Shrink wrap license refers to contract agreement accepted by the user once the user opens up a new product. The name comes from the cellophane wrapping that tightly seals the box of the new software product. The license contains terms and conditions that are contractual in nature and once the client purchases and opens the sealed box, he is expected to abide by the agreement printed on it.

Importance of shrink wrap license agreement

This license is required to make a contractual relation between the manufacturer and the customer which is apart from the agreement between retailer and the customer. The agreement gives the publisher protection against any legal consequences including illegal copy and distribution of the software. Furthermore it restricts the user from editing the code, or altering the program in any way forbidden. It also limits the power of any one from reverse engineering of the software.

According to many software houses, once the cellophane coating is removed, the user has entered the agreement automatically. On the other hand there has been a legal battle across States, that agreement clauses are not visible until the wrapper is not removed. The licensing continues to be a controversy amidst number of cases against it.

Currently the method of shrink wrap license is the best method for any software publisher to maintain security for its new product or innovation. Therefore it is necessary when you launch the product, take these legal matters into account to avoid any unforeseeable event