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 From : Sergey Lentsov                       2:4615/71.10   08 Nov 2001  17:11:05
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 Subject : URL: http://www.lwn.net/2001/1108/
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    See also: [36]last week's LWN.
    
 Leading items and editorials
 
    Interesting court cases is the theme of the week. Some LWN readers
    have been heard to grumble that we spend too much time on licensing
    and legal issues. Perhaps that is true, but these issues are crucial:
    free software is very much at the mercy of the legal environment in
    which it operates. The law can either help free software's success, or
    it can make free software illegal and impractical.
    
    Thus, the outcomes of the three cases described below are important.
    Even if they are limited in scope, they point toward where we could be
    going in the future. Non-U.S. readers may feel uninterested in purely
    U.S. results, but the fact remains that conclusions reached here -
    both good and bad - have a tendency to leak out toward the rest of the
    world. So read on...
    
    Source code is speech, or so concludes a California state appeals
    court in the Bunner DVD case. Bunner is "the other DVD case," distinct
    from the (higher-profile) New York case. The defendant, Andrew Bunner,
    had been taken to task for posting the DeCSS code on his web site, and
    ordered by a lower court to take it down. In his appeal, he claimed
    that the injunction violated his free speech rights. In its ruling
    (available [37]in PDF format), the court agreed:
    
      Like the CSS decryption software, DeCSS is a writing composed of
      computer source code which describes an alternative method of
      decrypting CSS-encrypted DVDs. Regardless of who authored the
      program, DeCSS is a written expression of the author's ideas and
      information about decryption of DVDs without CSS. If the source
      code were "compiled" to create object code, we would agree that the
      resulting composition of zeroes and ones would not convey ideas....
      That the source code is capable of such compilation, however, does
      not destroy the expressive nature of the source code itself. Thus
      we conclude that the trial court's preliminary injunction barring
      Bunner from disclosing DeCSS can fairly be characterized as a
      prohibition of "pure" speech.
      
    So, code is speech. That is an interesting conclusion, but it does not
    automatically lead to the conclusion that Mr. Bunner is entitled to
    publish that speech. American constitutional law is firm in its
    protection of speech, but there are still many exceptions. To what
    extent will the designation of code as speech address the various
    legal problems that free software has encountered recently?
    
    The precedent set by this case, unfortunately, does not help as much
    as one would like. The Bunner case differs from the New York case in
    an important aspect: the complaint in Bunner is based entirely on
    trade secret law. Copyright (and the DMCA) are not part of the
    argument. That distinction is a key part of the court's reasoning:
    
      Thus, the availability of injunctive relief against copyright
      infringement is supported by justifications that are inapplicable
      to trade secrets. Both the First Amendment and the Copyright Act
      are rooted in the United States Constitution, but the UTSA [trade
      secret law] lacks any constitutional basis. The prohibition on
      disclosure of a trade secret is of infinite duration while the
      copyright protection is strictly limited in time, and there is no
      "fair use" exception as there is for copyrighted material. These
      significant distinctions between copyright and trade secret
      protections explain why courts have concluded that the First
      Amendment is not a barrier to injunctive relief in copyright
      infringement cases.
      
    In other words, a first amendment ("free speech") argument beats trade
    secret law (at least sometimes), but copyright law has a different
    stature. So, for example, "code is speech" defenses are not
    automatically assured of success against DMCA prosecutions, since the
    DMCA is a copyright law.
    
    Finally, the decision in this case applies only to "prior restraint"
    of speech - the blocking of such speech before it can be proved that
    damage has been done. With code seen as speech, denial of prior
    restraint was an easy conclusion for the court to reach ("Indeed, the
    Supreme Court has never upheld a prior restraint, even faced with the
    competing interest of national security or the Sixth Amendment right
    to a fair trial."). The door remains open, however, to injunctions or
    damages against Bunner down the road, if the DVDCCA can prove that law
    has been violated and harm has been sustained. So this case is not yet
    over.
    
    License agreements and first sale doctrine. Below the radar of much of
    the free software community, another interesting case was coming to a
    conclusion in U.S. District Court in California. In this case, our old
    buddy Adobe Software was pushing for an injunction against SoftMan
    Systems. Softman, it seems, has been buying Adobe software
    collections, splitting them into their component parts, and selling
    those parts independently. Adobe's claim is that this reselling
    activity violates the end-user license agreement (EULA) covering the
    program, and is thus a copyright violation.
    
    The court disagreed (this ruling, too, is [38]available in PDF
    format). Essentially, the court has said that the EULA does not apply
    to SoftMan, for a couple of interesting reasons. One is that SoftMan
    never agreed to the EULA, and is thus not bound by its terms:
    
      In the instant case, the Court finds that there is only assent on
      the part of the consumer, if at all, when the consumer loads the
      Adobe program and begins the installation process. It is undisputed
      that SoftMan has never attempted to load the software that it
      sells. Consequently, the Court finds that SoftMan is not subject to
      the Adobe EULA.
      
