WEBVTT - The Weaponization of EULAs

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<v Speaker 1>Welcome to Tech Stuff, a production from iHeartRadio. Hey thereon

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<v Speaker 1>Welcome to Tech Stuff, I'm your host, Jonathan Strickland. I'm

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<v Speaker 1>an executive producer with iHeart Podcasts and how the tech

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<v Speaker 1>are you? So? Not that long ago, I talked about

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<v Speaker 1>a story about Roku and how the company made a

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<v Speaker 1>change to its end User License Agreement or EULA, and

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<v Speaker 1>it raised quite a few eyebrows, even though there's been

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<v Speaker 1>precedent for this. So the new terms included language regarding

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<v Speaker 1>how to resolve disputes with the company. If you're a

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<v Speaker 1>customer and you have a dispute with Roku and you've

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<v Speaker 1>agreed to their ULA, this is how it works. So essentially,

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<v Speaker 1>Roku would require customers to agree to an informal dispute

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<v Speaker 1>resolution clause. Now, this would mean that a user would

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<v Speaker 1>have to agree to bring any legal complaints directly to

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<v Speaker 1>Roku lawyers first before going any further, and at that point,

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<v Speaker 1>the lawyer would presumably present a resolution to the consumer.

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<v Speaker 1>And even beyond that, there's a forced arbitration clause that

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<v Speaker 1>essentially says a Roku customer signs away their rights to

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<v Speaker 1>bring lawsuits or to join class action lawsuits brought against Roku.

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<v Speaker 1>This in itself is not unprecedented. It's not the only

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<v Speaker 1>time a company has said, Hey, in order for you

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<v Speaker 1>to use this stuff, you have to agree that you

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<v Speaker 1>won't sue us if you have a problem with it.

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<v Speaker 1>Other companies have included forced arbitration clauses in their EULA statements.

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<v Speaker 1>And those are those things that nobody ever reads, right,

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<v Speaker 1>And when I say nobody, I don't really mean no one,

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<v Speaker 1>but like, there have been various pieces I've read that

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<v Speaker 1>have suggested that only one tenth of one percent of

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<v Speaker 1>all people who agree to a ULA have bothered to

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<v Speaker 1>read any of it, let alone the whole thing. These

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<v Speaker 1>agreements are designed to protect companies from liability. They're also

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<v Speaker 1>meant to extend copyright protections for stuff that isn't typically

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<v Speaker 1>covered under traditional copyright law, or to fill in gaps,

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<v Speaker 1>and generally speaking, they tend to hold up in court,

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<v Speaker 1>at least they do if they're not poorly constructed. We'll

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<v Speaker 1>talk more about a couple of court cases later in

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<v Speaker 1>this episode to kind of illustrate that. But things get

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<v Speaker 1>worse from here, right, So Roku says, Hey, if you

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<v Speaker 1>agree to this, it means you can't sue US if

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<v Speaker 1>something were to happen and you had a dispute, well

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<v Speaker 1>they also had it where if you had a device

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<v Speaker 1>that uses Roku services, like a television with Roku built

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<v Speaker 1>into it, or a Roku streaming device, whatever it may be,

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<v Speaker 1>then you would get prompted to agree to these new

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<v Speaker 1>changes with a big old agree button. So there'd be

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<v Speaker 1>like one option to agree. There was no other option.

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<v Speaker 1>You couldn't choose no, I do not agree. So in

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<v Speaker 1>order to opt out of this ula, you would actually

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<v Speaker 1>have to track down the information so that you could

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<v Speaker 1>send a handwritten or type letter through the old postal service, Yeah,

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<v Speaker 1>good old fashioned US mail. And even then you could

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<v Speaker 1>only do it if you had opted out within thirty

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<v Speaker 1>days of the new terms applying to you. Now, these

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<v Speaker 1>terms went into effect on February twenty, twenty twenty four,

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<v Speaker 1>so that time is already up. The deadline has passed.

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<v Speaker 1>Not that I think most people would have taken that effort,

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<v Speaker 1>you know, to write in and opt out of these terms,

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<v Speaker 1>Like it's the sort of thing that a company does

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<v Speaker 1>knowing that practically no one out there is going to

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<v Speaker 1>take the effort to opt out, Like you can opt

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<v Speaker 1>in very easily just click that little button, but to

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<v Speaker 1>opt out. You know, it reminds me of a passage

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<v Speaker 1>in a Hitchhiker's Guide to the Galaxy where you had

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<v Speaker 1>to find the terms of the agreement by going into

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<v Speaker 1>a very dark and dangerous basement of a building and

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<v Speaker 1>find it in a disused lavatory that had a sign

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<v Speaker 1>on it saying beware of the leopard. Akin to that,

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<v Speaker 1>and even writing in didn't cut it, like you had

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<v Speaker 1>to do more than that. Customers would have to include

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<v Speaker 1>a lot of information. They had to include their own

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<v Speaker 1>personal information, of course, like their name and their contact info,

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<v Speaker 1>but they also had to list whichever Roku products they

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<v Speaker 1>were concerned about, so presumably all the Roku products that

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<v Speaker 1>they actually owned and used, and then preferably they were

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<v Speaker 1>to include a copy of the receipt for those items,

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<v Speaker 1>although that was also said to be quote unquote optional,

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<v Speaker 1>but it was listed as one of the things you

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<v Speaker 1>were supposed to send in was a copy of your receipt.

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<v Speaker 1>And a big old nod to Devin cold Away of

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<v Speaker 1>tech Crunch for writing the article Roku disables TVs and

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<v Speaker 1>streaming devices until users consent to new terms, because that

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<v Speaker 1>really is what inspired this episode. And kind of gave

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<v Speaker 1>me the launching point for it. Anyway, that Roku example,

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<v Speaker 1>while seeming to be pretty egregious, is really just one

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<v Speaker 1>in which companies have created lengthy, complicated, and and sometimes

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<v Speaker 1>downright shady terms that they expect customers to agree to,

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<v Speaker 1>and most of the time customers do agree to them,

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<v Speaker 1>because again, no one's bothered to read the actual agreement,

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<v Speaker 1>and you know, it's hard to fault customers to do this.

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<v Speaker 1>I want to tell you I am not the person

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<v Speaker 1>who reads ayula. I don't read all of these EULAs

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<v Speaker 1>all the way through. I might scan one once in

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<v Speaker 1>a blue moon, but that is the exception, not the rule.

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<v Speaker 1>So I am not putting myself above anyone else here,

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<v Speaker 1>because who has time to read them? Some EULAs get

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<v Speaker 1>insanely long. Jason Cohen of PC Magazine has an article

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<v Speaker 1>titled it would take seventeen hours to read the terms

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<v Speaker 1>and conditions of the thirteen most popular apps. This was

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<v Speaker 1>written back in twenty twenty, so who knows, it may

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<v Speaker 1>be even more in twenty twenty four. So I think

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<v Speaker 1>folks can be forgiven for skipping reading sessions in order

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<v Speaker 1>to use whatever it was they wanted to use. I've

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<v Speaker 1>seen lots of different summaries of how long some of

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<v Speaker 1>these EULAs are. Like Microsoft had one that was more

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<v Speaker 1>than eighteen thousand words long. Some of them are topping

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<v Speaker 1>above twenty thousand words. That's a lot of material. This episode,

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<v Speaker 1>the script I've written out is less than four thousand words,

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<v Speaker 1>and as I'm going through it, you guys know, it

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<v Speaker 1>takes me like more than half an hour to get

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<v Speaker 1>through these episodes. So that's just speaking it out to you.

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<v Speaker 1>These are really long agreements. So today I wanted to

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<v Speaker 1>talk a little bit about why EULAs exist in the

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<v Speaker 1>first place, and to cover what their purpose happens to be.

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<v Speaker 1>Some examples maybe that have been a little bit on

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<v Speaker 1>the extreme side, maybe a little bit about the legal cases.

