Tag Archives: EULA

Autodesk founder outraged by Amazon snatch of cloudy purchases

Autodesk co-founder John Walker (it’s not his fault, he relinquished control of the company many years ago) recently posted this on Twitter:

In a move reminiscent of the infamous removal of Orwell’s 1984 from Kindle devices (which Amazon promised a court it would never repeat), John’s Audible.com (owned by Amazon) audio books, purchased in 2009-2010, simply went away.

John’s reaction was to post a video of harmless inanimate objects being blown away by a powerful firearm, so I think it’s safe to say he was not overly pleased about this turn of events. Can’t say I blame him.

This is a variant of the old joke on those cheesy pre-show anti-piracy ads that have annoyed owners of legitimately purchased videos for many years:

“You wouldn’t steal a car.”
– I would if I could download it.

Amazon’s version goes:

“You wouldn’t steal a book.”
– I would if I could delete it from my server.

OK, Amazon is obviously doing evil here, but what can John do about it? Maybe nothing. As pointed out in a series of responses to John’s post, Amazon considers itself fully entitled to do this. Amazon also allows itself permission to change the rules as and when it sees fit.

Does this sound familiar? It should. “What’s yours isn’t really yours, even if you paid for it. It can go away when we feel like it. We can change the rules when we feel like it. No guarantees. Just keep paying and hope for the best.”

This is why we don’t CAD in the cloud. Or subscription CAD, for that matter. Owning stuff is still important.

You can still buy Autodesk perpetual licenses in Europe

Yes, you really can still buy Autodesk perpetual licenses in the European Union. You just can’t buy them from Autodesk.

Where can you buy those licenses? From other customers who don’t need them any more. Unlike some jurisdictions, the EU respects the doctrine of first sale for computer software. This means sale of pre-owned software is allowed, and any EULA restrictions attempting to prevent that are invalid. This was established in 2012 by the EU’s highest court, The Court of Justice for the European Union (CJEU) in the case of UsedSoft v Oracle.

Autodesk and all other software vendors in EU countries have to respect that, so the perpetual license remains valid after transfer to the new owner. The previous owner must be able to document the validity of the license and must delete or disable their copy of the software upon transfer.

While I have no personal experience of the transfer process, according to what’s being said in this CGTalk thread*, it’s all very easy. Fill out a form and you’re done. However, I suggest you contact your local Autodesk office for the details. Don’t bother to ask AVA, she doesn’t know.

I’m no EU lawyer, but my reading of the judgement is that Autodesk is not obliged to transfer any maintenance contracts along with the perpetual license (clause 66). It is, however, obliged to consider the software to be upgraded to the original owner’s level under any maintenance arrangements (clause 67). This means the software license will be permanently stuck on the last activated release prior to the sale. Companies with a single license permitting use by 50 users and who want to shed 20 of them can’t split off and sell those 20 (clause 69). Again, check with your local Autodesk office for confirmation.

If you’ve been through this process, please comment on your experiences for the benefit of others.

Software licenses within the EU are valid in all EU countries, so it would appear there is nothing preventing, say, a German buying a used AutoCAD license from the UK, at least until Brexit is complete. It is unlikely that an EU license will be legally valid outside the EU, as outside Europe Autodesk only permits license transfers under certain circumstances described here.

It’s interesting that this market for perpetual licenses exists, but Autodesk has locked itself out of its own market! Indeed, by ending the sale of perpetual licenses, Autodesk has made them a rarer and more valuable commodity.

Vernor v. Autodesk – right decision, wrong reason

As I have stated before, I believe Autodesk to be in the right (morally, not legally) in its battle to prevent Vernor’s resale of old, upgraded copies of Release 14. In the latest installment, Autodesk has won its appeal to the 9th Circuit Court of Appeals. There will be be further legal moves yet, but Vernor’s chances of winning this case are now more slender. So the right side has won (at this stage). I should be happy, right?

Wrong. Although I think the latest court to look at this has picked the right side, it has done so for entirely the wrong reasons. (Again, morally wrong, not legally. I have no qualifications on legal matters, but I can spot an injustice a mile off). In a diabolical, dangerous, far-reaching decision, it has concluded that the doctrine of First Sale does not exist at all for products where the copyright owner merely claims not to sell its products, but rather to license them.

So all those programs, games, maybe even CDs, DVDs, books etc. you have at home and thought you owned? How about that laptop with its pre-installed Windows? Or that iThing with its iOs? If you’re in the jurisdiction covered by this ruling, you quite possibly now don’t own them at all. Check out the fine print on each of those items; if it includes the magic word “license”, then you may not legally own it, or be allowed to sell it if you no longer need it. If you’re not outraged by this attack on your private property rights, you should be.

What’s more, the Court ruling explicitly rewards companies for making the “license” terms as ridiculously restrictive as they can:

We hold today that a software user is a licensee rather than an owner of a copy where the copyright owner (1) specifies that the user is granted a license; (2) significantly restricts the user’s ability to transfer the software; and (3) imposes notable use restrictions.

