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UK Report Slams EULAs

draevil writes "Britain's National Consumer Council has completed an investigation into the practice of software End User License Agreements(EULAs) with the conclusion that many consumers are signing away their legal rights and agreeing to unfair terms, which they could never have scrutinized before purchase. The report also acknowledges that even if the EULA were available prior to purchase, it would be unreasonable to expect an average consumer to understand the terms to which they were agreeing. Here are the full report (PDF) and a summary." The NCC recommends that the European Commission bring softwre licenses under the same consumer protections that apply to other products in the EU.

239 comments

  1. At Last! by Wandering+Wombat · · Score: 4, Funny

    Someone in power has been soundly beaten with the Common Sense Foam Cluebat. (Copyright, All Rights Reserved)

    --
    I like to place meaningful quotes in my sig, so people will know that I know what meaningful quotes are.
    1. Re:At Last! by Finallyjoined!!! · · Score: 1

      All it needs now is a test case, then we can finally (at least here in the UK) get rid of these shrinkwrap licences.

      We also need legislation to stop the Monopoly taxing new PC's. I'm lucky in that I use a supplier (Novatech) that will supply PC's without the Micro$haft tax, try buying one anywhere else.

      --
      If I had an Ass, I'd call it Fanny Bottom, then I could slap my Ass; Fanny Bottom, on the Arse.
    2. Re:At Last! by KublaiKhan · · Score: 1

      I don't go for cutting-edge PCs, and have had reasonably good luck with refurbished business PCs that you can sometimes find being distributed without an OS. geeks.com and techforless.com have treated me well.

      (I'm not associated with either--I just buy from 'em every once in a while)

      I stress _BUSINESS_ PCs--the consumer-grade nonsense that you get from the box stores and the like is usually pretty dismal in quality. The ones intended for business tend to have fewer integrated parts, more expansion room, and other upgradeable features.

      --
      In Xanadu did Kubla Khan
      A stately pleasure dome decree
    3. Re:At Last! by Beardo+the+Bearded · · Score: 1

      If you get rid of the shrinkwrap EULAs, they'll just put them up online:

      "By installing this software, you agree to the terms listed at http://yoursoftware.eulas.co.uk/gibberish/southhampshire/new/eula/contracts/ty282-12273sre/legal/agreement.html

      IF YOU DON NOT AGREE TO THOSE TERMS DO NOT INSTALL THE SOFTWARE."

      (Website may be down "periodically" for "maintenance".)

      --

      ---
      ECHELON is a government program to find words like bomb, jihad, plutonium, assassinate, and anarchy.
    4. Re:At Last! by h4rm0ny · · Score: 1


      Count another sale up to Novatech, for supplying laptops without Windows installed. It's the reason we bought from them and also the reason we found their site.

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
    5. Re:At Last! by Guppy06 · · Score: 1

      Not really.

      "Microsoft is an evil, evil monopoly, but Airbus, well... that's something completely different."

    6. Re:At Last! by Anonymous Coward · · Score: 0

      If you get rid of the shrinkwrap EULAs, they'll just put them up online:

      "By installing this software, you agree to the terms listed at http://yoursoftware.eulas.co.uk/gibberish/southhampshire/new/eula/contracts/ty282-12273sre/legal/agreement.html

      IF YOU DON NOT AGREE TO THOSE TERMS DO NOT INSTALL THE SOFTWARE."
      No Problem...

      $ cat >> /etc/hosts
      127.0.0.1 yoursoftware.eulas.co.uk
      ^D
      $ mkdir /home/httpd/html/gibberish
      $ mkdir /home/httpd/html/gibberish/southhampshire/
      ...
      $ mkdir /home/httpd/html/gibberish/southhampshire/new/eula/contracts/ty282-12273sre/legal
      $ ln /home/httpd/my-eula.html /home/httpd/html/gibberish/southhampshire/new/eula/contracts/ty282-12273sre/legal/agreement.html

      And into /home/httpd/my-eula.html I put whatever restrictions I want them to have, whatever freedoms I want to have, and ensure that I take a screen dump of the screen when I agree...
    7. Re:At Last! by VJ42 · · Score: 1

      I use a supplier (Novatech) that will supply PC's without the Micro$haft tax, You're not the only one, I use Novatech as well, they're not far away from where I live so I order online, and it's ready to pick up by the time I get to the Novatech store. The prices are good too.
      --
      If I have nothing to hide, you have no reason to search me
    8. Re:At Last! by mdwh2 · · Score: 1

      Oh that's no problem - you see my terms of service are also available on a website, which just so happens to give me unrestricted use of their software, as well as allowing me the right to use all their other software for free. If they do not agree, then do not install onto my machine...

    9. Re:At Last! by CmdrGravy · · Score: 1

      When I buy software I should send the company a letter with my own EULA in it which says that by accepting my money they automatically agree to the my terms and conditions. Obviously they can return the money sending it to my PO box along with £10 postage and packing for their product, I then undertake to return it to them within 12 months.

  2. By replying to this message by TheLink · · Score: 4, Funny

    By replying to this message, you agree to sign away all your rights to me, and once a month, go to a public place, stand on one foot and howl at sky at 12am.

    What no replies?

    *yawn*

    --
    1. Re:By replying to this message by Anonymous Coward · · Score: 0

      I do.
      .
      .
      inform

    2. Re:By replying to this message by Eberlin · · Score: 5, Funny

      And by reading the subject line of this reply, you agree to give me all my rights back.

      However, I'll voluntarily do the one foot, howl at sky thing. Sounds fun enough.

    3. Re:By replying to this message by Anonymous Coward · · Score: 0

      By reading this reply, you cancel all previous agreements, and agree to spend at least 1 hour a week doing a monkey impression.

    4. Re:By replying to this message by spootle · · Score: 1

      i'm in.

    5. Re:By replying to this message by cp.tar · · Score: 1

      By merely viewing any reply in this discussion, you cancel all previous agreements and agree to end all your further posts with "All your EULAs are belong to us!"
      Oh, and you also agree to refuse any further agreement with anyone else, no matter the terms.

      I think that's OK, since nobody ever reads through all of the EULA.
      And my signature takes care of the rest.

      --
      Ignore this signature. By order.
    6. Re:By replying to this message by Pogdranaut · · Score: 1

      However, I'll voluntarily do the one foot, howl at sky thing. Sounds fun enough. Believe me, as a recovering lycanthrope, it's no fun....
  3. I am not handsome enough to be a lawyer by Stanistani · · Score: 4, Interesting

    But I always felt that EULAs, especially 'shrinkwrap' ones, never met the old tests for a contract:
    - a 'meeting of the minds'
    - agreement in exchange for 'a valuable consideration received'

    1. Re:I am not handsome enough to be a lawyer by Sorthum · · Score: 5, Insightful

      And one more that you neglected:

      The option to back out. By the time you have the EULA on your screen, you've already paid for the software. "Hell no" isn't a viable option; have you ever tried to return open software to a retail store?

    2. Re:I am not handsome enough to be a lawyer by Beardo+the+Bearded · · Score: 3, Interesting

      No, they probably wouldn't stand up in court. You don't get the chance to review the contract before you sign it.

      A lawyer I know told me, "If you ever get presented with a gratuitously unfair contract, just sign it because it isn't binding anyway."

      That advice is worth what you paid for it. Consult a local lawyer.

      --

      ---
      ECHELON is a government program to find words like bomb, jihad, plutonium, assassinate, and anarchy.
    3. Re:I am not handsome enough to be a lawyer by chaidawg · · Score: 5, Interesting

      Courts have upheld EULA's in the US on several occasions. Save for some terms that the 9th circuit recently found unconscionable (particularly arbitration clauses) the courts are ok with them. See the ProCD and Gateway2000 cases. (Law Student, graduating in May)

    4. Re:I am not handsome enough to be a lawyer by Beardo+the+Bearded · · Score: 1

      Yes, which is why I said to consult a LOCAL lawyer. The rules change depending on where you are and how far the last case went.

      I'm in Canada. I play by different rules, eh?

      --

      ---
      ECHELON is a government program to find words like bomb, jihad, plutonium, assassinate, and anarchy.
    5. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 1

      First of all, the classic requirements are offer, acceptance and consideration. "Meeting of the Minds" is just another way of asking the question "did you guys both agree to the same thing?" For example, you agree to buy my car, but I have two cars and you intended to buy the one that I wanted to keep, and not the one I wanted to sell. "Meeting of the Minds" *DOES NOT* mean that the agreement was negotiated.

      The consideration requirement is pretty easy: "I give you a limited right to use this software and in return you agree to pay some money and to follow the EULA."

    6. Re:I am not handsome enough to be a lawyer by milsoRgen · · Score: 5, Insightful

      have you ever tried to return open software to a retail store? Indeed, returning software is just not an option. I was just having this discussion with my girl friend about my BitTorrent usage, how I need to try before I buy games. That's simply not an option (trying) for many games, and even games that have demos available are quite often based on beta code. But anyways, why should I be penalized when everything on the box points to a runnable program, only to find out the requirements are a little more liberal than I would expect. It's the same deal with the EULAs, once cash money has been paid and you start reading those things... What do you do, take the hit? That appears to be the only option.

      It needs to be pointed out, piracy is the stated reason I cannot return opened software. Yet not being able to return opened software is driving me to piracy...
      --
      I'm sick of following my dreams. I'm just going to ask where they're goin' and hook up with 'em later.
    7. Re:I am not handsome enough to be a lawyer by Anonymous Coward · · Score: 1, Interesting

      Actually, I think a directive that replaces the EULA would be good for all parties. It would essentially standardize the licensing terms for (commercial) software. The shrink wrap says:

      This software subject to the terms of EU directive Blah Blah.

      Presumably the directive would hold up in court so developers are safe.

      The consumer would have the same license for all software and would clearly know what they're getting into before purchase.

      Expect the lawyers to object, they should be be the only ones.

    8. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 2, Insightful

      That is horrible advice and is worth far less than what I paid for it.

      Sure, unconscionable contracts, or unconscionable clauses in contracts are not enforced, but "unconscionable" != "very one-sided". And, penalty clauses are often not enforced. But, there are plenty of very one-sided agreements that are regularly enforced -- your credit card agreement is probably one of them.

      Plus, if you sign a contract with no intention of ever following through, you may end up getting hit with punitive damages.

    9. Re:I am not handsome enough to be a lawyer by Stanistani · · Score: 1

      My agreement was made at the cash register.
      I gave the store money, they handed me a box of software.

    10. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      The consideration requirement is pretty easy: "I give you a limited right to use this software and in return you agree to pay some money and to follow the EULA."
      Except this is only true if the you actually have the legal ability to give me the right to use the software, and also assumes that I already do not have that right.

      I already have the right to use it (17 USC Sec. 117 gives me, as owner of the copy, that right), and the store was the previous owner and would be the only entity capable of purporting to transfer that right to me. No consideration. No contract.
      --
      Despite what EULAs say, most software is sold, not licensed.
    11. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      Another test they fail: conscionability.

      The entire premise of EULAs rests on this notion that the end-user does not own their copy of the software (hence the clause "This software is licensed, not sold"). Which is why you need to agree to the EULA to obtain permission to use the software (if you owned your copy, you wouldn't need permission to use it).

      But courts have over and over treated EULAs as contracts for the sale of goods (even in cases where the enforceability of EULAs has been upheld). If the contract is supposedly for a sale of goods, but one of the foundational terms of the contract says "this is not a sale of goods", then that term and any other terms that depend on it are unconscionable.

      --
      Despite what EULAs say, most software is sold, not licensed.
    12. Re:I am not handsome enough to be a lawyer by bangthegong · · Score: 1

      But I always felt that EULAs, especially 'shrinkwrap' ones, never met the old tests for a contract:
      - a 'meeting of the minds'
      - agreement in exchange for 'a valuable consideration received'
      Credit card agreements don't meet those tests either. Wishful thinking: Maybe the EU will take a look at the credit card industry's practices next...
    13. Re:I am not handsome enough to be a lawyer by Stanistani · · Score: 1

      Actually they do.

      Every initial credit-card contract offer I've been able to read, and sign (ink or electronically) before I got the card. ...and the consideration they give me is the cash value of the loan.

      I hate the mouse-trap nature of the contracts, and their changing of terms, and they are very anti-customer, but they are valid, consented-to contracts, damn them.

    14. Re:I am not handsome enough to be a lawyer by kat_skan · · Score: 1

      Indeed, returning software is just not an option. I was just having this discussion with my girl friend about my BitTorrent usage, how I need to try before I buy games. That's simply not an option (trying) for many games, and even games that have demos available are quite often based on beta code.

      You know, it's not an option for movies, either. And a $7 ticket for a two-hour movie costs more, hour for hour, than a $60 game you can finish in 20 hours. Would you be willing to claim that it's fair for you to "demo" a movie because the guy who runs the theater won't give you your money back if it's lousy?

    15. Re:I am not handsome enough to be a lawyer by mdwh2 · · Score: 1

      According to http://en.wikipedia.org/wiki/ProCD_v._Zeidenberg , "The court stated that Zeidenberg could have rejected the terms of the contract and returned the software." which seems an important point for EULAs having any validity, and as noted above, most companies don't allow you to return the software. Let's face it - if acceptance of EULAs also meant retailers had to refund your money at any time, no questions asked, that wouldn't be such a loss overall...

      And if I lived in the US, I'd be writing letters to ProCD saying "By keeping this letter, you agree to pay me £1000 a month". No doubt, the court will rule that they have every right to reject the terms of the contract and return every single letter to me.

      Questions that the court case does not seem to address - what happens if a child / your pet presses the Okay button? What if he installed it, but someone else took the information and put it on a website? What if he bypassed the installer (perhaps it was possible to read the data directly from the CD)? Or modified the text file of the EULA (it's perfectly legal to modify a contract and sign that instead)? Contract law covers all of these situations fine (they only apply to the adult human who accepts the contract, and not at all if he doesn't accept it), so surely that applies for the EULA too?

      ~ Anyone replying to this post who disagrees with me agrees to send me £10. You can reject the terms of the contract and choose to not disagree if you prefer. ~

    16. Re:I am not handsome enough to be a lawyer by mdwh2 · · Score: 1

      The consideration requirement is pretty easy: "I give you a limited right to use this software and in return you agree to pay some money and to follow the EULA."

      The problem is that that "agreement" is presented after the sale has taken place.

      If a US court has ruled that one side can put additional terms in after the sale, then that works both ways. Decide you don't like the software you bought after all? Well just take it straight back for a full refund. If more people started doing this, perhaps companies would be less keen to have EULs enforceable as contracts...

    17. Re:I am not handsome enough to be a lawyer by milsoRgen · · Score: 1

      Would you be willing to claim that it's fair for you to "demo" a movie I'm not arguing that any of it's fair, I just choose to break the law in response to a lack of responsibility on the part of retailers and publishers of software.
      --
      I'm sick of following my dreams. I'm just going to ask where they're goin' and hook up with 'em later.
    18. Re:I am not handsome enough to be a lawyer by schon · · Score: 2, Interesting

      You know, it's not an option for movies, either. And a $7 ticket for a two-hour movie costs more, hour for hour, than a $60 game you can finish in 20 hours. Besides oranges, are there any other fruits you'd like to compare that apple to?

      If a movie came with a 'license agreement', which you could only read after you'd payed for your ticket, and the 'agreement' said that you were prohibited from discussing the movie with friends afterwards, then you might have a point (even though it would still be a horrible analogy.)

    19. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 1

      Sec. 117 is why EULAs contain the standard "This is licensed, not sold" language. Because you are not the "owner of a copy" (but merely a licensee), you do not have the right to use it absent the license.

    20. Re:I am not handsome enough to be a lawyer by Draek · · Score: 0, Offtopic

      You know, it's not an option for movies, either. And a $7 ticket for a two-hour movie costs more, hour for hour, than a $60 game you can finish in 20 hours. Would you be willing to claim that it's fair for you to "demo" a movie because the guy who runs the theater won't give you your money back if it's lousy?

      Yup. BitTorrent FTW! ;)

      --
      No problem is insoluble in all conceivable circumstances.
    21. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      A license agreement can't change reality just by making claims.

      Every court that has ever addressed the issue of enforceability of EULAs has applied Article 2 of the UCC to them. Guess what Article 2 is titled -- "Sales". Just because the EULA says that the software is not sold, doesn't mean it isn't. Right now, the majority of courts have agreed that these are sales and that the EULA is part of the contract for sale.

      The contract can both be a sale and not a sale at the same time. The "licensed, not sold" language is an attempt to distort reality and so far it has not worked. Courts that have ruled that EULAs are enforceable have done so for other reasons, not because they believe that the software is not sold.

      --
      Despite what EULAs say, most software is sold, not licensed.
    22. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      "can't be both a sale and not a sale at the same time", that is.

      --
      Despite what EULAs say, most software is sold, not licensed.
    23. Re:I am not handsome enough to be a lawyer by LingNoi · · Score: 1

      If the movie sucks no, but I did get my money back when the advertised movie in the theatre said it had subtitles but actually didn't, meaning that my purchase ticket left me with a movie I couldn't watch.

      If there is software I bought that didn't do what was advertised I wouldn't get my money back, which was the GPs point.

    24. Re:I am not handsome enough to be a lawyer by jonaskoelker · · Score: 1

      I already have the right to use it
      What if the code looks like this:

      while (not agrees_to_EULA) agrees_to_EULA = pop_up_EULA_dialog();
      real_main();
      Sure, you may have the right to run it. It's just not useful unless you agree to the EULA. Do you have the right to work around the check? Do you have the right to change the conditional jump into a different unconditional one? What are the legalities here?
    25. Re:I am not handsome enough to be a lawyer by KDR_11k · · Score: 1

      At the store the implicit sales contract gave you ownership of the box that was rung up at the register and whatever it contains. You are the owner of the copy by the time the EULA is presented to you. Only if you agree to it is the sale voided (and I doubt that can happen if the person who bought the copy and the person who agreed to the EULA are different people), no idea whose property the copy becomes then (would probably revert to the store since that's the previous owner). That is, if the EULA's "this is not a sale" claim can be applied to the sale that happened in the store.

