[net.sources.mac] Is a Shareware license enforceable?

wasser@viking.DEC (John A. Wasser) (12/16/85)

		Is a Shareware License Enforceable?
 
At lunch today some friends and I were discussing the legality of "Limited 
License Freely Distributed" software (a.k.a. Shareware or Freeware).  The 
general consensus was that when a piece of software is legally given to a member
of the public (either on a disk or through a network), time limited clauses
such as "You may use this software for up to 30 days after receiving it but 
must at that time either send a registration fee or delete all copies" have 
no legal validity.  The thought is that since the software was provided 
free it has the same status as any unsolicited merchandise given to you 
freely.  It is yours and as long as any COPYING is restricted to the limits 
imposed by the copyright owner (usually "Distribute to anyone as long as not 
for commercial gain") you cannot be forced to give up use of it.  You have 
a legally obtained copy and the right to use it for your own purposes.

Remember: Copyright only covers copying.  It does not give the copyright
holder any rights to compensation for a work which he has chosen to give
away.  If the Encyclopedia Britanica people were to send you a copy of
their encyclopedia for a 30 day free trial, and you have not asked for
such a trial, you are not obligated to pay for the encyclopedia.

One possible legal point is a clause in such "licenses" that requires
that if you make a copy and give it to someone (as allowed by the
copyright owner) you must first make sure the recipient knows about
the license he is (supposedly) getting into.  Can the copyright owner
legally require you to pass on this "contract/license" as part of the
restrictions of the copyright?  Is the "contract/license" binding on
the recipient?

Does anyone out there know if such a license is enforceable?  I don't want 
to get into a discussion about WHETHER the license SHOULD or SHOULD NOT be 
enforceable, only whether it IS under current laws.

		-John A. Wasser

Work address:
ARPAnet:	WASSER%VIKING.DEC@decwrl.ARPA
Usenet:		{allegra,Shasta,decvax}!decwrl!dec-rhea!dec-viking!wasser
Easynet:	VIKING::WASSER
Telephone:	(617)486-2505
USPS:		Digital Equipment Corp.
		Mail stop: LJO2/E4
		30 Porter Rd
		Littleton, MA  01460

friesen@psivax.UUCP (Stanley Friesen) (12/18/85)

In article <27@decwrl.UUCP> wasser@viking.DEC (John A. Wasser) writes:
>
>		Is a Shareware License Enforceable?
> 
>The consensus was that when a piece of software is legally given to a member
>of the public (either on a disk or through a network), time limited clauses
>such as "You may use this software for up to 30 days after receiving it but 
>must at that time either send a registration fee or delete all copies" have 
>no legal validity.  The thought is that since the software was provided 
>free it has the same status as any unsolicited merchandise given to you 
>freely.
>
>Remember: Copyright only covers copying.  It does not give the copyright
>holder any rights to compensation for a work which he has chosen to give
>away.  If the Encyclopedia Britanica people were to send you a copy of
>their encyclopedia for a 30 day free trial, and you have not asked for
>such a trial, you are not obligated to pay for the encyclopedia.
>
	My impression is that the enforcibility would depend on
whether you had known of and agreed to the time constraint *before*
recieving the software. To continue the Encyclopedia Britanica example:
If they *advertised* a 30 free trial period and you *ordered* a set on
that basis then you *would* be obligated to pay at the end of the
period unless you returned the encyclopedia. In htis case the "30-day
trial" really amounts to a 30 day money-back gaurentee. On the other
hand, if they just sent you an encyclopedia out of the blue you could
keep it no matter what, and with no obligation to pay. At least that
is my impression of the current law.
-- 

				Sarima (Stanley Friesen)

UUCP: {ttidca|ihnp4|sdcrdcf|quad1|nrcvax|bellcore|logico}!psivax!friesen
ARPA: ttidca!psivax!friesen@rand-unix.arpa

eros@chovax.DEC (12/20/85)

In a recent article, John A. Wasser writes:

> ...since the software was provided free it has the same status as any 
> unsolicited merchandise given to you freely.  It is yours and as long 
> as any COPYING is restricted to the limits imposed by the copyright 
> owner (usually "Distribute to anyone as long as not for commercial gain") 
> you cannot be forced to give up use of it.  You have a legally obtained 
> copy and the right to use it for your own purposes...
> 
> If the Encyclopedia Britanica people were to send you a copy of
> their encyclopedia for a 30 day free trial, and you have not asked for
> such a trial, you are not obligated to pay for the encyclopedia.

