“Click-wrap” Licensing Agreements

“click·wrap  adj. – Of or relating to a legal agreement, such as a software license, to which one indicates acceptance by clicking on a button or hyperlink.”

“Click-wrap” Licensing is a direct descendant of “Shrink-wrap” Licensing which is the practice of displaying the licensing and/or user agreement on the shrink wrapped package of a product, such as software, that assumes the assent of the user once the package has been opened. The days of the internet have taken this practice and improved upon it. We’ve all had to read the user agreement and check the “I agree” box before installing software or signing up for that online service. By clicking the box, we have given our consent to the agreement in a more enforceable manner than simply tearing off the packaging.

As you might imagine, this particular kind of licensing is most useful for software, online services and many other internet companies. Even so, many other companies that have taken advantage of the internet to gain clients and customers use “click-wrap” licensing agreements for their online sign up and new customer interactions.

If you have a product or service that can be distributed on the internet or via software, then you should have a consumer licensing agreement in place. A “click-wrap” agreement may be just the thing you need to fill the gap.

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