November 24, 2024

More on Court Tossing No-Reviews EULA Clause

The EFF has posted a copy of the New York state court’s ruling in the Network Associates case that I wrote about previously.

The court’s ruling makes three main points. (1) The contract clause, which forbids customers from reviewing the product or publishing the results of benchmarking it, is unenforceable. (The court doesn’t expand on why it is unenforceable.) (2) The clause was written in a way that tends to deceive customers into thinking that there are other legal “rules and regulations” outside the contract itself that ban unauthorized reviews; writing the clause this way is a deceptive business practice and thus illegal under New York law. (3) Network Associates must remove the clause from its contracts (which it says it has done already, though there is some evidence to the contrary); it must inform the New York Attorney General in advance before using any language that bans reviews; and further proceedings will be held to determine what if any fine to impose on it.

No-benchmark clauses are pretty common in licenses for database products. This has been a major impediment to database research. Several researchers have pondered challenging these clauses, but none have done so. Perhaps this ruling will help free database researchers to do quantitative work on commercial systems.

RIAA: ISPs Should Pay For File Sharing

A Reuters story quotes RIAA head Hilary Rosen as saying that ISPs should be held responsible for their users’ file sharing:

“We will hold ISPs more accountable,” said Hillary Rosen, chairman and CEO the Recording Industry Association of America (RIAA), in her keynote speech at the Midem music conference on the French Riviera.

“Let’s face it. They know there’s a lot of demand for broadband simply because of the availability (of file-sharing),” Rosen said.

[…]

Rosen suggested one possible scenario for recouping lost sales from online piracy would be to impose a type of fee on ISPs that could be passed on to their customers who frequent these file-swapping services.

Perhaps she is suggesting a compulsory license (users pay a flat fee, then get free access to copyrighted music), as others have suggested before. If the RIAA were supporting a compulsory license, that would be big news.

More likely, her plan is a lopsided one in which users pay a fee but don’t get free access to music, or anything else, in return. If so, the plan would probably only increase the number of users of file sharing systems. Many users already find ways to rationalize their use of file sharing. Imagine the user who, unlike many of his peers, has resisted the temptation to use file sharing; and then he learns that he is being forced to pay the RIAA anyway on the assumption that he is a file sharer. What are the odds that he’ll start using file sharing, since he’s paying for it whether he uses it or not? Pretty good, I’d say.

The RIAA’s biggest problem is the public’s fading respect for the legal limits on file sharing. A step that erodes that respect even further is exactly what the RIAA doesn’t need.

Court Throws Out No-Reviews Clause in EULA

A court has thrown out a software contract clause prohibiting customers from publishing reviews of a product, report Matt Richtel at the New York Times and Lisa Bowman at CNet.

A New York state court made the ruling in a suit brought by the New York Attorney General’s office. The clause in question says, “The customer will not publish reviews of this product without prior consent from Network Associates Inc.”

Richtel reports that the court found the clause to be “deceptive.” I haven’t found a copy of the court’s opinion, so I can’t be sure what exactly that means. But the New York Attorney General had argued that the clause was clearly unenforceable, so that inserting the clause was essentially a way to trick users into believing it was illegal to review the product.

More on this once I find a copy of the court’s opinion.

Siva's Multimedia Blitz

Siva Vaidhyanathan offers a post-Eldred perspective over at Salon.

He’s on television tonight too, talking about copyright, on “NOW with Bill Moyers,” airing on most PBS stations at 9:00 PM.

Also check out his new blog.

Eldred Loses

The Supreme Court has ruled in the Eldred case, upholding the copyright term extension by a 7-2 vote.

More later, once I get a chance to read the opinions.

majority opinion by Justice Ginsburg;
dissent by Justice Stevens;
dissent by Justice Breyer