I'm think there's a flaw here; this rationale can really only hold for
software distributed to you directly from the developer.  I have often 
observed distribution of shareware products over net.sources.mac by people
who have copies.  To use your example, if you received an unsolicited copy
of the Encyclopedia you are not obligated to pay for it.  That does not allow 
you however, to copy the Encyclopedia and give copies of it to all your 
friends.

I agree that we don't need to get into a discussion of any 'moral imperatives'
involved in Shareware, this is just another angle to look at...

		Tony Eros
		Digital Equipment Corporation
		...decvax!decwrl!rhea!chovax!eros

sean@ukma.UUCP (Sean Casey) (12/20/85)

In article <910@psivax.UUCP> friesen@psivax.UUCP (Stanley Friesen) writes:
>        My impression is that the enforcibility would depend on
>whether you had known of and agreed to the time constraint *before*
>recieving the software. To continue the Encyclopedia Britanica example:
>If they *advertised* a 30 free trial period and you *ordered* a set on
>that basis then you *would* be obligated to pay at the end of the
>period unless you returned the encyclopedia. In htis case the "30-day
>trial" really amounts to a 30 day money-back gaurentee. On the other
>hand, if they just sent you an encyclopedia out of the blue you could
>keep it no matter what, and with no obligation to pay. At least that
>is my impression of the current law.

This is the current law, but it specifically applies to things you receive
in the mail.  The law is: If you didn't order it, and you get it in the mail,
you get to keep it.  Period.  There was even a television commercial a while
back by the USPS pointing this out so that people wouldn't be deceived by
mail fraud.  I think we need a better example that is more relevant to the
freeware issue.


Sean


-- 
-------------------------------------------------------------------------------
Sean Casey                             UUCP:  sean@ukma.UUCP   or
915 Patterson Office Tower                    {cbosgd,anlams,hasmed}!ukma!sean
University of Kentucky                 ARPA:  ukma!sean@ANL-MCS.ARPA
Lexington, Ky. 40506-0027            BITNET:  sean@UKMA.BITNET

u549515232ea@ucdavis.UUCP (0040) (12/29/85)

> 
> 		Is a Shareware License Enforceable?
>  
> At lunch today some friends and I were discussing the legality of "Limited 
> License Freely Distributed" software (a.k.a. Shareware or Freeware).  The 
> general consensus was that when a piece of software is legally given to a member
> of the public (either on a disk or through a network), time limited clauses
> such as "You may use this software for up to 30 days after receiving it but 
> must at that time either send a registration fee or delete all copies" have 
> no legal validity.  The thought is that since the software was provided 
> free it has the same status as any unsolicited merchandise given to you 
> freely.  It is yours and as long as any COPYING is restricted to the limits 
> imposed by the copyright owner (usually "Distribute to anyone as long as not 
> for commercial gain") you cannot be forced to give up use of it.  You have 
> a legally obtained copy and the right to use it for your own purposes.
> 
> Remember: Copyright only covers copying.  It does not give the copyright
> holder any rights to compensation for a work which he has chosen to give
> away.  If the Encyclopedia Britanica people were to send you a copy of
> their encyclopedia for a 30 day free trial, and you have not asked for
> such a trial, you are not obligated to pay for the encyclopedia.
> 
> One possible legal point is a clause in such "licenses" that requires
> that if you make a copy and give it to someone (as allowed by the
> copyright owner) you must first make sure the recipient knows about
> the license he is (supposedly) getting into.  Can the copyright owner
> legally require you to pass on this "contract/license" as part of the
> restrictions of the copyright?  Is the "contract/license" binding on
> the recipient?
> 
> Does anyone out there know if such a license is enforceable?  I don't want 
> to get into a discussion about WHETHER the license SHOULD or SHOULD NOT be 
> enforceable, only whether it IS under current laws.
> 
> 		-John A. Wasser
> 
> Work address:
> ARPAnet:	WASSER%VIKING.DEC@decwrl.ARPA
> Usenet:		{allegra,Shasta,decvax}!decwrl!dec-rhea!dec-viking!wasser
> Easynet:	VIKING::WASSER
> Telephone:	(617)486-2505
> USPS:		Digital Equipment Corp.
> 		Mail stop: LJO2/E4
> 		30 Porter Rd
> 		Littleton, MA  01460