      Of course IMO EULAs should be considered a technological measure to circumvent the law and their creation or use should be punishable by jailtime.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    26. Re:I am not handsome enough to be a lawyer by grahamm · · Score: 1

      Sec. 117 is why EULAs contain the standard "This is licensed, not sold" language. Because you are not the "owner of a copy" (but merely a licensee), you do not have the right to use it absent the license. For one thing it is too late to put that claim in the EULA. In the shop the purchaser will have purchased (ie a sale) a box containing various bits of paper and optical media containing the software. The claim that you are being sold a licence rather than a copy of the software needs to be made no later than the transaction in the store.

      Also such a claim is ridiculous. If you go into an art shop and purchase a print (or other reproduction) of a painting, nobody would claim that you are not being sold the copy but only a 'licence to view the image'. Surely the same must apply to software on magnetic or optical media - in both cases you are being sold a copy of the copyrighted work 'fixed' on the physical media.

    27. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 1

      The counter-argument is that you are buying a license, not a copy of the software, as is spelled out in the EULA.

      In any case, I was just responding to the earlier point that there wasn't any consideration supporting the contract, which is clearly false. The whole "Licensed not sold" thing is a bit of a canard, since, as you point out, EULAs are generally enforced under contract law, so you never get to Section 117.

      However, there is clearly a license component as well: if you throw out "your" copy of a piece of software and I pick it out of your trash, I am still bound by the EULA even though I was not a party to the original sale, nor am I in privity of contract with you.

    28. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      Well, that seems an awful lot like advertising that your software does, let's say, people's taxes, but in reality it's just a tight loop that does absolutely nothing useful.

      It doesn't change anything. The software maker is still attempting to prevent you from using the software (for it's intended purpose). That's not something a court is likely to overlook.

      --
      Despite what EULAs say, most software is sold, not licensed.
    29. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      The counter-argument is that you are buying a license, not a copy of the software, as is spelled out in the EULA.
      Except a license is not a good, and therefore the "sale" of a license is not covered under the UCC. The courts have treated these as the sale of goods, within the traditional meaning: the box, and everything inside it including the media.

      However, there is clearly a license component as well: if you throw out "your" copy of a piece of software and I pick it out of your trash, I am still bound by the EULA even though I was not a party to the original sale, nor am I in privity of contract with you.
      This is what the software companies want you to believe. However, following the reasoning of ProCD and its progeny, if you find it in the trash, you have not entered into a contract with anyone. If you are the new rightful owner of the disc, then the software maker has no grounds to try to force you to enter into a contract.

      You keep insisting that it's a license because the EULA says so. But, again, the EULA cannot change reality. If the economic and physical realities disagree with what the EULA says, then the EULA is simply wrong. We don't instead try to distort reality to attempt to make it fit with the EULA's claims. The majority of courts have repeatedly confirmed this (and yes, as always, there have been exceptions).
      --
      Despite what EULAs say, most software is sold, not licensed.
    30. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 1

      So, first of all, recognize that ProCD had nothing to do with copyright--it was all about whether the bundled license agreement would be enforced under contract. ProCD applies equally to the sale of snow shovels as it does to software.

      Adobe v. One Stop Micro, 84 F. Supp. 2d 1086, is more on point. There, a reseller who bought educational version of software (from a software reseller) and resold them as full versions was found liable for infringing the distribution right. Another court reached the opposite answer (Softman Prods v. Adobe, 171 F.supp 2d 1075), but One Stop is better supported and followed. For example, see Adobe v. Stargate Software, 216 F. Supp. 2d 1051, and Meridian Project Sys v. Hardin Construction, 426 F. Supp. 2d 1101 .

      Incidentally, Article 2 of the UCC, despite its title, applies to "transactions in goods," not just sales. (See section 2-102).

    31. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      Right, ProCD never got far enough to consider copyright. But it determined that software is sold, as a good, in the traditional sense. Calling it a license is simply playing with words.

      I'd be very interested in hearing any arguments as to why the result in One Stop is any more convincing than that of SoftMan. I'm not familiar with the other two cases you cite, but as I recall, in One Stop the court basically said, "The software companies all say they license it, so it's a license". This reasoning smacks of a court trying to reach the result that seems just, by whatever means possible.

      The SoftMan court examined the reality of the situation, and said, "You know what? It doesn't matter if you say you are licensing it, the reality is that this transaction fits the definition of a sale, and therefore it is a sale."

      Characterizing a transaction based on the economic realities of that transaction is clearly a more sophisticated approach than simply going by the claims of the parties involved. Sure, the intent of parties must be considered when examining contracts, but the court must examine other factors, such as economic realities, as well. The One Stop court failed to do this.

      --
      Despite what EULAs say, most software is sold, not licensed.
    32. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 1

      So ProCD said that the EULA is enforceable as a contract. You can't take ProCD for the proposition that there was a sale, since that wasn't squarely before the court. Instead, it asked whether the EULA is binding even though it's in the box, not printed on the outside.

      One Stop's argument goes like this: If you want to know whether you're buying a copy or merely licensing it, you have to look at what the parties intend. And, to figure that out, you look at the language of the contract. If the Contract says it's a license, then it's a license. If the contract says it's a sale, it's a sale. If the contract isn't clear, then you have to look at parole evidence to answer the question.

      In that particular case, the court had to look at parole evidence because the contract wasn't clear. So, it looked at what normally happens in the industry, and determined that software is nearly always licensed, very rarely sold. Plus, both parties to the contract said "Yup. This is a license." If the license has clearly said "this is a license, not a sale," (like most such licenses do), then they never would have bothered looking at industry practice.

      SoftMan has never been specifically overruled, but the 9th circuit (in which the Softman court sits) said 'Indeed, the first sale doctrine rarely applies in the software world because software is rarely "sold."'

    33. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      You can't take ProCD for the proposition that there was a sale, since that wasn't squarely before the court.
      Absolutely. But they, and virtually every other relevant case since then, has accepted that as a matter of fact without analysis. This strongly suggests that these are sales, otherwise UCC Article 2 could not apply and all these decisions would be taken back to the drawing board.

      If you want to know whether you're buying a copy or merely licensing it, you have to look at what the parties intend.
      By that reasoning, two parties could contract for the sale of an item, and circumvent state sales tax laws by including verbiage in the contract to the effect of "This transaction is not a sale". The state in which such a contract was formed (and the IRS) would beg to differ. Indeed, the fact that sales tax is charged on virtually all retail software sales makes it difficult to argue that the transaction is not a sale.

      Again, the court cannot look solely at intent. Yes intent is important, but the court must also consider external factors -- even if the intent of the contract is clear. Again, the court in One Stop failed to do any such analysis, and I find their argument to therefore be less persuasive than the SoftMan court's in which they did a pretty good economic analysis of the transaction.

      It really boils down to my favorite leagal argument, "If it looks like a duck and quacks like a duck..." ;)

      *Incidentally, this brings up an interesting situation in view of ProCD's reasoning. If ProCD (or any manufacturer) can act as the seller in a retail transaction, then the manufacturer should be responsible for collecting sales tax from the transaction -- not the retailer. This is just one other problem with the ProCD opinion.
      --
      Despite what EULAs say, most software is sold, not licensed.
    34. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 1

      You are setting up a false dichotomy. Either

      (1) It's a sale and not a grant of a license -or-
      (2) It's a grant of a license, and not a sale.

      I suggest that (3), it has characteristics of both. So, it's covered by Article 2 AND the manufacturer can impose conditions on downstream purchasers or holders, despite not being in privity of contract.

      You can argue that EULAs shoudn't be enforced, but the fact is that they are generally, even if the law isn't completely settled.

      Allowing software manufacturers to impose conditions on downstream users makes a lot of sense, as a policy matter. For example, manufacturers can charge different prices for a piece of software depending on how it will be used. It's a whole heck of a lot easier than the software company having to enter into individual contracts with each customer. Heck, even the GPL benefits from this.**

      Your sales tax argument is a red herring. The tax treatment of a transaction is often different that how it's treated by any other law. So, transactions which are not technically "sales" under the UCC may still be a sale for tax purposes. In Florida, for example a sales tax is exercised on anybody who "... rents or furnishes any of the things or services taxable under this chapter ..." In Texas, a sale is "a transfer of title or possession [for consideration]." In New York, a sale is "Any transfer of title or possession or both, exchange or barter, rental, lease or license to use . . ."

      **The GPL is generally viewed as a license on distribution, but it contains provisions that apply to users as well (Sections 15-17 of GPLv3).

    35. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      I suggest that (3), it has characteristics of both. So, it's covered by Article 2 AND the manufacturer can impose conditions on downstream purchasers or holders, despite not being in privity of contract.
      Name the statute that supports this theory, and you might be able to convince me, otherwise I can only assume that this is pure speculation.

      You can argue that EULAs shoudn't be enforced, but the fact is that they are generally, even if the law isn't completely settled.
      This is only true in cases where the end-user has voluntarily agreed to the EULA. I'm not aware of any case law that deals with the case where the end-user refuses to assent to the EULA and asserts ownership rights over the purchased copy of software.

      And the sales tax argument is not a red herring, because in most jurisdictions where the sale of software is taxed it's taxed because it is considered the sale of a good. Not for any other reason.
      --
      Despite what EULAs say, most software is sold, not licensed.
    36. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 1

      There is no statute, just a bunch of cases. But, they're just as binding.

      As for the case law, uh... ProCD: "ProCD, Inc. v. Zeidenberg, 86 F.3d 1447 (7th Cir.1996), holds that terms inside a box of software bind consumers who use the software after an opportunity to read the terms and to reject them by returning the product." That quote is from another opinion, Hill v. Gateway 2000, 105 F.3d 1147, written by the same judge.

      A EULA is presumably unenforceable if the purchaser did not have a chance to review the terms before the sale and was prohibited from return the software for a refund after the sale if he did not like the EULA. But, I haven't seen any EULA that does not include such a clause.
      (Returning the product to Best Buy might be hard; it might be necessary to go to the manufacturer instead.)

    37. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1
      My previous post was sent in a bit of haste because it was getting late. Let me back up a little.

      You are setting up a false dichotomy.

      It's not a false dichotomy. Either it is a license, or a sale. It cannot be both, for the following reasons:

      • A license is only required if the software company retains ownership over the copy. Otherwise the end-user may use the software without a license (17 USC Sec 117).
      • If the transaction is a sale, then ownership necessarily transfers to the buyer (UCC 2-106(1), 2-401(2), 2-312)

      Clearly, the software company cannot retain ownership (required for a license) but still sell the item (transferring ownership). Which of the above two points do you disagree with?

      Where is there a case that specifically states that the transaction is both a sale and a license? Every case that I'm aware of has ruled one way or the other. ProCD and similar assert that the transaction is a sale and that, despite it's name, the EULA is not a license, but merely a part of the contract for sale. This is not the same as saying it is both a sale and a license.

      Allowing software manufacturers to impose conditions on downstream users makes a lot of sense, as a policy matter. For example, manufacturers can charge different prices for a piece of software depending on how it will be used. It's a whole heck of a lot easier than the software company having to enter into individual contracts with each customer.

      To turn Judge Easterbrook's own reasoning against him: there's nothing in the UCC that requires the buyer to maximize the seller's net gains. There's nothing that would prevent software manufacturers from selling direct to end-users, and requiring the end users to agree to their terms before they are willing to part with the software. The software companies could thereby exert the control they desire. The courts need not distort the meaning and intent of the UCC in order to support this business model.

      A EULA is presumably unenforceable if the purchaser did not have a chance to review the terms before the sale and was prohibited from return the software for a refund after the sale if he did not like the EULA.

      Yes, that is the current state of affairs, but not what I was getting at. A large missing piece of the puzzle is what happens when the end-user says, "Sorry, I do not accept your license, but I assert that I own this copy of software and I will not return it." Even with ProCD, this situation has not been covered. The ProCD court only bound Zeidenberg to the EULA because he had explicitly assented to it's terms. But what if he hadn't? The court indicated that he had a right to return, but not an obligation to return. What's more, the plain and unambiguous language of UCC 2-401(2) makes it clear that by the time Zeidenberg had the copy in his possession, he was the rightful owner of it. This would have made it difficult for the court to assert that he had an obligation to return the copy upon rejection of the license.

      Indeed, it would be difficult for any court to say that the buyer has an obligation to return if he does not agree with the EULA. For one, by the time the EULA is read, the buyer has already taken on the risk of loss, theft, or damage to the goods -- something which cannot be undone. There is a reason why the UCC generally ties the transfer of risk of loss to the transfer of title, such that they both transfer at the same time. For a court to allow only risk of loss to transfer, while ownership does not, would be patently unfair to the buyer and contrary to the word of the UCC.

      This is not the same as the Gateway case, where the court found the buyer assented to the terms by lack of action. I'm talking about a user taking proactive steps to let the software maker know that the license has been rejected. No case law I'm aware of covers this angle, and in my view the overall issue of enforceability of EULAs won't b

      --
      Despite what EULAs say, most software is sold, not licensed.
    38. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 1

      So, let's assume for a second that the Software Company actually transfers title to the copy when the consumer purchases it? What is the effect of the EULA? Under PRO-CD, the EULA is binding (assuming Pro-CD's conditions are met).

      On the other hand, if the Software Company doesn't transfer title, then the EULA is still binding because the recipient doesn't fall under section 117, and the recipient needs some authority (either under the Section 117 or the EULA) to copy the software into his computer.

      No court has had a need to treat it both ways, because there haven't been any factual situations which would require that -- either the defendant is in privity with the manufacturer (a la ProCD & Gateway) or they're not (Adobe). Courts have been willing to treat it as both.

      You are right that a software company could, conceivably, enter into a contract with each end user. That would be bad for everybody involved -- it would be expensive and would dramatically raise the price of software. And, it also has the problem of the guy buying used software, then suing the manufacturer when there's a serious bug. (The contract, presumably, would prohibit consequential damages.)

      It seems to me like we're arguing cross-purposes. You seem to think that Pro-CD was wrongly decided because it didn't adhere strictly to the UCC. I'm arguing that Pro-CD, whether it was wrongly decided or not (which I don't think it was), is generally followed and, as a result, is the law.

    39. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      Courts have been willing to treat it as both.
      But not both at the same time in the same case. Which was one of your arguments. It must be one or the other for a given set of facts.

      it would be expensive and would dramatically raise the price of software.
      No it wouldn't. They already enter into contracts with each end user (the EULAs), so it wouldn't be any different in that regard. The only difference would be that the terms of the EULA would be available prior to purchase, and that wouldn't raise prices much, if any (especially with software purchased online).

      You seem to think that Pro-CD was wrongly decided because it didn't adhere strictly to the UCC.
      That's exactly what I'm arguing. And, in the long run, it doesn't matter that it's the law right now. Over time I think the courts will have no option but to realize that the paradigm that ProCD created is incompatible with the UCC (for a number of reasons, only a small number of which we have discussed). So, while we're stuck with the law as it stands for now, I think there's a good chance things will change.

      It sounds like in the end neither of us will be persuaded by the other's arguments. But it has been an interesting discussion nonetheless. Honestly, I would be happy to be persuaded to the other side, because I always prefer to be in agreement with the law of the land :)

      --
      Despite what EULAs say, most software is sold, not licensed.
    40. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      Under PRO-CD, the EULA is binding (assuming Pro-CD's conditions are met)
      If the buyer assents to it. If the buyer does not assent to it, the contract cannot simply be voided by the seller, because title has already transferred along with risk of loss, etc.

      On the other hand, if the Software Company doesn't transfer title
      Then the software company is in violation of UCC 2-401(2).
      --
      Despite what EULAs say, most software is sold, not licensed.
    41. Re:I am not handsome enough to be a lawyer by cfulmer · · Score: 1

      So, again, UNDER PRO-CD, the EULA is binding. The buyer assents by not returning the package after (1) having notice, at purchase, that there would be additional terms, and (2) having a chance to read those terms. It's not a question of the contract being voided -- the contract never formed.

      With that basis, UCC 2-401 allows the parties to agree on when (and, presumably if) title will transfer. If the EULA says that title does not transfer, and the buyer has assented to the EULA, then parties have agreed that title does not transfer. And, under Pro-CD, if the buyer doesn't return the package after having had a chance to read the terms, then the buyer assents

    42. Re:I am not handsome enough to be a lawyer by slcdb · · Score: 1

      The buyer assents by...
      So we agree, under ProCD EULAs are enforceable when there is assent by the buyer. Good. And if the buyer rejects, by sending the software maker a letter stating "I reject your End-User License Agreement"? Where does that leave us? By your (and ProCD's) reasoning, the buyer must return the product because the contract was not agreed upon and did not fully form. Which seems to make sense, except...

      The buyer has already taken on the risk of loss because he assumed when leaving the store that he now held title (because this is the way title transfers unless stated otherwise). Now the software maker claims, ex post facto, that title transfers at a different time (or, puzzlingly, not at all). Contracts do not normally work this way. Indeed the purpose of contracts is to establish expectations before performance is carried out. ProCD's proposed method of contract formation allows for substantial performance to be completed (in fact all performance on the seller's part), and then for the terms to be decided upon afterward. Doesn't this strike you as just slightly bizarre?

      UCC 2-401 allows the parties to agree on when (and, presumably if) title will transfer.
      When, yes, but absolutely not "if". A sale must necessarily involve the transfer of title, otherwise it is not a sale and the contract is not a contract for sale and thus the contract is not subject to UCC Article 2:

      A "sale" consists in the passing of title from the seller to the buyer for a price
      -- from UCC 2-101(1)

      Furthermore, if the seller wishes to alter the UCC's default provisions for when title transfers, he must do so before the act occurs which normally triggers transfer of title, for reasons stated earlier.

      But all this ignores one important oversight (perhaps the most important) that the ProCD court made: ProCD, the company, was not the seller. Best Buy was the seller. Best Buy, and only Best Buy, has authority under the UCC to determine the terms of the contract for sale.

