End User License Agreement

Definition

An End User License Agreement (EULA) is a printed or online agreement that sets forth the terms under which a user can utilized a website, software program or online service.

Categories of EULAs

There are three general categories of EULAs:

• Browsewrap license — a preprinted, online EULA which does not require the user to click on an "I ACCEPT" or similar box before accessing the software/website/service.
• Clickwrap license — a preprinted, online EULA which requires the user to click on an "I ACCEPT" or similar box before accessing the software/website/service.
• Shrinkwrap license — a preprinted, paper-based EULA.

Importance of EULAs

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EULAs can include a number of items you should seriously consider before installing the software. In general, you should note the following facts about EULAs: EULAs are legally binding. Some consumer advocates have challenged the legality of EULAs, especially long agreements clouded in complicated “legalese.” The advocates argue these EULAs are a strategy for discouraging careful review and hiding controversial terms and conditions. However, a number of influential court decisions have upheld the legality of EULAs, so you need to assume you’re entering into legal agreements when you accept their terms. EULAs restrict how you can use the software. EULAs often include clauses that limit the number of computers you can load the software on. They sometimes also prohibit [[[reverse engineering]] for the purpose of creating compatible software. In some cases they prohibit software testing and even publishing the results of this testing. EULAs may force you to agree to certain conditions when using the software. Many software bundles force you to use all bundled components, including software produced by third-party publishers. They may also require you to agree to monitoring of your internet activity and/or sharing your computer’s resources. EULAs can limit your ability to sue for damages. Most EULAs include a clause that says you cannot sue the publisher for any damages caused by using the software.

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External links

• Electronic Frontier Foundation, Dangerous Terms: A User's Guide to EULAs (Feb. 2005) (full-text).