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Top EULA Gotchas: Website Fine-Print Hall of Shame

Fine-print gotchas could get you arrested, watched by the Feds, and even strip you of the right to sue.

By Jared Newman
February 7, 2012 10:18 AM ET

PC World - Long, confusing, and littered with jargon, end-user license agreements (EULAs) are all too easy to ignore. Instead of taking the time to read and understand the legalese, we just scroll to the bottom, click Accept, and get on with our lives. Did checking the "I agree" box have any consequences? Who cares, right? Gulp!

Of course, by ignoring the words of the agreement and clicking the button at the end, we may be agreeing to all kinds of unfair terms and conditions. If someone complains, companies can just point to their EULA and say, "too bad!" Here are some of the most common "gotchas" found inside EULAs and terms of service (TOS) statements, as well as which companies are guilty of tricking users.

Your Content Is Our Content

From Facebook's Statement of Rights and Responsibilities: "You grant us a non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use any IP content that you post on or in connection with Facebook (IP License)."

If you print out a photo, the company that makes the photo paper doesn't claim any rights to your work. But that's exactly what some online services try to do when you store your content with them. Facebook, for instance, amended its Terms of Service in 2009 to claim broad rights to users' content, such as photos and videos. Adobe tried to do the same with Photoshop Express in 2008. Both companies have since narrowed down their EULAs, but Facebook still says it can use your content for as long as it exists on your account.

Companies make these claims not necessarily because they want to resell your content for profit, but because they might like to feature your photos, videos, or writings in advertisements. Nintendo, for example, claims an irrevocable license on Nintendo 3DS user-generated content for "promotional or marketing purposes." Users should at least get a say in whether that happens.

You Can't Sell What You Create Here

From Microsoft Office 2010's End User License Agreement: "For software marked 'Home and Student' editiona|The software may not be used for commercial, non-profit, or revenue-generating activities."

Educational pricing, if you can get it, may save you hundreds of dollars on programs like Microsoft Office and Adobe Photoshop. But the EULAs also include clauses that prohibit you from using the software for commercial gain. And as Microsoft Office's Home and Student edition proves, even noneducational software may come with restrictions on commercial use. These rules may not be easy to enforce, but they're something to keep in mind.

We'll Hand Your Data to Law Enforcement

From Google's Privacy Policy: "We will share personal information with companies, organizations or individuals outside of Google if we have a good-faith belief that access, use, preservation or disclosure of the information is reasonably necessary to: meet any applicable law, regulation, legal process or enforceable governmental request."

Originally published on www.pcworld.com. Click here to read the original story.
Reprinted with permission from PCWorld.com. Story copyright 2012 PC World Communications. All rights reserved.
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