      And as I depart I'll leave you with one other thing to think about. Traditionally sales are contracts of finite duration. The seller offers to sell, the buyer accepts, the buyer pays, the seller delivers... and then it's done. What ProCD has done is created a new form of sale where the contract extends on indefinitely. The buyer is supposedly bound to continue performance for an indeterminate amount of time, while the seller's performance ends at the cash register (or even at the warehouse). So the buyer has to be on his toes ensuring that he performs for potentially years, while the seller can kick back, relax and drink that margarita with the money he's just earned. Again, doesn't this strike you as a bit bizarre, or at least off-kilter in favoring the seller a wee bit too much?
      --
      Despite what EULAs say, most software is sold, not licensed.
  4. They didn't review the GPL by fishbowl · · Score: 2, Interesting

    Would have been awfully nice to see the GPL considered side-by-side with these other licenses.
    Does the GPL also create an imbalance between the rights of the distributer and the rights of the consumer?

    --
    -fb Everything not expressly forbidden is now mandatory.
    1. Re:They didn't review the GPL by SanityInAnarchy · · Score: 1

      Indeed, it does. The other way, though, as it should be.

      --
      Don't thank God, thank a doctor!
    2. Re:They didn't review the GPL by I+confirm+I'm+not+a · · Score: 2, Insightful

      > Does the GPL also create an imbalance between the rights of the distributer and the rights of the consumer?

      I wouldn't have thought so, since consumers can freely read the GPL before using the GPL-licensed application, and the GPL effectively empowers the consumer to become a distributor. I had a quick peek at the relevant legislation and couldn't see anything that would affect the GPL.

      IANAL etc etc

      --
      This is where the serious fun begins.
    3. Re:They didn't review the GPL by Anonymous Coward · · Score: 1, Interesting

      The GPL is not an EULA, it only affects redistribution and redistribution of derived works. EULAs try to impose all manner of unreasonable things.

      That said, if the GPL _were_ considered alongside them, rest assured that the government/corporations would try to find some way to outlaw the GPL, e.g. by stupidly stating that all EULAs must *forbid* redistribution (maybe on some trumped up consumer safety or "discouraging piracy" grounds- I doubt many politicians outside the Green and Pirate parties get the point of the GPL).

    4. Re:They didn't review the GPL by sconeu · · Score: 4, Informative

      GPL is a distribution license, not an EULA. Section 0 specifically says you don't need to agree to it to use the software.

      GPL doesn't take away any of your (end users) rights under copyright law, it adds additional rights.

      GPL (at least GPL2) is readable and pretty much understandable by mere mortals.

      --
      General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
    5. Re: They didn't review the GPL by Black+Parrot · · Score: 2, Insightful

      Does the GPL also create an imbalance between the rights of the distributer and the rights of the consumer? Don't know, but what's important is that we play by the same legal rules regardless of the license. Can't say shrinkwrap is enforcable but GPL is not, nor vice versa.
      --
      Sheesh, evil *and* a jerk. -- Jade
    6. Re:They didn't review the GPL by moderatorrater · · Score: 1

      As others have pointed out, the GPL isn't a EULA at all, it's an agreement as to how you'll use the source of the software and how you'll redistribute the software. Whereas the commission about EULA's said that people can't access them beforehand, they're burdensome, and they're not understandable by someone without a law degree, the GPL is widely available. It's not burdensome, since it's less restrictive than the norm of not giving the source and especially since it doesn't apply to the end user. It's easily understood by those without a law degree and analysis can be found in many places.

    7. Re: They didn't review the GPL by WNight · · Score: 2, Informative

      They're totally different things. A Shrinkwrap EULA purports to change the nature of a preexisting sale, and is not voluntary. It further restricts access to the thing you purchased until you agree to be bound by additional restrictions.

      Depriving someone of the ability to use the rights they legally have is actionable.

      The GPL on the gripping hand, is a voluntary license offered for those who want extra rights. It acknowledges specifically that you do *not* need to even read the GPL to use the software.

      EULA: Secret, withholds lawful rights, non-voluntary

      GPL: voluntary, offers only additional rights, not secret

      Shrinkwrap EULAs are not valid, the GPL is.

    8. Re:They didn't review the GPL by KDR_11k · · Score: 1

      GPL doesn't apply to the consumer anyway.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
  5. Too bad. by gfxguy · · Score: 1

    Contract's a contract... maybe if many people get totally ripped, they'll start looking more into the alternatives than blindly accepting their MS overlords.

    And no, this isn't an MS bashing post, I use MS for a lot of things... but most things can be done on the cheap and free and without a lot of legal hassle.

    The next thing you know is that any published novel written in MS Word will be the property of MS.

    --
    Stupid sexy Flanders.
    1. Re:Too bad. by I+confirm+I'm+not+a · · Score: 2, Informative

      > Contract's a contract...

      Under UK law that's not entirely true. If a contract employs unfair clauses those clauses can be nullified. An analogy is, if you borrow £10000 from me and agree that (a) you will repay it with 12 months, and (b) if you don't repay it I can break your legs. This is unfair: if the contract was challenged in court it's highly likely that (a) you would have to repay the debt, and (b) I could not break your legs if you didn't repay within the specified time-frame.

      IANAL etc etc

      --
      This is where the serious fun begins.
    2. Re:Too bad. by Anonymous Coward · · Score: 2, Informative

      Q: When is a contract NOT a contract?
      A: When it is not legally valid and violates the law.

      If there is no meeting of the minds, there is no contract, not matter what one party writes down.

      If there is an adhesion contract where one party receives its consideration (money) before releasing the terms of its offer and the terms, when enforced are unconscionable, or if there is a mistake because the two parties reasonably think the terms of the contract to mean different things, a court can and should put such contracts aside. The fact that most people do not fight for there rights or that some judges may not correctly apply the law does not change the legal principles.

      In most EULAs and TOS, there is no level playing field. Other than getting in on some sort of class action suit where all the money goes to the lawyers, there is no way most consumers will take on corporate lawyers. The EU is not into class actions like the US. It makes sense for the laws to level the playing field and keep contracts fair.

    3. Re:Too bad. by LandDolphin · · Score: 1

      Broken legs sound fair to me if you fail to pay back £10000

      --
      Spelling and Grammar errors have been added to this post for your enjoyment
    4. Re:Too bad. by KDR_11k · · Score: 1

      It's in violation to the law of the land though.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    5. Re:Too bad. by blippy · · Score: 1

      IANAL either.

      Breaking someone's legs is a crime (GBH), so the contract is probably illegal, and void at the outset. Basically, you cannot enter into a legal contract to do something illegal. Which makes sense.

  6. Unfair Contract Terms Act 1977 by tagishsimon · · Score: 4, Informative

    UK consumers who have reason to contest contract terms would likely be protected by the Unfair Contract Terms Act 1977.

    1. Re:Unfair Contract Terms Act 1977 by Anonymous Coward · · Score: 0

      ...and plenty of others.

      The distance selling regulations would often apply:
      http://www.oft.gov.uk/advice_and_resources/resource_base/legal/distance-selling-regulations/
      http://www.opsi.gov.uk/si/si2000/20002334.htm

      The Sale Of Goods act certainly would:
      http://www.opsi.gov.uk/si/si2002/20023045.htm
      (there have been many revisions of this)

      while it helps the NCC get column inches to say that people are "signing away legal rights", it's not actually true. They may THINK that they have, but all legislation in this area has been drafted to ensure that people CAN'T.

  7. No need. by Benanov · · Score: 1, Informative

    GPL != EULA as you don't have to agree to the GPL.

    1. Re:No need. by reebmmm · · Score: 3, Informative
      Lies and damned lies.

      I think that the parent's post is probably one of the favorite myths of this site. And, as a matter of law, it is simply not true. When you "accept" GPL software, you "accept" a few very important things:

      2. Basic Permissions.

      All rights granted under this License are granted for the term of copyright on the Program, and are irrevocable provided the stated conditions are met. This License explicitly affirms your unlimited permission to run the unmodified Program. The output from running a covered work is covered by this License only if the output, given its content, constitutes a covered work. This License acknowledges your rights of fair use or other equivalent, as provided by copyright law.

      You may make, run and propagate covered works that you do not convey, without conditions so long as your license otherwise remains in force.

      ***

      15. Disclaimer of Warranty.

      THERE IS NO WARRANTY FOR THE PROGRAM, TO THE EXTENT PERMITTED BY APPLICABLE LAW. EXCEPT WHEN OTHERWISE STATED IN WRITING THE COPYRIGHT HOLDERS AND/OR OTHER PARTIES PROVIDE THE PROGRAM "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE PROGRAM IS WITH YOU. SHOULD THE PROGRAM PROVE DEFECTIVE, YOU ASSUME THE COST OF ALL NECESSARY SERVICING, REPAIR OR CORRECTION.
      16. Limitation of Liability.

      IN NO EVENT UNLESS REQUIRED BY APPLICABLE LAW OR AGREED TO IN WRITING WILL ANY COPYRIGHT HOLDER, OR ANY OTHER PARTY WHO MODIFIES AND/OR CONVEYS THE PROGRAM AS PERMITTED ABOVE, BE LIABLE TO YOU FOR DAMAGES, INCLUDING ANY GENERAL, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OR INABILITY TO USE THE PROGRAM (INCLUDING BUT NOT LIMITED TO LOSS OF DATA OR DATA BEING RENDERED INACCURATE OR LOSSES SUSTAINED BY YOU OR THIRD PARTIES OR A FAILURE OF THE PROGRAM TO OPERATE WITH ANY OTHER PROGRAMS), EVEN IF SUCH HOLDER OR OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.


      In this sense, it is an agreement with END USERS. Among other things, it grants to the end user the permission to run the software. It also addresses distribution, but that is not the point.

      I also states that you get it without any warranties (non-infringement, merchantability, fitness for a purpose, etc.). And it states that even if you think you had damages because of the use of the software, you'd have no right to recover anything.

      I'll point out, most people think that limitations on liability that limit your damages to $0 as some of the most heinous parts of EULAs.

      If you don't agree to those terms, you can reject the offer.

      Even under the terms of most EULAs (and most case law), a EULA is only effective if you have some right to reject: return, refund, etc. ** Contrary to what some think, that right to reject doesn't have to be "easy" or obvious. **
    2. Re:No need. by wilder_card · · Score: 3, Insightful

      "I'll point out, most people think that limitations on liability that limit your damages to $0 as some of the most heinous parts of EULAs." True, BUT. Most people think if they pay something for software, they have a legal right to expect that it does what it says. However, if they didn't pay for it, it would be grossly unreasonable to expect the same legal rights.

    3. Re:No need. by fishbowl · · Score: 2, Informative

      Thank you for your comment!

      My perspective is from the other direction: Find some basis to "invalidate" the GPL (I love the saying "...untested in court..." as though it is important)... Find that legal basis and ALL software contracts derived from copyright law are invalidated as well. Essentially if the author does not have the rights needed to license under the terms of the GPL, then he does not have some of the rights that copyright supposedly grants.

      One argument will be "without these licenses, software makers will not produce the products." We all know how unlikely that is. Besides it would be fine and dandy if the playing field were more open. Another argument is that vendors will have to go back to individual agreements with each customer. I wonder what would be so wrong with that? If you want me to sign a contract in order to use your product, by all means, put the contract in front of me, let me evaluate its terms side-by-side with its consideration, and I'll get back to you -- maybe your competition offers better terms. Maybe your big ugly contract influenced me during the critical moment when I was hot to buy, and now I'm not so sure.

      FYI, the only software I've ever written for profit, did indeed have an individually negotiated contract with each client, and the legal terms were specified in that, and would be fully enforceable in the state where I was doing business.

      But these mass-market software folks want to have all the power of an individual contract (actually, they want more than the assignee can legally grant via contract, sometimes), but they want none of the obligations, and want to offer no real consideration. EULA's won't stand up as contracts, in general.

      The GPL on the other hand, holds if the grantor actually has the appropriate rights under copyright law.

      In essence, to "Test the GPL in Court" and find it invalid, would mean invalidating *copyright law* to a certain degree. In other words, this is not going to happen.

      --
      -fb Everything not expressly forbidden is now mandatory.
    4. Re:No need. by Mr2001 · · Score: 2, Insightful

      In this sense, [the GPL] is an agreement with END USERS. Among other things, it grants to the end user the permission to run the software. Since when do you need permission to run software that you've legally obtained? You can reject the GPL's terms and still keep using the software, as long as you don't distribute it.
      --
      Visual IRC: Fast. Powerful. Free.
    5. Re:No need. by Ioldanach · · Score: 1

      In this sense, it is an agreement with END USERS. Among other things, it grants to the end user the permission to run the software. It also addresses distribution, but that is not the point. I also states that you get it without any warranties (non-infringement, merchantability, fitness for a purpose, etc.). And it states that even if you think you had damages because of the use of the software, you'd have no right to recover anything.
      If you refuse to accept the GPL, you can still use the program. As the license says, it is explicitly affirming a right you already have. And the no warranty includes an 'unless required by applicable law' statement. So you can go right on using that program whether or not you agree to the license. If you want to redistribute it, or changes you made to it, copyright law prohibits you from doing that so you must then agree to the license.
    6. Re:No need. by reebmmm · · Score: 1

      As the license says, it is explicitly affirming a right you already have.

      And, where, pray tell, did those "rights" come from? The GPL simultaneously implies rights to end users and yet asserts copyrights against propagators. Consider the following.

      One does not ordinarily have the "right" to "use" copyrighted works without permission. In this sense, "use" means one of the exclusive rights in a copyright. They come from some license. When one buys a book, you have a right to "use" the book, but you don't have the right to reproduce it. One could understand this to be an IMPLIED license.

      The GPL's language is, in contract language, a RESTATEMENT of this implied license. You DO accept the terms of that IMPLIED license when you download or run it. Of course, the license (but for the warranties and limitations of liability, a topic I discuss below) does not put any other limitation on use. So, it's not like acceptance/rejection means much. Nevertheless, it is a license.

      Now, as to the warranties and limitation of liability. It would be interesting to see how a court would construe these clauses if you are correct (and if the GPL's inconsistency is correct).

      If it's true that the GPL does not form a contract with an end user, developer's beware: you're on the hook for unlimited liability for anything that you contribute to a GPL product. Worse yet, you're not getting much consideration for that unlimited liability.

      Moreover, if it's true that the GPL doesn't form a contract with end users, that software had better damn well work. Otherwise, you're potentially on the hook for warranty claims: non-infringement, fitness for a purpose, merchantability, etc.

      Frankly, I hope you're wrong.
    7. Re:No need. by Ioldanach · · Score: 1
      If you acquire a legitimate copy of a book, which is to say, one that was published in accordance with copyright laws and then sold and resold from the publisher to the vendor to you, then you've acquired material properly created in accordance with copyright law and therefore have the legal right to use it, as provided for in copyright law itself.

      Likewise, if you receive a copy of a GPL piece of software from a distributor properly complying with the GPL, you've acquired material properly created in accordance with copyright law and therefore have the legal right to use it. No license to use it is required. GPL v2 specifically states this with point 5.

      5. 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. Therefore, by modifying or distributing the Program (or any work based on the Program), you indicate your acceptance of this License to do so, and all its terms and conditions for copying, distributing or modifying the Program or works based on it.

      GPL v3 addresses this with point 9.

      9. Acceptance Not Required for Having Copies.
      You are not required to accept this License in order to receive or run a copy of the Program. Ancillary propagation of a covered work occurring solely as a consequence of using peer-to-peer transmission to receive a copy likewise does not require acceptance. However, nothing other than this License grants you permission to propagate or modify any covered work. These actions infringe copyright if you do not accept this License. Therefore, by modifying or propagating a covered work, you indicate your acceptance of this License to do so.
    8. Re:No need. by J.Y.Kelly · · Score: 1

      I think that the parent's post is probably one of the favorite myths of this site. And, as a matter of law, it is simply not true. When you "accept" GPL software, you "accept" a few very important things

      I think this is somewhat misleading. EULAs as discussed here are licences an end user must accept in order to use the software. The GPL is a copyright licence which you must accept in order to redistribute the software. If you just want to use GPL licenced software then you don't have to accept any licence. The wording of the GPL is very explicit about this.

      This License explicitly affirms your unlimited permission to run the unmodified Program.

      It doesn't get any less restrictive than that. The restrictions only apply if you want to break copyright on the software. I doubt any EULAs on commercial software give you any rights over the copyright of the program they cover.

    9. Re:No need. by reebmmm · · Score: 1

      Again, not quite right. (And people wonder why GPL is a headache)

      The book thing is really asking for trouble. On the one hand, you acquire title to the tangible manifestation of a book. Thus, there are no further limits on your right to dispose of that copy of your book. This is sometimes called the first sale doctrine. You are also free to sell and transfer your copy of the book. On the other hand, there is an implied license to use the materials in the book. You would not be free to make copies from your copy and sell them.

      If the GPL was relying on the first sale doctrine (as you suggest), then any number of sections in the GPL would be rendered meaningless--including the second sentence of section 9 (see below). Much of the language of "conveying" would be silly since you'd have the right to convey your copy without restriction anyway (benefit of having title).

      Now, there is language about propagation (a word begging for dispute), but I assume that that only means to duplicate. Again, this right to duplicate (propagate) has its roots in the copyright laws. But if you're correct, then any restriction on the right to "propogate" seems silly since you can acquire infinite copies of a GPL program from a distributor and then transfer title. E.g. each time you want to send a copy, download it first from someone else. *blinks*

      So, again, not quite right.

    10. Re:No need. by reebmmm · · Score: 1

      g. EULAs as discussed here are licences an end user must accept in order to use the software. The GPL is a copyright licence which you must accept in order to redistribute the software.

      Both are copyright licenses.

      Both have terms that impact an end user. In the case of the GPL, see the limitation of liability and the disclaimer of warranties.

      Moreover, as discussed in earlier posts in this same chain, it's not clear exactly where the rights to "use" the software derive under the GPL. In one sense, the GPL is a mere restatement of the terms of an implied license to use the software. That implied license has few restrictions on mere use, but allows you to use the software as is.

      It doesn't get any less restrictive than that. The restrictions only apply if you want to break copyright on the software.

      Restrictiveness says nothing about whether it's a license.

