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Italian Judge Tells HP To Refund Pre-Installed XP

Paolo DF writes "An Italian user asked for a refund after buying a Compaq computer that came with Windows XP and Works 8 pre-installed. HP tried to avoid the EULA agreement which states, approximately: '[I]f the end user is not willing to abide by this EULA... he shall immediately contact the producer to get info for giving back the product and obtaining refunds.' The court ruled in favor of the user (Google translation from the Italian), who received back €90 for XP and €50 for Works. Here is the ruling (PDF, Italian)."

45 of 225 comments (clear)

  1. Progress. by nozzo · · Score: 5, Interesting

    This is progress, the more this happens the better the choice for the consumer. It shows the vendors that users prefer OS choices a la Dell.
    True, this is but 1 user but every little helps as we say in the UK.

    1. Re:Progress. by chromatic · · Score: 4, Funny

      The Via Dolorosa's pretty narrow. Also, it's in Jerusalem.

    2. Re:Progress. by AusIV · · Score: 5, Insightful

      True, this is but 1 user but every little helps as we say in the UK.

      It's not just one user. It's a legal precedent. Now Italian Linux users may be more likely to request refunds for Windows licenses that come with computers, and since there's a legal precedent, the vendors may be more likely to comply.

    3. Re:Progress. by houghi · · Score: 3, Interesting

      And do not forget people and companies who still have already bought XP legaly previously.

      This is good news for the consumer. The ad news is that this will not harm Microsoft in the least, even if EVERYBODY would do this. It will be the computercompanies who will need to caugh this one up.

      They will not be able to get their money back from Microsoft. So either they will start loosing money (because they do not make that much on a PC) in Italy, or stop selling PC's altogether.

      Most likely the latter will be happening with other companies, like Dell. The result will be that larger companies will not be selling computers in Italy. Tghis will result in lower quality and people who want Windows paying more. So if the consumer wants the same product, he will end up paying more then he does now.

      The solution? Have this implemented in the rest of Europe. The European market is big enough to force a change and balsy enough to force Microsoft to pay back the companies in full.

      After that South America will follow and then Asia. Africa, Austriala, Canada and Mexico will follow after that. The USofA? They will follow the moment the consumers have some rights, except the right to shut up and spend money. Sorry.

      --
      Don't fight for your country, if your country does not fight for you.
    4. Re:Progress. by davester666 · · Score: 3, Informative

      > I thought the EULA just meant that you could return the computer

      I believe this is referring to the Windows EULA, which only discusses your non-rights w.r.t. Windows, and doesn't discuss the hardware at all. I don't have it handy, but when I read it [and when it's come up before in slashdot, for the odd person getting a refund in the US], the EULA explicitly states [at least for the US] that you have the right to return the software [specifically] for a full refund if you don't agree with the EULA.

      And I don't think MS wants to revise the EULA to force the return of the computer as well, because then it explicitly goes back to that monopoly situation, where for the large vendors, you must then buy Windows to get a computer. Now, it's just a big hassle for both the consumer and the vendor to buy a computer without Windows [in general], but it's not legally forced by Microsoft [except perhaps in some non-pubic legal agreements between the vendors and Microsoft, where they pay for each computer shipped instead of each Windows license shipped - Windows licenses refunded].

      --
      Sleep your way to a whiter smile...date a dentist!
    5. Re:Progress. by the_womble · · Score: 2, Insightful

      I thought the EULA just meant that you could return the computer
      For that to apply you would have to sign an agreement when you bought the computer. You agree to the EULA after you have bought the hardware, so it cannot affect your ownership of the hardware. In any case, it is an MS EULA that only applies to the software.

      Time to break out the classic analogy
      Time to break out the classic flawed analogy.

      Corrected that for you.

      I want a Ford with a Chevy engine, should Ford take back the engine and give me back a portion of my money?
      The first time you start the Ford does it flash up a notice saying: "before using this engine, you must agree to these terms, otherwise return the engine for a refund"? If it does then yes, otherwise no.