In terms of contractual legality there are 6 points that must be fulfilled for aconract to be legally enforceable: agreement, consideration, contractual
capacity, legality, reality of assent,  and form.

By the acceptance of the shareware the party accepting it has entered into an 
implied-in-fact, informal contract with the distributor or representative of 
the offeree (the person offering the software).  The terms of acceptance are
stipulated in the contract and acceptance is implied by the usage and possession of the software itself. The person accepting the software need not say he
accepts the software and need not sign anything.  Also, saying that he did not
see the permission (i.e. the terms of the contract and cost) for use is legally unacceptable and not valid as a defense.  About the only way to avoid paying
involves the contractual capacity of the offeree.  The offeree would have
to be a minor in order to rescind the contract.

Briefly, acceptance has been shown by the use or possession of the software.
Consideration (i.e. payment) has been shown and stipulated in the software 
license.  Contractual capacity is assumed (this can be done similar to mail 
order houses. Since it is prohibitive to ascertain the contractual capacity. 
also, anyone who uses a computer can be assumed competent).
The legality of the contract has been shown because this contract is not for 
some act that is illegal. Reality of assent has been fulfilled because the 
contract is implied-in-fact and acceptance is genuine when the offeree 
takes posession of the software.  No form is required here so this point is 
irrelevant (i.e. the law does not say this type of contract must be written).

David Dunmire - U.C. Davis Dept. of Ag. Economics

ems@amdahl.UUCP (ems) (12/30/85)

> In terms of contractual legality there are 6 points that must be
> fulfilled for aconract to be legally enforceable: agreement,
> consideration, contractual
> capacity, legality, reality of assent,  and form.
...
> By the acceptance of the shareware the party accepting it
> has entered into an implied-in-fact, informal contract with the
> distributor or representative of the offeree (the person offering
> the software).  The terms of acceptance are stipulated in the

This presumes that the party accepting the software is aware it
is shareware.

> contract and acceptance is implied by the usage and
> possession of the software itself. The person accepting the software
> need not say he accepts the software and need not sign anything.
> Also, saying that he did not see the permission (i.e. the terms
> of the contract and cost) for use is legally unacceptable and not
> valid as a defense.
...
> Reality of assent has been fulfilled because the
> contract is implied-in-fact and acceptance is genuine when the offeree
> takes posession of the software.
...
Only if the party accepting is aware that the software is
shareware.  If, upon notification, the party ceases to use or
posess the software and rufuses to enter into the contract, then
the contract should be void.  If, upon notice, the party continues
to use or posess the software then an implied-in-fact contract
exists.  The meaning of 'reality of assent' is just that.  I
just give real assent.

(While I may unknowingly enter into large numbers of
contracts daily by such acts as buying soap, eating in a
restaurant, etc. I have given my real assent by being presumed
to understand those normal activities.  If I did not understand the
meaning of shareware, there was no reality of assent.  Even for
signed, written contracts; If one party can be shown to have not
read or understood the contract, it can be voided.  The basis of
contract law is a meeting of the minds, where no such mutual
understanding existed, there is no contract; regardless of form.)
--
E. Michael Smith  ...!{hplabs,ihnp4,amd,nsc}!amdahl!ems

This is the obligatory disclaimer of everything.

sean@ukma.UUCP (Sean Casey) (12/31/85)

What if the software just appears on my doorstep (i.g. Usenet)?  Isn't that
like being mailed something when you didn't ask for it and then being sent
the bill?

God I hope they don't pass the "shrink wrap" law.  That could have a lot of
bad implications for people's freedom.  I prefer to think that my signature
is required before I involve myself in an agreement.