      Moreover, few EULAs (and few courts) would enforce a EULA with an absolute waiver of liability like the GPL includes. If the GPL weren't enforced as a contract with end users, then developers could potentially be on the hook for unlimited liability--not a good result for anyone.
    11. Re:No need. by Ioldanach · · Score: 1

      In essence, to "Test the GPL in Court" and find it invalid, would mean invalidating *copyright law* to a certain degree. In other words, this is not going to happen.

      Not necessarily. The GPL allows an individual holding a copy to do more than he would otherwise be able to do when operating strictly under copyright law, but with those additional rights come additional responsibilities in the license. If you were able to poke a hole in those responsibilities (You can't make someone responsible for doing *that*!), then the whole GPL would be rendered unenforceable and all code protected by it would revert to copyright law protections. This would make further distribution of the code impossible except by the copyright holders, and might make the extant copies illegal because they were not distributed in accordance with a valid license or contract.

      I say the whole GPL would be rendered unenforceable because I see no severability clause within the GPL v2 or v3, except for a particular limited case in v2. Please correct me if I'm wrong.

      It might also cause any other EULA's containing similar restrictions to become invalid in whole or part, depending on their similarities and severability clauses.

    12. Re:No need. by esper · · Score: 1

      Since the courts ruled that making a copy of the software from the install media onto your hard drive and making a copy of the software from your hard drive into memory fall under copyright restrictions, which is how all this software licensing insanity began.

    13. Re:No need. by Mr2001 · · Score: 1
      Sorry, try again...

      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
      --
      Visual IRC: Fast. Powerful. Free.
    14. Re:No need. by russotto · · Score: 1

      One does not ordinarily have the "right" to "use" copyrighted works without permission. In this sense, "use" means one of the exclusive rights in a copyright. They come from some license. When one buys a book, you have a right to "use" the book, but you don't have the right to reproduce it. One could understand this to be an IMPLIED license.


      One could understand it that way, but one would be understanding it wrong. You're equivocating on "use". When one buys a book, one has a right to use the book, because ordinary use of the book (propping up tables, holding doors open, perhaps even reading it) does not have anything to do with any of the exclusive rights in copyright. There is no implied license; the copy owner is simply the owner of a copy and needs no license.
    15. Re:No need. by Chris+Burke · · Score: 1

      Since the courts ruled that making a copy of the software from the install media onto your hard drive and making a copy of the software from your hard drive into memory fall under copyright restrictions, which is how all this software licensing insanity began.

      I don't get how they could have, since copyright law specifically states that copies made as part of the normal course of operation of a piece of software (i.e. from disk to memory) aren't violations.

      --

      The enemies of Democracy are
    16. Re:No need. by WNight · · Score: 1

      One does not ordinarily have the "right" to "use" copyrighted works without permission. Not true at all. Copyright only covers copying. No license, implied or otherwise, is required in any fashion to use a work.

      US Copyright law goes so far as to specifically allow required copies (installing to HD, running from RAM, writing to swap) of software. If you have to install it to use it, that copy is legal.

      You only need a license if you're going to do something that would otherwise infringe. That's why you don't have to accept the GPL to use the software, but do to distribute it (because that's normally a copyright violation).

      Moreover, if it's true that the GPL doesn't form a contract with end users ... It forms a contract with whoever accepts it. However, users do not need to accept it to use the software.

      you're potentially on the hook for warranty claims: ... merchantability, etc. No. If it's not sold, there's no warranty, implied or otherwise. You have no dealings with the author so why would they be liable for something?

      RedHat and other companies who sell a distribution of GPLed (or otherwise) software likely do have an obligation to provide what you paid for. They disclaim warranty on the individual software components (which they aren't selling - see the freely downloadable version of Redhat) but are responsible for making sure the CD they deliver won't ruin your CD drive, that it contains what they say it will, etc. You could sue RedHat for providing a blank CD, but not because Apache crashed.
    17. Re:No need. by WNight · · Score: 1

      It's not a restatement of the implied license, it's a restatement of copyright law. No license is required for any software.

      However, some companies won't sell software contracting explicitly with the buyer. That may require the buyer limit usage of that copy, but failing to do so is a problem of the licensee, not the inadvertent user.

      As for warranties, don't sell your software (or supply it as a service) and you can't be held liable for accidental damages, lost usability, etc.

      Also, there's no way at all to disclaim liability from intentional damages or willful ignorance leading to damages. Despite any EULA, software that intentionally damaged your PC or data would be treated like a Trojan horse, as it is. 99% of the use of warranty disclaimers is to lie to customers who don't understand the protections offered by law. Everyone disclaims everything allowed, but that isn't much really. When you sell something you are required to provide what you promise.

    18. Re:No need. by mdwh2 · · Score: 1

      Neither of those things seem to me to be an agreement.

      Granting you permission to use the software doesn't require the recipient to agree to anything, it's just affirming your right to use it.

      The warranty disclaimer is there for information. It's just making it clear that the software doesn't come with any warranty. The key point here is that the warranty does not trump the law - if by default, the law meant that software developers were liable, then yes they would need an "agreement" to get round that. But it states "TO THE EXTENT PERMITTED BY APPLICABLE LAW" and "UNLESS REQUIRED BY APPLICABLE LAW".

      In fact, it also says "OR AGREED TO IN WRITING" - so you can change that if you do have an agreement, but the GPL itself is not an agreement, it's just there for your information.

      The GPL also explicitly states "You are not required to accept this License in order to receive or run a copy of the Program."

      So yes, I think that your post is probably one of the favorite myths of this site.

    19. Re:No need. by mdwh2 · · Score: 1

      If it's true that the GPL does not form a contract with an end user, developer's beware: you're on the hook for unlimited liability for anything that you contribute to a GPL product.

      Whilst moving my mouse hand to reply to your post, I accidently knocked an expensive vase off my desk, which then landed instantly killing my dearly loved pussy cat. Since you did not have the sense to put an EULA into your post, I guess I can sue you for the financial damages, not to mention the emotional harm that has now been caused to me...

      The point is (at least in the UK) we don't live in a world where you have "unlimited liability" which can magically turn into "zero liability" with a contract. If I cause someone damages, I can be sued, but this doesn't mean I throw up a "EULA" to everyone I meet to get them to sign away their right to sue me. And even if I did, that doesn't mean such a contract would be valid, since a contract doesn't necessarily absolve one of liability. So does that mean I never go outside in case I do something that gets me sued? Of course not. It doesn't mean I don't write software either.

      The purpose of software can be given as information, without need an agreement. If I drive a car into the sea, I can't sue the car manufacturer for damages - they don't need to get me to sign a contract to say that the car is not made for underwater transportation...

      If a court were to rule that using freely available software meant whoever wrote it was liable for any problems resulting from your use, even if the software stated it was not meant to be used for such purposes, then yes, I'd be worried. I don't think that's happened yet. Perhaps it might happen in the US, what with the sue-them-culture that seems to exist - but in that case, I'd also be worried of people suing car makers for driving off into the sea...

    20. Re:No need. by itsdapead · · Score: 1

      GPL != EULA as you don't have to agree to the GPL.

      Except you make a copy when you install the program to hard disc, and you make a copy in the computer's memory when you run it.

      Some countries have updated their copyright laws to exempt such actions or have "fair use" doctrines that cover this - others haven't. In the UK we're not even technically allowed to rip our own CDs to our own iPods or make tapes for the car (although not even the record labels are bonkers enough to try and enforce that).

      I do, however, think that rather than present the full GPL (especially the more legalistic and superficially scary version 3) as a click-through on end-user products the FSF should produce a "GPL EULA" that just tells users what they need to know - i.e. "Go ahead and use it - no warranty but hey you got it for free - you have other cool and important rights - go see the full GPL for details".

      --
      In a survey of 100 programmers, 111111 thought that duck-typing was a good idea.
    21. Re:No need. by mr_matticus · · Score: 1

      Since when do you need permission to run software that you've legally obtained? The answer's in the question. Legal acquisition is permissive. By releasing the software, the owner(s) are granting permission for you to use it as you see fit, because in doing so, they've protected what they themselves deem valuable (distribution and derivative works) with the GPL.

      They've waived their claims to another distribution vehicle at that point.

      Simply put, if you don't have permission, you can't have legal acquisition.
    22. Re:No need. by totally+bogus+dude · · Score: 1

      But if you're correct, then any restriction on the right to "propogate" seems silly since you can acquire infinite copies of a GPL program from a distributor and then transfer title

      Yes -- but since when have legal technicalities cared whether or not they seem "silly", especially if they only seem silly when viewed in a particular situation? The restriction only seems silly if you're duplicating an unmodified copy of the software.

      This makes your point something of a red herring, for the simple fact that if you propagate (as in duplicate) an unmodified version of a piece of GPL software, you are complying with the terms of the license. There's no legal basis for me to sue you because you sent someone an exact copy of my GPLd software without "accepting" the license, because you haven't violated it in any way! In fact, I can't even tell that you haven't "accepted" it, because you're complying perfectly with the terms of the license.

      I don't think the section you quoted is rendered "meaningless" by first sale doctrine. In the case you're making no changes, then there's no extra restrictions and that section doesn't do anything. In the case that you are making changes, there are additional restrictions. The book analogy would be that you're allowed to write notes in the book and then give it to someone else, but only if they have the right to a) pass the book with your added notes on to someone else and b) add their own notes before doing so.

    23. Re:No need. by CmdrGravy · · Score: 1

      In this sense, it is an agreement with END USERS. Among other things, it grants to the end user the permission to run the software.


      No it doesn't, you already have the right to use the software when you, legally, obtained it from the distributor or manufacturer.

      The GPL grants you extra rights that enable you to distribute the software yourself dependant on you agreeing to the conditions it binds you to in order to allow that.

      Once again; you don't need any licence to use the software, to alter the code, or change it to do whatever you want because you already have that right.

      The difference between the GPL and a EULA is that a EULA attempts to restrict your rights to, amongst other things, alter a piece of software and impose extra conditions on you which you would not otherwise be bound to.
  8. Just a joke... by juanillodgn · · Score: 0, Offtopic
  9. A terrific "indirect" attack! by erroneus · · Score: 2, Insightful

    The EULA has for a VERY long time been a form of consumer abuse that has been tolerated for far too long. While I have little doubt that this is likely to be an attack against Microsoft, once again, but this time it will address a kind of global form of consumer abuse that had likely started with Microsoft but has become a standard practice in the industry.

    Of course if it were allowed, every other player in every other industry would hope to disclaim liability for anything and everything they sell you. But most governments, local, regional and national already have consumer protection laws in place to form the base-line of product liability. But for some reason, software as a product or as a service has somehow been overlooked in most areas (though some states in the US have consumer protection laws that include software). It'll be about time to see those same laws apply to software.

  10. Where's my signature? by PhxBlue · · Score: 2, Interesting

    If I've signed something away, there should be something in writing with my signature. I don't have it, and I bet the software companies don't, either. IANAL, but how does clicking a button on a VB form constitute a legally binding signature? If I hack the installer program and remove the form, does that mean I'm not bound by the EULA (even if it tells me I'm not allowed to hack the installer program)?

    --
    !#@%*)anks for hanging up the phone, dear.
    1. Re:Where's my signature? by sjbe · · Score: 4, Informative

      IANAL, but how does clicking a button on a VB form constitute a legally binding signature? A signature isn't the only way to legally agree to something. There are verbal contracts, contracts and licenses agreed to by an action (think GPL), the Uniform Commercial Code which sets the terms of many sales unless both parties expressly agree to some alternative arrangement, and others. A signature is just one way (albeit a common one) to acknowledge your agreement to something.

      In college I asked a law professor about EULAs and his take was that (generally speaking) EULAs are enforceable only if the buyer has had an opportunity to review them prior to the sale. I think this is a reasonable argument, especially since in practice you cannot return opened boxes of software. He would be the first to acknowledge that this has not been widely tested in court however so take what I'm saying with however much NaCl suits you.
    2. Re:Where's my signature? by amRadioHed · · Score: 1

      In college I asked a law professor about EULAs and his take was that (generally speaking) EULAs are enforceable only if the buyer has had an opportunity to review them prior to the sale. What does an opportunity to review them mean exactly? IMHO it should only be valid if it is printed on the box, or in some other place that is readily available to the buyer at the time of purchase. I would think that that just because a person had the opportunity to find the EULA hidden away on some corporate website prior to purchase, it wouldn't be reasonable to think they would.
      --
      We hope your rules and wisdom choke you / Now we are one in everlasting peace
    3. Re:Where's my signature? by CannonballHead · · Score: 1

      What about PayPal, or ordering online? Digital signatures? You are actually suggesting that my written signature should be required to make it legal? That'd make some things very, very slow...

    4. Re:Where's my signature? by sjbe · · Score: 2, Funny

      What does an opportunity to review them mean exactly? Should have added the word "reasonable" in there. Otherwise you end up with a scene from a Douglas Adams book involving a basement without stairs and a sign saying "beware of cougar".
    5. Re:Where's my signature? by PhxBlue · · Score: 1

      With PayPal and ordering online, you at least have your signature on the back of the card. You can also contact the credit card companies to contest any charge you think was fraudulent. An EULA doesn't give you that option -- and again, no signature. More troubling, as another poster pointed out, is that you don't have the chance to agree to the EULA until you're already bound by it.

      --
      !#@%*)anks for hanging up the phone, dear.
    6. Re:Where's my signature? by CannonballHead · · Score: 1

      I'm not arguing for EULA's at all, they are ridiculously long at the very, very least... but digital signatures seem to be valid. Besides, anyone can sign my name... the thing is, that's forgery. Anyone can type my name as a signature, too ... but that's forgery.

      Do credit card companies actually have a copy of your signature that they check other signatures to, or is it more the actual signing process that is important (and thus, if you are signing someone else's name, you are liable to be brought to court for forgery, a felony IIRC)

    7. Re:Where's my signature? by Darinbob · · Score: 1

      If EULA's are found to be the equivalent of legal contracts, aren't there limitations there also? Can I, in a legal contract, sign away basic rights and have that enforced?

      Most of the EULA terms I generally will live with. But some things like "will not reverse engineer" or "will not transfer software to a new computer even if it's removed from the old computer" or "will not resell to another when finished with it" or "will only use software for its intended purpose" seem like they're skirting some basic Copyright abilities. If I own the software and its media, I should be able to use it as I see fit.

      In the olden days, when people leased computers they would usually also lease software. Those lease and license agreements made more sense. Even if there were strong restrictions, at least there had been a signed agreement and the pretense that the purchaser had only obtained a temporary grant to use the software.

      Today though, when people walk into a store and buy a box of software (contents may settle during shipping) the implication is that they're doing the same thing as if they buy a book at a bookstore. There's no hand waving going on in WalMart or BestBuy that I'm merely buying a software lease or license agreement, the purchase process is set up to look exactly like I'm purchasing software (with the same rights and abilities as if I purchased any copyrighted material).

  11. There is one thing I want to know... by zappepcs · · Score: 2, Insightful

    If they revamp how EULAs are used and written, will they still include caveats for government retribution against the impossible case where they find you have done something that is illegal no matter what software you might have used?

    http://sycrat.com/sycrat/screenshots/screenshot1.png NO WMDs please

    Yes, I know the example is for US cases, but just the same.

    1. Re:There is one thing I want to know... by sconeu · · Score: 1

      That's it!!! We can arrest the terrorists for listening to their iPods while trying to build WMD!!!

      --
      General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
  12. EULA's and MMO's by FinchWorld · · Score: 1

    I always wondered how they were affected by british consumer law (If memory serves you can't change a contract after the point of sale, in the UK), especially with games such as WOW were you buy an expansion seperate to the subscription fees with a possible EULA changing as well, and how the EULA would stand legally.

    --
    "I may be full of crap about this game, and I may be wrong, and that's fine." -Jack Thompson
  13. T&C by Stevecrox · · Score: 2, Interesting

    Considering they object to 10 page EULA's for products I wonder how they feel about Terms and Conditions for product and services bought online? Last time I signed up for a server host I read through about 15 pages of terms and conditions which were contained with a tiny scroll box and that company was UK based. As far as I can tell the reasons they give for objecting are equally valid for every UK ISP I've signed upto and every service I've bought online. Should be interesting to see where it goes.

  14. Seems strange.. by Mascot · · Score: 2, Insightful

    with the conclusion that many consumers are signing away their legal rights

    One might argue that if the law is so weakly formulated that it is rendered invalid simply by one party telling the other that it is, then the law is the problem not the EULA. Haven't read TFA so no idea if this is just another misleading summary or not, but it strikes me as strange that would be possible in most any country.

    Where I live there's no way to sign away my legal rights. A EULA can demand I agree to being boiled in oil if I reverse engineer the program, but that means less than the pixels used to display the EULA in the eyes of the law. Especially since reverse engineering something to make it suit my needs is explicitly protected by law last I heard.

    Come to think of it, don't most EULAs actually include a phrase stating it's not applicable where void by local legislation?
  15. Not quite by aepervius · · Score: 3, Insightful

    In many country (in EU for example) you cannot give up fundamental right, or agree to give up protection of the law by signing a contract. This in many case nullify the contract utterly. But surprise, surprise, many of those EULA (particularly the one drafted for the US and just translated) just do that, for example in saying they are not liable for any damage occasioned by the software. Although in recent year I saw in a lot of EULA added "except in the country which forbid such clause, in which case it does not apply" or something similar.

    I USED to before install go and change the text of the EULA for fun (so that the CEO of the software maker give me his first born). Or delete the text file before install. Or ask my nephew to install your software (kids aren't contractible if parents refuse). Such shenanigan would not happen with a real signed contract.

    --
    C. Sagan : A demon haunted world:
    http://www.amazon.com/gp/product/0345409469/
    visit randi.org
    1. Re:Not quite by cheebie · · Score: 1

      I always announce "I modify this contract by scratching out every line".
      When I click agree they have agreed to my modified contract.

    2. Re:Not quite by mr_matticus · · Score: 2, Informative
      I'm not sure how this got modded insightful, but it's not true.