      How about I buy a mac, should Apple refund me the cost of the OS since I want windows?
      If they have a similar EULA, then yes.
    6. Re:Progress. by eiapoce · · Score: 2, Interesting

      Nevertheless reading the full article you can see that the guy who sued works for a Consumer Association and on his side there were not legal expenses. This is a win/win situation. If he wins he gets the money and attorneys get paid + pubblicity for the association - If he loses noone gets hurt.

      Enrico

    7. Re:Progress. by lbbros · · Score: 4, Informative

      Although it is a legal precedent, it must be noted that Italian law is not based on precedents, like UK or USA. Even the rulings of our "Corte di Cassazione" (akin to the Supreme Court) are not completely binding (i.e. they show the "correct" interpretation of the law but judges can decide differently).

      --
      A CC-licensed illustrated horror novel
    8. Re:Progress. by the_womble · · Score: 4, Insightful

      So by your logic because there is a Eula, as opposed to nothing, MS is on the hook for your whims? Incredible.
      Yes, if MS requires a EULA, you have the right to reject it.

      What if I wanted Windows but decided to use another OS because I did not wish to agree with a clause in the EULA? I already own the hardware and have every right to keep it, so I should be able reject the EULA and get a refund on Windows.

      According to you, MS should be able to impose whatever arbitrary conditions they want on the use of a produce AFTER getting paid for it, and consumers should have no alternatives other than not using the product (which they have paid for) or agreeing to MS's conditions. Now that really is incredible.

      As for paying for the war etc., are you suggesting that no-one should raise any minor issue until all major political issues are sorted out? Then you can NEVER raise any consumer rights issue because there will always be something more important.

      You do realise that complaining about MS does not preclude caring about other issues. I am opposed to the US invasion of Iraq AND corruption AND anti-competitive product bundling.

      Yes, I can actually have opinions on three issues at once. If your brain explodes if you have to think about more than one issue a month, that is your problem.

    9. Re:Progress. by Bert64 · · Score: 2, Informative

      Mazda is owned by Ford...
      Some Land Rovers use Jaguar engines too, but both companies are also owned by Ford..
      The diesels may use technology developed by Peugeot, but licensed to ford who produce the engines.

      And even if ford use a third party engine, you still get a choice... Most cars are available with a choice of diesel or petrol engines of various sizes.

      --
      http://spamdecoy.net - free throwaway anonymous email - avoid spam!
  2. MS Tax by indy_Muad'Dib · · Score: 5, Insightful

    90 euros for XP, $130

    50 Euros for Works, $70.

    so why do we only get back around $10 for a XP turn in?

    1. Re:MS Tax by JoshJ · · Score: 5, Insightful

      Because Microsoft owns a significant chunk of the American political machine, but owns very little of the European one.

    2. Re:MS Tax by Spy+der+Mann · · Score: 5, Funny

      90 euros for XP, $130
      50 Euros for Works, $70.

      Telling Microsoft to take their software to the dumpster: Priceless.
    3. Re:MS Tax by jollyreaper · · Score: 5, Funny

      90 euros for XP, $130

      50 Euros for Works, $70. Canadian dollars, right? So in American that guy just got back $10k, right? Payday!
      --
      Kwisatz Haderach
      Sell the spice to CHOAM
      This Mahdi took Shaddam's Throne
    4. Re:MS Tax by falconwolf · · Score: 2, Informative

      90 euros for XP, $130

      50 Euros for Works, $70.

      Canadian dollars, right? So in American that guy just got back $10k, right? Payday!

      According to the X-Rates currency calculator 140 euros is 201.46 US dollars and 193.784 Canadian dollars.

      Falcon
    5. Re:MS Tax by Sterling+Christensen · · Score: 4, Insightful

      It's probably because US retailers think it should count that they bundled Windows with sponsored crapware bringing net cost down to $10, while the Italian Judge (quite reasonably) thought it shouldn't.

    6. Re:MS Tax by BrentH · · Score: 3, Insightful

      Oh boy. Please check out European news before you spew such nonsense. European co's are constantly under fire for anti-competitive practices. A lot more often than non-EU ones.

  3. Any other attempts at this? by cygtoad · · Score: 3, Insightful

    Assuming the EULA is the same in the US and elsewhere, I wonder why this has not been tried before, and if it has, does anyone know the outcome? This has far reaching implications beyond HP. Any computer manufacturer would be affected, but the EULA seems to point heavily to the refunding procedure, not of Microsoft, but of the reseller. It should be interesting to see how HP responds.