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<v Speaker 1>So let's just jump right in now. To understand the

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<v Speaker 1>humble eula. One thing we need to do is understand

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<v Speaker 1>how digital products are different from physical ones beyond the

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<v Speaker 1>obvious that is. So, for example, let's say you went

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<v Speaker 1>out to a local music's or to purchase an album

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<v Speaker 1>from your favorite artist or group. This album happens to

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<v Speaker 1>be on vinyl, So you're buying a vinyl long playing

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<v Speaker 1>record album, and you bring your purchase home, and then

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<v Speaker 1>you do whatever you want with it. You can listen

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<v Speaker 1>to it. You can listen to it as many times

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<v Speaker 1>as you like. It doesn't matter if you've just listened

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<v Speaker 1>to it one hundred times. You can listen to it

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<v Speaker 1>for one hundred and one. You can trade it with

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<v Speaker 1>a friend for something else. You could gift it to someone.

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<v Speaker 1>You could just give it away. You could even sell

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<v Speaker 1>it if you suddenly remembered that you don't own a turntable,

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<v Speaker 1>so there's nothing else you could do with it. If

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<v Speaker 1>you wanted. You could even just shatter the vinyl in

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<v Speaker 1>a display of unbridled passion. The physical object of that

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<v Speaker 1>album is yours. You own that physical object, but it

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<v Speaker 1>is not your intellectual property right. Buying the album obviously

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<v Speaker 1>does not give you ownership of the music that's on

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<v Speaker 1>that album. That seems obvious. If I went out and

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<v Speaker 1>bought a copy of all of the Beatles albums, I

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<v Speaker 1>wouldn't suddenly own the rights to the Beatles discography. That

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<v Speaker 1>would be a chaotic world if it were otherwise. So

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<v Speaker 1>you wouldn't have the right to make endless copies of

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<v Speaker 1>this album to give away to friends. You couldn't do

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<v Speaker 1>that because you don't own the music. Here in the

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<v Speaker 1>United States, you could make a backup copy for yourself.

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<v Speaker 1>That is allowed under fair use. So if you bought

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<v Speaker 1>an album, you could make a backup of it. If

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<v Speaker 1>you bought it on vinyl and you thought, I want

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<v Speaker 1>to make sure I can listen to this even if

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<v Speaker 1>something happens to this vinyl album, then you could copy

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<v Speaker 1>it to like cassette or even a digital file. But

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<v Speaker 1>that's about the extent of your rights. As far as

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<v Speaker 1>that goes. With a digital copy, things are clearly different.

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<v Speaker 1>There's no physical medium to speak of. There's a file,

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<v Speaker 1>and that just consists of zeros and ones arranged in

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<v Speaker 1>such a way that, when processed by the proper program,

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<v Speaker 1>is gonna play back a piece of music. You can

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<v Speaker 1>buy such a file, but because that file isn't imprisoned

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<v Speaker 1>in some physical form, the copyright owners want to have

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<v Speaker 1>a way to keep a reasonable or sometimes unreasonable amount

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<v Speaker 1>of control over the distribution of that file. After all,

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<v Speaker 1>if your livelihood depends upon selling digital content, you don't

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<v Speaker 1>want to make a single sale and then see your

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<v Speaker 1>customer go on to make an infinite number of copies

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<v Speaker 1>of that work and then distribute it for less money

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<v Speaker 1>or even for free, because you would be out of

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<v Speaker 1>a job and all of your hard work would be

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<v Speaker 1>out of your control. This very obvious distinction between physical

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<v Speaker 1>media and digital media, which extends beyond just music into

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<v Speaker 1>lots of other realms, creates a bit of a challenge

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<v Speaker 1>for the entities that produce the media in question. We're

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<v Speaker 1>able to treat physical media as personal property. Typically, the

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<v Speaker 1>challenges of making endless copies of physical media are such

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<v Speaker 1>that there isn't that much of a threat to the

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<v Speaker 1>powers that be once you get your grubby little hands

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<v Speaker 1>on that vinyl album. That doesn't mean that the powers

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<v Speaker 1>that be are always cool with advancements in physical media.

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<v Speaker 1>Film and TV studio companies and music studios notoriously have

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<v Speaker 1>been wary of this. Film and TV studios fought against

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<v Speaker 1>the Humble VCR when it became commercially available, and the

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<v Speaker 1>music industry wasn't really keen on the concept of recordable

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<v Speaker 1>cassette tapes or writeable compact discs. But generally speaking, the

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<v Speaker 1>realities and limitations of making physical copies are such that

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<v Speaker 1>any opposition to the technology fades away over time, because

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<v Speaker 1>it turns out the trouble you have to go to

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<v Speaker 1>in order to make a significant number of copies of

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<v Speaker 1>physical media is such that very few people will actually

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<v Speaker 1>bother with it. Right, Like, there are devices out there

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<v Speaker 1>that would allow you to do things like transfer a

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<v Speaker 1>recording from one medium to a whole bunch of copies

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<v Speaker 1>at once, but even then it was limited because you're

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<v Speaker 1>talking about physical media. So you might have something where

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<v Speaker 1>you can make one master copy and then create ten

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<v Speaker 1>copies at a time, but that's still ten. It's not

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<v Speaker 1>you know, thousands or million. So eventually a lot of

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<v Speaker 1>these companies kind of backed off, but a quick side

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<v Speaker 1>on the VCR issue, that one was one that would

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<v Speaker 1>make its way all the way to the US Supreme Court,

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<v Speaker 1>namely the Sony Corporation of America versus Universal City Studios, Incorporated.

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<v Speaker 1>So this was in nineteen eighty four. So in the

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<v Speaker 1>nineteen seventies, when Sony introduced the Betamax machine, a few

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<v Speaker 1>studios got very upset at what they viewed as a

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<v Speaker 1>device that was just designed for copyright infringement. So Universal

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<v Speaker 1>sued and alleged that Sony should be held liable for

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<v Speaker 1>each and every instance of copyright infringement that resulted from

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<v Speaker 1>customers using Betamax in this way, and the case went

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<v Speaker 1>back and forth in the court system. Sony would win

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<v Speaker 1>one case, then Universal would get the decision reversed on appeal,

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<v Speaker 1>and then ultimately Sony submitted the case to the Supreme Court.

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<v Speaker 1>During that case, the court ruled that using a device

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<v Speaker 1>like a VCR for the purposes of time shifting, that is,

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<v Speaker 1>being able to watch media on your schedule, not on

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<v Speaker 1>a channel schedule. Because remember this is at a time

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<v Speaker 1>time where you were just watching broadcast television or cable TV,

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<v Speaker 1>and it was just TV schedules. There was no other

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<v Speaker 1>way to watch. There was no on demand watching. So

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<v Speaker 1>to use a VCR to record a program so that

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<v Speaker 1>you could watch it when you were actually home, the

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<v Speaker 1>court decided that was under fair use. They also found

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<v Speaker 1>that the argument that the Beta Max and devices like

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<v Speaker 1>it were made expressly for the purposes of copyright infringement

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<v Speaker 1>were false. That Beta Max could make copies, but it

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<v Speaker 1>could also just playback tapes that were sold in stores.

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<v Speaker 1>And one other interesting element of this case. One of

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<v Speaker 1>the people who provided testimony in support of VCR technology

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<v Speaker 1>was mister Rogers, as in Fred Rogers, the creator and

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<v Speaker 1>host of the Public television program mister Rogers neighborhood. He

0:12:45.240 --> 0:12:48.520
<v Speaker 1>liked VCRs just the way they were. Okay, we're going

0:12:48.600 --> 0:12:52.440
<v Speaker 1>to talk more about ULA's and the differences between digital

0:12:52.440 --> 0:12:55.120
<v Speaker 1>and physical media, but first let's take a quick break

0:12:55.160 --> 0:13:07.880
<v Speaker 1>to thank our sponsors. We're back. So before I was

0:13:07.880 --> 0:13:11.520
<v Speaker 1>talking about physical media. But digital media is different from

0:13:11.559 --> 0:13:14.240
<v Speaker 1>physical media, and there's no getting around it. It can

0:13:14.280 --> 0:13:17.920
<v Speaker 1>be incredibly easy to make copies of digital media, and

0:13:18.480 --> 0:13:21.559
<v Speaker 1>it isn't governed by the same set of physical restrictions

0:13:21.600 --> 0:13:25.160
<v Speaker 1>and limitations that we get with the physical stuff we buy. However,

0:13:25.200 --> 0:13:30.480
<v Speaker 1>there's also often a need to copy digital media legitimately. So,

0:13:30.559 --> 0:13:33.640
<v Speaker 1>for example, if you want to save a file to

0:13:33.760 --> 0:13:37.440
<v Speaker 1>your hard drive, that is copying, and you might have

0:13:37.559 --> 0:13:40.280
<v Speaker 1>to save something to a hard drive in order to

0:13:40.400 --> 0:13:42.880
<v Speaker 1>be able to use the thing you purchase, like some software.

