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This information is taken directly from the court opinion. It is not taken out of context nor is it altered. Relevant footnotes are included at the bottom.

From Softman Products v Adobe Systems, 171 F. Supp. 2d 1075 (C.D. Cal. 2001)

The Court finds that the circumstances surrounding the transaction strongly suggests that the transaction is in fact a sale rather than a license. For example, the purchaser commonly obtains a single copy of the software, with documentation, for a single price, which the purchaser pays at the time of the transaction, and which constitutes the entire payment for the "license." The license runs for an indefinite term without provisions for renewal. In light of these indicia, many courts and commentators conclude that a "shrinkwrap license" transaction is a sale of goods rather than a license.12


Footnote 12 The term "shrinkwrap license" refers to the fact that the license begins when the purchaser reads its terms and tears open the transparent plastic wrapping, or "shrinkwrap,"" that encloses the software product. "Although early shrinkwrap licenses often were visible prior to purchase, and could be read before the purchaser tore open the software's wrapping, more recent variants place the license within the software's packaging or on the disk itself." Stephen P. Tarolli, The Future of Information Commerce under Contemporary Contract and Copyright Principles, 46 Am. U.L. Rev. 1639, 1647-48 (1997)(footnote omitted); see also ProCD, Inc. v. Zeidenberg, 86 F.3d 1447, 1450 (7th Cir. 1996) ("The 'shrinkwrap license' gets its name from the fact that retail software packages are covered in plastic or cellophane 'shrinkwrap' . . . vendors . . . have written licenses that become effective as soon as the customer tears the wrapping from the package. Vendors prefer 'end user license' . . .").

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