End User License Agreement – Definition

Cite this article as:"End User License Agreement – Definition," in The Business Professor, updated December 1, 2018, last accessed August 11, 2020, https://thebusinessprofessor.com/lesson/end-user-license-agreement-explained/.

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End User License Agreement (EULA)

An end-user license agreement (EULA) is a contract between the manufacturer and buyer which allows the buyer to use the subject product (generally software). End-user license agreements set the guidelines and limitations for use of the software. For example, a buyer accepts the end-user license agreement and the EULA requires him to use this software on a single computer system.

A Little More on End-User License Agreements

EULAs contain all the information relating to the software. Generally, it specifies guidelines, terms and conditions for using software. The user must sign or otherwise accept End-user license agreement before she is allowed to benefit form the software.

An end-user license agreement (EULA) can be presented to buyer in a paper form but it is more often in electronic form.

It is the prerequisite for downloading software to accept a user license before software is downloaded and installed. This includes attesting that she has read and accept the license terms and conditions.

A EULA does not protect the end users. Instead, it protects only the intellectual property (such as copyrights) of the owners.

References for End User License
 Agreement

End User License Agreement (EULA)

Regulating Virtual Worlds Optimally: The Model End User License Agreement, Kunze, J. T. (2008). Nw. J. Tech. & Intell. Prop.7, 102. This paper analyses the methods of regulating virtual world currencies and activities. It explores the Bragg v. Linden Research Inc case, and the EVE Online event and use them as case studies.

The New New-World: Virtual Property and the End User License Agreement, Kayser, J. J. (2006). Loy. LA Ent. L. Rev.27, 59. This paper addresses background principles of society and law that indicate the need for a legal presence in the online virtual world game space. It also address the recent historical developments that have left us at the threshold of this new world and the litigation virtual worlds will necessitate.

Learning to detect spyware using end user license agreements, Lavesson, N., Boldt, M., Davidsson, P., & Jacobsson, A. (2011). Knowledge and Information Systems26(2), 285-307. This study explores the amoutn of spyware hosting softwares, and the lack of proper awareness of the inclusion of spywares in these softwares by vendors. This paper investigates how to automatically discriminate between legitimate software and spyware associated software by mining end user license agreemensts (EULAs).

Noticing notice: a large-scale experiment on the timing of software license agreements, Good, N. S., Grossklags, J., Mulligan, D. K., & Konstan, J. A. (2007, April). In Proceedings of the SIGCHI conference on Human factors in computing systems(pp. 607-616). ACM. It is a known fact that some software vendors inform users about the inclusion of spywares in softwares, and the activities of these systems. This study analyses the effectiveness of different notices on the inclusion of spywares in softwares on customer’s purchases and installations. Results show that most users who install these software despite warnings, later regret doing so in the future.

Automated spyware detection using end user license agreements, Boldt, M., Jacobsson, A., Lavesson, N., & Davidsson, P. (2008). In 2nd international conference on information security and assurance. IEEE. This paper investigates the hypothesis that it is possible to detect from the End User License Agreement (EULA) whether its associated software hosts spyware or not. We generated a data set by collecting 100 applications with EULAs and classifying each EULA as either good or bad. Results from an exxperiement lead to the formulation of a tool which prevented the installation of spyware included softwares.

Are “Pay Now, Terms Later” Contracts Worse for Buyers? Evidence from Software License Agreements, Marotta-Wurgler, F. (2009). The Journal of Legal Studies38(2), 309-343. This paper analyses the “Pay Now Terms Later” technique used by most software vendors, and the harm that they might cost to consumers. The author finds that there is no evidence for the claim that this technique is used by seller to hide unfavourable terms which might lead to buyers having double-minds. The results suggest that to the extent there are inefficiencies associated with standard‐form contracts, they are not made worse by delayed disclosure.

Determining ownership in virtual worlds: copyright and license agreements, Miller, D. C. (2003). Rev. Litig.22, 435. This article argues that copyright law can and should apply to artistic and literary creations occurring entirely in virtual worlds. It introduces the concept of virtual worlds as places millions of people visit not only for entertainment but also for life and work. It also reviews the philosophical justifications for copyright, examines objections to applying copyright to virtual, rather than real, creative works, and concludes that neither precludes copyright for virtual creations. Finally, it articulates how copyright law would function within virtual spaces and reviews copyrightable creations from the perspective of both game developers and players.

What’s in a standard form contract? an empirical analysis of software license agreements, Marotta‐Wurgler, F. (2007). Journal of Empirical Legal Studies4(4), 677-713. This article provides a comprehensive empirical analysis of an important class of modern standard form contracts—software license agreements. Using samples from 649 softwares, results show that almost all licenses display a net bias, relative to relevant default rules, in favor of the software company (the contract writer).

The license is the product: comments on the promise of article 2B for software and information licensing, Gomulkiewicz, R. W. (1998). Berkeley Tech. LJ13, 891. Article 2B promises to draw together contract principles for software and information licensing that, at present, are spread among various bodies of law. This Article argues that Article 2B must affirm industry standard licensing practices in order to prove beneficial.

Competition and the Quality of Standard Form Contracts: The Case of Software License Agreements, Marotta‐Wurgler, F. (2008). Journal of Empirical Legal Studies5(3), 447-475. Standard form contracts are pervasive. Some scholars and some courts have argued that sellers with market power or facing little competitive pressure may impose one‐sided standard form terms that limit their obligation to consumers. This article uses a sample of 647 software license agreements drawn from many distinct segments of the software industry to empirically investigate the relationship between competitive conditions and the quality of standard form contracts.

Why license agreements do not control copy ownership: first sales and essential copies, Carver, B. W. (2010). Berkeley Tech. LJ25, 1887. In this paper the author argues for an analytic approach that courts should employ when determining ownership of a tangible copy of a copyrighted work. The author concludes that a right to perpetual possession of a copy is the primary, if not the dispositive factor, in correctly determining copy ownership.

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