0:13:43.200 --> 0:13:45.760
<v Speaker 1>Let's just talk about software in the good old days

0:13:45.760 --> 0:13:48.840
<v Speaker 1>of physical media, stuff like optical discs, you know, like

0:13:48.880 --> 0:13:51.640
<v Speaker 1>a CD. So let's say you've gone out to a

0:13:51.679 --> 0:13:54.640
<v Speaker 1>physical brick and mortar store because back in the day,

0:13:54.960 --> 0:13:58.520
<v Speaker 1>and you buy a copy of some software that you

0:13:58.600 --> 0:14:01.440
<v Speaker 1>want to use, and you purchase it legally, right, you've

0:14:01.559 --> 0:14:05.280
<v Speaker 1>spent your money on this in a legal retail establishment.

0:14:05.360 --> 0:14:08.400
<v Speaker 1>You come back, the software is on a compact disc,

0:14:08.760 --> 0:14:10.640
<v Speaker 1>and in order to use it, you actually need to

0:14:11.000 --> 0:14:14.960
<v Speaker 1>transfer the file from the compact disc to your hard

0:14:15.040 --> 0:14:16.719
<v Speaker 1>drive and then you're going to be able to use

0:14:16.720 --> 0:14:21.360
<v Speaker 1>the software. Except you're not actually pulling the file off

0:14:21.400 --> 0:14:24.240
<v Speaker 1>of the CD, like removing it from the CD and

0:14:24.280 --> 0:14:27.280
<v Speaker 1>then poorting it over to your computer. You're copying the

0:14:27.360 --> 0:14:31.120
<v Speaker 1>file from your CD to your computer. The file information

0:14:31.200 --> 0:14:34.600
<v Speaker 1>is still on the CD, right, it's in two places. Now,

0:14:34.600 --> 0:14:36.520
<v Speaker 1>it's on your computer and it's on the CD. But

0:14:36.560 --> 0:14:38.200
<v Speaker 1>you've had to do this in order to run the

0:14:38.240 --> 0:14:41.240
<v Speaker 1>software properly, rather than relying on your optical drive the

0:14:41.280 --> 0:14:44.840
<v Speaker 1>whole time. So here's a case where copying the file

0:14:45.040 --> 0:14:47.320
<v Speaker 1>is part of the process in order to use the

0:14:47.360 --> 0:14:51.040
<v Speaker 1>product as it was intended. So this is an allowable

0:14:51.400 --> 0:14:55.160
<v Speaker 1>use case. But making infinite copies of the file that's

0:14:55.200 --> 0:14:58.440
<v Speaker 1>on that CD and then distributing it to everyone you know,

0:14:58.680 --> 0:15:02.560
<v Speaker 1>obviously that's not a legitimate use case. So how does

0:15:02.600 --> 0:15:07.240
<v Speaker 1>the file's producer distinguish between these two scenarios. They do

0:15:07.320 --> 0:15:11.000
<v Speaker 1>it by creating a licensing agreement. So in this case,

0:15:11.040 --> 0:15:14.840
<v Speaker 1>the agreement would grant the licensee the customer, in other words,

0:15:15.320 --> 0:15:17.160
<v Speaker 1>the right to make a copy of the file for

0:15:17.200 --> 0:15:20.280
<v Speaker 1>the purposes of saving the information to their hard drive.

0:15:20.600 --> 0:15:22.800
<v Speaker 1>But this agreement would also spell out that this is

0:15:22.840 --> 0:15:26.200
<v Speaker 1>really the only acceptable instance for making a copy, with

0:15:26.480 --> 0:15:30.480
<v Speaker 1>maybe an exception for making a backup for the interest

0:15:30.520 --> 0:15:33.960
<v Speaker 1>of fair use. That's a possible other clause that could

0:15:34.000 --> 0:15:37.360
<v Speaker 1>be there. So the license agreement defines how the customer

0:15:37.400 --> 0:15:40.360
<v Speaker 1>can use the software legally, and the customer has to

0:15:40.400 --> 0:15:43.360
<v Speaker 1>acknowledge and agree to the license before they make use

0:15:43.360 --> 0:15:45.840
<v Speaker 1>of the software. Sometimes all they have to do is

0:15:45.920 --> 0:15:48.200
<v Speaker 1>just make use of the software, and that ends up

0:15:48.240 --> 0:15:51.720
<v Speaker 1>being an acknowledgment an agreement to the EULA right like

0:15:52.320 --> 0:15:54.320
<v Speaker 1>they may not have to actually click on a button

0:15:54.440 --> 0:15:57.000
<v Speaker 1>or anything. It may be that the EULA spells out

0:15:57.040 --> 0:16:00.640
<v Speaker 1>that by using the software, it intrinsically means the customer

0:16:00.640 --> 0:16:04.360
<v Speaker 1>has agreed to the terms, and the concept is that

0:16:04.480 --> 0:16:07.440
<v Speaker 1>all parties are aware of and agreed to these terms

0:16:07.440 --> 0:16:10.000
<v Speaker 1>of use, and then things can go on their own

0:16:10.040 --> 0:16:12.520
<v Speaker 1>merry way. One thing to keep in mind is that

0:16:12.680 --> 0:16:16.280
<v Speaker 1>because of the license issue, what we're talking about is

0:16:16.280 --> 0:16:20.920
<v Speaker 1>not ownership, right, it's access. That's what the license grants

0:16:21.000 --> 0:16:24.720
<v Speaker 1>the licensee. It grants them access to whatever it is

0:16:24.880 --> 0:16:28.320
<v Speaker 1>that's licensed, but they don't own it. The person that

0:16:28.800 --> 0:16:32.640
<v Speaker 1>or entity that sold it owns it. So even if

0:16:32.680 --> 0:16:35.360
<v Speaker 1>you have a copy sitting on your computer, you don't

0:16:35.400 --> 0:16:38.800
<v Speaker 1>own that copy. You're just licensed to access it. That's

0:16:38.840 --> 0:16:42.240
<v Speaker 1>the foundational idea behind a ULAP. It protects the producer

0:16:42.280 --> 0:16:45.560
<v Speaker 1>and holds customers accountable for accessing the licensed material in

0:16:45.600 --> 0:16:48.760
<v Speaker 1>a very specific and approved way. That's a real kicker,

0:16:48.800 --> 0:16:52.760
<v Speaker 1>isn't it, Because being able to access material means that

0:16:52.800 --> 0:16:56.400
<v Speaker 1>the producer can actually define the rules that favor them.

0:16:56.560 --> 0:16:59.080
<v Speaker 1>I mean, they're the only party that's making up these rules.

