Legal Question in Technology Law in Ohio

Refunds on Software

We develop and sell software, and we occasionally customize it. We do not give refunds, because once you have it, we can't control what you do with it, and our customers know this.

We recently got a letter from an attorney saying that a client of theirs (who was a customer of ours from another state) is unhappy with the software they bought over 8 months ago and now want their money back. The customer has rarely called us with questions and has twice requested their money back, to which we said no. We always try to help them, and they seemed satisfied with the support we gave the few times they did call.

Can they sue us to get their money back? Don't we have the right to a "no refunds" policy? Software you buy at the store is non-refundable; once you open it, you own it! What are our rights? Please advise.


Asked on 3/09/00, 5:39 pm

2 Answers from Attorneys
Gregory Brittain Gregory W. Brittain, Attorney at Law

Re: Refunds on Software

First it will depend on the law of your state and/or the customer's state. Second you should "license" software not "sell" it. Third, I would want to see your contract. Fourth, even if a no refund policy is valid, that does not mean they cannot sue for breach of contract or express or implied warranties. Fifth, unless your contract has a forum selection clause, they may be able to sue you in their state. Sixth, how much money is at stake?

I would consult by telephone. My consultation fee is $60.00 and can be charged. My number is 909.383.9570. I can only advise you regarding California law.

This reply is a courtesy and does not create an attorney client relationship.

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Answered on 3/22/00, 6:10 pm
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Refunds on Software

First you need to recognize that regardless of your "no refund" policy, a Court is going to look at the equity of both side's position. For example, if your software is highly customized for the particular end user you would have a much better claim than if it were simply an "off-the-shelf" program. In addition to the specific language of the license agreement and the type of problem, other factors are involved. Do you have a trial period - such as a 30 day demo or limited use version? That would make your case stronger. Please call me at (856) 665-2121 and we can discuss this further.

Ronald J. Cappuccio, J.D., LL.M.(Tax)

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Answered on 3/22/00, 8:29 pm


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