Sean
-- 
-------------------------------------------------------------------------------
Sean Casey                             UUCP:  sean@ukma.UUCP   or
915 Patterson Office Tower                    {cbosgd,anlams,hasmed}!ukma!sean
University of Kentucky                 ARPA:  ukma!sean@ANL-MCS.ARPA
Lexington, Ky. 40506-0027            BITNET:  sean@UKMA.BITNET

hes@ecsvax.UUCP (Henry Schaffer) (01/03/86)

> God I hope they don't pass the "shrink wrap" law.  That could have a lot of
> bad implications for people's freedom.  I prefer to think that my signature
> is required before I involve myself in an agreement.
> Sean Casey 

   I've entered into many oral contracts, sometimes for things much more
expensive than a copy of dBaseIII ... .  However these contracts have
always been with people -- since you can't shake hands with a corporation.

--henry schaffer

bzs@bu-cs.UUCP (Barry Shein) (01/06/86)

>From: hes@ecsvax.UUCP (Henry Schaffer)
>> God I hope they don't pass the "shrink wrap" law.  That could have a lot of
>> bad implications for people's freedom.  I prefer to think that my signature
>> is required before I involve myself in an agreement.
>> Sean Casey 

>   I've entered into many oral contracts, sometimes for things much more
>expensive than a copy of dBaseIII ... .  However these contracts have
>always been with people -- since you can't shake hands with a corporation.
>
>--henry schaffer

As Samuel Goldwyn was credited with saying "A verbal agreement isn't
worth the paper it's written on".

Thank you, thank you, you've been a wonderful audience, god bless, thank you..

	-Barry Shein, Boston University

clewis@mnetor.UUCP (Chris Lewis) (01/08/86)

In article <841@bu-cs.UUCP> bzs@bu-cs.UUCP (Barry Shein) writes:

>>   I've entered into many oral contracts, sometimes for things much more
>>expensive than a copy of dBaseIII ... .  However these contracts have
>>always been with people -- since you can't shake hands with a corporation.
>>
>>--henry schaffer
>
>As Samuel Goldwyn was credited with saying "A verbal agreement isn't
>worth the paper it's written on".

Tell that to Texaco, they just lost a 15 billion dollar lawsuit with
another oil company (Pennzoil?  name escapes me now) over breaching
an "oral contract".  The amount will probably be successfully appealed, 
but the "oral contract" will probably stand.  Aren't Texan juries wonderfull?
-- 
Chris Lewis,
UUCP: {allegra, linus, ihnp4}!utzoo!mnetor!clewis
BELL: (416)-475-8980 ext. 321

olson@harvard.UUCP (Eric Olson) (01/08/86)

Please note that I've never posted a message like this before, and I would
like to request that NO ONE start DISCUSSING this here, but:

Why in the WORLD are you (plural) discussing the legality of shareware
licenses HERE?   This is a SOURCES newsgroup!  Please continue your
discussion in net.micro.mac (by virtue of WHAT sources newsgroup this is)
or net.legal (where it BELONGS).

-Eric.

her3@sphinx.UChicago.UUCP (Benjamin 'Drew' Herman) (01/15/86)

oh, come on!!!
 In the U.S. a company is legally a "person" with most of the rights as a 
person (although I don't know how you jail a company). Therefore, any 
appearent acceptance on the users part say "... breaking this seal ..."
is a binding legal contract. Similarly, "keeping this soft(share)ware"
for x days is also a legal contract.

	consequently Red_Ryder's 7.0 statement ie. Trash this program after
XX days if you don't reimberse the author in that time is a legitamite-
uninforceable contract with very serious legal ramifications.
	
	However, it is also possible to give yourself a copy (ie. the authors
statement to -- give this program to all and many) and thereby extending the
duration of you "free use" as long as you destroy the old copy.

	This last statement,however, is academic since all good computer users
are more than willing to pay GOOD money for GOOD programs and do not bother
with BAD, HORRIBLE programs

---------------------------------------------------------------------------
"Don't just look down Lord, HELP!!"
Drew Herman @UCHICAGO