A EULA is a legal contract between you and the software publisher. It spells out the terms and conditions for using the software. For instance, it might say you can only install the software on one computer for your personal use, a fairly common stipulation. However, it might also say that by using the software you agree to third-party monitoring or to allowing other users to access parts of your computer.

You can agree to the EULA’s terms in several ways, depending on the publisher and how it distributes its  software. Some of the ways you can “agree” may surprise you, however, because they don’t look or feel anything like signing a contract. You might agree by

• Clicking an “I accept” button during the installation process
• Opening the shrink wrap software packaging
• Breaking the seal on the software CD
• Mailing a registration card to the software publisher
• Installing the application
• Using the application

You can refuse to accept the terms and conditions of the EULA, but then you can’t legally use the software.

Why EULAs are Important
EULAs can include a number of items you should seriously consider before installing the software. In general, you should note the following facts about EULAs:

• EULAs are legally binding. Some consumer advocates have challenged the legality of EULAs, especially long agreements clouded in complicated “legalese.” The advocates argue these EULAs are a strategy for discouraging careful review and hiding controversial terms and conditions. However, a number of influential court decisions have upheld the legality of EULAs, so you need to assume you’re entering into legal agreements when you accept their terms.
• EULAs restrict how you can use the software. EULAs often include clauses that limit the number of computers you can load the software on. They sometimes also prohibit reverse engineering for the purpose of creating compatible software. In some cases they prohibit software testing and even publishing the results of this testing.
• EULAs may force you to agree to certain conditions when using the software. Many software bundles force you to use all bundled components, including software produced by third-party publishers. They may also require you to agree to monitoring of your internet activity and/or sharing your computer’s resources.
• EULAs can limit your ability to sue for damages. Most EULAs include a clause that says you cannot sue the publisher for any damages caused by using the software.

If you receive a letter from Nigeria asking you to send personal or banking information, do not reply in any manner. Send the letter to the U.S. Secret Service, your local FBI office, or the U.S. Postal Inspection Service. You can also register a complaint with the Federal Trade Commission’s Consumer Sentinel.
If you know someone who is corresponding in one of these schemes, encourage that person to contact the FBI or the U.S. Secret Service as soon as possible.
Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas bank accounts.
Do not believe the promise of large sums of money for your cooperation.
Guard your account information carefully.