Colorado Shrink Wrap End User Software License Agreement
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FAQ
A user agreement is a contract. While contracts do have some basic components regardless of the state where a business operates or offers software, there are still certain laws and regulations that cover certain aspects of the agreement in every state.
Shrink wrap, clickwrap and browsewrap are common types of contracts used in electronic commerce.
EULAs are not legally binding . When a consumer agrees to the terms specified in the license agreement, they are actually renting or purchasing a license from the vendor. The downside of a license agreement is that it doesn't protect the consumer. The EULA protects only the copyright owner.
Browsewrap agreements (also referred to as browserwrap or browse wrap license) are online contract or license agreements commonly used by websites, which state that by using the website the user assents to the site's Terms and conditions, often presented via a hyperlink.
Difference between click-wrap and shrink-wrap agreement In a shrink-wrap agreement, the contract terms are not read until the buyer un-wraps the software; but in click-wrap agreement the consumer knows the contractual terms before he/she commits herself to buy goods or services.
In the defining statement of the opinion, the court held that, "shrink-wrap licenses are enforceable unless their terms are objectionable on grounds applicable to contracts in general." The court concluded that no contract was formed by the parties until the buyer "accepted" the seller's terms by electing to keep the
The shrink-wrap license agreement purports to create a binding legal agreement (so it says) between the software vendor and the user. The agreement is usually found inside the box containing the software, printed on the envelope containing the CD-ROM or disks, or stated in the user manual.
The shrink wrap contract has the agreement inside the packaging and the opening of the package indicates the consumer's acceptance of the same. Browse wrap contracts have the terms and conditions and privacy policy written on the website highlighted with the link. The consumer has agreed to this contract by default.
A Shrink Wrap agreement can be defined as a legal agreement that is packaged within a product. In this type of agreement, products are sealed or enclosed in shrink wrap (plastic wrap) implying that the goods (and thus the legal document) can only be viewed by the customer who purchases it.
Violating the EULA could result in triggering a software audit, or could result in a federal lawsuit alleging willful copyright infringement, or breach of the EULA.