    1. Re:Any other attempts at this? by falconwolf · · Score: 4, Informative

      Assuming the EULA is the same in the US and elsewhere, I wonder why this has not been tried before, and if it has, does anyone know the outcome?

      It may be a hassle but people in the US have been getting refunds for years. Here's an article, "Windows license opens door for Linux refund" on how people in the late '90s were requesting refunds. It mentions /. and how /.ers got involved.

      Falcon
    2. Re:Any other attempts at this? by JohnBailey · · Score: 2, Insightful

      Assuming the EULA is the same in the US and elsewhere, I wonder why this has not been tried before, and if it has, does anyone know the outcome? This has far reaching implications beyond HP. Any computer manufacturer would be affected, but the EULA seems to point heavily to the refunding procedure, not of Microsoft, but of the reseller. It should be interesting to see how HP responds. It is and it has. There was a case recently in I think a French court where one of the big names was being awkward, and the court awarded the customer the full retail cost of all the software they rejected instead of just the OEM price. This was obviously a penalty for the company being difficult about obeying the EULA. And there have been a few others where people have demanded a refund as specified in the EULA, and reported their adventures in getting satisfaction.

      Its a case of "don't like it.. Don't buy it", so he didn't. This could be something that will get more popular as time goes by. If someone wants to install their own copy of Windows to get rid of all the crapplets, then they should be given a refund of the unused license, If they choose to use another OS, then that is also a perfectly legitimate reason to reject the EULA and have the price of Windows and any other software refunded. The conditions of the EULA are enforced when it goes against the user, so there is no real justification to not enforce the other bits.
      --
      It is difficult to get a man to understand something when his job depends on not understanding it.
    3. Re:Any other attempts at this? by complete+loony · · Score: 2, Informative

      One of the first refunds I ever heard about was in 1998, by a friend of mine in Adelaide, Australia.

      --
      09F91102 no, 455FE104 nope, F190A1E8 uh-uh, 7A5F8A09 that's not it, C87294CE no. Ah! 452F6E403CDF10714E41DFAA257D313F.
  4. Re:WTF?! by Anonymous Coward · · Score: 2, Interesting


    This guy bought a computer with XP installed and he's griping about it? Perhaps he would have preferred a computer with no OS?

    We buy machines with no OS all the time (actually Dell ships FreeDOS but it's not installed). Perhaps the user in question was wanting to install a free OS on it?

  5. Re:Approximately? by joerisamson · · Score: 2, Informative

    Well, this is probably a translation, so most of us are helped more with the translation, even if a translation has no binding value and is therefore only approximately correct.

  6. Italian Day at /.? by moosesocks · · Score: 3, Funny

    Well, kudos to Italy for making the front page of slashdot 3 times in one day, finally constructing a mechanical device that didn't break down immediately, and ending up with a score in the green.

    Ciao!
    --
    -- If you try to fail and succeed, which have you done? - Uli's moose
  7. Plenty of other (successful) attempts at this... by Aehgts · · Score: 5, Informative

    As a quick google search's first few results show: this has been done in the US and Australia in the past with at least Dell and Toshiba and has been followed on slashdot before.

    --
    "If we knew what it was we were doing, it would not be called research, would it?" - Albert Einstein
  8. Don't get it by khallow · · Score: 2, Informative

    I think the EULA was clearly refering to the entire computer not to this software. My guess is that the reason this never happened before is because the entire computer is normally returned not just the software. My guess is that that HP ran afoul of some EU or Italian law governing bundled products. If that is indeed true, I will probably characterize such a law as "lame".

    1. Re:Don't get it by khallow · · Score: 2, Insightful

      The only trouble with this is how can a third party software vendor dictate any agreement between a hardware manufacturer and a buyer.

      Actually this is pretty easy in practice. Microsoft makes a deal with the hardware vendor to bundle their software on the machine. Part of the agreement involves conditions on the agreement bewteen manufacturer and buyer. Even most open source involves minor constraints: a manufacturer cannot provide most open source software without including copies of the agreement and sometimes other constraints (like a guarantee that the software will not be used for military purposes to name an extreme licensing condition that occasionally shows up).

