Legal Question in Technology Law in California
Can they require a license fee after you've paid for software at a time when the
I purchased a suite of software about 3 years ago from a company called MGISOFT.com. I was told I would never be required to upgrade or purchase a license for the software in the future unless I wanted to. MGISOFT.com has been bought out by ISEEMEDIA.com who is now requiring an upgrade and an annual license fee to use the java viewers (which were included in the original version I purchased).
To me, this is similar to buying a vehicle with cash, and then 2 years later having GM call and say they want me to pay a fee to them for the privledge of driving that particular vehicle.
It doesn't seem this can be legal and I would like to know what my options are. Again, when I purchased the software, there was no annual license fee, no required upgrades, and no distinction between personal and commercial use.
I've got an email and PDF via email from iseemedia.com if that helps.
Please help me with this if you can, because I can't afford the outrageous amount they want (and shouldn't have to). This could potentially put me out of business. Thank you very much for your time.
2 Answers from Attorneys
Re: Can they require a license fee after you've paid for software at a time when
Your situation will likely depend upon the language of your original contract with mgisoft, which will then need to be compared with the demand the new company is making and its purported basis for that demand. Accordingly, I suggest you pursue an initial free consult with an attorney experienced in the areas of technology contracts and intellectual property law. I am available to discuss the matter further with you if you so choose.
Re: Can they require a license fee after you've paid for software at a time when
First, LawGuru attorneys are supposed to reject questions containing names of parties. However, since your question was accepted and answered already, I guess there's no harm in adding a few very general comments.
The concept of a license, as opposed to a sale, is that the license is revocable. Plastic credit cards are perhaps another example.... the card itself remains the property of the issuer, and its use is licensed to you. Since a license can be revoked, often without obligation on the part of the licensor to compensate (make refund to) the licensee, it is also possible for the licensor to demand additional license fees.
So, therefore, we get back to the terms of your original license. Read them and see whether you think a jury would find (1) the transaction amounted to a license and not a sale (even though perhaps described as a license, the facts might show that it should properly be considered a sale); and (2) if it is a license, do its terms guarantee you any particular period of use in exchange for what you paid? If not, it is revocable at will under the ordinary law of licenses.
I am answering this question from home. When I get to my office, I will check a couple of recent cases and references to see whether there are "special" interpretations given to software "licenses" that cause them to be treated differently, and if I find anything I'll post a follow-up.
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