End user license agreements (EULAs) seem to be everywhere. Log into a website or open a new mobile app and get presented with screen after screen of legalese jargon. For most people, reading through one of these documents is akin to getting a voluntary root canal. Before clicking accept and opening that app or site, you might want to think twice and actually read that EULA. Otherwise, you might just be signing away your immortal soul.
Before deciding whether to read a EULA, it’s important to understand what the document is and why it exists. The earliest evidence of a EULA dates back to 1969, as documented by Amy Thomas as part of her PhD thesis. It was created by IBM as an intellectual property document to protect their software. Today, that same concept lives on. EULAs are generally designed to give a user limited rights to use a piece of software while protecting the developer’s intellectual property rights.
In recent times, legal departments seem to be having a field day with EULA language. What used to be an agreement to prohibit a user from sharing or reselling software has become a catch-all for a multitude of items from data collection to indemnification. In an article from the US-CERT from 2005, Edward Desautels highlights security and privacy risks stemming from ignoring EULAs. These may include agreeing to allow tracking data or use of otherwise personally identifiable information. One EULA could also include use of another 3rd party software creating a cascade of EULAs, each requiring agreements to otherwise untenable and even more ridiculous clauses.
In all seriousness, there is real danger in the form of potential privacy and security concerns, especially common in free, trial, and shareware software. Be wary of software that requests changes to firewalls, prompts for administrative access, or requires you to input passwords or other unrelated sensitive data, such as bank or credit card numbers, in order to proceed. PCWorld published a list of some of the most shameful EULA clauses, including FaceBook owning your creative material and DropBox having no responsibility for lost or damaged content stored by their service.
What’s more, these documents are considered legally binding contracts. In a highly visible legal case, Vernor vs. Autodesk, courts upheld the software creator’s right to restrict the resale of unused software, citing claims that the software itself was only licensed and not owned by the original user and thus could not be transferred to others. Although more related to hardware than software, another high profile case involved Lexmark and Impression Products. Impressions sued for the right to refill Lexmark ink cartridges, and won. This was a notable change in favor of the balance between intellectual property rights and consumer protections.
Now that we’ve established some valid reasons to read the EULA before accepting the terms, what’s all this talk about relinquishing control of one’s soul?
On April 1st, 2010, approximately 7,500 people unknowingly signed over their souls to Gamestation, a UK retailer. As part of an online experiment and April Fool’s Day prank, the retailer added language to their EULA giving them the option to transfer ownership of the user’s immortal soul at a later date, to be announced in six foot high flaming letters. Out of the thousands of people that encountered the EULA that day, only 12% actually read it and opted out of the “immortal soul” clause. Those opting out were rewarded with a £5 coupon good toward their next game purchase. In conclusions, an end user license agreement was never intended to protect the end user. Rather, from the start, a EULA was meant as an intellectual property protection agreement to benefit the creator of the software. Thus, users should never assume a EULA is to their benefit. Over time, these agreements have become even less favorable toward the user, in some cases devolving into seemingly ridiculous and unenforceable terms. So, it’s best to give pause and actually read that license agreement, before clicking accept. It could save you some headaches in the future, and just maybe, save your soul.