0:16:59.160 --> 0:17:02.360
<v Speaker 1>This is not a negociation. It's not a process where

0:17:02.640 --> 0:17:07.840
<v Speaker 1>collaboratively buyer and seller come together and they heckle and

0:17:07.880 --> 0:17:10.679
<v Speaker 1>they come to an agreement. This is where the seller

0:17:10.720 --> 0:17:15.000
<v Speaker 1>gets to dictate all the terms, and they can redefine

0:17:15.040 --> 0:17:18.840
<v Speaker 1>the rules with little to no warning. They can change

0:17:18.880 --> 0:17:21.879
<v Speaker 1>the rules after people have already agreed to a different

0:17:21.920 --> 0:17:24.920
<v Speaker 1>set of rules. That's how we get situations like what's

0:17:24.920 --> 0:17:29.760
<v Speaker 1>happening with Roku that you as a customer, maybe you've

0:17:29.800 --> 0:17:32.760
<v Speaker 1>read the whole eula top to bottom, and maybe you're like,

0:17:33.280 --> 0:17:35.119
<v Speaker 1>there's some stuff in here I don't really like, but

0:17:35.320 --> 0:17:38.080
<v Speaker 1>overall I can agree to this, and you move forward,

0:17:38.400 --> 0:17:41.640
<v Speaker 1>and then they change the rules of the agreement on you,

0:17:42.240 --> 0:17:45.280
<v Speaker 1>and the next thing, you know, because of the nature

0:17:45.320 --> 0:17:48.000
<v Speaker 1>of you las, you are stuck with an agreement that

0:17:48.080 --> 0:17:54.080
<v Speaker 1>you no longer really like or or feel is warranted.

0:17:54.680 --> 0:17:57.600
<v Speaker 1>One example brought up in a book titled The End

0:17:57.640 --> 0:18:02.400
<v Speaker 1>of Ownership by Aaron Parson Now and Jason Schultz, which

0:18:02.440 --> 0:18:05.760
<v Speaker 1>I actually purchased for this episode. Great book, by the way,

0:18:06.040 --> 0:18:09.400
<v Speaker 1>I recommend checking it out. But one case is a

0:18:09.440 --> 0:18:15.240
<v Speaker 1>pretty infamous one with Amazon and George Orwell's nineteen eighty four. Now,

0:18:15.280 --> 0:18:18.200
<v Speaker 1>the fact that it involves nineteen eighty four in particular

0:18:18.760 --> 0:18:22.439
<v Speaker 1>is coincidental, but it's still kind of ironic. So what

0:18:22.640 --> 0:18:26.120
<v Speaker 1>happened was that you had some people who purchased an

0:18:26.160 --> 0:18:30.120
<v Speaker 1>ebook copy of the classic dystopian novel nineteen eighty four

0:18:30.160 --> 0:18:33.280
<v Speaker 1>by George Orwell, which, among other things, warrens of the

0:18:33.359 --> 0:18:37.400
<v Speaker 1>dangers of authoritarian governments and mass surveillance and the control

0:18:37.480 --> 0:18:40.480
<v Speaker 1>of information. But then it turned out that the vendor

0:18:40.560 --> 0:18:43.800
<v Speaker 1>that was selling this ebook over at Amazon didn't actually

0:18:43.920 --> 0:18:47.760
<v Speaker 1>have legal permission to do that. So what did Amazon

0:18:47.880 --> 0:18:52.440
<v Speaker 1>do Well, it pulled the digital copy from the people

0:18:52.440 --> 0:18:55.479
<v Speaker 1>who purchased it, and it then issued a refund. So

0:18:55.520 --> 0:18:58.040
<v Speaker 1>it meant people would turn on an ebook reader like

0:18:58.080 --> 0:19:01.240
<v Speaker 1>a Kindle and then suddenly they see that the copy

0:19:01.280 --> 0:19:04.320
<v Speaker 1>of nineteen eighty four that they had purchased was gone.

0:19:04.920 --> 0:19:07.800
<v Speaker 1>And again, very ironic. It looks like the control of information.

0:19:07.880 --> 0:19:11.280
<v Speaker 1>It looks like the thing you bought got reclaimed. And

0:19:11.600 --> 0:19:13.840
<v Speaker 1>when you think about it, that's pretty wild, right. I mean,

0:19:13.840 --> 0:19:16.640
<v Speaker 1>if you had bought a copy of a book from

0:19:16.640 --> 0:19:20.480
<v Speaker 1>a bookstore, like a physical book, you wouldn't expect someone

0:19:20.520 --> 0:19:23.200
<v Speaker 1>from that bookstore to show up at your home to say, hey,

0:19:23.800 --> 0:19:26.359
<v Speaker 1>turns out the publisher of that book didn't have the

0:19:26.440 --> 0:19:28.920
<v Speaker 1>right to publish it, so I'm gonna have to take

0:19:28.960 --> 0:19:32.159
<v Speaker 1>it back. That would be crazy. And yet due to

0:19:32.240 --> 0:19:35.720
<v Speaker 1>the nature of digital distribution, this can and did happen

0:19:35.800 --> 0:19:38.879
<v Speaker 1>with Amazon and nineteen eighty four. So a lot of

0:19:38.880 --> 0:19:41.040
<v Speaker 1>news outlets really had a field day about this, and

0:19:41.119 --> 0:19:44.760
<v Speaker 1>I get it. I mean, it's very like poetic and ironic.

0:19:45.080 --> 0:19:47.919
<v Speaker 1>But Amazon was in a tough place because the vendor

0:19:48.000 --> 0:19:50.200
<v Speaker 1>did not have the right to sell the book, which

0:19:50.240 --> 0:19:53.800
<v Speaker 1>meant the rightful parties that could sell the book would

0:19:53.840 --> 0:19:55.879
<v Speaker 1>have a really good reason to go after Amazon for

0:19:55.960 --> 0:19:58.879
<v Speaker 1>allowing it to all happen if Amazon didn't do something

0:19:58.920 --> 0:20:02.199
<v Speaker 1>about it. As a modern eula can be structured to

0:20:02.280 --> 0:20:04.600
<v Speaker 1>allow for this kind of thing, where a company can

0:20:04.760 --> 0:20:08.640
<v Speaker 1>reclaim digital material even if you thought you owned it.

0:20:08.880 --> 0:20:12.840
<v Speaker 1>So another great example would be if you purchased a

0:20:12.920 --> 0:20:16.600
<v Speaker 1>digital title on a service like a platform. It's one

0:20:16.640 --> 0:20:20.920
<v Speaker 1>thing to be a subscriber to say Netflix, for example,

0:20:21.200 --> 0:20:23.560
<v Speaker 1>it's another thing. Let's say that you are on Amazon

0:20:23.640 --> 0:20:28.399
<v Speaker 1>Prime and you've purchased a digital copy of a movie.

0:20:28.920 --> 0:20:33.240
<v Speaker 1>Could it be possible for Amazon to revoke that access

0:20:33.280 --> 0:20:36.320
<v Speaker 1>to that digital title in the future. Absolutely, that could happen.

0:20:37.000 --> 0:20:39.359
<v Speaker 1>You know, you could purchase a DVD of the movie,

0:20:39.400 --> 0:20:42.479
<v Speaker 1>and you've got that DVD forever, right until the DVD

0:20:42.760 --> 0:20:44.560
<v Speaker 1>degrades to a point where you can't use it or

0:20:44.600 --> 0:20:46.920
<v Speaker 1>you don't have a player that can play it anymore.

0:20:47.200 --> 0:20:49.159
<v Speaker 1>They could still go obsolete that way, but otherwise you

0:20:49.200 --> 0:20:52.840
<v Speaker 1>still have access to it digitally. If something were to happen,

0:20:52.960 --> 0:20:56.280
<v Speaker 1>Amazon could potentially just remove it from your library and

0:20:56.320 --> 0:21:00.879
<v Speaker 1>now you can't access it anymore. That's a possibilit So

0:21:01.760 --> 0:21:06.280
<v Speaker 1>the license always has conditions, and if you violate those conditions,

0:21:06.280 --> 0:21:08.359
<v Speaker 1>then you could lose access to the thing you thought

0:21:08.960 --> 0:21:11.679
<v Speaker 1>you had purchased. It can be taken away from you,

0:21:11.920 --> 0:21:14.080
<v Speaker 1>and those conditions can change pretty much at the whim

0:21:14.119 --> 0:21:16.199
<v Speaker 1>of the company that's behind the thing. And it's kind

0:21:16.240 --> 0:21:19.080
<v Speaker 1>of like what Darth Vader said to Lando Calrissian, I

0:21:19.119 --> 0:21:22.000
<v Speaker 1>am altering the deal. Pray I do not alter it

0:21:22.040 --> 0:21:26.399
<v Speaker 1>any further. This is really an issue with digital media

0:21:26.440 --> 0:21:29.719
<v Speaker 1>in general, not just because of ULA's So again, I

0:21:29.760 --> 0:21:33.239
<v Speaker 1>was talking about Netflix and licensing agreements. Well, there are

0:21:33.280 --> 0:21:36.440
<v Speaker 1>license agreements between Netflix and various studios out there, right,

0:21:36.480 --> 0:21:39.159
<v Speaker 1>So you have no guarantee that a title that you

0:21:39.240 --> 0:21:42.879
<v Speaker 1>really like is going to remain on any given streaming service.

