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The importance of software license agreements or EULAs

by Lam Luu

Created on: March 30, 2009   Last Updated: April 03, 2009

How many times have you say "I agree" to a EULA (End User License Agreement) without reading it? Well, let me confess, any attempt to read (always) cripples your mind due to the type of "legal English" used in those License. However, you should understand that EULA is extremely important: It is the reason why companies like Microsoft can make a profit out of knowledge, which had always been humans common property until Bill Gates invented the whole idea of selling ideas.

To demonstrate the power of EULA, I explain Microsoft Windows XP Professional EULA to you, to show you what rights you have (as users), what rights and responsibilities Microsoft has, and some comparisons to other products and licenses. Let's start.

When you buy something, what do you expect? Well, first, that the thing is at least as good as the advertisement, right? Second, that you are allow to do whatever you want with it. Third, that the producer is behind their products, and that they will pay you back if the product damages you, your businesses, or anyone else. Lastly, for a software, you also expect your privacy. Common sense, eh?

However, none of these make EULA's sense. In other words, you HAVE NONE OF THESE RIGHTS.

First, Microsoft is only responsible in the first 90 days of your purchase. If you realize that their advertisement lies about something on the 91st day, you cannot sue them, or get refund, or anything. If your hardware gets burned and seriously damaged on the 91st day, you are out of luck. They are not responsible for anything. I mean, ANYTHING, even if they have known that thing before hand.

In the first 90 days, if your computer gets infested with virus, that will void your warranty. Now, go on and try to argue that the virus can infested is because the shitty state of the OS, but they will not pay you back, because it has been explicitly stated, and you agree to that, that if the system is down because of virus, it's not Microsoft responsibility.

In the best case (warranty still in effect, no virus, etc.), the best you can get from the warranty is, um, Microsoft's fixing the problem, or replace the software, or at most $5.00 dollars. If your business dies thanks to a bug in Windows (if you use it as your server, says), you cannot sue them, demand payment, or anything, because you have agreed not to do so in the EULA. Hurray!

Secondly, you are not allowed to do a lot of things. You can't, obviously, install the software on more than 1 computer. This is pretty Microsoft's common

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