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Federal Court Slaps Down Autodesk Arguments, Favors eBay Seller
AECNews ^ | May 21, 2008 | staff

Posted on 05/22/2008 1:21:52 PM PDT by antiRepublicrat

The US District Court in Seattle on Wednesday ruled in favor of eBay seller Timothy S. Vernor, denying Autodesk’s request for “summary judgment” against Vernor. In doing so the court ruled that Vernor had the right to appeal for relief from Autodesk actions based on the “first sale” doctrine of copyright law. In finding for Vernor, Judge Richard Jones’ ruling dismissed most of Autodesk’s wide-ranging legal arguments as without standing.

If allowed to stand, the ruling effectively pulls the heart out of the license agreements that accompany most retail software products on the market today. You can be sure that not only Autodesk, but most software companies, will take action of some sort in response. It is unimaginable that Autodesk will not appeal this decision.

The case is not over; the court has ordered both sides to sit down and discuss whether the case should continue and settle Vernor’s claim that Autodesk engaged in unfair trade practices in violation of state law in either California (Autodesk’s home) or Washington state (Vernor’s home). Their report to the court is due June 27.

(Excerpt) Read more at aecnews.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: copyright; firstsale; intellectualproperty
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This is a very big case, and good news to anyone who uses software.
1 posted on 05/22/2008 1:21:53 PM PDT by antiRepublicrat
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To: N3WBI3; PAR35; Sir_Ed; SubGeniusX; TruthSetsUFree; rabscuttle385; ShadowAce; Baynative; holden; ...
The Copyfraud ping: copyright, patent and trademark abuse, and general abuse of laws in the digital age.
If you want on or off the Copyfraud Ping List, Freepmail me.
2 posted on 05/22/2008 1:22:32 PM PDT by antiRepublicrat
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To: antiRepublicrat
Autodesk does not explain how a nontransferable license can bind subsequent transferees

Ouch!!! Lots of lawyers are going to be grinding their teeth over this one in the weeks to come.

3 posted on 05/22/2008 1:26:39 PM PDT by SeeSharp
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To: antiRepublicrat

Very confusing. Can someone out there “bottom line” what is going on here. What exactly was it that Vernor did that Autodesk didn’t like?


4 posted on 05/22/2008 1:27:22 PM PDT by contemplator (Capitalism gets no Rock Concerts)
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To: antiRepublicrat

This is some great news! I know many people ahve been hampered because of these BS UNCONSTITUTIONAL license agreements.


5 posted on 05/22/2008 1:28:17 PM PDT by vpintheak (Like a muddied spring or a polluted well is a righteous man who gives way to the wicked. Prov. 25:26)
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To: contemplator
Very confusing. Can someone out there “bottom line” what is going on here. What exactly was it that Vernor did that Autodesk didn’t like?

I'm not sure, but it sounds like he sold his copy of the software.....

6 posted on 05/22/2008 1:30:52 PM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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To: SeeSharp

Hoisted by their own petard :)


7 posted on 05/22/2008 1:31:18 PM PDT by faloi
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To: contemplator

Basically the license agreement says this software license belonged to him and only him, and he couldn’t sell it because they told him he couldn’t. It’s like a car dealership telling you, “OK, you bought this car from us, and you have to live with it, you cannot sell it to anyone else or you are going to be in violation of the law.” It’s pure crap, and this is a common sense decision.


8 posted on 05/22/2008 1:31:25 PM PDT by vpintheak (Like a muddied spring or a polluted well is a righteous man who gives way to the wicked. Prov. 25:26)
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To: Red Badger

I’m guessing he didn’t expect the Spanish Inquisition.


9 posted on 05/22/2008 1:32:08 PM PDT by contemplator (Capitalism gets no Rock Concerts)
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To: contemplator

Many software licenses say you only ‘use’ their program, but the company still ‘owns’ it.

If you try to re-sell the installation disk/package, the company can claim you have no right to — as they still own the product.

The company says that, even though you ‘purchase’ the package/disk, you still are only purchasing the right to use the package; you do not ‘own’ the package.