0:21:43.040 --> 0:21:45.119
<v Speaker 1>One day it might be there, and then the next

0:21:45.200 --> 0:21:47.840
<v Speaker 1>day it could be gone because of some agreement made

0:21:47.840 --> 0:21:50.280
<v Speaker 1>between the service and the company that owns the rights

0:21:50.320 --> 0:21:53.439
<v Speaker 1>to that title, and it expired and wasn't renewed. I

0:21:53.480 --> 0:21:57.119
<v Speaker 1>always think of that Mitchell and Web Look, which is

0:21:57.280 --> 0:22:00.919
<v Speaker 1>a British comedy sketch show with Rob Web and David Mitchell.

0:22:01.200 --> 0:22:04.439
<v Speaker 1>I found that on Netflix years ago and fell in

0:22:04.480 --> 0:22:08.119
<v Speaker 1>love with that series, loved it and one day the

0:22:08.160 --> 0:22:12.679
<v Speaker 1>series just disappeared. At one point, just the third season disappeared.

0:22:12.720 --> 0:22:15.200
<v Speaker 1>Seasons one, two, and four were still there, but three

0:22:15.320 --> 0:22:17.280
<v Speaker 1>went away, and then eventually all of them went away.

0:22:17.480 --> 0:22:19.640
<v Speaker 1>And then I looked to see where I could get

0:22:19.680 --> 0:22:22.120
<v Speaker 1>access to it, and I couldn't anywhere in America. There

0:22:22.119 --> 0:22:26.320
<v Speaker 1>were no legal ways to access the material. I eventually

0:22:26.400 --> 0:22:30.679
<v Speaker 1>had to purchase the English DVDs and get a region

0:22:30.760 --> 0:22:34.320
<v Speaker 1>free player so that I could watch the show because

0:22:34.320 --> 0:22:36.639
<v Speaker 1>I no longer had access to it. And that's just

0:22:37.119 --> 0:22:40.399
<v Speaker 1>the way it is. You don't own the media. For

0:22:40.520 --> 0:22:44.080
<v Speaker 1>media that exists on servers, Like on an online video game,

0:22:44.240 --> 0:22:46.840
<v Speaker 1>a company might choose to shut those servers down in

0:22:46.960 --> 0:22:51.800
<v Speaker 1>order to reduce costs, and effectively that kills the game.

0:22:51.960 --> 0:22:53.879
<v Speaker 1>So even if you had purchased a copy of this

0:22:54.000 --> 0:22:57.119
<v Speaker 1>game at full retail price when it came out, you

0:22:57.119 --> 0:22:59.399
<v Speaker 1>wouldn't be able to play that game anymore because the

0:22:59.440 --> 0:23:02.200
<v Speaker 1>servers that existed that allowed you to play that game

0:23:02.560 --> 0:23:05.439
<v Speaker 1>are now offline. Like that's a real problem, not just

0:23:05.480 --> 0:23:09.159
<v Speaker 1>for like multiplayer online games, which that's pretty obvious, right.

0:23:09.200 --> 0:23:12.560
<v Speaker 1>If it's an online game, then if the servers go down,

0:23:12.600 --> 0:23:15.640
<v Speaker 1>there's no server to log into, you can't play anymore.

0:23:15.800 --> 0:23:18.720
<v Speaker 1>But there are single player games that, as part of

0:23:18.760 --> 0:23:23.760
<v Speaker 1>the digital rights management system, require you to contact a

0:23:23.800 --> 0:23:26.760
<v Speaker 1>specific server that verifies the copy of the game you're

0:23:26.760 --> 0:23:30.680
<v Speaker 1>playing is a legitimate copy. And if those servers go down,

0:23:31.240 --> 0:23:34.160
<v Speaker 1>you have a legitimate copy of a single player game

0:23:34.200 --> 0:23:39.080
<v Speaker 1>that's not an online experience that cannot work anymore because

0:23:39.119 --> 0:23:42.120
<v Speaker 1>there's no longer a server for it to ping to

0:23:42.119 --> 0:23:44.840
<v Speaker 1>to verify that your copy is legitimate. This is a

0:23:44.880 --> 0:23:48.120
<v Speaker 1>real problem. And because you never actually owned a copy

0:23:48.240 --> 0:23:50.480
<v Speaker 1>of the game, you really just owned a license to

0:23:50.600 --> 0:23:55.879
<v Speaker 1>access that game under certain conditions, you're kind of stuck. Okay,

0:23:55.920 --> 0:23:59.760
<v Speaker 1>we've got a ton more stuff to talk about, including

0:24:00.119 --> 0:24:04.159
<v Speaker 1>an actual court case, but before we get further into that,

0:24:04.320 --> 0:24:16.680
<v Speaker 1>let's take another quick break to thank our sponsors. All Right,

0:24:16.760 --> 0:24:19.639
<v Speaker 1>So there's a piece I read for this that I

0:24:19.680 --> 0:24:22.359
<v Speaker 1>recommend y'all check out. Jason Kobler wrote a piece for

0:24:22.440 --> 0:24:27.360
<v Speaker 1>Motherboard and it's titled Corporations use end user license agreements

0:24:27.400 --> 0:24:30.480
<v Speaker 1>to create a parallel legal system, And the title really

0:24:30.520 --> 0:24:33.199
<v Speaker 1>sums things up pretty nicely. So, in order to secure

0:24:33.280 --> 0:24:36.320
<v Speaker 1>the protections that the company desires, and in order to

0:24:36.400 --> 0:24:41.040
<v Speaker 1>force customers into behaviors that ultimately benefit the company. These

0:24:41.200 --> 0:24:45.320
<v Speaker 1>organizations craft legal agreements that restrict customer rights and allow

0:24:45.359 --> 0:24:49.199
<v Speaker 1>for practices that aren't otherwise covered by law. The traditional

0:24:49.240 --> 0:24:53.800
<v Speaker 1>aspects of property law do not apply. Right. We've talked

0:24:53.800 --> 0:24:57.720
<v Speaker 1>about that, because there are differences between physical and digital

0:24:57.960 --> 0:25:01.280
<v Speaker 1>types of media. The rights of property ownership you would

0:25:01.480 --> 0:25:05.440
<v Speaker 1>originally assume would apply to you, they don't apply. Moreover,

0:25:05.520 --> 0:25:08.439
<v Speaker 1>these agreements can be so long and sometimes filled with

0:25:08.520 --> 0:25:11.360
<v Speaker 1>jargon that customers are not incentivized to read through it all,

0:25:11.400 --> 0:25:14.920
<v Speaker 1>so the deck is stacked in favor of the companies.

0:25:15.280 --> 0:25:18.840
<v Speaker 1>Sometimes you're not even allowed to read an agreement until

0:25:18.840 --> 0:25:21.240
<v Speaker 1>you've actually gone through the trouble of making the purchase.