    The ruling also casts doubt on whether agreeing to a click-through
    license can truly be binding to the consumer.
    
    The other aspect of the court's ruling is that the software was sold -
    not licensed - to SoftMan:
    
      The Court understands fully why licensing has many advantages for
      software publishers. However, this preference does not alter the
      Court's analysis that the substance of the transaction at issue
      here is a sale and not a license.
      
    Since this transaction is a sale, the first sale doctrine applies:
    
      In short, the terms of the Adobe EULA at issue prohibit licensees
      from transferring or assigning any individual Adobe product that
      was originally distributed as part of a Collection unless it is
      transferred with all the software in the original Collection. This
      license provision conflicts with the first sale doctrine in
      copyright law, which gives the owner of a particular copy of a
      copyrighted work the right to dispose of that copy without the
      permission of the copyright owner.
      
    These conclusions are interesting, in that they have the potential to
    tilt the interpretation copyright law a little toward the rights of
    users of copyrighted material. For example:
      * Both DVD cases depend, partly, on the claim that a commercial DVD
        package was "improperly" reverse engineered. It is the software's
        EULA, however, that prohibits that reverse engineering. If the
        code is reverse engineered without installing it and agreeing to
        the EULA (by, say, disassembling it on a Linux system), the EULA
        does not apply. The Bunner case, in particular, could be affected
        by this ruling.
      * Reselling that unwanted Windows installation on your new computer
        should be legal.
      * Electronic books, too, are subject to first sale; it should be
        possible to resell them.
        
    The ruling gives an out to software companies that wish to continue to
    "license" rather than sell a copy of their software. The transaction
    is considered a sale when it involves a single payment and use of the
    software for an unlimited time. Thus, the "rent-a-program" schemes
    being proposed by many are untouched.
    
    This affirmation of the first sale doctrine is a welcome strengthening
    of the rights of consumers of copyrighted material. Here is an
    interesting scenario, though: suppose an unethical vendor obtains a
    copy of a program licensed under the GPL, makes a change, and resells
    the product under a proprietary license? Consider, for example, a
    Linux distribution where the C library has been replaced with a
    proprietary, value-added package. The vendor could argue that the
    tweaked copy can be resold under the first sale doctrine. Massive
    distribution could be made possible by "purchasing" a new copy of the
    GPL code for each copy sold. We may never see a vendor attempting this
    approach, but the possibility exists.
    
    The settlement. Tempting though it may be to ignore it, the settlement
    between that proprietary software company and the U.S. government is
    worthy of a mention. For the most part, the settlement looks like it
    will change little for the free software community. Microsoft will
    continue to exist as a single company, and will have relatively few
    constraints on what it can do. Business as usual.
    
    The settlement does make it harder for Microsoft to prevent vendors
    from selling dual-boot systems. Dual-boot boxes may thus become
    available from some vendors, which may encourage a few people to try
    out Linux. For the most part, however, dual-boot systems are of
    limited utility,and their wider availability will not change a whole
    lot.
    
    In theory, the settlement requires Microsoft to (eventually) document
    its protocols. However, as [39]the Samba team has pointed out, it's
    far from clear that such documentation will be forthcoming. The
    settlement gives Microsoft a great deal of latitude in what it will,
    and will not, release.
    
    Then, there is the more ominous view of this settlement. Consider, for
    example, [40]this Dan Gillmor column:
    
      Is it possible that Microsoft and the government have made some
      secret arrangements that will be couched under 'anti-terrorism'
      rhetoric when or if they emerge into the public light? The
      government's new surveillance powers would be far easier to carry
      out if Microsoft became a government ally in this area.
      
    Also [41]expressing concern is Dave Winer:
    
      Microsoft had a lot of power to offer to the government. The
      government has been granted new electronic surveillance power by
      Congress. Now how do they implement it? Microsoft can help. In my
      mind I'm not so naive to believe this was an arms-length deal, I'm
      certain there are aspects to the partnership between Microsoft and
      the US government that we can't see.
      
    It would be easy to achieve an excessive amount of paranoia here, but,
    at the same time, these concerns are worth considering. Whether or not
    anything is really happening here, a network dominated by closed
    source software is vulnerable to government manipulation and
    surveillance.
    
    Meanwhile, several U.S. states may refuse to join the settlement; if
    they remain outside, the case will remain alive. The European Union is
    still pondering what it may do. This story is far from over. No matter
    how it comes out, though, one presumes that free software will
    continue to progress and see wider use. No legal settlement is
    required for that to happen.
    