10 posted on 05/22/2008 1:34:04 PM PDT by TomGuy
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To: TomGuy

Which is utter garbage because it’s based on a “shrink wrap” contract; you’re bound to the conditions of the contract by opening the box, before you’re even allowed to read it. If you don’t like the conditions, too bad. Opened software is usually only eligible for an identical exchange, not for refund. No court has ever found a “shrink wrap” contract like this to be legally binding.


11 posted on 05/22/2008 1:37:12 PM PDT by messierhunter
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To: contemplator

NOBODY EXPECTS THE SPANISH INQUISITION!>..................

12 posted on 05/22/2008 1:37:23 PM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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To: contemplator
Can someone out there “bottom line” what is going on here. What exactly was it that Vernor did that Autodesk didn’t like?

"First sale" doctrine means that if you buy a product, you have a no-strings right to resell that single item to someone else. You still can;t sell copies of the item, or rent it out, or do anything else that "makes a single item into many".,p. Now if only this ruling could be applied to airline tickets...

13 posted on 05/22/2008 1:38:40 PM PDT by BlazingArizona
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To: vpintheak

My understanding is that he wasn’t even the original buyer, so how can the “non-transferable license” even bind him in the first place?


14 posted on 05/22/2008 1:38:54 PM PDT by messierhunter
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To: contemplator

First Sale is in copyright the doctrine that the copyright holder loses control over the re-sale of a copy of a work after he’s sold it the first time (the “first sale”). This doctrine is what allows second-hand book stores to exist. Software companies think they are immune to First Sale, and tell you that you can’t re-sell software you’ve bought through terms in the license.

This decision (if upheld) means that those “no re-sale” terms in licenses are unenforceable. Software gets to be re-sold just like books.


15 posted on 05/22/2008 1:40:01 PM PDT by antiRepublicrat
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To: vpintheak

Your assessment and analogy are incorrect. A more accurate analogy would be:

You go to a car company and pay money for a use license (rental) of a vehicle. In that rental agreement, it specifically states that no ownership of the vehicle is transfered to you (i.e. you are not buying the software) and it further states that you may NOT alter (change the source code) or sell the vehicle to anyone else (as you do not own any part of the vehicle). Your agreement only allows you to USE the software, not OWN it. Read your software license very closely.

If you do not like those restrictions on the software license, then do not pay money to use the software and do not install it on you computer. That is why we have the open source movement. People are fed up with these “use licenses” and are pursuing other avenues.


16 posted on 05/22/2008 1:40:35 PM PDT by taxcontrol
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To: antiRepublicrat

Does Autodesk even use a hardware key on any of their products? I’ve got a copy of Autocad 2000 and there’s no security whatsoever. Every other CAD and CAM system I’ve used had a USB or Parallel dongle.

The reason I ask is because with the current system I’m using (Esprit), the USB key is their property and I have to give it back if they ask for it (I have a dealer license, I’m not sure if the general license is that way or not).


17 posted on 05/22/2008 1:42:33 PM PDT by lesser_satan (Cthulu '08! Why vote for the lesser evil?)
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To: messierhunter

I agree, shrink wrap licensing should not be allow. All licenses should be on the outside of the packaging or made available to the buyer PRIOR to purchase (say at the register).


18 posted on 05/22/2008 1:42:54 PM PDT by taxcontrol
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To: vpintheak
I know many people ahve been hampered because of these BS UNCONSTITUTIONAL license agreements.

Can you help me understand what could be unconstitutional about a license agreement since it is entered into voluntarily by the purchaser of the license?

19 posted on 05/22/2008 1:43:07 PM PDT by MEGoody (Ye shall know the truth, and the truth shall cause you to vote against the Democrats.)
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To: vpintheak
It’s pure crap

As a software contract manager, I agree it is a 'crap' term, but he didn't have to purchase the software if he didn't like the terms of the agreement.

20 posted on 05/22/2008 1:44:29 PM PDT by MEGoody (Ye shall know the truth, and the truth shall cause you to vote against the Democrats.)
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