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The Sneakwrapping of American Law

By Ed Foster, Section Columns
Posted on Thu Sep 11, 2003 at 09:52:50 AM PDT

An insidious process is at work in this country of which few are aware. This last decade has seen a serious erosion of our legal rights as consumers and as citizens. Even before the DMCA and UCITA were enacted, our courts had begun reinterpreting the law to our detriment.

I'm discussing this now because an important step has been taken to resist this process, and I don't want you to miss it. Cem Kaner - author, attorney, and professor of computer science at the Florida Institute of Technology - recently published a proposed "Software Customer Bill of Rights" in his weblog. Kaner documents how our rights have eroded over the last ten years through a series of court decisions that have upheld terms customers don't get to read before they buy. Reversing many established legal traditions, courts started enforcing sneakwrap licensing before legislatures gave them any excuse to do so.


Kaner does a far better job than I of outlining the myriad issues involved here, so let me just add a few points to keep in mind when you read his piece. Note how many of the rights he's asking for -- that we should be able to criticize products, access our own data, transfer our rights in a product to someone else, expect manufacturers to tell us about known defects and to live up to their advertising, etc. - are probably protections you thought you already enjoyed. Indeed, ten years ago you surely did. Now, at least in cases involving software, there's a good chance a court would say you don't. And there are ominous signs that the sneakwrapping away of our rights is spreading to online transactions and the purchase of goods with an "embedded software" component. Ultimately, that doesn't leave much of anything out.

Of course, as my readers ought to know, you don't have to wind up in a courtroom to suffer from the increased likelihood that a court will enforce a sneakwrap license. Think of just a few of the real-world examples we've seen: Cisco and other manufacturers saying you have to pay to re-license software when you buy their used equipment from someone else, Microsoft and BEA preventing end users from publishing benchmark results of their products, privacy policies from Ticketmaster and others that leave you with no control of who gets your personal information, product activation and digital rights/restrictions management schemes that can keep you from using a product that you legitimately purchased, etc. Are our rights slipping away, or are they already gone?

By the way, there's good reason to take what Kaner has to say seriously. While a number of people deserve some credit for the fact that UCITA has been limited to two states, Kaner is the one who really started the fight. Before anyone else understood all that was at stake, he was generally the lone voice raised in opposition to what the UCITA drafting committee was doing. I am certain an even nastier version would now be the law in most states without all his work (done on his own dime, I might add) against its worst aspects.

As with UCITA, though, the customer side was inevitably overmatched in these court cases by the software industry's ability to lobby the process. "In my opinion, these decisions are the result of the efforts of a well funded and well prepared group of lawyers advocating for publisher rights, combined with a lack of coordination and support by the plaintiffs' bar," says Kaner. "We see cases in which critical decisions were shaped by well written, persuasive amicus briefs coming from publishers' advocates, with no responsive briefs coming from customer advocates."

As UCITA's proponents have always been fond of mischaracterizing the arguments of opponents, I think it's important to understand what Kaner is NOT saying in his Bill of Rights. A long-time veteran of the software industry himself (going back to the WordStar days at MicroPro), Kaner is not saying that software publishers can or should be held legally responsible for every bug. He is not saying that all terms in all license agreements should be unenforceable.

What Kaner is saying is that we as customers, of all types of products and services, need to have a few fundamental rights that can't be dismissed because of the fine print in an unread sneakwrap license. And he's provided what at the very least is an excellent start at defining what those rights are.

But what can we do with Kaner's proposals? After all, at a time when so many of our elected representatives advocate giving favored industries even more incredible powers to control our use of the products we buy, the judges who rendered these decisions over the last ten years could say they simply spotted the politically-correct trend early on.

But Kaner's been a lone voice crying in the wilderness before. Albeit belatedly, the voice of customers finally made itself heard on UCITA. I believe that, inevitably, our voice will be heard on the need for legislators and jurists to restore the rights of which sneakwrap law has deprived us. It's just a matter of enough of us realizing what's at stake.

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

Post your comments about this column below or write me directly at Foster@gripe2ed.com. To receive this column every week in my free e-mail newsletter, please go to my subscription page and follow the instructions to opt-in for the EdFoster mailing list.

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The Sneakwrapping of American Law | 3 comments (3 topical) | Post A Comment
So what can we do?[ Reply to This ] (none / 0) (#1)
by kamnet on Thu Sep 11, 2003 at 11:47:48 AM PDT

Cem Kaner is spot-on with this. What can we do to take his ideas and actually put them to use and into the law books?

[ Reply to This ]


Kaner's Bill of Rights[ Parent | Reply to This ] (none / 0) (#3)
by Anonymous User on Wed Sep 17, 2003 at 08:32:48 AM PDT

I'd like to send this to several of my congress critters. How do I get a copy. Couldn't see any way to do it on Kaner's site.

[ Parent | Reply to This ]


partial agreement[ Reply to This ] (none / 0) (#2)
by Anorlunda on Fri Sep 12, 2003 at 02:53:22 PM PDT

I agree with all of Kaner's propopose rights in spirit, but in practice I think a few of them are impractical.

2 Disclose known defects: For a major product like, this disclosure would be thousands of pages long and many of the defects would be impossible to describe in layman's language, or to predict what the impact on consumers may be. Many bugs are thought to be benign, and often that thought is incorrect. It could be more costly to generate a complete and accurate disclosure than to generate the software.

3 live up to claims Making this law would just produce a feeding frenzy for lawyers. Lets say one has an office program and that the program claims to support table of contents. The TOC feature may have bugs or restrictions or interpretations that don't meet the need of some user somewhere. If that user could sue, it would be chaos. Imagine the lawsuits over a claim of being "friendly" or "efficient."

5 blocking access I agree except that "blocking access" is hard to define legally. Suppose the data is stored in a proprietary format, and the vendor software to read it is removed. Is that blocking? Suppose the data is stored in XML but the non-technical user thinks XMS is an obscure proprietary format? If users have the feature to export or capture thier data in a format not proprietary to the vendor, then the user should not be able to sue for getting blocked. [Note that print screen is one way to capture a non-proprietary version of your data.]

9 transfers I would worry about transfers only in connections with disclosures. If the consumer fails to transfer the disclosures with the software who is responsible?

liability Kaner's bill of rights says nothing about the level of vendor liability. Is it limited to the price of the sofware? The fair market value of the used software? The fair market value of the fraction of the software defective? The consequential damages to the user's business? There is no way that a vendor can accept a liabilty of millions for a product with a price in the hundreds, so consequential damages must be categorically excluded. In the other cases, there is a legal doctrine called de minimus rex that protects the courts for trivial disputes. For example, if you paid $300 for an office suite and 18 months later sue because of a bug in the table of contents feature. No court wants to spend it's valuable time figuring out how much compensation is due to you. Neither does any court want to wrestle with compensation if you spend 3 months of your valuable time trying to make the buggy feature work right.

On the other hand, if you are spending $50K to $50M for some software you're not in the mass market. Both sides should no rights except those agreed upon by contract. You should be hiring an attorney to write a contract that overrides standard license terms. It will cost you 5% to 10% for your own attorney's fees and it will make your vendor add 5% to 10% to his price. If you're too cheap to do that or if your contract skips important points, it's your fault.

[ Reply to This ]



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