      This in many case nullify the contract utterly. No, with the exception of particularly egregious contracts, it nullifies the invalid term, not the contract itself. This is also true in the United States, though US courts are less inclined to interfere with terms and there are overall fewer objectionable contract terms.

      for example in saying they are not liable for any damage occasioned by the software They're not. This is a standard disclaimer on consumer products. All liability is specifically disclaimed, except that covered by the limited warranty and that which is not waived under the law (e.g. if it causes bodily injury through defect or negligence). I don't believe there is any significant case awarding damage for defective software.

      Such shenanigan would not happen with a real signed contract. Clearly you don't have a lot of experience with contracts, then, because those shenanigans are the only reason that contract attorneys have jobs. What you do with the text box is just as irrelevant as what you do with your copy of the written terms. You can fire up Word and mess around with it all you like. The process is simple: did you buy the copy of the software? Are you the registered owner of the software? Do you represent yourself as the owner of the license to the software? If yes, it doesn't matter if your two year old clicked "next". There aren't many instances in which you'd have an opportunity or a reason in court to use that particular out. If you're challenging the terms in court, you have to be a party to them. If you decide you don't like the terms, you can always back out by uninstalling the software. Quite simply, it's not as though you had no access to the terms before purchase; on the contrary, EULAs are available quickly and easily in advance for anyone who wants to review them. This is the big weakness in the report and it's a major consideration when attempting to litigate in this field.

      There are certainly issues that need to be worked out (e.g. some fairly ridiculous and one-sided provisions are common; if the terms are rejected, getting a refund for open software generally requires you to send a letter threatening to sue before they offer to take care of it), but similar devices are and have been a commonly used tool and will remain so.

      And once again, the report, like Netscape and the other seminal cases people like to point to, don't go as far as people commonly believe they do. This report says that EULAs are unfair and overly complex. That is true; it doesn't mean they're saying EULAs themselves are wrong. As a consumer advocacy group, their job is to simplify and re-balance the terms. This is a great thing, but it's not an incrimination of the agreement as a tool, so don't lose sight of that.
    3. Re:Not quite by xaxa · · Score: 1

      I USED to before install go and change the text of the EULA for fun (so that the CEO of the software maker give me his first born). Or delete the text file before install. Or ask my nephew to install your software (kids aren't contractible if parents refuse). Such shenanigan would not happen with a real signed contract. My law lecturer told me she went skiing in Canada (where the law on contracts is very similar to UK law). She had to sign a disclaimer saying that the ski company wasn't liable for injury, among other things. She crossed out that clause, signed it, pointed it out to the (dumb) clerk, who signed his part and thus accepted the modified contract.
      The next year she went to the same place, and found an extra clause had been added: "This contract may not be modified except with the agreement of [the company lawyers]".
    4. Re:Not quite by KDR_11k · · Score: 1

      Do you represent yourself as the owner of the license to the software?

      How do you do that? Using the software does not require a license and as such is not representing yourself as a license holder. Simply owning a copy doesn't make you subject to the EULA either.

      Furthermore, EU directives curtail the acceptable terms for non-negotiated contracts.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    5. Re:Not quite by mr_matticus · · Score: 1

      Using the software does not require a license Yes, it absolutely does, particularly in the case of the kinds of software that doesn't come in the form of a "copy" (i.e. a disc). There is no legal authority of which I'm aware that separates a license from a right to use.

      Simply owning a copy doesn't make you subject to the EULA either. Again, nothing more than pure fantasy. Owning a copy doesn't make you a party, using the software does. Assent by performance is a classic form of contractual acceptance. You have sadly fallen into the exact trap that Slashdot loves to populate; nothing in the report says that EULAs aren't part of the software process, nor does it advocate or even suggest the elimination of EULAs as the specific form agreement under which a license is acquired.

      The issue is that EULAs have become increasing modeled after merchant-merchant exchanges, while the consumer remains relatively unsophisticated and doesn't have an easy way to object or counter said form contract. The consumer advocacy group is pushing largely for three things: a mandated warning label on boxes or before point of purchase of online software, legally mandated prior availability of license terms (which every US company already complies with upon request) like nutrition information at fast-food restaurants, and simpler terms with more direct action in the way of outlining which specific rights the contract is not allowed to take (e.g. arbitration clauses, which courts do not like).

      Taking these actions would strengthen the EULA as a device for rights transfers. It's not new; contracts have long created positions that differ from generic copyright licenses; standard form contracts have long replaced individually-negotiated contracts where volume exceeds bargaining capacity. No one has ever challenged the blanket validity of a license agreement and won.

      EU directives curtail the acceptable terms for non-negotiated contracts Yes, they do. That doesn't get you anywhere, except to strike out terms which are unenforceable anyway. It doesn't abrogate the entire agreement.
    6. Re:Not quite by KDR_11k · · Score: 1

      Yes, it absolutely does, particularly in the case of the kinds of software that doesn't come in the form of a "copy" (i.e. a disc). There is no legal authority of which I'm aware that separates a license from a right to use.

      Maybe for downloadable software but that's in the minority (and I'm not sure that the right to download is considered a license either). Owning a copy gives you an implicit right to use and even if the software does not contain an EULA you can still use it.

      Again, nothing more than pure fantasy. Owning a copy doesn't make you a party, using the software does.

      So I can be subject to a contract I have never seen with no indication that a contract exists? Or have you never used a computer where you haven't installed EVERYTHING yourself? The user is not necessarily a party to that contract.

      a mandated warning label on boxes or before point of purchase of online software, legally mandated prior availability of license terms

      AFAIK EU law already requires both of these for the EULA to have any chance at enforcement.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    7. Re:Not quite by mr_matticus · · Score: 1

      Owning a copy gives you an implicit right to use and even if the software does not contain an EULA you can still use it. If the software does not contain a EULA, you are bound merely by statutory requirements (i.e. copyright law). If the software contains a EULA, you are bound to all of its terms by use of the software, except those which are unenforceable. Usage is assent to terms. This isn't even on the table for discussion.

      So I can be subject to a contract I have never seen with no indication that a contract exists? As to the first part, absolutely. As to the second, the indication that license terms exist is implicit in the fact that it is commercial software. Trade usage dictates that commercial software is bound by license terms. This is knowledge you are responsible for having as a functioning adult.

      Or have you never used a computer where you haven't installed EVERYTHING yourself? The user is not necessarily a party to that contract. Sure. The user is responsible until and unless s/he can point to the license holder, be it an employer, a family member, or a merchant of some kind. That party is responsible for ensuring compliance, and if your misuse creates an issue, it's a foregone conclusion that the third party licensee will be coming after you. If it's your job, you'll likely be fired. If it's a merchant, you'll be sued for cost recovery. If it's a family member, it depends on your family dynamic.

      Just like you're responsible when someone uses your car, your credit card, or some other instrumentality, you're generally responsible when someone uses your computer. If it's a professional relationship, that is usually enforced by separate terms (e.g. further contracts), such that your damaging acts are grounds for a separate action against you.

      AFAIK EU law already requires both of these for the EULA to have any chance at enforcement. It does not. Most software does this anyway, and I have never encountered a software publisher that would not make terms available in advance, and I have quite a bit of practice in this field. You know this is the case because the number of unsuccessful EULA challenges vastly outweighs the number that go to court, which further outnumbers the number which are struck down (and those that are successfully challenged fail on other grounds, usually arbitration clauses or unlawful waivers). Again, you take a contrarian attitude to enforceability that belies an inaccurate understanding of the legal, commercial, and political situation, not to mention this study and its effects.
    8. Re:Not quite by KDR_11k · · Score: 1

      So in practice how would I get to see the EULA before buying the copy? The store isn't likely to have a printed version of the EULA at hand. I just picked up the box of the game Hellgate London to look at it, there's no mention of an EULA on the outside and there's obviously no mention of where to see it either. IIRC I checked other games before, no mention either. How am I supposed to know the terms of that EULA if the box doesn't tell me where to find them?

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    9. Re:Not quite by mr_matticus · · Score: 1

      Common sense. Go to the vendor's website and download it; if it's not available, send an email asking for it to review before beginning. In the alternative, open the box and review it, though you'll probably have to fight for a refund if the software package doesn't have an inner seal around the disc. Most commercial software does these days. If the box is open but the disc seal is intact, you should have no trouble getting a refund; if you do, take it up with the retailer.

  16. Then don't buy the software by truthsearch · · Score: 1

    it would be unreasonable to expect an average consumer to understand the terms to which they were agreeing

    Then they shouldn't agree to it. As long as the license is available before purchase, people should not be buying a license they don't comprehend. It's just that simple. Just like the mortgage lending problems people are agreeing to terms they don't understand or don't have the patience to read. What we need is not regulation as much as consumer education.

    1. Re:Then don't buy the software by joe+155 · · Score: 1

      I completely disagree. How am I going to find which EULA applies to the specific software I am going to buy? Online i may just about be able to to find a general one for that company if I knew were to look and that such a thing was necessary (which a lot of consumers won't). So it is still incredibly uncertain even if you know what your doing. Then you have the problem that they reserve the right to change it without warning and you continuing to use it is counted as acceptance.

      That's without considering cases where you just dont know that there will be one, as you might find with an iPod say. Finally I would just say that products which come with a license arenot luxury goods anymore, they are neccesites - people souls not need a degree in law (and even then that's not a guarantee) in order to get what they need. The are manifestly unfair.

      --
      *''I can't believe it's not a hyperlink.''
    2. Re:Then don't buy the software by Anonymous Coward · · Score: 0

      Okay, but a click-through license is unacceptable. Even a paper insert isn't good enough. If a company's terms are that complex then they should sit you down in front of a real contract and have each party sign it - after reading it completely of course. If they don't want to go through the trouble to do it right then they shouldn't have a EULA at all!

    3. Re:Then don't buy the software by truthsearch · · Score: 0

      My comment was about people agreeing to the terms without reading them, assuming they have easy access to the license before/during purchase. The article is more about the content of the license than access to it.

      I agree with the issue of access. Everyone should be able to easily read a license before purchase, but that's not the point of the article.

      Again, if you don't agree to or understand the terms, don't use the software. Find a competitor who offers a better license or don't use the software at all.

    4. Re:Then don't buy the software by slcdb · · Score: 1

      Another way of looking at it:

      Software companies shouldn't offer to sell software directly to average consumers through retail channels. The software companies have armies of lawyers who fully understand the legal issues involved in the EULA. These lawyers also understand that the average consumer will not have the firm grasp of contract and copyright law, which would be required to fully understand what rights the consumer is waiving by entering into the EULA.

      If the software companies want total control of their product and they want to achieve this level of total control via complicated legal agreements, then they shouldn't be selling software to average consumers through normal retail channels.

      Remember this one important fact: EULAs don't exist because they HAVE to. Software can easily be sold without an EULA. EULAs only exist because the software companies WANT them to. If the software companies can't deal with the fact they are trying to complicate the hell out of otherwise ordinary transactions, then it's their own damn fault.

      --
      Despite what EULAs say, most software is sold, not licensed.
  17. There is a way around it by fiannaFailMan · · Score: 0, Redundant

    Doesn't the UK have the Unfair Contract Terms Act to protect consumers from sinister fine print that they may have signed up to?

    --
    Drill baby drill - on Mars
  18. EULA Crossout utility by Maximum+Prophet · · Score: 4, Interesting

    If you are presented with a contract by a company, you can cross out sections of the contract that you can't live with. If the company's agent accepts that contract, they are bound by it. (subject to vagaries of contract law)

    If I were to write a utility that would allow me to electronically cross out sections of an electronic EULA, and then the program (the owner's agent) accepted that modified EULA, would both parties be bound by the new contract? What if my utility allowed me to add sections as well. i.e. If this MS program crashed, MS will pay me $1,000,000

    Most EULAs will allow you to print them before accepting them. I could make the same modifications to the paper copy as well. Even if there was a pre-clause that said the EULA couldn't be modified, I could cross that out too.

    So would such a program mean the end of EULAs as we know them? Would software publishers have to fall back to straight copyright and save the legal mumbo-jumbo?

    --
    All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
    1. Re:EULA Crossout utility by FeepingCreature · · Score: 1

      Two unrelated facts:
      1) If you purchase a CD/DVD, precluding any special agreements between you and the seller, you are legally allowed to read all data on it.
      2) Most setup files for Windows can be extracted by hand. Often you only have to move files around a bit to make the program work.
      What EULA?

    2. Re:EULA Crossout utility by labnet · · Score: 1

      If you are presented with a contract by a company, you can cross out sections of the contract that you can't live with. Which is exactly what we did on a construction contract recently. The engineering firm attempted to contract away all of their liability with the design of a 500ton slab. We crossed out those sections of the contract, they agreed, and the job went ahead.

      This is not practical for most boxed software, so I think the government should legislate common law rights in regards to purchased commercial software. This could only be then extended or altered by a signed contract between the parties.

      --
      46137
    3. Re:EULA Crossout utility by Anonymous Coward · · Score: 0

      Such a program would be very easy to write. Most installers use InstallShield, where the EULA is just an RTF file dumped into a standard Visual Studio RTFText box. It will process window events, so you could hook the window and send it a command to remove the read-only flag on the RTFText box, or even to enable the "Next" button while the "I do not agree" radio button is checked.

    4. Re:EULA Crossout utility by slcdb · · Score: 1

      Unfortunately, I do not think any reasonable U.S. judge would find that such shenanigans would constitute "acceptance" on the part of the electronic agent. It's pretty clear that no reasonable person would believe that the agent would be capable of interpreting the modified contract and making an informed decision as to whether or not it should be accepted.

      I think such an attempt would be very frowned upon by most judges. They might even find that you acted in bad faith, and I'm sure that would lead to nothing but bad news for you.

      Unless there is something in the UCC that might specifically allow for such things when dealing with electronic agents... which I suppose there may be. Seems like a long shot though, and probably not worth the risk of seriously annoying a federal judge.

      --
      Despite what EULAs say, most software is sold, not licensed.
    5. Re:EULA Crossout utility by Maximum+Prophet · · Score: 1

      That's the point. The electronic agent isn't capable of interpreting the the contract, modified or not, so there is no accepting of the contract, valid or not.

      Imagine a company hired a human of limited mental capacity to be a contract agent and then argued that they aren't bound by their agent's mistakes because no-one could possibly think that their agent could understand the contract. I don't think any judge would accept the company's argument that they have no liability because they hired a moron.

      I don't think the average American has any idea what Microsoft's electronic agents are capable of, so side argument would be to show state of the art AI's that might be able to understand simple contract changes, and argue that since such are available, Microsoft, the richest software company in the world, should be using those.

      --
      All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
  19. Unfortunately the document by LM741N · · Score: 3, Funny

    Contains a EULA which forbids it from being read.

  20. Contracts can be modified before they are signed by Maximum+Prophet · · Score: 2, Interesting

    If you are presented with a contract by a company, you can cross out sections of the contract that you can't live with. If the company's agent accepts that contract, they are bound by it. (subject to vagaries of contract law)

    If I were to write a utility that would allow me to electronically cross out sections of an electronic EULA, and then the program (the owner's agent) accepted that modified EULA, would both parties be bound by the new contract? What if my utility allowed me to add sections as well. i.e. If this MS program crashed, MS will pay me $1,000,000

    Most EULAs will allow you to print them before accepting them. I could make the same modifications to the paper copy as well. Even if there was a pre-clause that said the EULA couldn't be modified, I could cross that out too.

    --
    All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
  21. Cell contracts by plague3106 · · Score: 1

    Sounds like it would apply to the type of contracts US cell phone companies force upon us. Can anyone really figure those out without a lawyer?

  22. I just click 'yes' without reading. by Black+Parrot · · Score: 1

    I used to be conscientious about reading them, but I came to the same conclusion as a report: IANAL, and I don't have a clue what all the legalbabble actually means. In the unlikely event I ever end up in court over one of them, that's exactly what I'll tell the judge.

    --
    Sheesh, evil *and* a jerk. -- Jade
  23. Anyone taken to task over an EULA? by mcsqueak · · Score: 1

    I'd like to know how many people here have actually been taken to court, or taken someone else (a company) to court or other legal proceedings over what was said in an EULA.

    I'm sure I "read" the EULAs just as closely as most consumers: I don't. The times I've tried, it took a VERY long time and it made sense, I guess... but by the time you get through it you can hardly remember the content or context of what it said. 99% of the time I just click OK... I've never had an issue where I've had to refer back to an EULA, personally.

    1. Re:Anyone taken to task over an EULA? by fishbowl · · Score: 1

      >I'd like to know how many people here have actually been taken to court, or taken someone else (a company) to
      >court or other legal proceedings over what was said in an EULA.

      None. Court cases involving software EULA's with the *consumer* as a party are vanishingly rare.
      You may find conflicts between publishing and distribution companies, and the like, where cases were
      settled on the basis of terms in one of these licenses.

      There have been a few suits filed by consumers against companies, most famously against Microsoft.

      There are VERY few rulings that directly speak to validity of terms in a specific EULA, most famous one I know of being the judgment against Network Associates that they COULD NOT suppress product reviews via EULA.

      There is also the Sony/BMG lawsuit where, even if the user said "NO" to the license, the software (DRM codec with a serious security flaw) was installed anyway.

      I think there have been some EULA cases with phone licenses. Ask one of the slashdot lawyers or law students. They should be the ones studying this stuff.

      --
      -fb Everything not expressly forbidden is now mandatory.
  24. better way: have a minor install it. by Anonymous Coward · · Score: 0

    Contracts with minors are usually unenforceable.

    1. Re:better way: have a minor install it. by shentino · · Score: 1

      Having someone else do your dirty work for you brings in all the vagaries of agency law :)

  25. Do you accept these terms? Only option is "Next"! by Anonymous Coward · · Score: 2, Informative

    If you start a new computer (w/ Vista) for the first time, you are presented with a screen to accept the EULA.

    What's (NOT!) funny here is that the only option is to accept and click Next.
    There is no option for Cancel. Just poweroff...

  26. Disclaimer: by Anonymous Coward · · Score: 0

    If you live in X, this EULA may not apply to you. Furthermore, tearing open the shrinkwrap doesn't necessarily void the warranty (expressed or implied) for occupants of Y.

    So what about the rest of us? Where is the chainreactionofcommonsense?