One of the Autodesk EULA’s more unconscionable and unenforceable restrictions, that of only being able to use the software within a certain geographical region, wasn’t used to point out the unreasonableness of Autodesk’s claimed power over its customers. Instead, it was actually used by the court to help justify its decision!

Amazingly, this ludicrous outcome wasn’t decided in ignorance. The court carefully considered the effects this decision would likely have, but apparently for reasons of legal nicety, decided to go ahead anyway. Common sense and justice be damned, a convoluted and narrow interpretation of partially-relevant previous decisions just had to rule the day.

We can only hope that this case is reviewed and overthrown (again). While such a revised outcome might be unfortunate in terms of failing to right a wrong (Vernor’s sale of already-upgraded software), that would be much preferable to the terrible damage that the 9th Circuit’s decision has inflicted on the people it is supposed to serve. I’m only glad I’m not one of those people.

Other commentary:

EFF: “Magic Words” Trump User Rights: Ninth Circuit Ruling in Vernor v. Autodesk

Wired: Guess What, You Don’t Own That Software You Bought

Techdirt: Appeals Court Destroys First Sale; You Don’t Own Your Software Anymore

ars technica: No, you don’t own it: Court upholds EULAs, threatens digital resale

Lawgarithms: In Autodesk case, 9th Circuit missed better reason to bar resales

Public Citizen: Ninth Circuit says consumers may not own their software

How will you react to Autodesk’s new upgrade pricing?

As I reported early last year, Autodesk is going to discourage you from paying for upgrades as and when you see fit. It is doing this by charging you 50% of the cost of a full license to upgrade from the previous release. The same 50% cost will apply if you crossgrade [edit: crossgrade from an non-current release, that is] (say if you move from AutoCAD to a vertical). If your product is more than three releases old, you can’t upgrade. This change takes effect from 16 March 2010. There were some discounted upgrade offers to get you signed over early, but these have now expired. If you are thinking of upgrading or crossgrading, I suggest you contact your reseller, get out your calculator and consider doing it in the next few weeks.

There is some laughable doublespeak in the Autodesk marketing of this change, such as “streamlining our upgrade pricing based on feedback from customers and resellers,” but I can’t imagine anyone being fooled by such nonsense. It’s obvious that Autodesk is not doing this because you all asked for upgrade prices to be trebled to make a nice predictable percentage, it’s doing this to force upgraders on to Subscription. Once you’re on Subscription, you’re paying a year in advance for an upgrade (bonus cashflow!), and you’re something of a captive market, theoretically providing Autodesk with a more regular source of income. (The financial crisis has knocked something of a dent in that theory, as many companies have chosen not to renew subscriptions for products that were previously used by now-retrenched employees).

If you’re already on Subscription, you may be feeling pretty smug right now. Don’t be. Once Autodesk’s user base is effectively converted to the Subscription model, Autodesk will be free to do all sorts of things to that user base. Things like jacking up Subscription prices, reducing or eliminating existing Subscription services, and slipping little clauses into the EULA so you’re “agreeing” that you will lose your license if you stop paying your annual fees. You may be able to think of other things that you won’t like but which will benefit Autodesk shareholders. Maybe not, because Autodesk is too nice to its customers? Maybe I’m just cynical? Then again, if a couple of years ago I had suggested that Autodesk would treble (sorry, “simplify”) upgrade prices, more than a few would have thought I was paranoid.

Autodesk’s various little Subscription carrots have had limited success among its customers, so now it’s time for the big stick. In effect, Autodesk is encouraging you to get on Subscription or get out. What to do? Jump off the upgrade/Subscription train altogether and stick with what you have? Upgrade once now and stick there indefinitely? Upgrade every 3 years? Buy a new license every 6 to 10 years? Hang on and hope Autodesk introduces an upgrade amnesty in a few years? Move over to one of Autodesk’s competitors? My guess is that a large majority of us are going to just do as we’re directed and get onto Subscription.

I’d like to hear from you. What are you going to do, and why? If you’re on Subscription already, are you concerned about what Autodesk might do in the future?

Disclosure: I manage several dozen Autodesk licences for a large organisation which has been on Subscription for quite a few years.

Should you read software license agreements?

Evan Yares has raised an interesting point about the insolvency clause in Autodesk’s End User License Agreement. Please read the whole thing, but the gist is that there’s a clause where if you get into financial difficulties, Autodesk will do its bit to help you out in times of trouble by taking away your software licenses.

This clause extends as far as making an arrangement with your creditors, which is a common enough phrase but can mean several things and isn’t defined within the agreement. So, if your cash flow is a bit tight and you have to ask your phone company for another month to pay your bill, you’ll be sure to stop using all your Autodesk software, won’t you? Never use it again, because otherwise you’ll be a thief.

OK, maybe that’s a bit extreme, but I’m sure it could be interpreted that way by an aggressive and/or inventive lawyer, and Autodesk doesn’t appear to be short of those. Who knows? Why would Autodesk put that kind of thing in its EULAs if there is no intention of ever using it?