0:25:21.680 --> 0:25:24.920
<v Speaker 1>So it's you can't read before you decide to buy,

0:25:25.359 --> 0:25:27.719
<v Speaker 1>it's when you buy, and then you are able to

0:25:27.760 --> 0:25:30.680
<v Speaker 1>access the agreement, So you don't necessarily know what you're

0:25:30.680 --> 0:25:35.320
<v Speaker 1>getting into until after money has already changed hands. Maybe

0:25:35.359 --> 0:25:37.720
<v Speaker 1>then you would be able to secure a refund, but

0:25:38.080 --> 0:25:41.040
<v Speaker 1>with digital property, that's not always a guaranteed, nor is

0:25:41.040 --> 0:25:44.920
<v Speaker 1>it always easy, right Like, some platforms make it easier

0:25:44.960 --> 0:25:49.160
<v Speaker 1>than others, but it's not always easy to get a refund.

0:25:49.359 --> 0:25:53.080
<v Speaker 1>If by the way that you're not able to read

0:25:53.080 --> 0:25:55.400
<v Speaker 1>the agreement until after you've made a purchase. You are

0:25:55.440 --> 0:25:58.320
<v Speaker 1>supposed to be able to get a refund because it

0:25:58.359 --> 0:26:01.600
<v Speaker 1>would be ludicrous otherwise, like you don't know what you're

0:26:01.600 --> 0:26:04.160
<v Speaker 1>getting into until you've made a purchase. Then you're told

0:26:04.240 --> 0:26:07.080
<v Speaker 1>too late what the deal is. And if you said, well,

0:26:07.400 --> 0:26:09.840
<v Speaker 1>I don't accept those terms, you have to be able

0:26:09.880 --> 0:26:12.280
<v Speaker 1>to get a refund or else what's the point. So

0:26:12.680 --> 0:26:15.520
<v Speaker 1>Coupler points out more than a few cases in which

0:26:15.560 --> 0:26:19.200
<v Speaker 1>companies used a EULA to step well beyond just defining

0:26:19.320 --> 0:26:22.199
<v Speaker 1>terms of ownership or use. So, for example, there's the

0:26:22.200 --> 0:26:25.200
<v Speaker 1>case of John Deere. That's the company that's best known

0:26:25.240 --> 0:26:28.280
<v Speaker 1>for making farming equipment like tractors. And we've talked about

0:26:28.320 --> 0:26:31.359
<v Speaker 1>this company a lot in episodes about the right to repair,

0:26:31.520 --> 0:26:33.879
<v Speaker 1>which we'll talk about in a second. John Deere is

0:26:33.920 --> 0:26:36.200
<v Speaker 1>a company that for a very long time has taken

0:26:36.200 --> 0:26:39.600
<v Speaker 1>steps to restrict how and where farmers can maintain and

0:26:39.680 --> 0:26:42.479
<v Speaker 1>repair their own equipment. So the company wants to have

0:26:42.520 --> 0:26:46.159
<v Speaker 1>control over that whole system, much like Apple does with

0:26:46.320 --> 0:26:49.800
<v Speaker 1>its products, and to that end, the EULA with John

0:26:49.840 --> 0:26:53.080
<v Speaker 1>Deere equipment included clauses that said farmers were to take

0:26:53.119 --> 0:26:57.200
<v Speaker 1>their equipment only to official John Deere licensed repair shops.

0:26:57.280 --> 0:26:59.720
<v Speaker 1>And if you happen to be a farmer who lived

0:26:59.760 --> 0:27:02.200
<v Speaker 1>a really long way from such a place, and then

0:27:02.200 --> 0:27:05.119
<v Speaker 1>your tractor broke down, you'd really be up the creek,

0:27:05.200 --> 0:27:07.800
<v Speaker 1>because you know you've made this agreement not to take

0:27:07.800 --> 0:27:10.119
<v Speaker 1>your tractor to like the shop down the road that

0:27:10.440 --> 0:27:14.720
<v Speaker 1>isn't a licensed John Deere repair shop. ULA's were not

0:27:14.800 --> 0:27:18.000
<v Speaker 1>the only weapon John Deere used to achieve this ecosystem,

0:27:18.000 --> 0:27:20.520
<v Speaker 1>but it was kind of part of the arsenal. Another

0:27:20.600 --> 0:27:23.480
<v Speaker 1>example that Kobler sites in his article was for you

0:27:23.640 --> 0:27:26.840
<v Speaker 1>torrant or however you'd like to pronounce it. So this

0:27:27.080 --> 0:27:30.439
<v Speaker 1>was or is a bit torrent client, and torrents already

0:27:30.520 --> 0:27:32.639
<v Speaker 1>have their own shaky history. A lot of people have

0:27:32.760 --> 0:27:37.040
<v Speaker 1>used torrents to trade in pirated material. But this torrent

0:27:37.160 --> 0:27:40.919
<v Speaker 1>client up the ante back in twenty fifteen when users

0:27:40.960 --> 0:27:45.240
<v Speaker 1>were prompted to accept an agreement before actually using the service.

0:27:45.440 --> 0:27:48.280
<v Speaker 1>This agreement said that users would allow for the installation

0:27:48.359 --> 0:27:52.760
<v Speaker 1>of a cryptocurrency minor on their own machines. So if

0:27:52.760 --> 0:27:55.040
<v Speaker 1>you didn't read the agreement, let's say you signed up

0:27:55.080 --> 0:27:58.400
<v Speaker 1>to the U torrant client. Most folks did not bother

0:27:58.520 --> 0:28:00.960
<v Speaker 1>to read this agreement. I wouldn't know that you had

0:28:01.040 --> 0:28:04.600
<v Speaker 1>just agreed to join a cryptocurrency mining operation and that

0:28:04.680 --> 0:28:08.160
<v Speaker 1>your computer's resources were going to be borrowed for that purpose.

0:28:08.680 --> 0:28:13.240
<v Speaker 1>And of course you're not mining cryptocurrency for yourself. Instead,

0:28:13.760 --> 0:28:17.680
<v Speaker 1>your computational resources were going to a much larger operation

0:28:17.840 --> 0:28:21.600
<v Speaker 1>that benefits the U Torrent folks, which is pretty sneaky,

0:28:22.000 --> 0:28:26.560
<v Speaker 1>but it was in the ULA. So how do ULA's

0:28:26.640 --> 0:28:32.360
<v Speaker 1>fare in court? Well, generally speaking, they do pretty darn well. Courts,

0:28:32.440 --> 0:28:35.040
<v Speaker 1>at least here in the United States, have favored companies

0:28:35.400 --> 0:28:39.040
<v Speaker 1>more than they have favored customers traditionally. So, for example,

0:28:39.280 --> 0:28:42.640
<v Speaker 1>there was a court case called Feldman versus Google Incorporated

0:28:43.040 --> 0:28:47.000
<v Speaker 1>in two thousand and seven. The plaintiff, Feldman, was a

0:28:47.120 --> 0:28:51.560
<v Speaker 1>lawyer who had purchased ads from Google, and Feldman would

0:28:51.600 --> 0:28:54.520
<v Speaker 1>owe Google money whenever people would click on one of

0:28:54.560 --> 0:28:58.560
<v Speaker 1>his ads. But Feldman said he was victim of click fraud,

0:28:58.880 --> 0:29:01.800
<v Speaker 1>that folks who had no interest in retaining his services

0:29:02.000 --> 0:29:04.880
<v Speaker 1>were clicking on his ads anyway, and they were driving

0:29:04.920 --> 0:29:08.400
<v Speaker 1>up costs and costing him money. So Feldman filed a

0:29:08.520 --> 0:29:12.640
<v Speaker 1>lawsuit in Pennsylvania and said that in part, he wasn't

0:29:12.680 --> 0:29:19.000
<v Speaker 1>given appropriate notice of Google's clauses before entering into this arrangement.

