Shrinkwrap license

A shrinkwrap license (also referred to as a "box-top license") is a preprinted, standard form software license that is contained in the packaging with the software. The name comes from the early practice of displaying the terms of the license through the plastic wrapping (shrinkwrap) used to seal the packaging.

The enforceability of shrink-wrap licenses has been hotly debated since their widespread introduction in the early 1980s in connection with mass-marketed, personal computer software. In Vault Corp. v. Quaid Software, Ltd., the court held that a state statute validating the terms of a shrinkwrap license was preempted by federal copyright law. Two subsequent cases (Arizona Retail Sys. v. Software Link, Inc., and Step-Saver Data Sys., Inc. v. Wyse Technology, held that shrinkwrap licenses were unenforceable, since the contract had been completed before the licensee was made aware of the initial terms. However, several recent cases have upheld the enforceability of shrinkwrap licenses. See, e.g., Pro-CD, Inc. v. Zeidenberg, 86 F.3d 1147 (7th Cir. 1996); Hill v. Gateway 2000, Inc., 105 F.3d 1147 (7th Cir. 1997); Brower v. Gateway 2000, Inc., 246 A.D.2d 246, 676 N.Y.S.2d 569 (Aug. 13, 1998).