
01-05-2008, 01:39 PM
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Approved Member
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Join Date: Nov 2007
Posts: 135
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But there is plenty of doubt that the EULA is enforcable in a civil court of law
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Step-Saver Data Systems, Inc. v. Wyse Technology, 939 F.2d 91 (3rd Cir. 1991) was case in which the legality and history of computer EULAs was explored. The court noted, "When these form licenses were first developed for software, it was, in large part, to avoid the federal copyright law first sale doctrine" thus the intent of EULAs after 1990 were to preempt federal statutes using contract law and that they serve no purpose besides attempts to preempt consumer rights in other statutes.
In this case, the U.S. Court of Appeals for the Third Circuit held that a EULA disclaimer waiving all express and implied warranties, printed on the outside of the box, was not binding
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Quote:
Specht v. Netscape Communications Corp., 150 F. Supp. 2d 585 (S.D.N.Y.2001), was a U.S. District Court for the Southern District of New York decision involving whether software license agreements are binding. It held that license agreements are akin to contractual agreements, thus to be binding there must be mutual consent.
The court ruled that the license agreement for the Smart Download software was not binding on the plaintiffs and thus denied to compel arbitration for plaintiff's breach of the license agreement.
The court ruled that the software license agreement was not binding because a binding contract means that both parties know of the terms and agree to them.
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