0:29:19.360 --> 0:29:22.920
<v Speaker 1>Google moved to have the case tried in Santa Clara County, California,

0:29:22.960 --> 0:29:26.120
<v Speaker 1>because the EULA actually included a statement that said all

0:29:26.120 --> 0:29:29.440
<v Speaker 1>disputes were to be resolved there, and the EULA also

0:29:29.440 --> 0:29:33.080
<v Speaker 1>included passages that provided protection against legal liability in the

0:29:33.120 --> 0:29:35.480
<v Speaker 1>case of click fraud. Now, Feldman said he did not

0:29:35.640 --> 0:29:38.480
<v Speaker 1>have appropriate notice to this agreement and that there was

0:29:38.520 --> 0:29:41.880
<v Speaker 1>no mutual assent upon the agreement and thus it would

0:29:41.880 --> 0:29:44.600
<v Speaker 1>make it invalid as a contract. But the court found

0:29:44.680 --> 0:29:47.360
<v Speaker 1>that Feldman had to click the agree button in order

0:29:47.360 --> 0:29:49.400
<v Speaker 1>to use the service in the first place, and that

0:29:49.480 --> 0:29:53.880
<v Speaker 1>this amounted to signing a contract agreement, and so Feldman's

0:29:53.920 --> 0:29:57.480
<v Speaker 1>case was unsuccessful. That he apparently didn't read the agreement

0:29:57.560 --> 0:30:01.600
<v Speaker 1>first really fell on him on Google. He also had

0:30:01.760 --> 0:30:04.800
<v Speaker 1>argued that it was invalid because there was no information

0:30:04.840 --> 0:30:08.320
<v Speaker 1>about pricing in that agreement, but the court found that

0:30:08.560 --> 0:30:13.560
<v Speaker 1>there were enough indications of the process to determine pricing

0:30:14.040 --> 0:30:18.440
<v Speaker 1>that not including the pricing itself didn't matter, because what

0:30:18.560 --> 0:30:21.720
<v Speaker 1>the EULA did have in it was the essentially the

0:30:21.720 --> 0:30:26.120
<v Speaker 1>formula to calculate what pricing would be, so Feldman ultimately

0:30:26.160 --> 0:30:30.000
<v Speaker 1>lost this case. Now, some contract lawyers and some other

0:30:30.040 --> 0:30:34.040
<v Speaker 1>folks have pointed out that traditionally, with most contracts, you

0:30:34.160 --> 0:30:36.800
<v Speaker 1>do have a negotiation period so you can come to

0:30:36.960 --> 0:30:40.160
<v Speaker 1>terms that are agreeable to both parties. But in the

0:30:40.200 --> 0:30:44.400
<v Speaker 1>case of ayula, there is no negotiation. There's no back

0:30:44.440 --> 0:30:47.440
<v Speaker 1>and forth traditionally, so instead you either agree to the

0:30:47.560 --> 0:30:50.800
<v Speaker 1>terms or you don't, and if you don't, you don't

0:30:50.920 --> 0:30:53.320
<v Speaker 1>use the product or service. Those are really your options.

0:30:53.600 --> 0:30:56.160
<v Speaker 1>There's no way for you to get more favorable terms

0:30:56.200 --> 0:30:59.640
<v Speaker 1>in most cases. But obviously the other party, the company,

0:30:59.680 --> 0:31:02.320
<v Speaker 1>can change things and ask you to agree to altered

0:31:02.480 --> 0:31:06.280
<v Speaker 1>terms of service, which is an unbalanced power dynamic going

0:31:06.320 --> 0:31:09.320
<v Speaker 1>on here. Now, there are some instances where a court

0:31:09.480 --> 0:31:12.760
<v Speaker 1>could find in favor of the consumer. For example, let's

0:31:12.800 --> 0:31:15.480
<v Speaker 1>say a company makes a product with a eula attached

0:31:15.480 --> 0:31:17.960
<v Speaker 1>to it. The customers are not able to read the

0:31:18.000 --> 0:31:22.120
<v Speaker 1>eula until after they've purchased the product, so called shrink

0:31:22.120 --> 0:31:26.280
<v Speaker 1>wrap eula. A customer buys the product, then they're able

0:31:26.360 --> 0:31:29.040
<v Speaker 1>to read the eula. The customer then objects to the

0:31:29.080 --> 0:31:31.960
<v Speaker 1>eula and they want to return the product for a refund.

0:31:32.200 --> 0:31:34.960
<v Speaker 1>If there is no reasonable time frame for them to

0:31:35.040 --> 0:31:38.120
<v Speaker 1>make such a return, a court could find in favor

0:31:38.160 --> 0:31:41.080
<v Speaker 1>of the customer because they'd say, like, your EULA doesn't

0:31:41.400 --> 0:31:44.479
<v Speaker 1>isn't enforceable, because there's no way for the customer to

0:31:45.080 --> 0:31:48.800
<v Speaker 1>object to the EULA and have it mean anything. If

0:31:48.840 --> 0:31:51.320
<v Speaker 1>the company does give a reasonable amount of time, let's

0:31:51.320 --> 0:31:54.280
<v Speaker 1>say that they give you thirty days to make a return.

0:31:54.680 --> 0:31:58.480
<v Speaker 1>If you object to the ula and if you fail

0:31:58.760 --> 0:32:01.160
<v Speaker 1>to return it within the thirty days, then the court

0:32:01.200 --> 0:32:03.320
<v Speaker 1>is probably going to find in favor of the company

0:32:03.320 --> 0:32:06.880
<v Speaker 1>because they'd say, well, they gave you a reasonable timeframe

0:32:06.920 --> 0:32:10.680
<v Speaker 1>to request a refund, and if you didn't respond within

0:32:10.720 --> 0:32:13.880
<v Speaker 1>that timeframe, that's on you. If a customer can make

0:32:13.920 --> 0:32:15.920
<v Speaker 1>a case that the terms of a EULA are too

0:32:16.040 --> 0:32:19.800
<v Speaker 1>vague or too complicated for a reasonable person to understand them,

0:32:20.160 --> 0:32:22.920
<v Speaker 1>then the courts could also find that that particular EULA

0:32:23.160 --> 0:32:26.040
<v Speaker 1>is unenforceable. So that's one reason a company might be

0:32:26.080 --> 0:32:29.520
<v Speaker 1>discouraged from obfuscating things with a lot of legal jargon,

0:32:29.760 --> 0:32:33.040
<v Speaker 1>because it can come back to haunt them if someone

0:32:33.160 --> 0:32:36.960
<v Speaker 1>bothers to bring a lawsuit against them. Lawsuits are really expensive, though,

0:32:37.320 --> 0:32:40.640
<v Speaker 1>so unless the customer is really determined to stick it

0:32:40.640 --> 0:32:43.640
<v Speaker 1>to this company, it's not likely to happen. But if

0:32:43.680 --> 0:32:47.440
<v Speaker 1>it does happen, the consumer can show, hey, this EULA

0:32:48.080 --> 0:32:53.120
<v Speaker 1>is purposefully complex and vague. A court might find that

0:32:53.160 --> 0:32:56.640
<v Speaker 1>particular eula to be unenforceable, but you know that's a

0:32:56.680 --> 0:33:01.040
<v Speaker 1>long shot. It's such a huge undertaking and it's so expensive.

0:33:01.800 --> 0:33:06.479
<v Speaker 1>So maybe companies could avoid making things confusing with legal language,

0:33:06.480 --> 0:33:09.640
<v Speaker 1>but they could still bury consumers in ulas that are

0:33:09.760 --> 0:33:13.440
<v Speaker 1>thousands of words long, and it might not be complicated

0:33:13.560 --> 0:33:18.800
<v Speaker 1>or vague. It might just be dull and exhausting. So again,

0:33:19.720 --> 0:33:21.960
<v Speaker 1>no one really bothers to read them. But if they

0:33:21.960 --> 0:33:23.880
<v Speaker 1>were to try and challenge them in court, the court

0:33:23.920 --> 0:33:26.360
<v Speaker 1>might say, well, yeah, it's long and it's boring, but

0:33:26.400 --> 0:33:31.480
<v Speaker 1>nothing here is vague or complicated, so technically it stands.

0:33:32.680 --> 0:33:36.000
<v Speaker 1>There are also social changes that are pushing back against

0:33:36.160 --> 0:33:39.760
<v Speaker 1>some EULAs. I mentioned John Deere earlier. That's a company

0:33:39.760 --> 0:33:42.360
<v Speaker 1>that's been affected by the recent right to repair movement.

