ProCD, INC. v. Zeidenberg

1996

Court: US Court of Appels, Seventh Circuit (Easterbrook)

Facts: Zeidenberg makes a web site that shares out phonebook information using ProCD's database as the back end. Phonebook information is considered to be in the public domain. ProCD sues saying that this violates their license agreement.

Posture: Finding for the defendant at trial. Appealed.

Issue: Are these contracts, given that the terms are inside the box (i.e., when is the sale completed)? If they are contracts, are they enforceable?

Holding: Shrinkwrap licenses are enforceable unless the terms are objectionable (same standard as any contract). Reversed.

Rule: A software license is just a contract.

Reasoning: All sorts of reasoning that basically says you can attach whatever conditions you want onto the things you sell, and it's up to the buyer to find out about them and abide by them

Dicta: