Ok, be honest. You never read the End-User License Agreements (EULA) on the hardware and software you buy, do you?

You should. Otherwise you really don't know what you’re agreeing to.

I bought a Sony Vaio laptop a couple of years ago and I had to agree to their EULA before I could use the hardware that I had paid for. So for kicks I actually read it, and this is what I saw:

The software contains features which may allow SONY and/or third parties to collect data from, control and/or monitor computers and devices running or interacting with the SOFTWARE. You hereby agree that such activities may occur.

And this:

From time to time, SONY or other third parties may automatically update or otherwise modify the SOFTWARE […] Such updates or modifications may delete or change the nature of features or other aspects of the SOFTWARE, including functions you may rely upon. You hereby agree that such activities may occur at SONY's sole discretion and that SONY may condition continued use of the SOFTWARE upon your complete installation or acceptance of such update or modifications.

That's right. I paid for the laptop, but my ability to use it is at Sony's sole discretion.

Few industries have been more insistent about controlling your rights than software companies, who generally claim that customers do not actually own the software, but only the right to use it, again at the sole discretion of the manufacturer.

Autodesk has been one of the most vocal companies about the power of its EULAs. When Timothy Vernor began selling used copies of AutoCAD on Ebay, Autodesk filed several DMCA infringement notices, causing Ebay to suspend his account.

Vernor (with the help of Public Citizen) sued, and a couple of weeks ago a federal district judge set AutoDesk straight, noting that their “license” neither required ongoing payments nor the return of the software -- so it wasn’t really much of a license. As such, the software fell under the First Sale Doctrine, and Mr. Vernor was well within his rights.

Intuit is another company with a questionable EULA. It's actually copyrighted, which at least one critic believes is part of a campaign to stifle public discussion. I'll bet most customers are unaware that they agreed to Intuit’s sunset policy:

As of April 30, 2008, in accordance with the Quicken discontinuation policy, online services1 and live technical support will no longer be available for Quicken 2005 users. These services include online bill pay; downloading financial data from your bank, credit union, credit card, brokerage, 401(k), or mutual fund accounts…

Basically, Intuit turns off all of the useful functionality of the software that you paid for. Intuit claims that this is to ensure that customers have superior technology, but they can't improve the services my bank provides. If you want to continue to use it you are forced to purchase an upgrade.

Imagine if a car company disabled your car’s ability to start after three years -- just to ensure that you have the latest technology. Imagine the uproar. Yet this is somehow acceptable for software?

Software companies need to be able to protect their rights; reasonable rights spelled out clearly for all to see. However, at some point they also must acknowledge that their customers -- you know, the ones who pay to purchase their products -- deserve some rights too.

Larry Borsato has been a software developer, marketer, consultant, public speaker, and entrepreneur, among other things. For more of his unpredictable, yet often entertaining thoughts you can read his blog at larryborsato.com.

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