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A software license is an agreement between the publisher and the user, built into the software or as a paper contract. It restricts duplication, modification, and reverse engineering, and includes a disclaimer. The “shrink software license” is invalid in most courts. Freeware and public domain licenses have fewer restrictions.
The software license is an agreement between the software publisher and the end user, sometimes referred to as the end user license agreement or EULA. While the license may be a paper contract, in most cases it is built into the software itself as part of the installation process. If the user does not accept the software license terms, he can indicate it with one click. This interrupts the installation process. In most cases, end users agree whether they actually read the license or not.
In particular, the software license protects copyright by placing restrictions on the end user in relation to the product. Duplication for purposes other than backup, installation on multiple computers, code modification, or program modification is generally prohibited. Software licenses could also limit reverse engineering and bypass controls aimed at reducing piracy.
Restrictive uses of the software aside, the license functions as a sort of disclaimer. Most EULAs include statements that the publisher will not be liable for any unforeseen circumstances that may arise as a result of using the software. This could refer to anything from a computer crash to loss of data, time or income.
Some publishers have claimed that once the cling film is broken on a retail product, the end user automatically accepts the license. Courts in various states have heard cases on this matter, as a user cannot read the EULA until after the product has been opened when a paper agreement is not included. Once the shrink wrap is opened, the item is non-returnable. In effect, this forces the user agreement. The outcome of such a legal case depends on which court it is heard in, but most found the “shrink software license” invalid. This should not be misinterpreted as final, as a minority of courts have held otherwise.
Software licenses differ between types of software. The freeware license is less restrictive than retail or shareware, allowing for unlimited copying and distribution while prohibiting any modifications to the program. Public domain software is the only type of license that has no restrictions, as the software belongs to the public.
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