the 'bay, so they are using the IP/DMCA shit as a front to have the eBay folks try to kill the after-market. When I investigated why they did this, of course they quoted to me all kinds of "law enforcement only" bullshit, and even invoked the "T" word (yes, TERRORIST!!) - total bullshit! Naturally, not wanting to get hauled away and locked up in some foreign jail or GitMo, I didn't make waves about them canning the auction, but I really thought that sucked extra hard, hiding behind false claims of IP to prevent an after-market sale.

    Posting anonymously for obvious reasons...

  8. $10 Million seems right to me... by RobertM1968 · · Score: 4, Insightful

    While proving $10 million in damages might prove difficult, the reasoning behind the case is pretty sound

    I see nothing wrong with the $10 million figure. Companies have used the DMCA to try to recover "damages" of ridiculous proportion in the past (RIAA as our most favorite). Why shouldn't the DMCA work for consumers in the same fashion? In which case, the $10 million figure seems just as "reasonable"

    I hope the guy wins all $10 million... perhaps the companies who lobbied for the ridiculous penalties that got included in the DMCA will think the next time they lobby for such laws.

  9. Shrinkwrap License by Nymz · · Score: 5, Funny

    By reading this post you are agreeing that any posts you make are property of CowboyNeal, along with any devices used in manufacture and transfer of said posts. This includes your keyboard, computer, and that whole series of tubes called the internet.

    I apologize that this EULA isn't 50 pages long, and can be understood by a human being, but I'm not a real lawyer.

  10. Software should be a valuable asset by ciscoguy01 · · Score: 4, Insightful

    Software, especially expensive software is a valuable asset.

    I am constantly amazed that so many people put up with software companies wanting to sell you their software for lots of money and then you can't do anything with it when you don't want/need it anymore. What the heck are you supposed to do, buy an extra plot at the cemetary and when you die they'l bury it there next to you?

    Imagine if it were that way with your old dishwasher, or your car. "You can get a new car, but you have to keep the old one out back. You can't sell it, ever".

    Outrageous.

    When people put their foot down and demand ownership of expensive items, or else if you don't own it you should be paying dramatically less for it, this will all change. I'd offer Autodesk $19 for their software, if I don't own it. It can't be worth much more than that. You don't own it, remember?

    I heard a story about a company that was bought out by another company, and one of their software providers wanted them to buy the software again. Same desks, chairs, computers, people, building, and software. But the software, that couldn't be "sold".

    Outrageous. Any expensive asset should be just that, an asset.

    --
    .
    1. Re:Software should be a valuable asset by ZoneGray · · Score: 4, Insightful

      Well, I'm suspicious of the idea of treating intellectual property the same way you'd treat physical property. That sort of thinking is behind most of the problems with IP law.

      But instead of Congress trying to sell consumers on schemes like net neutrality, perhaps they could pass a few laws that would, y'know, actually make the marketplace work a little better:

      1 - If you can subscribe to something over the Internet, you have have to be able to cancel over the Internet. We'll call it the "Able tO canceL" act, or AOL act for short.

      2 - Make software vendors print the license agreement on the outside of the box, or make it available on the web site as BEFORE purchase.

      3 - Better yet, publish a few "standard" commercial licenses with various terms, and allow vendors to just specify, say, "US Type 7 Consumer License," so you wouldn't have to read each one. And vendors wouldn't have to hire a lawyer before they could sell something. Too good an idea to ever be enacted, unfortunately.

  11. Re:So, their attorney is an idiot or... by allthingscode · · Score: 5, Insightful

    The suit isn't against eBay. No, eBay isn't required to carry anything they don't want to, but Autodesk is requiring them to pull the software because of a license requirement that is probably illegal.

  12. Re:where to find used software? by daeg · · Score: 4, Funny

    It already exists and is called The Pirate Bay.

  13. Ebay was so awesome before.. by brxndxn · · Score: 5, Funny

    Before everyone and their mother found out about the Internet, Ebay was soo awesome.. You could buy pot, a gun, and a kidney.. And you could give feedback to whoever you wanted whether or not they even made a sale with you.. You had maybe a 50% chance of actually getting what you paid for.. but then again, you had about 50% chance of actually attempting to pay them.

    The Internet used to be a frontier, man.. Now I gotta grow my pot.

    --
    --- We need more Ron Paul!
  14. The legal experts on Slashdot... by caitsith01 · · Score: 4, Insightful
    I love how everyone here is a freaking legal expert. People make the most sweeping judgments about complex legal issues based on a pejorative three sentence summary.

    For example, from the main post:

    While proving $10 million in damages might prove difficult, the reasoning behind the case is pretty sound

    Hmm, yes. And the legal basis as to why the reasoning is 'sound' is...?

    I'm not saying this is a baseless suit. But it's funny how everyone around here (99% computer/tech geeks of some flavour or other) is able to deduce why it's 'plainly' legally correct or incorrect to do whatever suits the common agenda here (free IP good; big companies bad; little guy good; etc etc etc).

    IAAL. Newsflash: legal work is hard. Lawyers get paid a lot partly because legal issues are often very complex and challenging. You cannot determine whether something is 'sound' or not based on 4 minutes of absent-minded evaluation.
    --
    Read Pynchon.
    1. Re:The legal experts on Slashdot... by Curunir_wolf · · Score: 5, Funny
      I love how everyone at the law office is a computer expert. People make the most sweeping judgments about complex software issues based on a pejorative three sentence description.

      For example, from a recent incident at a law office:

      They wrote it as a 10-user application, but adding another 500 seems workable

      Hmm, yes. And the technical basis as to why expecting 50-fold scalability is 'workable' is...?