  27. The Borland "It's like a book" license c. 1980s by davidwr · · Score: 5, Informative

    In the 1980s, Borland products came with a "treat it like a book" license.

    It was written in Plain English. It essentially said you could trade, lend, buy, sell, resell, etc. as long as no more than one person had copies at a time and that the software wasn't being used on more than one computer at a time.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:The Borland "It's like a book" license c. 1980s by wilder_card · · Score: 1

      And it was one reason Borland became wildly popular. The more software they sold, and the more they tried to be like Microsoft, the worse the license got. Eventually they were just another company to be crushed beneath the treads of Microsoft's tank. Sniff.

    2. Re:The Borland "It's like a book" license c. 1980s by Anonymous Coward · · Score: 0

      I hold that license to be fair in 99.999% of cases. I would be willing to let the courts sort out the few oddball ones (the only one that comes to mind is gross negligence).

    3. Re:The Borland "It's like a book" license c. 1980s by Mr2001 · · Score: 1

      The more software they sold, and the more they tried to be like Microsoft, the worse the license got. The worse the software got, too.

      I reinstalled Borland Developer Studio 2006 a couple weeks ago. Not only did I have to go to Borland's web site to request another license file (because typing the CD key into the installer isn't enough anymore, and the license file I used before was no longer valid), but BDS wouldn't even recognize that I'd given it a valid license until I downloaded a service pack and a dozen more post-service-pack updates. Delphi has always been fairly buggy, but BDS 2006 was absolute crap.
      --
      Visual IRC: Fast. Powerful. Free.
    4. Re:The Borland "It's like a book" license c. 1980s by rossz · · Score: 1

      Because Borland was so reasonable about their license, I bought two copies of Borland Pascal (5 or 6?). The license allowed me to run the same copy on both my home and work computer, as long as only one copy was being used at any one time, but I didn't want to drag the manuals back and forth. They were reasonably priced and they didn't try to stick me in the backside with lawyers, so I supported them by buying an extra copy.

      --
      -- Will program for bandwidth
  28. What kind of precendent does this set? by Original+Replica · · Score: 1

    "Consumers can't have a clue what they're signing up to when some terms and conditions run to 10 or more pages. There's a significant imbalance between the rights of the consumer and the rights of the holder.'"

    So on a fundamental level this is a move against overly complex, lengthy, technically worded agreements. Which I think is a good thing. I have to wonder what happens if we apply this to other overly complex, lengthy things that should be knowledge that is accessible to the average citizen. While part of me has little sympathy for anyone who signed up for an Adjustable Rate Mortgage, or a crappy cellphone contract there is some indication that they didn't really understand what they were getting into. Or take this principle to our legislatures and ask if it is possible for any legislator to actually understand a 700 page bill that came out in it's final form three days prior to voting. While lawyers may try to tell you that all that wording is necessary in order to be clear, I think in more and more cases it has the exact opposite effect.

    --
    We are all just people.
  29. Re:Do you accept these terms? Only option is "Next by shentino · · Score: 1

    I think that counts as duress, becuase you've already repartitioned/reformatted/whatever you call it, and anything you had before is kaplooey.

    They should make you agree to it BEFORE you install it. Won't do much as far as enforceability is concerned, but it will let you decide on how you want your eggs before they've already been cooked.

  30. TPB license agreement by syousef · · Score: 3, Insightful

    ...which one reason why lots of people have, rightly or wrongly, replaced their EULA with the pirate bay version. Download it illegally, ignore the license, install and play with it. If they need it or are using it and feel guilty buy it. Even when they do buy it a lot of users continue to ignore the EULA. I'm not condoning this behavior but I am saying that onerous conditions in the EULAs directly contribute to piracy.

    The other thing is that no one reads all their EULAs thoroughly. If they did heavy computer users would be complaining about spending weeks installing software (or not understanding something about the EULA), when in reality software installation is something people often are doing in their "spare" time after all their other obligations are met. I've found that those people who suggest they do read all their EULAs are either doing it for a job or socially impaired or just plain liars.

    Most people just understand that unless it's free software it's not legal to copy. Beyond that they use their software however they choose paying no mind to the EULA. In fact I've come across many a game forum where people openly are flouting the terms of the EULA and the company who creates the game turn a blind eye and don't wish to even discuss licensing issues beyond regurgitating the "copying is stealing" mantra. This is enough enforcement for the company to benefit from the inclusion of the EULA for individual users. Only when the software is used on a grander scale contrary to the EULA does the company act to put a stop to that use, and even then only when it hurts their commercial interests.

    --
    These posts express my own personal views, not those of my employer
    1. Re:TPB license agreement by ratboy666 · · Score: 1

      I am not a liar. I don't consider myself socially inept. But, I used to read EULAs. Of software that I used, anyway.

      Since life is too short, I have adopted that attitude that "Either your software is covered by Copyright, or Copyright with GNU contract provisions, or is Public Domain or I don't use it."

      Simple and easy. I just don't enter into shrink-wrap license agreements anymore. The last good one was the "Borland - like a book" agreement. Worked for me. Saves money too -- some of these EULAs seem larger than professional service contracts! And they can't be negotiated... why would I agree to be governed by Delaware? Why would I agree to pay Defendents legal costs if I wasn't so ordered by the Court? Why would I give up the right to transfer the license without negotiating something in return?

      I even decided that it was too difficult to READ the fucking things, and I turned to "Free and Open Source Software" for my needs.

      --
      Just another "Cubible(sic) Joe" 2 17 3061
    2. Re:TPB license agreement by syousef · · Score: 1

      All well and good if your job doesn't require you to use specific software, and if GNU licensed software is available for the task you wish to perform. Many if not most of us don't have that luxury. At work for instance I use a diverse range of software covered by a multitude of licenses and my boss would not appreciate me refusing to do my job or comply with team development standards because I wish to simplify my life and not read EULAs.

      --
      These posts express my own personal views, not those of my employer
    3. Re:TPB license agreement by ratboy666 · · Score: 1

      It's a good trot... But, still a strawman (since I am referring to PERSONAL USE SOFTWARE).

      I would hope that you can't enter EULA personally for your company... So, you don't have to read it. Unless, of course, you were hired to provide legal advice for your company.

      Personally, this doesn't apply. My lawyer charges a very hefty amount to read and digest documents and provide opinions. But, any employment contract I enter is CERTAINLY passed on to my lawyer. (whether I am free-lancing, or, as I am now, in a staff role).

      If my employment contract ever contained a clause that *I WAS LIABLE FOR EULAS* I would strike the clause -- I certainly wouldn't entertain that liability. Now, if YOU have been stuck with this liability; um.. too bad for you (I would offer you my shoulder to cry on).

      --
      Just another "Cubible(sic) Joe" 2 17 3061
    4. Re:TPB license agreement by syousef · · Score: 1

      It's a good trot... But, still a strawman (since I am referring to PERSONAL USE SOFTWARE).

      There is some additional protection for you if you're using software in a large company, however ultimately an end user can be held accountable for breaking the conditions of the license. So even if you're talking about personal use, I certainly am not. Most of my software use happens in the workplace. So it's no strawman.

      I would hope that you can't enter EULA personally for your company.

      Now who's coming up with straw men? Who do you think is held accountable if you break the EULA? For example, if you make a copy of a piece of software when you aren't authorized to, do you think it's just your company that's held liable?

      So, you don't have to read it. Unless, of course, you were hired to provide legal advice for your company.

      In practice almost no one reads them. However you are legally obligated to comply with the license agreement. Sure you can choose not to read it, but you're no less bound by it just because you're working for someone else. That's true of any law. Take an extreme example to make the point: If you're asked to commit murder by your boss it doesn't absolve you of the crime.

      Personally, this doesn't apply. My lawyer charges a very hefty amount to read and digest documents and provide opinions. But, any employment contract I enter is CERTAINLY passed on to my lawyer. (whether I am free-lancing, or, as I am now, in a staff role).

      Again if you enter into an agreement it doesn't matter who you asked to read it. If YOU sign it YOU are bound by it. You pay the lawyer to read it so that if there is a problem he will pick it up (since he has more experience). However if he doesn't pick up a problem you're still bound by the contract.

      If my employment contract ever contained a clause that *I WAS LIABLE FOR EULAS* I would strike the clause -- I certainly wouldn't entertain that liability.

      It doesn't need to explicitly state anything. If you knowingly or negligently break the law, you're the one who can be tried for the crime. As for civil damages, it's true you're protected to some degree. However your employer could (at least in theory) allege the fault was yours - negligence for failing to read the EULA.

      Most large companies have clauses in their contracts that say you agree to abide by their code of conduct. Most codes of conduct have something to say about illegal use of software and almost all have something regarding violation of copyright. At the very least you'd likely be fired if you misused software and your employer took the financial hit.

      Now, if YOU have been stuck with this liability; um.. too bad for you (I would offer you my shoulder to cry on).

      Typical inflammatory slashdot comment stating the person you're having a disagreement with is a moron who deserves no sympathy. It borders on trolling. Before you accuse me of using straw men arguments, you might want to take a look at the flaws in your own argument style. Personal attacks (or if you prefer latin snobbery ad hominem) and exaggerating your opponent's point of view (aka reductio ad absurdum) aren't constructive techniques for arguing. Either stick to the point, or don't waste my time with childish attacks and arguing about things that have nothing to do with what I said. (*I most certainly haven't exposed myself to an excessive amount of liability in my current job thanks very much).

      --
      These posts express my own personal views, not those of my employer
    5. Re:TPB license agreement by ratboy666 · · Score: 1

      Actually, insertion of a clause such as "All third party legal remedies incurred during the performance of normal requested duties are to be incurred by the contracting party" or some such suffices. Refer to your atty for details of the required wording in your jurisdiction (acting as an "agent" of your employer may be all that is needed). Also, I carried indemnification insurance when I was self-employed (very expensive).

      --
      Just another "Cubible(sic) Joe" 2 17 3061
  31. Not a day to soon. by miffo.swe · · Score: 4, Interesting

    "The NCC recommends that the European Commission bring softwre licenses under the same consumer protections that apply to other products in the EU."

    Software companies has enjoyed unprecedented loose consumer protections. In fact, no protections has existed at all. The only protection is really the laws about advertising. That is, the software should act and do something that atleast is near what the adverts says.

    If EU would bring normal consumer protection to software it should also work as expected. That is, it should not crash and burn without the manufacturer fixing it for you. With the same protections as for hardware it would cost countless millions to make your users the beta testers.

    My work as an sysadmin would more be about tailoring solutions and less about getting expensive systems running with bandaid, duct-tape and broken patches that shouldnt be there in the first place.

    Its about time software stops being treated like books and start living under the same rules as everything else. If a patch hooses my system the most i can hope for today is a patch regardless if it costs me millions in business. Most often in my case the answer has been "buy our next version, it really works this time, promise, cross my heart".

    Things like this would punishing poor quality and i think that is really about time. Right now software really sucks.

    --
    HTTP/1.1 400
  32. Re:Do you accept these terms? Only option is "Next by base3 · · Score: 1

    That, and there's no consideration, as the buyer has already paid for the computer and the software.

    --
    One CPU cycle wasted on digital restrictions management is ONE TOO MANY.
  33. return-to-store test case by davidwr · · Score: 5, Interesting

    I'd love to see someone do a return-to-store test case:

    Go to a Big Box Computer Retailer, use cash to buy an expensive item you know the manager won't "just let you return" in the interest of customer satisfaction, take it home, open it, start to install it, click "no, I don't agree," then try to return it. Use cash so it's clear you don't have recourse through your credit-card company.

    The store says no. File a several-hundred-dollar-plus-court-fees small-claims action.

    Wait for the store to transfer the case to regular court. Amend your suit to include legal fees and triple damages for being an ass, offering to settle for the original purchase price plus legal fees incurred so far all the while, so the judge knows you aren't being an ass.

    Wait for the ruling that the contract was not complete until you click on "yes, I agree." The judge should rule that either:

    *you had a contract with the store, in which case the product did not meet ordinary merchantability standards i.e. it would not work without imposing other obligations not present at the time of the contract, in which case you can void the contract

    or

    *The store is acting as an agent for the software maker. You gave the store owner funds to hold until you entered into a contract with the software maker. If you did not enter into the contract you have a reasonable period of time to seek a refund from the store.

    In the worst case, the judge will let the store off the hook but allow you to add the software maker as a co- and later sole-defendant, and rule that the software maker owes you a full refund plus sales tax. In this case you will be out your legal fees though.

    In any case, there will be a ruling giving consumers protection up to the point that they say "yes, I agree."

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:return-to-store test case by TemporalBeing · · Score: 1

      Go to a Big Box Computer Retailer, use cash to buy an expensive item you know the manager won't "just let you return" in the interest of customer satisfaction, take it home, open it, start to install it, click "no, I don't agree," then try to return it. Use cash so it's clear you don't have recourse through your credit-card company.
      What, like Windows Vista Ultimate Edition?
      --
      Truth is like the sun. You can shut it out for a time, but it ain't goin' away. - Elvis Presley (source: imdb.com)
    2. Re:return-to-store test case by sfarmstrong · · Score: 2, Insightful

      "Wait for the store to transfer the case to regular court. Amend your suit to include legal fees and triple damages for being an ass, offering to settle for the original purchase price plus legal fees incurred so far all the while, so the judge knows you aren't being an ass."

      I don't know about other jurisdictions, but Ontario requires that claims under $10,000 be resolved in Small Claims Court. Because the courts are for all people, and your government cares.

      Suing to return your software is very easy, but almost certainly not worth the effort for each individual consumer.

      This is what class actions are for. Of course, if you're going to do a class action, you're far better off suing the software company that drafted the oppressive EULA in the first place. Or filing a complaint for anti-competitive practices.

      There are ways to fight abusive big businesses, but personal law suits are rarely the answer.

    3. Re:return-to-store test case by AKAImBatman · · Score: 1

      In the worst case, the judge will let the store off the hook but allow you to add the software maker as a co- and later sole-defendant, and rule that the software maker owes you a full refund plus sales tax. In this case you will be out your legal fees though.

      Not necessarily. Most EULAs state that you can return the software to the place of purchase if you don't agree with the EULA. If the judge lets the store off the hook, he might be willing to put the software maker back on the hook for those legal fees as the software maker wasted your time by offering terms of agreement that it was unable to meet.
    4. Re:return-to-store test case by Pofy · · Score: 1

      >Most EULAs state that you can return the software
      >to the place of purchase if you don't agree with the EULA.

      But if you don't agree to it, there is no agreement and what is said in the EULA is irrellevant. The only way for it to apply and to be binding is for you to agree to it, in which case it is irrelevant hwat happens if you did not agree to it.

    5. Re:return-to-store test case by AKAImBatman · · Score: 2, Insightful

      Doesn't matter. In this case a unilateral offer was made as a method of returning the item. By attempting to return the item to the store, you are exercising the terms of that offer. If the EULA writer was unable to uphold those terms, then he shouldn't have made the offer.

      That being said, the store is unlikely to get off so easily. IIRC, the laws that govern retail business and make EULAs possible expect that a consumer should be able to return through a retail outlet. The judge may or may not be happy about the store's unwillingness to let you reject the terms of purchase.

      The most likely outcome is that the store would not show up for the small-claims case, and you'd win by default. Then they'd stonewall your attempts to retrieve your money. In the end, you'd have to sell the judgment to a collection agency at a loss.

    6. Re:return-to-store test case by Anonymous+Brave+Guy · · Score: 3, Informative

      The judge should rule that either:

      *you had a contract with the store, in which case the product did not meet ordinary merchantability standards i.e. it would not work without imposing other obligations not present at the time of the contract, in which case you can void the contract

      Part of the problem here is that in the UK, while you have some protections if you buy something that comes in a box, the general legislation (basically the Sale of Goods Act) may not apply to downloads that are purely electronic in nature because of some legal loopholes. It's not clear that under those circumstances there is any requirement of merchantability, suitability for a particular purpose, or similar.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    7. Re:return-to-store test case by Anonymous Coward · · Score: 0

      No company is going to spend money to defend a $100 case. They would settle out of court pretty quickly most likely.

    8. Re:return-to-store test case by Anonymous Coward · · Score: 0

      Do you have the balls to do it yourself?

    9. Re:return-to-store test case by Anonymous Coward · · Score: 0

      Then they'd stonewall your attempts to retrieve your money. In the end, you'd have to sell the judgment to a collection agency at a loss.

      It would be *much* more satisfying to employ some Baliffs yourself on the back of the court order and watch as they seize goods from the store to be auctioned.

    10. Re:return-to-store test case by zenkonami · · Score: 1

      Except, and I'm not positive on this, if the store has a no returns policy for opened merchandise, and that policy is clearly stated, is it the responsibility of the store, the distributor, the manufacturer, or the original producers of the content? I would think the store would be covered. If I try to sell a big with a ripped off cover (depending on the nature of the book), I am doing so illegally because according to the notice inside the book I am attempting to resell product that was to be destroyed. But what if it wasn't a strip, and was instead just an accident? Would that still hold?

      Maybe not a perfect analogy, but just a thought.

      --

      Do You Experiment?
    11. Re:return-to-store test case by lysse · · Score: 1

      But the Distance Selling Regulations may come to the rescue there - it mandates a 7-day cooling-off period for goods or services bought remotely. The big ADSL providers think it even applies to them, so I'd be very surprised if it couldn't be ruled to apply to software as well.

      On the other hand, with a free download (eg. SP2, VS Express), the EULA is the contract - it's the only point at which consideration is exchanged.

    12. Re:return-to-store test case by jimicus · · Score: 1

      No, but I'd imagine the Consumer Protection (Distance Selling) Regulations 2000 would apply. These give the customer a cooling off period of 7 working days.

      Source:
          UK Office of Fair Trading

    13. Re:return-to-store test case by rtb61 · · Score: 1
      However that return also legally fails, as you are fully entitled to recover your costs of making the purchase and the return, as you were unable to review the conditions of contract prior to the purchase.

      So that would typically include your time, wear and tear on your vehicle, the time it takes to install and then uninstall the software and can quite readily exceed the cost of the software.

