Legal Definitions - click-wrap license

A click-wrap license is a type of legal agreement commonly encountered online, where a user indicates their acceptance of terms and conditions by clicking a button or checking a box, typically labeled "I agree," "Accept," or similar. By performing this action, the user is considered to have entered into a legally binding contract with the provider of the software or service, even without physically signing a document.

This method is widely used because it allows providers to present their legal terms to users and obtain their consent efficiently before granting access to digital products or services.

• Example 1: Software Installation

  Imagine you are downloading and installing a new photo editing software onto your computer. During the installation process, a window appears displaying the End-User License Agreement (EULA), which outlines how you are permitted to use the software. To proceed with the installation and use the program, you are required to click a button that states, "I accept the terms of the license agreement."

  This illustrates a click-wrap license because your act of clicking "I accept" legally binds you to the software's terms of use, such as limitations on copying, redistribution, or the number of devices you can install it on, before you can access or utilize the software.

• Example 2: Online Service Sign-Up

  Consider creating an account for a new streaming video service. On the registration page, after entering your email and choosing a password, you see a checkbox next to text that reads, "By creating an account, you agree to our Terms of Service and Privacy Policy." You must check this box to successfully complete your registration and gain access to the service's content.

  This is a click-wrap license because checking that box signifies your explicit agreement to the service's rules, data handling practices, subscription terms, and other legal stipulations, forming a contract that governs your use of the streaming platform.

• Example 3: E-commerce Checkout

  Suppose you are purchasing tickets for a concert through an online ticketing platform. As you proceed to the final checkout page, before confirming your payment, you might see a statement like, "By clicking 'Place Order,' you agree to the Ticket Purchase Terms and Conditions."

  This demonstrates a click-wrap license because your action of clicking "Place Order" after being presented with these terms legally binds you to conditions such as refund policies, ticket transfer restrictions, and procedures for event cancellations, all of which are part of the agreement for your purchase.