Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 7

ProCD compiled information from more than 3,000 telephone directories into a computer database which had the potential for many uses. It charged a lower fee to the general public for use than it charged commercial customers. In order to protect the pricing scheme, it printed on the box that the software came with restrictions stated in an enclosed license. The license prohibited the general public database from being used for commercial purposes. Zeidenberg bought a general licence but ignored the license restriction and formed a company to resell the information. He offered the information on the Internet that a price less than ProCD was charging. ProCD sued for breach of contract. Were the terms on the inside of the software box adequately communicated? Explain why.