Sunday, June 10, 2007

Second Life Unable to Compel Arbitration

Second Life, the highly popular "virtual world", was recently rebuked by a Judge who refused to enforce an arbitration clause in the EULA (End User Licensing Agreement), saying that that the clause is unconscionable, and therefore unenforceable.

I think that many more terms in Licensing Agreements need to be shot down due to the fact that consumers have no bargaining power with the companies whatsoever. The terms in many licensing agreements restrict peoples' ability to criticize or write about the product without permission, which has absolutely nothing to do with copyright whatsoever.

I'm glad to see that courts are restricting the ability of companies to push unfair licensing terms onto ordinary consumers.


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