Legal Definitions - free ride

The term free ride refers to a situation where an individual or entity obtains a benefit, advantage, or value without paying a fair or proportionate price, or without contributing their share of effort or resources.

Here are some examples to illustrate this concept:

• Imagine a new coffee shop that opens directly next to a highly popular, established bookstore. The coffee shop benefits significantly from the constant stream of customers drawn to the bookstore, enjoying increased foot traffic and visibility without having to invest heavily in its own marketing or advertising to attract those initial customers. The coffee shop is getting a free ride on the bookstore's established reputation and marketing efforts.

• Consider a software developer who uses a substantial portion of another company's proprietary code in their own commercial application without obtaining a license or paying the required royalties. The developer gains the advantage of using pre-built, functional code, saving significant time and development costs, without compensating the original creators for their intellectual property. This developer is taking a free ride on the original company's research, development, and innovation.

• In a neighborhood where residents collectively fund a private security patrol through voluntary contributions, one homeowner consistently refuses to contribute any money. However, this homeowner still benefits from the reduced crime rates and increased sense of safety that the patrol provides to the entire community. This homeowner is receiving a free ride on the financial contributions and collective effort of their neighbors.