      In most countries all conditions of sale must be available and clearly displayed at the point of sale, any other conditions are strictly forbidden, basically due to the cost to the consumer of making that purchase, which of course the consumer is entitled to recover.

      --
      Chaos - everything, everywhere, everywhen
  34. One Pound! by Finallyjoined!!! · · Score: 1

    I once bought 3 PC's from a local company that had done a mass "upgrade", they were 1.8gig Pentiums with sizeable drives (low-level formatted) & oodles of RAM, for the princely sum of one pound sterling each :-) c/w 19" CRT, kb, mouse & speakers. It was cheaper for them than scrapping

    Can't say fairer than that :-)

    But when I want a new PC for home, I buy from novatech, for the reasons given in above post (no affiliation, have just been buying from them for ever)

    --
    If I had an Ass, I'd call it Fanny Bottom, then I could slap my Ass; Fanny Bottom, on the Arse.
  35. I Do Not Agree letter by HeavenlyWhistler · · Score: 5, Interesting

    A contract is binding when you agree to it. I have always been tempted to simply mail them a letter before installing the software in which I say "I am writing to inform you that I do not agree to your EULA, and I do not agree that I need a license to use this software. Since you sold me these nice shiny CDs containing the software, I am going to go ahead and install it. Have a nice day." Now this violates the Do Not Poke The Bear principle, but is on firmer legal ground than just ignoring it and hoping it will go away. The question is, when their lawyers send you a reply, what can they argue about? You didn't violate copyright (you bought a legal copy from the owner). You didn't agree to a contract so it isn't breach of contract. What legal grounds do they have to say "don't use our software", other than "we don't give you permission"? And who says I need their permission? It's my computer. If nothing else, their demand letter would have to include a refund check, otherwise they are in violation of their own EULA.

    1. Re:I Do Not Agree letter by slcdb · · Score: 4, Interesting
      This is precisely the type of case the USA needs to settle this matter once and for all. Cases like ProCD v. Zeidenberg (the currently going "Gold Standard" for enforceability of EULAs) only affirmed that EULAs are enforceable if they are voluntarily agreed to.

      But what happens if you disagree? I'm unaware of any ruling that would indicate that you MUST return software if you disagree with the EULA. In fact, most cases -- including ProCD, use the UCC for analyzing EULAs. Here's my prediction of how such a case would go down:
      1. The court would find that a CD or DVD containing software is, by definition, a "copy" of software [17 USC Sec. 101].
      2. The court would find that ownership of the copy is transferred to the buyer once the buyer has physical possession of the copy [UCC 2-401(2)].
      3. The court would find that, as owner of the copy, the buyer has a legal right to use the copy of software [17 USC Sec. 117].
      4. The court would have no choice but to rule that the buyer has the right to use the software even if they refuse to agree to the EULA.

      The beautiful thing about this hypothetical case is that the statutes involved are all very clear and unambiguous leaving very little room for interpretation by the courts. Of course, IANAL so I could be ridiculously wrong.
      --
      Despite what EULAs say, most software is sold, not licensed.
    2. Re:I Do Not Agree letter by Anonymous Coward · · Score: 0

      In most of the cases you have to press a button labeled 'I Accept' before you're able to install/use the product. So this is not possible.

    3. Re:I Do Not Agree letter by canajin56 · · Score: 1

      Copyright violation. In the USA, a judge has ruled that you need a contract to legally run software, since when activated the computer loads portions of the code into memory, which is considered copying, and additionally, most software also must first be copied and extracted from archives on the CD, creating a derivative work on your hard-drive. No word on the legality of DVD players, which "illegally" transfer blocks of the film into their internal memory while playing it back.

      --
      ASCII stupid question, get a stupid ANSI
    4. Re:I Do Not Agree letter by Anonymous Coward · · Score: 0

      IANAL, but to my understanding, if EULA is null and void, default copyright law takes effect. Any copying, modification, or distribution of the software requires explicit permission from the author. This includes copying the software from the CD's to your hard drive.

    5. Re:I Do Not Agree letter by slcdb · · Score: 1

      IAANAL, but believe your understanding is incorrect. 17 USC Sec. 117 says that the owner of a copy of a computer program can make any copies necessary to use the program with a computer. If installing the software to your hard drive is a necessary step for using it (it usually is), then there is no copyright infringement.

      The tricky bit comes in when you start asking who is the "owner" of the copy. I think the answer is obvious in cases of retail sales of software. But, in the U.S. at least, the courts have not made it entirely clear.

      --
      Despite what EULAs say, most software is sold, not licensed.
    6. Re:I Do Not Agree letter by oever · · Score: 1

      Did someone see you press that button? A third party may have pressed that button or maybe you toggled a bit in memory or have daemon running that presses such buttons for you.

      --
      DNA is the ultimate spaghetti code.
    7. Re:I Do Not Agree letter by HeavenlyWhistler · · Score: 1

      A person is only bound if he accepts the contract. The fact that the person clicked "I Accept" is certainly evidence that he accepted. But that is trumped by a letter that clearly states "No contract accepted, notwithstanding any Buttons, Widgets, or other Foofraw on my screen that may have been clicked".

    8. Re:I Do Not Agree letter by Chris+Burke · · Score: 2, Interesting


      Copyright violation. In the USA, a judge has ruled that you need a contract to legally run software, since when activated the computer loads portions of the code into memory, which is considered copying, and additionally, most software also must first be copied and extracted from archives on the CD, creating a derivative work on your hard-drive


      But copyright law specifically states that copies made as part of the normal operation of the software are not a violation of the copyright owner's rights. This was presumably done so as to avoid the situation where a user was violating copyright every time they ran a program. Under that judge's decision, how would you ever legally run software that didn't come with any EULA? Do you know the name of this case? I have a feeling it was a bad decision that the defendant simply didn't know or want to appeal.

      --

      The enemies of Democracy are
    9. Re:I Do Not Agree letter by Todd+Knarr · · Score: 1

      To which I'd respond with USC Title 17 section 1 paragraph 117(a)(1) which pretty explicitly cover the matter.

    10. Re:I Do Not Agree letter by EzInKy · · Score: 2, Informative


      Copyright violation. In the USA, a judge has ruled that you need a contract to legally run software, since when activated the computer loads portions of the code into memory, which is considered copying, and additionally, most software also must first be copied and extracted from archives on the CD, creating a derivative work on your hard-drive.


      Please cite, because that makes no sense. Of course IANAL, but US copyright law seems to specifically say that installing and running a program is not infringement.


      117. Limitations on exclusive rights: Computer programs

      (a) Making of Additional Copy or Adaptation by Owner of Copy. -- Notwithstanding the provisions of section 106, 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.


      Copying files from CD/DVD to hard drive and into memory are essential steps to utilize most computer programs.

      --
      Time is what keeps everything from happening all at once.
    11. Re:I Do Not Agree letter by maxume · · Score: 1

      None of that is stuff that software companies care very much about. Sure, they figure it is worth sticking in their, just to see what sticks, but the real reason that there is a EULA that pops up is the warranty disclaimer. It's awful hard to state that you understood it, did not agree with it, and then still argue that they should cover your use.

      --
      Nerd rage is the funniest rage.
    12. Re:I Do Not Agree letter by slcdb · · Score: 1

      There is nothing in the law that says that manufacturers are required to provide any kind of warranty along with the product they manufacturer. The seller (a retail store in the case of retail sales) makes certain implied warranties unless they are expressly disclaimed. This is nothing that software companies need be concerned about.

      And if you think software companies don't care about the rest of the EULA, why not just ignore all those other terms, let your friendly neighborhood software company know you are disregarding them, and see what they have to say about it.

      --
      Despite what EULAs say, most software is sold, not licensed.
    13. Re:I Do Not Agree letter by Alioth · · Score: 1

      ...and in any case, surely it wouldn't just fall under Fair Use anyway? You're merely format shifting the media.

  36. contracts by Anonymous Coward · · Score: 0

    Wut? This is ta legal contract. The primary funciotn of the government is to enforce contracts and protect the homeland. Evereything else is communism. These customors gladly signed on to these contracts in exchange for getting there software. If they didn't understand the agreement they shouldn't'uve bouht the softwrae.

    --
    RON PAUL NOW!

  37. Mod Parent MisInformative by shadow_slicer · · Score: 1
    You are not required to agree to the terms of the GPL in order to use the software. Read the license a little more carefully: It "affirms" (eg. reiterates, reinforces) your unlimited right to run the program. This implies that you already have the unlimited right to run the unmodified program, but under the license this is even more so. This is clarified even further in other sections:

    9. Acceptance Not Required for Having Copies.
    You are not required to accept this License in order to receive or run a copy of the Program. Ancillary propagation of a covered work occurring solely as a consequence of using peer-to-peer transmission to receive a copy likewise does not require acceptance. However, nothing other than this License grants you permission to propagate or modify any covered work. These actions infringe copyright if you do not accept this License. Therefore, by modifying or propagating a covered work, you indicate your acceptance of this License to do so.
  38. priorities by Anonymous Coward · · Score: 0

    I seriously doubt a $6K a month worker from a cash and manpower strapped governmental agency during a time of severe economic recession would be wasting rare taxpayer dollars to investigate a trivial situation involving a piece of $35 software bought from wal-mart.

  39. The end of the monopoly of greed is near by Anonymous Coward · · Score: 0

    This is the end. Das ist das ende! Es etes fini! The very idea that software may actually cause a liability on the seller to produce:
            1. A product
            2. That actually works per the implied Warrantee of Merchantibility or Fitness
            3. Complies with the Irish Sale of Goods Act
            4. Actually is required to have a value more than nil
            5. A product that is liable to be sued if it fails

        just like every other non-monopoly preferred consumer product! Maravelous AusGeseichnet!
    C`est bon! Hope it flies past the sock puppet European Commission.

  40. Lets call it by its true name by Anonymous Coward · · Score: 4, Insightful

    The option to back out.


    Let's call it by its true name: Coercion.

    By the time you're presented with the EULA, you've already exchanged money for a box advertising the features of the software. That's a contract if ever I heard one. The EULA attempts to force you into a new contract, with NO CONSIDERATION beyond releasing their hold on the features and properties of the software that are already yours. That is coercion.

    And no, disclaiming on the box that you have to agree to a contract is NOT sufficient if they are not disclosing the terms of the contract itself.

    IANAL, but I have studied with one.
    1. Re:Lets call it by its true name by slcdb · · Score: 4, Insightful

      And no, disclaiming on the box that you have to agree to a contract is NOT sufficient if they are not disclosing the terms of the contract itself.
      Like it or not (I don't) many US courts have decided that such a disclaimer on the box is sufficient (see ProCD v. Zeidenberg).

      However, I don't think this detracts from your coercion argument. Even if the EULA is considered to be an extension of the contract for sale that was begun in the store, the buyer has already taken on the responsibilities of ownership by the time the EULA is presented (e.g. risk of loss, theft, or damage to the goods in transit to the buyer's home). Therefore the buyer must also obtain the rights of ownership. One of the rights of ownership of software is the right to use the software with a computer (section 117 of the Copyright Act bestows this right). The EULA is an attempt to interfere with this right.

      So, even if the EULA is viewed as an extension of the contract for sale, any terms in the EULA that interfere with the buyer's ownership rights are, by that time, unconscionable. And the attempt to force the user to agree to those unconscionable terms is still coercion.
      --
      Despite what EULAs say, most software is sold, not licensed.
    2. Re:Lets call it by its true name by KDR_11k · · Score: 1

      IIRC those judges ruled that you can be reasonably expected to know that an EULA is in there and what the terms roughly look like (the whole bought-not-licensed crap and the disclaimer for all damages). However this argument fails whenever an EULA includes nonstandard terms (e.g. privacy invasion, online behaviour rules, ...).

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    3. Re:Lets call it by its true name by grahamm · · Score: 1

      Not only does the EULA try to force you into a new contract, it is a contract with a third party. The contract of sale is between the retailer and purchaser but the EULA is not a contract with the retailer but with a software house. Unless it is claimed that for sales of software you are not buying the package from the retailer but that the retailer is acting purely as the software house's agent (and therefore the contract of sale is between the purchaser and software house)

  41. EULAs invalid by redelm · · Score: 1
    This UK group seems to accept at face value that EULAs are somehow valid when they fail the most simple tests of contract -- a meeting of the minds at consummation.

    Yes, I'm aware some courts have upheld EULAs valid. Bad facts make bad law.

    But the simple fact is a sale has taken place with certain terms. Imposing other terms afterwards is simply called "reaching". If the companies wanted EULAs enforced, they'd have tear-off signing cards on their products. Then it would be very simple. But the companies choose not to do so for marketing reasons or other convenience. Yet still wish to have the advantages of contract bestowed upon them. Have their cake and eat it too.

  42. EULA by Anonymous Coward · · Score: 0

    By reading this EULA, you hearby agree to retroactively and forever afterwards never be bound by the terms of an other EULA.

  43. Prove I clicked the box by Bullfish · · Score: 1

    Actually, I wonder how they would prove that I clicked the EULA box. I purchased a refurb machine for example from a local reseller. A bunch of software was pre-installed. Some I blew away, some I kept.

    At that point, I agreed to nothing, nor did anyone ask me to agree to anything.

    Like most waivers, EULAs are more to dissuade you from believing you have rights.

  44. New Zealand has had this for 5 years by EmbeddedJanitor · · Score: 1
    The NZ Consumer Guarantees Act has applied to software since 2003. http://www.consumeraffairs.govt.nz/businessinfo/cga/goods.html

    If you buy software, or a system, and it does not do what you may reasonably expect then you get your money back.

    --
    Engineering is the art of compromise.
  45. Yes, but by Daimanta · · Score: 1

    Contract's a contract Yes, but only between Ferengi.
    --
    Knowledge is power. Knowledge shared is power lost.
  46. It was one of the best licenses ever by cheros · · Score: 1

    I liked the "as a book" license because it was very clear what right you had, and it explained this by means of a very simple concept. I personally found it one of the easiest licenses to work with. And then they screwed up and went the way of the dodo..

    --
    Insert .sig here. Send no money now. Owner may sue, contents will settle. Batteries not included.
  47. They almost certainly aren't by Sycraft-fu · · Score: 5, Interesting

    The evidence I point to the most is that I work for a state university. As a state employee I can't sign anything for the university, it all has to be sent to legal. Have to make sure that everything is kept in a row as far as what the state agrees to. However they've told us we can just click through on the licenses on software. Clearly, it is because they don't believe they are enforceable, and they are a rather cautious lot.

    As for being a contract it fails in several ways:

    1) As you noted, there's no exchange. A contract MUST have an exchange to be valid. Even if you do something like quit a claim to a house (like you helped your kid by co-signing for it and now you are giving it over to them) it will still read "For the sum of $10 and other valuable consideration." Why? If there wasn't an exchange, the contract would be null.

    2)It's ex post facto. Contracts have to happen before the sale, not after. That's why when you buy a house all the loan documents and such are done before you take ownership, before money changes hands. You can't try and say "But you agreed to this!" after the fact, you do it before hand or it is too late.

    3) Not open to negotiation. That's what the "meeting of minds" thing means. A contract has to be open to negotiation. You don't have to meet face to face or anything (often it is done through the mail) and you certainly don't have to accept what the other side proposes, but you have to be open to it. You can't hand them a contract to sign and then have no way to get back to you.

    4) No proof of agreement. That someone clicked "I agree" means nothing. There's no proof you agreed to it, or indeed that you were capable fo doing so. What happens when a minor buys a game and installs it? A minor can't enter in to a contract on their own, the parents never cosigned, etc.

    There is really nothing about an EULA that meets the normal standard of what a contract is. If they want a contract governing their software, they need to have you sign it beforehand. However I'm going to guess that if people are presented with a 10 page wodge of text (EULAs are longer than any rental agreement I've seen) to read and sign when they try and buy an Xbox game, that it'll prove quickly to be an unworkable business model.

  48. US courts are okay with them, this is the EU/UK by SmallFurryCreature · · Score: 4, Insightful

    There is a difference, in the EU consumer rights mean something.

    Do you know about dead pixels in LCD screens? The one the industry tells you are acceptable? Dutch law clearly FORBIDS this. ANY LCD with a single defective SUB-pixel has to be replaced. No argument possible. The netherlands is the only country where sony replaced every PSP with ANY pixel problems.

    So you are right in saying these EULA's are not illegal in the US, but the EU has far better laws for protecting the consumer and it has long been known by any who follows consumer afair programs they are entirely without worth within the EU and any company that tries to take you to court over one will find a very hostile judge. Hence why they never been tested, the companies know they will loose it.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  49. Copyright BS by rueger · · Score: 1

    I despise the signs at every store claiming that "due to copyright law" they will not accept returns. This is complete and utter nonsense and there is nothing in copyright law preventing them from accepting returns on software that doesn't work.

    If retailers were forced to accepts returns and provide refunds for every software item that doesn't work as advertised, doesn't work on a specifc computer, is too slow to use, has lousy technical support, or breaks something else, we would likely see overall quality jump pretty damned fast.

    As it stands now the end user is asked to drop $200, $300 or more for non-returnable disc with no promise whatsoever that it will actually do what's expected. Is it any surprise that tech savvy people choose to shop at Pirate Bay before laying out cold hard cash?

    1. Re:Copyright BS by Arimus · · Score: 1

      They can't refuse returns under the sale of goods act...

      Those notices are similar to the 'no liability accepted for any damage however caused' signs - there to discourage people but worthless in law.

      --
      --- Users are like bacteria -> Each one causing a thousand tiny crises until the host finally gives up and dies.
  50. What about children and computer games? by nasor · · Score: 1

    I have always been curious about the legality of children and EULAs. Is it technically illegal for a child to purchase and install a computer game?

  51. Not an end user agreement by Anonymous Coward · · Score: 0

    It even says in the preabmle that merely to use the software (therefore be an END USER) you don't have to agree to squat. If you are going to be an INTERMEDIATE USER, I.e. give copies to other people, you do have to agree to how you will give those copies out. Even if you don't agree, all that means is you cannot be an intermediate user.

    However, reading your comments, despite being highly modded, you don't WANT to understand, you just want to say "not true, it's a lot more difficult".

