1. © ethel@dspcsp.com1 Shrink–wrap Click–wrap Beware of Shrink–wrap & Click–wrap Contracts ! Ethel Chait Stein, Esq.

2. © ethel@dspcsp.com2 Why bother with this now? (a) Copying a paper work is: - complicated - expensive - inaccurate - labor intensive

3. © ethel@dspcsp.com3 digital Copying a digital work is: - easy - cheap - accurate Why bother with this now? (b)

4. © ethel@dspcsp.com4 EULA E nd U ser L icense A greement Contract Law: - binding between parties - nonenforceable against 3 rd parties Limit transferability!! intent  expression of intent  binding

5. © ethel@dspcsp.com5 Need for new legal mechanism Mass produced works: - CD - downloads

6. © ethel@dspcsp.com6 Shrink – wrap Shrink – wrap Contracts Digital works: - software - database - image collections By opening this package you are consenting to be bound by its license agreement. If you do not agree to all of the terms of this agreement return the unopened product to the place of purchase for a full refund. Cases: ProCD vs. Zeidenberg, Brower vs. Gateway, Klocek vs. Gateway Notice

7. © ethel@dspcsp.com7 Nimmer’s Critique on Shrink-wrap Dangerous protection Circumvention of IPR law exclusivity IPR  exclusivity for : - originality - spark of creativity limited  limited in: - scope - time

8. © ethel@dspcsp.com8 Click-wrap Contracts Software digitally distributed  Problem: verification of: 1) intent to be bound by a contract 2) agreement to license terms

9. © ethel@dspcsp.com9 Click-wrap notice: By clicking on the “accept” bottom you are consenting to be bound by the license agreement. If you do not agree to all of the terms of this agreement, click the “do not accept” button now ACCEPT DO NOT ACCEPT

10. © ethel@dspcsp.com10 Notice valid IF: 1) Prominent display of terms 2) User is aware of HIS acceptance Cases: Hotmail vs.Van Money Pie, Register vs. Verio

11. © ethel@dspcsp.com11 C.A.P.T.C.H.A C.A.P.T.C.H.A. (introduction) No contract between: - person & computer - 2 computers Did a human accept ? Case: Ticketmaster vs. Tickets.Com

12. © ethel@dspcsp.com12 C.A.P.T.C.H.A. C ompletely A utomated P ublic T uring test to tell C omputers & H umans A part ® Carnegie Mellon University

13. © ethel@dspcsp.com13 Summary Necessary development of contract law IPR Law  equilibrium between: - individual’s rights - society’s rights

14. © ethel@dspcsp.com14 The End. Thank You!!!