Legal Definitions - box-top license

A box-top license is a specific type of shrink-wrap license. Generally, a shrink-wrap license refers to a legal agreement for software or other products that is included inside the product packaging and becomes binding upon the user opening the package or using the product. A box-top license is distinguished by having some or all of its terms and conditions printed directly on the *outside* of the product's packaging, or made clearly visible through transparent packaging, before the package is opened. By opening the box, breaking a seal, or using the product, the consumer is deemed to have agreed to these terms.

Here are some examples to illustrate how a box-top license works:

• Example 1: Computer Software

  Imagine you purchase a physical copy of a new photo editing software. On the bottom flap of the software box, clearly visible before you open it, there's a printed statement that reads: "By opening this package, you agree to the terms of the End User License Agreement (EULA) printed inside and available at [website address]." Even though the full EULA is inside, the critical condition for acceptance is presented on the box itself. When you break the seal and open the box, you are legally considered to have accepted the terms of that license, even if you haven't read the full document yet.

• Example 2: Smart Home Device

  You buy a new smart doorbell. On the back of its packaging, there's a section outlining the privacy policy and terms of service for the associated mobile application and cloud storage. It states, "Unsealing this box and installing the device constitutes your agreement to the terms of service and privacy policy detailed herein and fully available online." In this scenario, the manufacturer uses the box-top license to inform you of key terms regarding data usage and service agreements before you even access the device itself. Your act of opening the box signifies your consent to these conditions.

• Example 3: Video Game Console Accessory

  A new gaming headset for a console comes in a clear plastic package. Through the plastic, you can read a small print section on the cardboard insert that says, "This product is licensed for personal, non-commercial use only. Any modification or resale is prohibited. Your use of this product signifies acceptance of these terms." Here, the essential usage restrictions are presented on the packaging itself. By purchasing the headset and removing it from its packaging to use it, you are implicitly agreeing to abide by these specific conditions outlined on the box-top license.