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Contracts Keyed to Whaley
ProCD, Inc. v. Zeidenberg
Citation:
United States Court of Appeals, Seventh Circuit, 1996, 86 F.3d 1447ProfessorMelissa A. Hale
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Facts
ProCD (Plaintiff) sells a software product called the SelectPhone database. The product has a detailed address directory and is sold to both commercial and non-commercial users. To make more profit, Plaintiff engages in price discrimination by charging a higher price for commercial users. It enforces its price discrimination scheme by including a shrinkwrap license within the software packaging, and it also pops up on the computer screen when the product is run, that limits use of the database to non-commercial purposes. Matthew Zeidenberg (Defendant) bought a consumer package of SelectPhone and ignored the license, opting to resell the information via his corporation Silken Mountain Web Services, Inc.. He sold the product at a cheaper price than that charged by Plaintiff.
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