13. i.Lan Systems, Inc. v. Netscout Service Level Corp.Factsi.Lan Systems, Inc. (plaintiff) claims that a purchase of NextPoint Networks’ (now NetScout Service Level Corp.) software for $85,231.42 gives unlimited right to use the software, replete with perpetual upgrades and support. NextPoint disagrees with i.Lan’s interpretation of the agreement.IssueIs the “clickwrap” license agreement enforceable? Does NextPoint have a valid limitation-of-liability (for the price paid for the software: $85,231.42) defense? HoldingThe court says that the two merchants did not materially change the contract through the click wrap license, because they were merchants that regularly conduct business. The clicking of the online agreement was an enforceable agreement. ReasoningThe court reasoned that the plaintiff agreed to the clickwrap terms when it clicked on the “I agree” box. Those terms effectively limited the defendant’s liability. The court
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Software licenses, Clickwrap, Shrink wrap contract, ProCD v. Zeidenberg, NextPoint