    Inside this LWN.net weekly edition:
      * [42]Security: OpenSSH 3.0; another kernel vulnerability.
      * [43]Kernel: Toward 2.5; authoritative hooks denied; thrashing
        /proc.
      * [44]Distributions: Linux Counter - The distribution of
        Distributions; Red Hat on Top; Debian runs a close second.
      * [45]Development: Sweetcode site, new Alsa releases, ivtools-1.0,
        Gnumeric 0.75, and lots of XML stuff.
      * [46]Commerce: Sharp announces Linux PDA; IBM open sources Eclipse;
        MontaVista goes digging for oil.
      * [47]History: Stop terrorism. Use free software; Microsoft ruled a
        monopoly; More software patents.
      * [48]Letters: The risks of documenting security fixes; reporting
        bugs.
        
    ...plus the usual array of reports, updates, and announcements.
    
    This Week's LWN was brought to you by:
      * [49]Jonathan Corbet, Executive Editor
        
    November 8, 2001
    
                               [50]Click Here 
    
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                                                        [52]Next: Security
    
    [53]Eklektix, Inc. Linux powered! Copyright Л 2001 [54]Eklektix, Inc.,
    all rights reserved
    Linux (R) is a registered trademark of Linus Torvalds
 
 References
 
    1. http://lwn.net/
    2. http://ads.tucows.com/click.ng/pageid=001-012-132-000-000-001-000-000-012
    3. http://lwn.net/2001/1108/security.php3
    4. http://lwn.net/2001/1108/kernel.php3
    5. http://lwn.net/2001/1108/dists.php3
    6. http://lwn.net/2001/1108/devel.php3
    7. http://lwn.net/2001/1108/commerce.php3
    8. http://lwn.net/2001/1108/press.php3
    9. http://lwn.net/2001/1108/announce.php3
   10. http://lwn.net/2001/1108/history.php3
   11. http://lwn.net/2001/1108/letters.php3
   12. http://lwn.net//2001/1108/bigpage.php3
   13. http://lwn.net/daily/
   14. http://linuxcalendar.com/
   15. http://lwn.net/stocks/
   16. http://lwn.net/Reviews/
   17. http://lwn.net/Gallery/
   18. http://lwn.net/archives/
   19. http://lwn.net/op/headlines.phtml
   20. http://lwn.net/op/Contact.html
   21. http://linux.tucows.com/
   22. http://news.tucows.com/ext2/
   23. http://unixthemes.tucows.com/
   24. http://lwn.net/2001/features/oreilly2001/
   25. http://lwn.net/2001/features/OLS/
   26. http://lwn.net/2001/features/MandrakeSoft.php3
   27. http://lwn.net/2001/features/KernelSummit/
   28. http://lwn.net/2001/features/Singapore
   29. http://lwn.net/2001/features/djbdns.php3
   30. http://lwn.net/2001/features/linuxworldny/
   31. http://lwn.net/2001/features/JHaas/
   32. http://lwn.net/2001/features/LarryWall/
   33. http://lwn.net/2001/features/Momjian/
   34. http://lwn.net/2000/features/Timeline/
   35. http://lwn.net/2001/1108/
   36. http://lwn.net/2001/1101/
   37. http://www.courtinfo.ca.gov/opinions/documents/H021153.PDF
   38.
 http://www.cacd.uscourts.gov/CACD/RecentPubOp.nsf/bb61c530eab0911c882567cf005ac6
 f9/574aa79ff518021188256aed006ea2dc/$FILE/CV00-04161DDP.pdf
   39. http://lwn.net/2001/1108/a/samba-ms.php3
   40. http://www.siliconvalley.com/docs/opinion/dgillmor/dg110701.htm
   41. http://davenet.userland.com/2001/11/06/youreFreeToThink
   42. http://lwn.net/2001/1108/security.php3
   43. http://lwn.net/2001/1108/kernel.php3
   44. http://lwn.net/2001/1108/dists.php3
   45. http://lwn.net/2001/1108/devel.php3
   46. http://lwn.net/2001/1108/commerce.php3
   47. http://lwn.net/2001/1108/history.php3
   48. http://lwn.net/2001/1108/letters.php3
   49. mailto:lwn@lwn.net
   50. http://ads.tucows.com/click.ng/buttonpos=lwnbutton125top
   51. http://ads.tucows.com/click.ng/buttonpos=125-001-016
   52. http://lwn.net/2001/1108/security.php3
   53. http://www.eklektix.com/
   54. http://www.eklektix.com/
 
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 URL: http://www.lwn.net/2001/1108/   Sergey Lentsov   08 Nov 2001 17:11:05 
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