That’s an interesting aside, but it’s not my main point. Autodesk EULAs have traditionally contained unreasonable, unconscionable and arguably unenforceable clauses, so there’s nothing particularly remarkable there. My main point relates to reading EULAs in general, not just Autodesk’s. As a general rule, should you do it?

Looking at the polls I’ve done on this subject, lots of you don’t read them. In fact, over two thirds of poll respondents either never read them, or rarely do so. It would be interesting to find the reasons behind that. Do you not have the time? Is it pointless because it’s all legal gobbledygook? Do you trust the software maker to be reasonable? Do you consider click-throughs to be unenforceable? Or are there other reasons? Please let me know. I may do another poll once I have a reasonable set of choices to offer up.

There’s an argument that can be made that you are actually better off not reading these “agreements”. According to this argument, if you don’t read it, how can you have agreed to it? There’s no meeting of the minds. Better still; get somebody outside your company to do the installation for you. That person has no authority to bind your company to anything, so no agreement exists.

Or does it? Is this a valid argument? Until there’s either well-established case law or unambiguous legislation, it’s anybody’s guess. Even when the answer is known, it’s highly likely that the answer will vary depending on your location. Even if the agreement states that it is based on California law, what if the local law establishes that no obligation exists that binds you to that agreement?

What’s the best thing to do? I honestly don’t know. You could do an R. Paul Waddington and make a public repudiation of any obligation to abide by Autodesk’s EULAs, and continue to use the software. You could do what I suspect a large number of people do, which is the same kind of repudiation, but a silent one. You could attempt to negotiate a modified EULA with the software vendor, but I don’t fancy your chances. You could stop using software with unreasonable EULAs, but what kind of choice is that? It may not be possible at all for your business. Finally, you could just put up and shut up, either agreeing unreservedly to accept whatever is in the EULA, or crossing your fingers in the hope that the software vendor will do the right thing.

What choice have you made, and why?

More on ODA, Autodesk and click-through agreements

Evan Yares has provided more information on the incident I mentioned in my last post. Here it is:

It was years ago. My guess was that the person who did it was just trying to spider the website pages, for marketing research, and didn’t realize he got all the libraries too.

In any event, I said hey you did this, they said no we didn’t, I produced download logs, they said there was no agreement and even if there was we hereby cancel it, I said if you want to see our libraries I’ll send ’em to you no strings, they said no thanks, then I just let it drop. Of course, I’m paraphrasing.

I wasn’t going to get in a fight with Autodesk. Trying to trick them into joining the ODA would have been both futile and dumb. I’d been trying for years to get them to join (I was an optimist, once upon a time), and it caused no damage for Autodesk to be able to see the ODA libraries. There wasn’t anything in them that they didn’t know better than we did.

Don’t read too much into Autodesk’s belief in the enforceability of click-through agreements based on this incident. I knew the guy who downloaded the files, and knew that he didn’t have the authority to bind Autodesk to an ODA membership agreement (it would have taken at least a VP to do that.)

This is interesting for more than just the amusement factor; it raises a serious point about the enforceability of click-through agreements. In this case it was a web-based membership agreement, but I’m more interested in software license agreements.

In most cases, the person doing a software installation is unlikely to be a Vice President or higher. It’s quite possible that the installer doesn’t even work directly for the company that is supposedly agreeing to whatever terms may be hidden behind the “I Agree” button. In fact, that’s the situation I’m regularly faced with when I install software for a client. The client certainly doesn’t view the “agreement” and may not even know that it exists. The client hasn’t authorised me to negotiate a contract with anyone, only to get some software working. There’s no “meeting of the minds”. The software vendor may think that the client is bound up tight by the terms of the EULA; the client hasn’t agreed to anything and either doesn’t know the EULA exists or doesn’t consider it to have any validity.

Does it matter? Maybe not. It only really matters when one party or the other doesn’t do the right thing. Fortunately, I have honest clients and I’m confident that they will act in an ethical way on an ongoing basis. But will the software vendors do likewise? I don’t know.

Evan Yares, ODA, Autodesk and click-through agreements

I’ve always found it entertaining when the lawyers of CAD companies do their best to make their clients look like total jerks. The opening shots as presented by Evan Yares in his proposed ODA class-action lawsuit indicate that there is another rich source of recreational reading on its way. I’m sure it’s no fun for the lawyer-paying people involved, though.

You would think that Autodesk would be rubbing its corporate hands together at the prospect of the ODA being distracted like this. Or maybe not, if the bunfight throws up more little gems like this:

Autodesk had at least once gone to the ODA website, agreed to the click-through membership agreement, received their access password via email, downloaded each and every library on the ODA’s website, then denied they did it. (The ensuing conversation about this, between the ODA and Autodesk, was pretty interesting, to say the least.)

If that’s true (and I would welcome evidence from either party) it certainly puts an interesting slant on what Autodesk thinks about the enforceability of click-through agreements.

On a related subject, see the polls on the right. There has been one running for a while about whether you even read such “agreements”, and I’ve added two more. They ask if you feel morally and legally bound by the terms that lie under that “let me get on with the installation” button.