    2. Re:Don't get it by Dr.+Donuts · · Score: 2, Informative

      Read the article. The judge made the decision not based off bundling laws, but contractual.

      As far as the EULA clearly referring to the entire computer, I'd disagree. The EULA in question is Microsoft's EULA, not the manufacturers. If you go and buy XP off the shelf, you get the same EULA. You wouldn't go and return your computer just because you tried to install XP on it, now would you?

      "If you do not accept the conditions of this contract, you may not use or copy the software and should promptly contact the manufacturer for information on returning the product or products and the conditions for reimbursement in accordance with the provisions established by the producer himself."

      The judge basically ruled the Microsoft EULA was a separate contract apart from the purchase of the computer. As Microsoft is the manufacturer of that product and HP merely a reseller, HP was obligated to refund that portion of the purchase according the instructions within the EULA itself.

  9. He got costs, too by belmolis · · Score: 4, Informative

    Not only was the buyer reimbursed 140 euros for the unwanted software, he was awarded 2,300 euros in legal costs. Refusing to abide by the EULA could get expensive for vendors.

    1. Re:He got costs, too by Gertlex · · Score: 4, Insightful

      Oh no, a bit of legal costs!

      What I love about this case is that the reimbursement was completely in line with damages. None of that hundreds of thousands of dollars (euros) crap.

    2. Re:He got costs, too by pipatron · · Score: 2, Informative

      That's usually how it works in Europe. Suing some company isn't like playing the lottery. If a company cause you damages, they will usually be forced to pay for the damages, legal costs, and possibly some small bonus on top of that, to compensate for the "discomfort" (can't find a good word here, I'm sure you get my point).

      --
      c++; /* this makes c bigger but returns the old value */
    3. Re:He got costs, too by mr_matticus · · Score: 2, Interesting

      No, it wouldn't. The whole case is a tort. The legal term would be damages, punitive damages in particular, and they're not awarded here because it's a contract issue.

      You wouldn't get a windfall from this case in the US, either. I assume the reference in this thread is to the filesharing fine, but that is a case involving statutory damages--the law itself specifies a minimum and a maximum award simply for breaking the condition precedent. Thus copyright holders are entitled to large sums of money simply for the act of violating it. These damages are a result of a time when most copyright infringement cases were large-scale, direct operations. In modern times, those big-scale cases still exist, but we also have smaller scale infringement and large scale (but indirect) infringement. Those two different modes should be codified with different and lesser statutory damages.

      This wouldn't be too hard to accomplish, except for the adversarial nature of copyright infringers. Just perusing Slashdot will show people determined to cause intentional harm and to refuse to abide by the law no matter what. In such a condition, the other side has a clear legal superiority to have their interests protected against a hostile public, and so the astronomical damages will stay without modification. The law will not and cannot distinguish the hostility as a result of the big labels being bastards. Slashdot does absolutely nothing to help the situation and provides the industry with most of the fodder it needs to prevent reform.

  10. Soon have to sign an agreement to get the product by SuurMyy · · Score: 2, Insightful

    I wouldn't be surprised if this issue ending up being so that nobody would sell you a computer before you have signed an agreement stating that you agree w/having Windows etc. in there. Then, if someone took this to court, it would probably end up so that you could get some other OS pre-installed, but w/extra cost, and they could justify this by saying that it causes them extra costs to serve a small group of users having e.g. Linux in there. So, you'd still end up paying the M$ tax in one form or the other. Of course they could sell the computers w/o any OS, but I don't think this is the way it's gonna be, because M$ will use a lot of money and will put a lot of pressure on the hw companies to make it otherwise.

    --
    The lyf so short, the craft so long to lerne
  11. Re:Work still has to be done by udippel · · Score: 5, Funny

    It went off-line long ago! It was www.wondowsrefund.net

    No winder it went off-line !

