From: Jonathan Link [mailto:[email protected]]
Sent: Wednesday, 22 September 2010 12:08 AM
To: NT System Admin Issues
Subject: Re: Intel wants to charge to unlock features already on your CPU

I agree with all your points.  At the retail level, there is no contractual 
agreeement though.

Huh?

Contract law has always governed retailed transactions. That is why Donoghue v. 
Stevens was a seminal case in Tort law - the end consumer was able to sue the 
original supplier, outside the bounds of contract law (since the consumer only 
contracts with the retailer, not the original manufacturer or supplier).

For a more seminal case, you may wish to read the judgement in:
http://en.wikipedia.org/wiki/Pharmaceutical_Society_of_Great_Britain_v_Boots_Cash_Chemists_(Southern)_Ltd
since the House of Lords goes over the essential elements of a contract, 
including offer to treat, consideration, and the conclusion of a contract.

We are seeing efforts to push contractual language to that level, and that's 
where I have concern.  If you willingly enter into a contract without reading 
it, it's one thing, you're stipid, or your taking some risks, take your lumps.  
For you to be captive to a contract because you simply purchased something and 
didn't agree to anything in advance of that purchase, I have some problems.  I 
have those same issues with software EULA's.  I don't like the EULA, I read it 
after I purchased the software and opened the package, but I can't return it 
because the retailer doesn't take opened software back, because it can be 
copied and the manufacturer won't reimburse them.

You can always go to court to assert your rights. I agree with any concerns you 
have about the cost of the justice system. As Anatole France once said: The 
law, in its majestic equality, forbids all men to sleep under bridges, to beg 
in the streets, and to steal bread -- the rich as well as the poor

Here's some other wild concerns that I have with this...  We're now unlocking 
hardware features with software, great.  If something can be done with 
software, it can be undone with software.  Soon we'll see a new crop of malware 
locking out performance of computers and holding the computer performance 
hostage long after the malware has been eradicated from the machine.  What 
steps have been done to prevent this situation from ocurring, if any?  Is the 
unlock code good perpetually, can it be easily retrieved by the consumer and 
reused if this type of malware hits a computer?

Unsure what your point is here. Contracting with the vendor is one thing. The 
fact that the window you bought from "Acme Windows" doesn't prevent a bad guy 
from breaking it with a brick, and then holding your hostage is probably not 
relevant, unless you specifically ask for protection against that.

Cheers
Ken






On Tue, Sep 21, 2010 at 11:45 AM, Ken Schaefer 
<[email protected]<mailto:[email protected]>> wrote:


From: Jonathan Link 
[mailto:[email protected]<mailto:[email protected]>]
Sent: Tuesday, 21 September 2010 11:25 PM

To: NT System Admin Issues
Subject: Re: Intel wants to charge to unlock features already on your CPU

If I buy something, it's generally held that I can do what I want with it.

When you say "buy", are you talking about handing over money for something in 
return? If so, then your assertion above is completely incorrect.

There are many contractual situations where payment is made, where you can't do 
what you want. Leasing is one huge area that has been around for a long time. 
Licensing is another, that has similarly been around for a long time. Do you 
think you can lease some advertising space, and then do whatever you want with 
it - like destroy the wall that you are to put your advert up onto? Absolutely 
not (well, I suppose you could if your leasing agreement allowed that). Nor are 
you allowed to display your advertisement in perpetuity to the exclusion of 
other advertisers.

Even with real property (typically physical goods like land) a contract can 
divide rights between parties (e.g. I can sell you some land for a reduced 
price but you only get to keep it for as long as you live)

If you give me something, that's an entirely different situation.  If I buy the 
rights to something for a certain period, you can be darn sure that there's an 
agreement I'm signing.
This specific issue of processors being sold with an unlock code is happening 
at the retail level.  Typically at this level, you're buying it lock stock and 
barrel.  We're chartering new territory in this specific area.
As a consumer product, perhaps we are charting new territory. As far as common 
law goes, I don't think we're charting particularly new territory at all.