      I'm not saying this is a baseless assumption. But it's funny how everyone around the law office (99% lawyers of some flavour or other) is able to deduce why it's 'plainly' technically correct or incorrect to throw whatever combination of the cheapest hardware and software available into the office and assume everything is going to do exactly what they want.

      IAASE. Newsflash: systems development work is hard. Software Engineers get paid a lot partly because technical issues are often very complex and challenging. You cannot determine whether something is 'workable' or not based on 4 minutes of absent-minded evaluation.

      Lawyers tend to be very difficult to work with. They tell everyone to be sure to hire a "professional" for every little legal matter under the sun, feel it's perfectly OK to charge exorbitant fees for every little thing, but think *never* need any help with their computer systems. When they do finally decide to seek advice, they hmmm and haw and ask stupid question after stupid question and then complain when they're told it's going to cost more than 50 bucks to fix everything.

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
    2. Re:The legal experts on Slashdot... by bzipitidoo · · Score: 5, Insightful

      This smacks of the sort of "you can't explain it, therefore God did it" arguments that Intelligent Design proponents use.

      So, most of us are not lawyers. So what? We still have a pretty good sense of what is right and wrong, and knowledge of the basics and traditions. We're not stupid. Assuming the summary is accurate (not always safe to do, I know, but I trust some will be quick to point out inaccuracies) we can easily tell that Autodesk is in the wrong. And if the law says otherwise, then the law is wrong too. We have no problem with making changes to laws-- they weren't created perfect. The law is our servant, not our master. And, as we also know the average EULA isn't worth the paper it's written on, a simple quick statistical thought of "> 50% of EULAs are meaningless therefore odds are Autodesk's is too" is easy enough. We also know that too many in the profession have engaged in obfuscation, making contracts and law far longer and more complicated than necessary, in order to bury objectionable stuff in the fine print. In the 1980's, a contract for purchase of a house was 3 pages. Today, such a contract is more like 30 pages, and most of that is bull that didn't need to be spelled out. I'm talking bloat like "buyer agrees not to use the house for illegal purposes" followed by a long list of illegal purposes, and "buyer agrees to comply with all regulations and city ordinances" and a long list of same, down to totally petty stuff like "agrees to mow lawn regularly", and questionable stuff like "buyer agrees not to reveal any details of the negotiations such as price paid". You'll have to do better than that old "it's too complicated to explain" garbage if you want to convince anyone around here. The law is already in bad enough shape and repute thanks to trash like that. But there are good arguments buried in law and precedent. Try us. Trot some out.

      --
      Intellectual Property is a monopolistic, selfish, and defective concept. It is "tyranny over the mind of man"
    3. Re:The legal experts on Slashdot... by sjames · · Score: 5, Insightful

      I see your point, but keep in mind that the law belongs to the people If it cannot be understood by a person of reasonable intelligence then it is intrinsically wrong.

      As to why it sounds reasonable, see first sale doctrine. The case law and legal opinions on the applicability to software are conflicting. Some (such as Autodesk) claim that they licenced a particular user to use the product. Others say that since it looks like a sale and acts like a sale, it IS a sale in spite of an after the fact EULA to the contrary.

      To me personally, it looks like software vendors want to not only have things both ways but all ways. When I want to copy the media for legitimate archival purposes they want treat it like a sale of a particular CDROM. When I want to resell it, they want to call it a license to a particular person. When I want to move it to a new computer, or use it on more than one computer (but only one at a time) they want to tie the licence to a particular machine. That is, until I want to sell the computer and all of the software on it.

      It looks like a duck, it quacks like a duck, and it swims like a duck. The software vendors would have me believe it's a zebra. Unless, of course, it is convieniant for me that it's a zebra, in that case they say it's a blue footed booby. Could it be that the software vendors are weasels?

  15. Re:So, their attorney is an idiot or... by Talez · · Score: 4, Insightful

    They'll be asking for 10 million in punitive damages.

    God I'm just an armchair idiot and I can see the logic in it. If they sue for $4K or even $10K for being pains in the asses then Autodesk will just write it off as a business expense, change the EULA and give it another shot. On the other hand if they get bit on the ass with a $10 million judgement they'll think twice before pulling a stupid stunt like that again.

  16. Keep modding him up by Anonymous Coward · · Score: 5, Insightful

    The law may be illogical, but it is MEANT to be logical. It is sold to the populace as logical and reasonable. That it is drafted in complex ways is partly because of the adversarial system and partly because, for the solicitors, there's no downside to it, they get paid whether they win or lose.

    The soundness of the argument is one you can take to "the man on the street" (which is why we have a jury of peers):

    I bought Autodesk Software. Paid for. Signed, sealed, delivered. It's mine.

    I no longer want to use this software, so I'm selling it.

    Autodesk have tried to stop me selling it.

    Right or wrong?

    Wrong.

    Simple. Sound. The *law* may say "ah yes, but the law here says..." and the response is "that was written to stop someone bootlegging millions of copies and selling them retail. Such a criminal may be able to get away with just 'selling bootleg materials' so you made a law making penalties easier to apply so that you could nail them. It wasn't written with someone selling their purchased copy no longer wanted".

    Laws are argued for with "we need it to stop _this_" but never written with "this law is to stop _this_". And that's the illogical and (to the man on the street illegal) bit about the insane laws we have on books.

    See how the DMCA was abused to stop someone making a garage door opener (try to explain why the DMCA would be written for this. Can't, can you. It was still used as an argument, though).