Federal Court Says First-Sale Doctrine Covers Software, Too
New10k writes "The US District Court in Seattle has rejected Autodesk's myriad arguments regarding its software licenses and found in favor of eBay seller Timothy S. Vernor. The ruling started by ruling that Vernor was within his rights to resell copies of AutoCAD Release 14 he got in an auction. Once the court settled the legitimacy of reselling, it used that ruling as a lens to dismiss all of Autodesk's various claims. More than once the court described Autodesk's arguments as 'specious' and 'conflicted.'" Autodesk managed to have Vernor's eBay account pulled, after he listed for sale copies of AutoCad 14. He sued Autodesk in response.
Score one for the little guy!
Can autodesk skirt this by making its software connect to an autodesk server and validate the presence of a (non transferrable) user account?
Because that is exactly what World of Warcraft (and all MMO's, for that matter) does.
Autodesk would then give the software away for free, but sell the user accounts for whatever they want.
Those of you who have not had to deal with their software and their heavy handed approach to licensing and upgrades are lucky.
What I could not figure out from the article was: What happens now to his ebay account? If it was pulled, I hope ebay restores it. Bugs me that ebay, google, youtube etc. always gets away for enforcing bogus claims. I did RTFA, but please enlighten me if I have missed something.
Dvorak on Doomtech
AutoCad aggressively attempts to make itself irrelevant. Why generate such bad press over a single copy... This follows the same backwards mentality of the book publishing industry, which thinks the less books in the hands of people the better.
A bit off-topic, but I'm wondering if Apple was actually waiting on this ruling before going after PsyStar for OS X.
Those who believe the Internet is private,
find their privates are on the Internet.
A similar ruling is in effect in Finland since a number of years. The case was vs. Microsoft, decided by the supreme court that reselling MS Windows licenses is perfectly OK and Microsoft can't stop it. Don't have the reference handy, sorry.
Trusted Computing FAQ | Free Dawit Isaak!
It's about the courts re clarified this for software. When you buy a physical product, you should have the right to sell it.
What happens now with all the authentication and tying copies of software to the hardware it's first installed on such as Windows XP/Vista?
You have a right to sell your copy, but effectively you can't because it's been tied to your hardware.
I created a 4 hour video on building boats. I sell probably 30 a year. An online video rental site bought a legal copy and now rents my video out at $15 per week.
So why should people buy my video at $80 if they can get it for next to nothing on the web and most likely just burn their own copy? That's First-Sale Doctrine and it can also suck for the little guy.
How many of you have found the actual license agreement is on the media stored in the packet? So in order to read the agreement, you have to open the packet.
The ruling is important because it calls into question the whole concept of a Non Transferable license. The court found that âoefirst saleâ doctrine of copyright law did apply. http://en.wikipedia.org/wiki/First-sale_doctrine
If this hold, it will largely eliminate the non-transferable license in software.
And why shouldn't it? As long as the original owner retains no copy, selling an unused license simply keeps that copy under maintenance (maintenance charges frequently exceed sales revenue) and keeps the money flowing to the authors.
Nontransferable licenses are usually attempted by companies that have some sort of a near monopoly lock, so that not only do they gain from a new sale, they also gain from maintenance charges. If there are multiple vendors of equivalent software you really can't get away with nontransferable clauses.
As a software author, I'd gladly accept continued maintenance fees instead of new sales revenue. If my customers know that unused licenses have residual value when their projects are completed its good for me, and good for them. They buy extra licenses to handle the surge effort of development, and retain a few licenses for maintenance.
Sig Battery depleted. Reverting to safe mode.
Wow, that guy has some rocks. In the second link, you find out he sues them without a lawyer. That's not an easy thing to do in a US District Court.
I just read this article. The author has no idea what a summary judgment motion is, nor the significance of having it denied. Summary judgment motions are just long shot motions brought early in a case to try to dismiss it if there are no facts in dispute. The significance of a *denial* of such a request simply means there are facts in dispute, or the law isn't so clear. IT IS A NON-EVENT. Nobody has won -- the case simply proceeds.