    Why? The only reason why it's so difficult is because of copyright itself.

  52. Re:Contracts can be modified before they are signe by vux984 · · Score: 1

    Even if there was a pre-clause that said the EULA couldn't be modified, I could cross that out too.

    Actually, most EULA's seem to have a clause saying that they can be updated at any time without notice, and to be sure to check their website hourly so you don't miss any changes.

    In which case, you can simply cross that out and have it point to your own website, where you will maintain EULA's you can live with. ;)

  53. Re:Do you accept these terms? Only option is "Next by Timothy+Brownawell · · Score: 1

    If you start a new computer (w/ Vista) for the first time, you are presented with a screen to accept the EULA.

    What's (NOT!) funny here is that the only option is to accept and click Next.
    There is no option for Cancel. Just poweroff... ...So the button actually says "Next" and there's nothing to clike that says "Yes" or "I Agree" or something like that?
  54. Not all EULA's are bad by Spikeles · · Score: 1

    Take the Virgin Digital one for example:

    VIRGIN DIGITAL
    TERMS AND CONDITIONS

    Please read the following usage agreement carefully. It is a legal contract between you and Virgin Digital that governs your use of Virgin Digital's services. By agreeing to the terms within, Virgin Digital is granting you a limited license to use the software, subject to certain restrictions. IF YOU DO NOT AGREE TO THE TERMS OF THIS LICENSE, DO NOT USE THE SOFTWARE. YOU MAY RETURN THE SOFTWARE TO THE PLACE WHERE YOU PURCHASED IT FOR A REFUND. IF THE SOFTWARE WAS ACCESSED ONLINE, CLICK "DISAGREE/DECLINE".

    NOTICE

    This software is licensed to you only for the reproduction of music and/or video that you own or have the expressed right to use as the software allows. Any attempt to reproduce copyrighted material that you are not expressly permitted to use is not legal, not good for the economy, and not nice. Furthermore, it is not cool, it is not kosher, nor is it the kind of thing that your parents would be proud of. Put the kibosh on it. Hey, are you reading this thing? I didn't think so. Nobody ever really does, do they? Except the lawyers who write it. Think about it - you're a lawyer, making god-knows-how-much and hour, and this is the best you can come up with? Lame.

    WARRANTY

    The usage of the Virgin Digital software is at your sole risk, and all risk as to all aspects of the service including quality, accuracy, and performance is on you. Yes, we worked hard to make this thing great. But, regardless, it is provided "as is" and without any warranty at all. Should the software not work correctly (or affect the performance of your toaster or other small appliances in your home), you assume the entire cost of any servicing or correction. Sorry if this sounds harsh. If it helps, think of this past paragraph being read aloud by a chorus of small leprechauns. With lisps. And gas. There, that's better.

    PERMITTED USES

    This License allows you to install and use the Virgin Digital Software. The Virgin Digital software, and all other software made available by Virgin Digital on or through the Service, are protected by intellectual property laws and your use of them is governed by this Agreement as well as any applicable end-user license agreements. You may not reverse engineer it. You may not copy it. You can take an occasional screenshot if you want to show family & friends, but that's about it. Please don't hack it. We worked really hard on this thing. Okay, finally, we recently saw the following disclaimer on a competitor's usage agreement: "THE SOFTWARE IS NOT INTENDED FOR USE IN THE OPERATION OF NUCLEAR FACILITIES, AIRCRAFT NAVIGATION OR COMMUNICATION SYSTEMS, AIR TRAFFIC CONTROL SYSTEMS, LIFE SUPPORT MACHINES OR OTHER EQUIPMENT IN WHICH THE FAILURE OF THE SOFTWARE COULD LEAD TO DEATH, PERSONAL INJURY, OR SEVERE PHYSICAL OR ENVIRONMENTAL DAMAGE." What does that mean? Who would use music software to operate a nuclear facility? Did they put that disclaimer in because at one point someone did in fact navigate an airplane by using their music software? Is that even possible? I can't imagine it is, but hey, if they feel that it's necessary to put that stuff in a software usage agreement, well then so do we. Needless to say, when we think about it, we get pretty creeped out.

    SERVICE DESCRIPTION

    The Virgin Digital Service affords you the unique and thrilling opportunity to experience 30 second samples of music and to stream, download and think about digitized sound recordings and related nifty digital content. To access the Service, you will need to install or activate Virgin Digital's proprietary software application; occasionally, you may also be required to install other software made available through the Service (collectively this is referred to as the "Client" - do you think our lawyer named this for us?). You may also need to install certain third-party software, although we have no idea what that might be. You are responsible for any hardware, systems and/or software program(

    --
    I don't need to test my programs.. I have an error correcting modem.
    1. Re:Not all EULA's are bad by shentino · · Score: 1

      Bullshit.

      If the company that retailed it to you goes bankrupt, aren't you kinda SOL?

  55. EULAs are inherently fraud by Anonymous Coward · · Score: 0

    When a company discloses a EULA to you post-sale, that is FRAUD. For example, when Microsoft answered my question about the EULA on XP Pro with one copy from their web site, but then tried to force me to agree to another one on the CD, they committed fraud against me.

    My recourse was to take Microsoft's property in compensation for their criminal fraud. I have a worldwide, nonexclusive, perpetual license to distribute all Microsoft software until the corporate career criminals at Microsoft are punished.

    I'm such a nice guy, I give it away free. Check the torrents.

    Andy

  56. EULAs are part of the game by zmooc · · Score: 1

    What a load of bullshit. If you buy a computer game (yes, Microsoft Office is a computer game;-)) how can you be expected to know that the part of the game where you need to click the Accept-button below a shitload of bullshit text is not part of the game? Of course it is part of the game.

    --
    0x or or snor perron?!
  57. Sign it? by Roger+W+Moore · · Score: 1, Interesting

    You don't get the chance to review the contract before you sign it.

    Sign it? I've never signed a EULA. I might have clicked 'I agree' but that carries no legal weight, at least in the UK. They need my signature.

    1. Re:Sign it? by Anonymous+Brave+Guy · · Score: 1

      I might have clicked 'I agree' but that carries no legal weight, at least in the UK. They need my signature.

      Are you claiming that no contract can be formed in the UK without a signature?

      Or are you aware of some statute or case law that says simply clicking "I agree" isn't enough?

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
  58. RTF - EULA??? by Kaishaku255 · · Score: 1

    Actually, you didn't purchase the software and you don't own it. That's the nasty thing about the EULAs and what makes them so wrong.

    According to most EULAs *cough*Microsoft*cough* I have read, what you actually laid your money on the table for was neither the software nor the CDs. It is for the license to use the software.

    So in essence, sending a letter saying you don't agree to the EULA doesn't matter to them. They will happily point to the EULA and say "But you don't own the software, we do. You have paid for the license to use it on your computer. You sent a letter to us refusing to abide by our licensing terms, therefore you have no legal right to use the software. Have a nice day and the BSA will be visiting you soon."

    Software companies look at the CDs and the software as just incidentals. They don't really matter. All that matters is the license.

    --

    Seppuku: Your solution to my problems!

    1. Re:RTF - EULA??? by Anonymous Coward · · Score: 0

      Microsoft, RIAA, etc, are free to claim that interpretation, but that doesn't mean the law agrees with them. You've legally purchased a copy of the program, with no contractual strings attached. US copyright law entitles you to make further copies that are necessary for executing the program, and no law has ever required a license for mere use.

      They are attempting to impose upon you further restrictions after sale without offering you anything in return. That's not a legal contract. We wouldn't even be having this discussion if you there weren't an argument that clicking "I agree" was acceptance of terms.

      In that light I say the GP is very relevent.

  59. Finally someone actually is doing something. by Neanderthal+Ninny · · Score: 1

    Even though this is UK but someone notice how bad for the consumer these EULA are written. I wish that the Feds had enough nuts and intestinal fortitude to do this also. Reading the most EULA will take at least 1 hour and even you had a question it will take another day or more to get an respond (good luck if anything else without a form letter). I remember a long time ago that there was one EULA from a company that actually had a prize of $100 if anyone would read entire EULA and someone did get that prize. I wish that EULA were written in shorter and human language (not lawyerese) so humans hand read it in a reasonable period of time. Also someone like the ACLU (I'm not a fan of) or independent party that ensure that the EULA is not unconstitutional. Note I didn't legal since so many laws are leaning towards big business so the consumer is on the losing the end of most laws since the lobbyist are "encouraging" the law makers to make laws for the big business.

  60. Installation = copying? by Anonymous+Brave+Guy · · Score: 1

    I don't get how they could have, since copyright law specifically states that copies made as part of the normal course of operation of a piece of software (i.e. from disk to memory) aren't violations.

    Whose copyright law says that?

    As far as I'm aware, there is still this dubious legal situation in the UK where the relevant European-level agreements carry such a waiver, but the UK implementation of the corresponding law accidentally forgot that innocuous-seeming little detail. I agree, though, that if that "oversight" were fixed it's hard to see how any consideration is moving in the direction of the user and thus why they would have any obligations under any contract with the copyright holder once they have obtained a legitimate copy of the software to install.

    --
    If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    1. Re:Installation = copying? by Mr2001 · · Score: 1

      Whose copyright law says that [copies made as part of the normal course of operation of a piece of software (i.e. from disk to memory) aren't violations]? The United States.
      --
      Visual IRC: Fast. Powerful. Free.
    2. Re:Installation = copying? by Anonymous+Brave+Guy · · Score: 1

      OK, that's great, but this story is about the UK.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
  61. Worth keeping an eye on by mhoulden · · Score: 1

    In the UK we've got various laws protecting consumers. Also worth remembering that Scots law is somewhat different from the law in England & Wales. The main bit of law is the Sale & Supply of Goods Act 1994 which states that goods must be of reasonable quality, as described and fit for purpose. If you buy second hand, goods have to be as described but that's it. The contract is between you (as the consumer) and the retailer. The manufacturer doesn't get a look in and they can't add terms to the contract after it has been made. If the goods become faulty within 6 months of purchase, it is assumed that they were faulty when they were purchased and it's up to the retailer to prove otherwise. Specifically on guarantees, section 15 of the Sale and Supply of Goods to Consumers Regulations 2002 mentions that "The guarantor shall ensure that the guarantee sets out in plain intelligible language [my italics] the contents of the guarantee and the essential particulars necessary for making claims under the guarantee, notably the duration and territorial scope of the guarantee as well as the name and address of the guarantor."

    Something else we have is the Distance Selling Regulations which covers mail order stuff. This gives you a cooling off period of 7 days after the goods arrive, during which you can cancel no questions asked. If the supplier wants the goods back, they have to pay the postage. They also have to refund within 30 days.

    As far as EULAs go, it's a bit like Heinz putting a note on the inside of a tin of baked beans that says you can't sell the tin to someone else and they aren't responsible if the tin explodes and causes damage. The Unfair Terms in Consumer Contract Regulations 1999 covers one part of this and the Consumer Protection Act 1988 covers another bit.

    All these rights are protected by law and it's illegal for any contract, EULA, guarantee or whatever to exclude them.

    Another bit of protection is offered courtesy of the case of Donoghue v. Stevenson. May Donoghue met a friend at a cafe. Her friend bought some drinks, including a bottle of ginger beer. Mrs Donoghue drank it and found a dead slug at the bottom of the bottle. Naturally enough she fell ill and decided to sue David Stevenson whose company made the ginger beer. Stevenson claimed that she wasn't entitled to anything because it was her friend who bought the drink and not her. The case ended up in the House of Lords (highest court in the UK at the time) and it was decided that Stevenson had a duty of care to the end consumer, even if they didn't pay for it. (Claims in advertising are covered by the case of Carlill v Carbolic Smoke Ball Co, another bizarre one).

    It'll be interesting to see what the OFT investigation comes up with. There's more to writing an EULA than just crossing out "

  62. Installing employee can't legally bind his company by Killer+Eye · · Score: 1

    Dealing with EULAs is a real annoyance for software used at work, because of a simple fact: lawyers don't install software, I do. Why the hell is the software shoving this crap in my face, since I don't have the authority to legally bind my company to scary terms?

    The result is simple: I can't bind the company so I don't use the software. In other words, software companies, your EULA directly reduces your sales. It makes me recommend free/open software to my managers every single time. A bullshit-free, get-on-with-your-day, you-won't-go-to-jail software installation process makes for a very productive group that day, whereas sending something to a legal department for review can take months. (And no, I am NOT kidding...lawyers can be slow as hell when it comes to these things.)

    Of course at home, I frankly ignore an EULA and grumble about its very existence every single time. Except when I encounter a window that helpfully disables the Agree button until I scroll down to the bottom, simulating absorption of mindless legalese before being allowed to continue (in which case, I also grumble about those who wrote the installer).

    --
    "Microsoft killed my company, I hold a personal grudge. I don't use Microsoft products and neither should you."-JWZ
  63. When is a contract not a contract? by Anonymous+Brave+Guy · · Score: 1

    Contract's a contract...

    Yes and no.

    As others have mentioned, there are various laws that can invalidate some or all of a contract, for example if it is unconscionable. Of course, this is like a reasonableness test: it's unwise to bank on it too readily, as in most cases it's subject to interpretation.

    To give a relevant example: when I installed my legally purchased copy of Crysis the other day, I was presented with a licence agreement a full 70 (seventy) screen pages long. The final section relates to the PunkBuster anti-cheat software, which is installed by default, and contains text that pretty bluntly says you accept that they will be scanning your entire system and can copy whatever data they like off it even if this might be regarded as invasive, and you have no guarantees in return. Personally, I think that is completely unreasonable and should be held unconscionable. However, there is no guarantee that the law will agree with me, unless there's been a test case I haven't heard about.

    The more interesting question is how an EULA can possibly form a contract in the first place. For a contract to exist, there must be something in it for both parties. Once you've paid up and taken the box home (a simple contract of sale with the vendor), you now have a legitimate copy of the software, and there are certain provisions in European law that say you are allowed to make copies necessary for the normal operation of that software without further permission (though the UK implementation of these is rather incomplete, and I don't know enough about the legal technicalities to know which takes precedence). If the European law dominates, then there is literally nothing in it for the user, so why would a contract exist that imposes any further obligations on them? Then we get into product activation and technical measures, which in turn leads to a debate about planned obsolescence, anti-DRM laws, fitness for purpose of the product sold at the store, etc. Those issues start to go beyond simple copyright and contract law, of course.

    --
    If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
  64. Microsofts Thoughts by WMIF · · Score: 1

    At my old company, not quite a year ago, we were looking to get services from Microsoft (not my decision). The President of that company is really anal about having all vendors and employees of vendors sign a NDA. Microsoft lawyers said they would sign for the company, but they would not allow their employees to sign NDA's for themselves. Their reason: their employees are not lawyers so they should not be forced to agree to a contract they may not understand. Talk about contradiction...

  65. Re:Do you accept these terms? Only option is "Next by Anonymous Coward · · Score: 0

    This is for a new computer with Vista. The first boot is where it asks you to accept the license.
    When you click to accept the license, the only option is to click on Next.
    If you do not click on the license, there is no option to switch of the computer other than doing a hardware shutdown.

  66. EULA's are not legal by Anonymous Coward · · Score: 0

    If they were, Ford would simply say "by opening the glove box, you
    agree not to sue us if (when) this vehicle explodes in a fiery ball
    of death". And they would be off the hook.
    They didn't. End of discussion.

  67. Re:Not a day... - 2 decades+ by harvey+the+nerd · · Score: 1

    "Software companies has enjoyed unprecedented loose consumer protections...protection is really the laws about advertising" Perhaps you haven't seen Windows ME or Vista in action, the advertising laws' effects were close to *meaningless*. Basically the "artistic warranty" with a liberal use of lawyers allowed MS "engineering" to set the example of unresponsible behavior and defective software for the software industry, shipping alpha software despite deleting highly hyped features. Maybe that was Bill's 800V showing as an "alpha male".

  68. Turning EULAs to advantage by Benjamin_Wright · · Score: 1

    Contracts like end user license agreements (EULAs) need not necessarily be bad for individuals. For the purpose of promoting privacy or other rights, an individual might post an agreement on her web site or social networking page, or broadcast the agreement via e-mail or radio. A small business might try the same to deter a snoopy tax collector. These ideas aren't legal advice, just something to think about.

    --
    Benjamin Wright, Dallas, Texas, benjaminwright.us
  69. Reverse Engineer My Arse by Keeper+Of+Keys · · Score: 1

    The 'do not reverse engineer' clause has always seemed to me the most unreasonable restriction. If I buy something mechanical - a clock, say - I am free to take it apart, reassemble it, use the parts in artworks, etc. The software vendor have already given me instructions on precisely how the software works, in machine-readable form. Why may I not also understand how it works, tinker with it, improve it? They are taking advantage of the fact that most desktop software currently happens to be compiled to binary form. If it is written in an interpreted language - Python, say - it already happens to be in human-readable form, too and there's no reverse engineering necessary.

    But then, I don't see how they could ever enforce it - if I don't post it anywhere, how would they know? This is how knowledge advances - "intellectual property" be damned!

  70. Satan's EULA to be accepted. by Anonymous Coward · · Score: 0

    Sadly, i can not code in the least. Else i would program something useful like a video-cutting-program with an EULA like hell on earth, just to see how much i can abuse the system of "software license" agreed by the user after buying my software for a low fee.

    1. The developer of this software is by no means responsible for his shitty code, which may damage your computer, drink your milk or threatens your life.

    2. Agreeing to this EULA is a tacit agreement by you, to sacrify your first born son to Satan on his fifth bithday on a moonlit night in your backyard.

    3. Should you attempt to copy, sell or reengeneer this software to your needs, you agree to be boiled to death in oil.

    4. You agree to let this software collect all your e-mail adresses of your buisness contacts and to let it send them at least weekly to an internet server located in russia for marketing purposes.

    5. Agreeing to this EULA is also bound to a contract with Scientology, where you will be enlisted automaticly to a brainwashing program and have to pay heavily for knowlege you don't really need. Your soul and mental health is now our property!

    6. If any of the above terms does not legally apply in your land, it can't be refused. It then will apply ILLEGALLY!