[net.consumers] Software Laws A'Coming!

edski@mot.UUCP (Ed Skinner) (03/21/85)

       A bill recently introduced in the Arizona legislature, and
       already passed into law in Louisiana, will have significant
       effects on consumer rights concerning software.  As the
       change is being pushed very energetically by software
       companies, you may expect it to be introduced into the
       legislature of your state very soon, if it's not already
       (quietly) there!

       Among other things which the proposed law would "provide"
       are; Buyers will have no recourse if the product was
       misrepresented by a salesman.  Buyers would have no recourse
       if the product simply didn't work.  Buyers would not be able
       to resell the product, even if they later decide they don't
       want it after all.  Buyers would not be able to correct any
       problems in their copy of the product.  It would be illegal
       to modify the product in any way, no matter what the
       purpose.

       The part that bothers me the most is that once you open the
       package, it's yours.  This means that if you buy something
       and open the package to try it, and then discover that the
       salesman lied, or misled you (whether intentionally or
       accidentally), you cannot get your money back.  You are
       stuck!

       The following is a complete transcription of the proposed
       amendment, State of Arizona.  It is a word for word copy of
       the one written by Vault Corporation (remember Killer
       Prolock???), and passed by the state of Louisiana last year.

       (Typos are probably my own fault.)

            -------------------------------------------------

       Senate SB 1306. Introduced February 11, 1985 by Senator
       Davis.

       AN ACT Relating to trade and commerce: providing for the
       presumption of acceptance of computer software license
       agreement:  prescribing definitions: prescribing conditions
       and terms of acceptance: prescribing form of license
       agreement, and amending Title 44, Arizona Revised Statutes,
       by adding Chapter 13.

       Be it enacted by the Legislature of the State of Arizona:

       Section 1. Title 44, Arizona Revised Statutes, is amended by
       adding Chapter 13, to read:

       Chapter 13 Software License Agreements

       44-2101. DEFINITIONS. In this chapter, unless the context
       otherwise requires:

       1. "Computer Software" means a set of statements or
       instructions to be used directly or indirectly in a computer
       to bring about a certain result, in any form in which such
       statements or instructions may be fixed, by any method now
       known or hereafter developed, regardless of whether such
       statements or instructions are capable of being perceived by
       or communicated to humans, together with any associated
       documentation and materials.

       2. "License Agreement" means any written document on which
       the word "License", either alone or in combination with
       other words, appears prominently at or near the top of such
       document in such a position of prominence so as to be
       readily noticeable to a person of average literacy viewing
       the document.

       3. "Reverse Engineering, Decompiling or Disassembling" means
       any process by which computer software is converted from one
       form to another form which is more readily understandable to
       humans, including any decoding or decrypting of any computer
       program which has been encoded or encrypted in any manner.

       44-2102. REQUIREMENTS FOR PRESUMPTION OF ACCEPTANCE.  A
       person who acquires computer software or a copy of computer
       software is presumed to have accepted and agreed to all the
       terms of an accompanying license agreement for such software
       or copy, including any applicable provisions of section 44-
       2103, if:

       1. A written legend or notice is affixed to or packaged with
       the software or copy in such a manner that the legend or
       notice is clearly and conspicuously visible on examination
       of the software and related packaging.

       2. The legend or notice is prominently displayed in all
       capital letters and in language which is readily
       understandable to a person of average literacy.

       3. The legend or notice states clearly that:

       (a) Any use of the software or copy will constitute
       acceptance of the terms of the accompanying license
       agreements.

       (b) Opening of a sealed package, envelope or container in
       which the software or copy is contained constitutes
       acceptance of the terms of the accompanying license
       agreement.

       4. The legend or notice states clearly that a person who
       receives the software or copy and does not accept and agree
       to the terms of the accompanying license agreement may,
       within a reasonable time, return the unused, unopened
       software or copy to the party from whom it was acquired, or
       to some other identified party, for a full refund of any
       consideration paid.

       5. The person acquiring the software or copy understands
       that the action stated in the legend or notice constitutes
       acceptance of and agreement to the terms of the accompanying
       license agreement.

       44-2103. TERMS PRESUMED ACCEPTED. Terms presumed to have
       been accepted under section 44-2102, if included in an
       accompanying license agreement which conforms to the
       provisions of Section 44-2104, may include any or all of the
       following:

       1. Provisions for the retention by the licensor of title to
       the copy of the computer software.

       2. If title to the copy of computer software has been
       retained by the licensor, provisions for the prohibition of
       any copying of the copy of the computer software for any
       purpose or limitations on the purposes for which copies of
       the computer software can be made including limitations on
       the number of copies of the computer software which can be
       made.

       3. If title to the copy of computer software has been
       retained by the licensor, provisions for the prohibition or
       limitation of rights to modify or adapt the copy of the
       computer software in any way, including prohibitions on
       translating, reverse engineering, decompiling,
       disassembling, and creating derivative works based on the
       computer software.

       4. If title to the copy of computer software has been
       retained by the licensor, provisions for prohibitions on
       further transfer, assignment, rental, sale or other
       disposition of that copy or any other copies made from that
       copy of the computer software, expect that terms which
       prohibit the transfer of a copy of computer software in
       connection with the sale or transfer by operation of law of
       all or substantially all of the operating assets of a
       licensee's business shall not be presumed to have been
       accepted.

       5. Provisions for the automatic termination without notice
       of the license agreement if any provisions of the license
       agreement are breached by the licensee.

       44-2104. DISPLAY OF TERMS OF LICENSE AGREEMENT. In order to
       be presumed accepted pursuant to section 44-2102, the terms
       of the accompanying license agreement must be clearly and
       conspicuously stated in the license agreement in language
       readily understandable to a person of average literacy, and
       the license agreement must be attached to or packaged with
       the copy of the computer software in such a manner that the
       terms are susceptible to being readily examined before the
       act which is deemed to constitute acceptance occurs.

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The opinions expressed herein are my own, and do not necessarily reflect those
of my employer.  Please mail replies to me, and I will summarize for the net.
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Name:   Ed Skinner (edski)
UUCP:   {seismo,ihnp4}!ut-sally!oakhill!mot!edski
        {allegra,ihnp4}!sftig!mot!edski
USMail: MS DW-160, Motorola Microsystems, 2900 S Diablo Way, Tempe, Az 85282
Phone:  (602)438-3064

rb@houxn.UUCP (R.BOTWIN) (03/22/85)

Easy to get around the sale problem!!!
Just set up a corporation to buy the software....There is no restriction in
the law on transferring ownership to the corporation and all its assets
(of course its only asset is its purchased software!)

But reallistically, anyone who buys software under those restrictions
better also get a firm commitment of support, or JUST NOT BUY IT!!!!

Rob