I mean, look at how libraries have put all those authors and publishers out of business.
You can get the books for free there! It totally destroyed the book selling market.
Weaselmancer
rediculous.
I'm glad to see this was slapped down. From my understanding (from reading the article) is that Vernor obtained boxed copies of AutoCAD (through some legal means) and then sold them on eBay. AutoDesk was claiming that Vernor was bound by their software license agreement. Even if you accept the validity of a click-through license (a big IF, I know), how would he have been bound by a license that he never clicked "I Agree" to? In AutoDesk's reasoning, did his mere purchasing of the boxed software bind him to the license? I can see how a judge would laugh this out of court. At least with a click-through license, you can present the license's text. In a "buy the box, bound to the license" agreement, where would the license be presented to you? As you were about to pay for the box, would the Best Buy checkout clerk hand you a 10 page agreement to sign? If they didn't, then the license can't be binding (you need to be able to read a contract before agreeing to it), if they did, a lot of people wouldn't feel comfortable signing a big, legal looking document every time they picked up a piece of software.
My sci-fi novel, Ghost Thief, is now available from Amazon.com.
Well, this is what happens when you go to court. You sometimes lose. Expect Autodesk to quickly settle this out of court with quite generous, but non-disclosed, terms to Mr. Vernor. I don't see how they can take the risk that an appeals court will uphold this, so I expect them to pay him a lot of money (maybe $100,000 or more) and have him agree to a non-disclosure of the settlement. The court case will be dropped and Autodesk will not admit to wrong doing and the ruling won't apply since they settled. This will keep the door open that Autodesk or some other company might be able to try a similar case in the future and get a ruling in their favor.
I have a client that was recently nailed by the BSA for having illegitimate copies of Autocad, because they purchased them online through various Ebay auctions (they only needed 2005 LT, not the latest and greatest, expensive version). The BSA deemed their less than 10 copies to be illegal, and nailed them with a hefty fine. My client wanted to avoid a legal battle, so they settled and paid this fine.
That being said, does anyone know what the laws are in Canada regarding reselling retail, boxed Autocad, and if my client had a foot to stand on?
This blog entry by William Patry adds quite a bit of background.
Patry is Senior Copyright Counsel for Google.
Cisco has always claimed that when you buy a new router or catalyst switch from them that the IOS license is only good for the original purchaser of the hardware. You can legally sell the h/w as used equipment to another party later, but cannot legally transfer the firmware license to the buyer, they are supposed to have to re-purchase the IOS license again from Cisco, else they are illegally running it if the used router or switch came with the IOS software still present in its flash memory.
Certainly more than a non-event.
The denial means that if Vernon's version of the facts are correct, he wins. The only question is whether his version of the facts are correct.
The case still goes on, but the opinion is good precedent for future cases with similar facts.
I think a very valid argument is being made, and people have been saying this for awhile. People share and lend books to friends all the time. Yes, it is difficult to get a break in the book market, but the real advantage in movies and music (fir the producers) is barriers to market. As Lawerence Lessig argues (in part) in his book Free Culture, movie companies don't care about piracy, what they worry about is a reduction in the barriers to market. P2P enables anyone with a $200 camera and a $1500 computer to be a movie producer and seen by anyone almost instantly with no restrictions to geographic region. This terrifies the big movie companies. It has been easy for them to make lots of bad movies because there are not a lot of alternatives when it previously required millions of dollars and the studios permission to get in on the game.
As for CD's? It is as dead as AM radio (AM Radio has a dirty history, read Free Culture)
Want Big Business out of government? Take away the incentive and start by getting government out of big business!
That argument works just fine for music, but IMHO not so great for movies.
Reason being, a good song is just that - a good song. Three or four people with a few thousand dollars worth of gear can make some damn good music. Put them in a million dollar studio and the quality doesn't really go up all that much.