  12. Re:Approximately? by JohnBailey · · Score: 3, Informative

    After a few seconds to get to the Google page, the EULA states exactly in the first paragraph.. http://www.microsoft.com/windowsxp/sp2/proeula.mspx

    "IMPORTANT--READ CAREFULLY: This End-User License Agreement ("EULA") is a legal agreement between you (either an individual or a single entity) and Microsoft Corporation or one of its affiliates ("Microsoft") for the Microsoft software that accompanies this EULA, which includes computer software and may include associated media, printed materials, "online" or electronic documentation, and Internet-based services ("Software"). An amendment or addendum to this EULA may accompany the Software. YOU AGREE TO BE BOUND BY THE TERMS OF THIS EULA BY INSTALLING, COPYING, OR OTHERWISE USING THE SOFTWARE. IF YOU DO NOT AGREE, DO NOT INSTALL, COPY, OR USE THE SOFTWARE; YOU MAY RETURN IT TO YOUR PLACE OF PURCHASE FOR A FULL REFUND, IF APPLICABLE."

    Rejecting the contract at this stage means you have no need to read the rest of the EULA,and states explicitly that you are entitled to a refund, who you are entitled to a refund from, and as the court cases have shown, the refund is in fact applicable. So basically, if they don't give a refund, you are entitled to take them to court and enter a case where you as the end user will win.

    --
    It is difficult to get a man to understand something when his job depends on not understanding it.
  13. the obvious reason by soldoutactivist · · Score: 2, Insightful

    I can't believe no one commented on the fact he might already have a copy of XP and used the EULA policy to get a refund for the retail amount of the OS he paid for at a subsidized cost. Essentially, he got more back than he actually paid in for the OS and software. Brilliant.

    --
    The downside of being killed is the upside of being dead.
  14. Italy is going to go down hard by Vainglorious+Coward · · Score: 2, Informative

    Three stories on Italy so far is nothing. We need to get posting submissions about the 16 billion pixel image of da Vinci's Last Supper. This one could be the big one

    --
    My next sig will be ready soon, but subscribers can beat the rush
  15. Contract of adhesion by QuietLagoon · · Score: 3, Informative

    It is looking more and more that the court systems of the world are looking to EULA click-through "agreements" as contracts of adhesion.

  16. Re:WTF?! by pipatron · · Score: 2, Funny

    I'm sure the poor guy was just trying to replace his old Amiga.

    Why on earth would anyone want to do such a thing?!

    --
    c++; /* this makes c bigger but returns the old value */
  17. Re:i've tried it in Japan a couple of times, by siddesu · · Score: 2, Informative

    Not without the OS, I suppose. Besides, I am not sure why I would want one -- they are vastly inferior to many of the Windows models available in Japan.

  18. Pc Ok in the Netherlands by slashbart · · Score: 2, Informative
    I recently went to this local store to get a new pc. I don't use Windows, and was expecting to have to haggle about not paying for it, but ... We configured my pc, tallied up the components, and then the guy says: "that price is without Windows, which Windows do you want on it?" Awesome!! So I tell him it's fine like it is. I'm very happy with the pc, and the price is great too.

    I think people should go to those stores that sell bare pc's, instead of just complaining about the companies that won't give you a pc without Windoze.

  19. Re:Canadian dollar is not *that* strong by mgblst · · Score: 2, Funny

    Thanks Captain Obvious, I don't know what we would have done without you. You truely have made the world a better place.

  20. some highlights from the original news source by mennucc1 · · Score: 3, Informative

    the Google translation is not very readable; when I proposed this submission, I did summarize as follows:
    HP defended , claiming the terms of their contract with Microsoft; the judge ruled that the end user request may not be dismissed based on a contract between HP and Microsoft, since this latter is unknown to the end user. The end user, a member of ADUC (a consumer organization) was given 90euro for Windows and 50euro for Works; this is just a small symbolical amount, but it is a huge signal to HP and all other major vendor; in defending, HP claimed that the license and contract to Microsoft is unilaterally written by Microsoft; the judge ruled that nonetheless, HP is to be held accountable by the EULA; the ruling seem to suggest that it may be time for vendors to address this situation.

  21. Windows Refund Day by magpi3 · · Score: 2, Informative
  22. Re:Now, if I only could get a refound for McOS by Waffle+Iron · · Score: 3, Informative

    I run Linux on my Mac. Should this be posible or must I pay the Apple tax?

    Why don't you check the EULA that came with your copy of OSX. Does it say that you can return it for a refund?