0:33:42.800 --> 0:33:45.640
<v Speaker 1>Advocates have really pushed for laws that give consumers more

0:33:45.680 --> 0:33:49.320
<v Speaker 1>control over how they maintain and repair their purchases, and

0:33:49.360 --> 0:33:52.840
<v Speaker 1>they have pushed back against this closed ecosystem approach used

0:33:52.880 --> 0:33:55.720
<v Speaker 1>by companies like John Deere and Apple, and there's been

0:33:55.760 --> 0:33:58.760
<v Speaker 1>progress in several states here in the United States, though

0:33:58.800 --> 0:34:02.160
<v Speaker 1>it's not really a nationwide trend as of yet. But

0:34:02.240 --> 0:34:04.560
<v Speaker 1>obviously this is a really big step. You know, getting

0:34:04.920 --> 0:34:08.200
<v Speaker 1>states to create new legislation that makes certain passages in

0:34:08.239 --> 0:34:11.319
<v Speaker 1>certain EULAs unenforceable isn't the sort of thing that the

0:34:11.360 --> 0:34:15.759
<v Speaker 1>average person can really do themselves. It requires much larger movements.

0:34:15.880 --> 0:34:19.080
<v Speaker 1>So again, when it comes to the average consumer, it

0:34:19.160 --> 0:34:21.879
<v Speaker 1>often feels like there's not much you can do, and

0:34:21.920 --> 0:34:26.000
<v Speaker 1>that's usually actually the case. Now. I know I've said

0:34:26.040 --> 0:34:29.719
<v Speaker 1>a lot of negative stuff about ULA's in this episode,

0:34:29.719 --> 0:34:33.120
<v Speaker 1>but they do actually serve a purpose. Ulas are needed

0:34:33.160 --> 0:34:37.759
<v Speaker 1>to cover gaps in intellectual property law, particularly here in

0:34:37.360 --> 0:34:43.239
<v Speaker 1>the digital space. They aren't all malicious or overbearing, and

0:34:43.280 --> 0:34:46.040
<v Speaker 1>you could argue that they actually stand as evidence that

0:34:46.160 --> 0:34:50.399
<v Speaker 1>legislators need to make new property ownership laws that cover

0:34:50.920 --> 0:34:55.160
<v Speaker 1>the digital space and modern technologies, and that these laws

0:34:55.239 --> 0:34:58.799
<v Speaker 1>would then supersede EULAs or just make them moot. In fact,

0:34:58.840 --> 0:35:01.200
<v Speaker 1>a lot of people have argued for this that we

0:35:01.320 --> 0:35:05.520
<v Speaker 1>need new property laws that would cover things in the

0:35:05.719 --> 0:35:09.879
<v Speaker 1>digital realm, and that This would really go a long

0:35:09.920 --> 0:35:14.279
<v Speaker 1>way to solving these issues. But it's really hard to

0:35:14.280 --> 0:35:16.799
<v Speaker 1>get a body like the US Congress to take up

0:35:16.840 --> 0:35:20.719
<v Speaker 1>matters of property ownership. It just isn't something that is

0:35:20.760 --> 0:35:24.319
<v Speaker 1>a super high priority right now, So I wouldn't hold

0:35:24.320 --> 0:35:26.920
<v Speaker 1>my breath for it anyway. That about sums it up

0:35:26.920 --> 0:35:31.440
<v Speaker 1>for youula's except for this bit, should you read every

0:35:31.520 --> 0:35:35.200
<v Speaker 1>EULA before you agree to it? Well, I honestly can't

0:35:35.239 --> 0:35:37.480
<v Speaker 1>tell you that it would do you much good. You

0:35:37.560 --> 0:35:39.799
<v Speaker 1>might have a better understanding of what it is you're

0:35:39.800 --> 0:35:43.160
<v Speaker 1>getting into. I'm not sure that that's a good enough reason.

0:35:43.360 --> 0:35:45.680
<v Speaker 1>Maybe you would read something that you really object to

0:35:45.719 --> 0:35:49.000
<v Speaker 1>and you just decide this isn't for me. That's you know,

0:35:49.120 --> 0:35:52.040
<v Speaker 1>that's legitimate, But goodness knows, if you're like me, you

0:35:52.120 --> 0:35:55.680
<v Speaker 1>do not have the time to read through a novel's

0:35:55.760 --> 0:35:58.279
<v Speaker 1>worth of legal language just to be able to play

0:35:58.280 --> 0:36:00.759
<v Speaker 1>a game or listen to music or use a piece

0:36:00.760 --> 0:36:03.040
<v Speaker 1>of software. If you do want to be part of

0:36:03.080 --> 0:36:05.440
<v Speaker 1>that tenth of a percent of people who bother to

0:36:05.440 --> 0:36:07.839
<v Speaker 1>read any of the ULA at all, go for it.

0:36:08.320 --> 0:36:10.920
<v Speaker 1>You'll be bucking the trend and showing companies that you

0:36:11.040 --> 0:36:14.120
<v Speaker 1>mean business. Unless you just hit. I agree at the end,

0:36:14.480 --> 0:36:18.520
<v Speaker 1>because then they got you. Anyway, that's sort of the

0:36:18.560 --> 0:36:22.000
<v Speaker 1>purpose and the use of EULA's. It is unfortunate that

0:36:22.320 --> 0:36:26.360
<v Speaker 1>there are companies that are kind of overstepping their bounds,

0:36:26.520 --> 0:36:29.840
<v Speaker 1>in my opinion, in order to craft ulas to really

0:36:30.480 --> 0:36:35.080
<v Speaker 1>restrict consumer rights. It's also unfortunate that the courts typically

0:36:35.120 --> 0:36:38.920
<v Speaker 1>find in favor of end user license agreements unless it

0:36:39.000 --> 0:36:43.040
<v Speaker 1>is considered to be unconscionable or too complex or vague.

0:36:43.480 --> 0:36:45.520
<v Speaker 1>And again, the only way that that even happens is

0:36:45.560 --> 0:36:48.279
<v Speaker 1>if someone brings a lawsuit to bring it to the

0:36:48.280 --> 0:36:52.120
<v Speaker 1>court's attention. It's not like courts are evaluating these license

0:36:52.160 --> 0:36:56.360
<v Speaker 1>agreements before they go out. That doesn't happen. So yeah,

0:36:56.400 --> 0:37:00.799
<v Speaker 1>it's kind of an unfair landscape and I don't see

0:37:00.800 --> 0:37:04.359
<v Speaker 1>it changing anytime soon. And yeah, all I can do

0:37:04.480 --> 0:37:07.480
<v Speaker 1>is set a flea out to all the companies out

0:37:07.520 --> 0:37:11.440
<v Speaker 1>there not to go bonkers with those terms in ULA's

0:37:11.520 --> 0:37:14.040
<v Speaker 1>because the more people find out about it, the more

0:37:14.080 --> 0:37:18.279
<v Speaker 1>ticked off they become, and you start to see movements

0:37:18.440 --> 0:37:22.719
<v Speaker 1>rise up that could very well bring legal changes that

0:37:23.040 --> 0:37:26.680
<v Speaker 1>will just completely invalidate those end user license agreements anyway,

0:37:26.960 --> 0:37:29.160
<v Speaker 1>So I mean, I guess I could say just keep

0:37:29.200 --> 0:37:32.640
<v Speaker 1>it up because the reckoning is covering, but I think

0:37:32.680 --> 0:37:36.200
<v Speaker 1>that gets a little too apocalyptic. I hope all of

0:37:36.239 --> 0:37:39.400
<v Speaker 1>you out there are well, and I'll talk to you again,

0:37:40.160 --> 0:37:49.839
<v Speaker 1>really soon. Tech Stuff is an iHeartRadio production. For more

0:37:49.880 --> 0:37:54.600
<v Speaker 1>podcasts from iHeartRadio, visit the iHeartRadio app, Apple Podcasts, or

0:37:54.640 --> 0:37:56.600
<v Speaker 1>wherever you listen to your favorite shows.