Do you know that you can get on an airplane, and there's in-seat entertainment. 
If you buy an expensive fare, the entertainment's "included", and if you buy a 
cheap fare, you have to pay for it? The functionality's all there. But 
effectively the unit is "crippled" until additional payment is made. I don't 
doubt there are many other, more similar cases, out there. But this was the 
first that popped into my head.

I'm familiar with the concept that you can give or sell something with 
restricted rights.  Those kinds of agreements are usually contractual and occur 
between buyers with resources to spend on the transaction process.  We are now 
seeing similar transactions move into the retail space, except we have buyers 
and sellers with vastly different resources, and that is where case law needs 
to be generated,

Maybe you are thinking of estoppel, or similar doctrines. But generally 
contracts do not care for the resources between parties. Provided there is not 
illegal duress, then contract law does not care.

Cheers
Ken




and is indeed being generated (iPhone jailbreaking).  To the average consumer 
(who, I'll admit is generally speaking dumb) they believe that if they go into 
the store to buy something, they own it and can do with it what they please, 
generally they operate the item in a way the manufacturer intended, sometimes 
not, and they (generally) should be free to operate it as they wish.

If, as a coproration you take a risk and ship a product with more capabilities 
that you wish to unlock later, either do a better job of QA in locking down 
said feature, or don't grumble when someone spends their time and their effort 
to unlock it.  Are your manufacturing costs lower?  Sure.  But you're still 
maknig profit, just not at your desired level, so therefore, raise it to your 
desired level.  If you find that your product doesn't sell at that level, then 
perhaps the market is right and your price is set incorrectly.  Again this is 
at the retail level, if you in a business to business transaction signed a 
contract agreeing to not reverse engineer or figure out how to unlock 
additional features, then I'd side with the manufacturer.  At the retail level, 
I'll side with the consumer, because the power level of the buyers and sellers 
are vastly different.  Yes, caveat emptor and all that, but it's really an 
empty saying when the market favors the seller.



On Tue, Sep 21, 2010 at 10:58 AM, Ken Schaefer 
<[email protected]<mailto:[email protected]>> wrote:
There's nothing "new" about this in case law whatsoever (at least from English 
common law - I'm not familiar with continental law)

Licencing has been around for the better part of 200 years. The ability to 
split the rights of property into distinct parts (e.g. you can give possession 
to one person for the term of their life, and then have it pass to someone 
else) has been around for at least a century.

Cheers
Ken

From: Jonathan Link 
[mailto:[email protected]<mailto:[email protected]>]
Sent: Tuesday, 21 September 2010 9:58 PM

To: NT System Admin Issues
Subject: Re: Intel wants to charge to unlock features already on your CPU

Typically, that involved the single issue of illegal possession of some 
physical item.

There's a whole area of new law that needs to be made on this area.  We're now 
in the situation where I legally own something, have legal physical possession, 
but you're retaining certain rights in relation to that item, and we've signed 
no agreement to that effect.  We have 3,400+ years of, if it's mine, I can do 
what I want with it, too.  We have case law to that effect.  Are we now putting 
EULAs on hardware?
On Tue, Sep 21, 2010 at 9:43 AM, Raper, Jonathan - Eagle 
<[email protected]<mailto:[email protected]>> wrote:
Isn't stealing illegal in most countries? IIRC, that concept goes all the way 
back to the days of Moses...about 3,400 years ago, give or take a century ;-)

Jonathan L. Raper, A+, MCSA, MCSE
Technology Coordinator
Eagle Physicians & Associates, PA
[email protected]<mailto:[email protected]>
www.eaglemds.com<http://www.eaglemds.com/>


-----Original Message-----
From: Ben Scott [mailto:[email protected]<mailto:[email protected]>]
Sent: Tuesday, September 21, 2010 9:00 AM
To: NT System Admin Issues
Subject: Re: Intel wants to charge to unlock features already on your CPU

On Mon, Sep 20, 2010 at 10:51 PM, Ken Schaefer 
<[email protected]<mailto:[email protected]>> wrote:
> You are getting what you paid for. And if you then decide you need something 
> better, you can unlock those features without having to replace your CPU.

 It wouldn't bother me so much except that you're actually getting
the hardware, and then these companies inevitably try to enforce their
business model through legislation which makes "unapproved activation"
illegal.

-- Ben



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