ProCD v. Zeidenburg - licenses are on the shrinkwrap and...

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Page: 217 Class Notes Case: Court / Date: Judge: Facts: Issue: Holding: Rule: ProCD, Inc v. Zeidenburg US Ct of App 7 th Cir (1996) J. Easterbrook P. (ProCD) makes telephone directory cdroms. P. sells to public at a cheaper rate than to businesses. On the consumer copies, ProCD has a “shrinkwrap” licence agreement that is restated on the disk and on the program which states that the buyer not use the cd for commercial purposes. Zeidenbrug bought a consumer copy in Madison Wisconsin and put the information on the internet for customers to download for a fee, which was cheaper than ProCD. ProCd filed this suit for an injunction against further dissemination of the telephone directory information. The district ct. held that since the
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Unformatted text preview: licenses are on the shrinkwrap and not on the external box, the purchaser is not bound by secret terms. 2-207(2) does not apply b/c ct. said he (Z) was not a merchant. Ct. of appeals cited UCC 2-204(1) stating that the notice of an enclosed license agreement with the right for the consumer to return the product if they do not agree is sufficient for a contract. Must buyers of computer software obey terms of shrinkwrap licenses? Yes. Reversed and Remanded. A software license printed on the inside of packaging can include binding license provisions as long as notice of enclosed licence agreement is on the outside of package and consumer has the option to return the software if they do not agree....
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ProCD v. Zeidenburg - licenses are on the shrinkwrap and...

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