A good movie is a lot more difficult. Far more expensive. While scripting lately has sucked, Hollywood can't really be beat in terms of technical prowess. Unlike music, the more money you throw at a given project the better the results. Watch some of the other CDs that came with your Lord of the Rings set to see just how much went into making that, for example.
To put the argument on the other side of the court - how about porn? The one movie market where the large retailers and the home producers are on close to equal footing. Reason being - no script, no special effects, no huge budget. All you need is a room, a camera, and a few willing people. And homemade porn sure hasn't put a damper on the professionally produced variety.
I think the music people are far more worried about the "barrier to market" argument. And the litigation record would probably back that up. It's the RIAA that's going mad with the lawsuits. Compared to those folks, you hear hardly a peep from the MPAA.
Weaselmancer
rediculous.
They already have the PLU, which is just ONE way to create an extreme hassle to would-be second-owners, and a deterrent to first-purchaser resales.
Basically, the PLU, or portable license utility, is installed with every protected Autodesk product. Well, at least with AutoCAD. After you register and authorize your licensed copy (electronically or over the phone, etc), the PLU ties that license to that machine. If you install and try to run another instance of the software on another machine, or even reinstall on your own after a total disk wipe, you'll have to re-register or at least get re-authorization.
http://discussion.autodesk.com/thread.jspa?threadID=608297
http://discussion.autodesk.com/thread.jspa?threadID=478591
http://www.autodesk.co.uk/adsk/servlet/item?siteID=452932&id=6005296&preview=1
http://www.cvis.com/MP/Using_the_Portable_License_Utility.htm
http://www.tovna.com/main/softlock.htm
http://www.cadforum.cz/cadforum_en/qaID.asp?tip=2396
When you want to legally for a day or a week or whatever transfer the user activity from one machine to another, you activate the PLU, specify the target machine to which the license is to be sent. When done, do the same on the current machine to get the license back to your original machine. If you botch it, you've got to call Autodesk. Botch it TOO many times, they'll forever deny re-authorization for that particular license.
If confused, contact Autodesk, or go visit the AUGI and other sites.
I don't particularly have a problem with the PLU. But, if the PLU is used to deprive resale by legitimate license holders who want to dispose of the product and maybe use a competing product, then "locking in" the user is heinous. I use AutoCAD for WORK. But, for my hobby, I use TurboCAD and Punch! ViaCAD and marine products meant for ship design. AutoCAD 2009 and even 08 have some nifty features, but about all I don't like about TC & VC is their pseudo-command-line is limited to single strokes, not multiple characters. That makes me think AutoCAD has some "patent" lock or threat against other CAD companies attacking AD on the command line. If that is TRUE, then that'll be yet another reason for me to continue using the smaller guy for my non-work activities.
Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
I knew that would be a bit of an inside joke.
:)
AM radio was a big and powerful medium long before tv, but there were some serious drawbacks (like that annoying perpetual humming in the background). Edwin Armstrong, scientist, was commissioned to improve on AM radio on the promise that big media would license it. Mind you they held all the patents for all the technology and the power to control the future technology in many ways money can.
What was totally unexpected was Edwin went on to develop FM radio, something beating all the problems of AM, and totally outside the scope of big media control. Just as Edison tried to do to Tesla with AC power, Edwin was discredited and sued into oblivion, and during all the distractions of a European war, big media managed to buy protection from congress to ensure FM would have to stay within a narrow band of frequencies and transmission power, despite the fact FM was and is superior in every way. Note:limiting transmission power was necessary to ban it from being usable by the government or telecoms which would have required the kind of power that was only legal for AM, for trans-American and transatlantic broadcast. Edwin, eventually old and ruined, seeing what he knew was great destroyed, went on to blow his brains out.
And today we have a strong and thriving AM radio industry, a towering zombie icon to political corruption and an eternal symbol for the power of money!
So as I said, their dead like AM radio
Want Big Business out of government? Take away the incentive and start by getting government out of big business!