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What is a Shrink-Wrap License? A Comprehensive Legal Overview
Definition & Meaning
A shrink-wrap license is a legal agreement that is printed on the exterior of a software package. It informs the buyer that by opening the package, they agree to abide by the terms outlined in the license. These licenses typically aim to protect the software creator's rights by prohibiting unauthorized copying, modifying the software, or using it on more than one computer. They also often limit the manufacturer's liability and include disclaimers regarding warranties. This type of license is also known as a box-top license or tear-me-open license.
Table of content
Legal Use & context
Shrink-wrap licenses are commonly used in the software industry to establish the terms of use for software products. They fall under the realm of contract law, which governs agreements made between parties. Users typically encounter these licenses when purchasing software in physical form, although similar concepts apply to digital downloads. Understanding these licenses is important for users to ensure compliance and avoid potential legal issues.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A user purchases a software package for graphic design. Upon opening the package, they see a shrink-wrap license stating that they cannot install the software on more than one computer. By opening the package, they are legally bound to these terms.
Example 2: A company buys a software suite for its employees. The shrink-wrap license clearly states that copying the software for use on additional computers is prohibited (hypothetical example).
Common misunderstandings
What to do if this term applies to you
If you encounter a shrink-wrap license, read the terms carefully before opening the package. If you agree with the terms, you can proceed with the installation. If you have concerns or do not agree with the terms, consider returning the software unopened. For those needing assistance, US Legal Forms offers templates and resources to help navigate software licensing issues.
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