LICENSING
DIGITAL
INFORMATION

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Definitions of Words and Phrases Commonly Found in Licensing Agreements

Acceptance
The formal act of agreeing to an offer to enter into a legally binding agreement.
 
Access
The ability to gain entry to a database or other digital information.
 
Agreement
An understanding between two or more parties that is often embodied in a legally binding, written contract.
 
Amendment
An addition to the terms of an agreement. See also Modification.
 
Archive Copy
A copy of a work intended to be preserved permanently.
          
Assignment
A transfer of all or part of the contractual rights and/or obligations to another party.
 
Authentication
A process by which the identity of a user accessing a network or other source of information is verified.
 
Authorized Signature
The signature by a person with authority and power to represent and legally bind a party to a written agreement.
 
Authorized Use; Permitted Use
 Use of information that is expressly allowed under a Licensing Agreement
 
Authorized User; Permitted User
A person designated in a Licensing Agreement as having permission to access or otherwise use the digital information that is the subject matter of the agreement.
 
Backup Copy
A temporary copy of  digital information made for recovery purposes.
 
Breach
A breaking of  a promise or a failure to perform an obligation under an agreement.
 
"Click-on" or "Click-through" License
See Shrinkwrap Agreement.
 
Concurrent Use
The simultaneous use of digital information by more than one user; often used as a measure of limitations on the use of a digital information. 
 
Confidentiality
The treating of information as private and not for distribution beyond specifically identified individuals or organizations, nor used other than for specifically identified purposes.
 
Contract
A formal, legally binding agreement between two or more parties.
 
Copies
Reproductions of all or a portion of digital information onto any one of a number of media, including computer diskette, hard-copy printout, or by exact quotation.
 
Copyright
Legally granted property rights in intellectual works embodied in a some physical means of expression, such as print, musical score or electronic image.
 
Coursepacks
Copies of materials assembled by instructors to be used by students in a class, usually in lieu of or in addition to a text book.
 
Dial-up Access
Access to digital materials through connection with a remote Server through a modem or other remote access device.
 
Disclaimer
A statement denying responsibility for a particular action.
 
Display
Information that appears on the screen of a computer Terminal.
 
Distributor
An individual or organization that re-sells, sublicenses or otherwise makes digital information available from the owner to end-users.
 
Domain
A group of computers linked to the Internet whose host names share a common suffix, such as ".com" (commercial), ".edu" (educational),  or ".net" (communications network).
 
Download
To copy digital information onto a hard drive, diskette or other electronic storage media.
 
End-user
An individual or organization that accesses digital information for their own use.
 
Fair Use
The right set forth in Section 107 of the United States Copyright Act, to use copyrighted materials for certain purposes, such as criticism, comment, news reporting, teaching, scholarship, and research. Section 107 sets out four factors to be considered in determining whether or not a particular use is fair: (1) the purpose and character of the use, including whether such use is of commercial nature or is for nonprofit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work.
 
Force majeure
Literally, "greater force"; a clause designed to protect against failures to perform contractual obligations caused by unavoidable events beyond the party's control, such as natural disasters or wars.
 
Governing Law
The jurisdiction whose law will be applied in the event of a dispute relating to an agreement.
 
Host Name
A unique name used to identify a computer on a network.
 
Indemnity
One party's agreement to insure or otherwise defend another party against any claims by third parties resulting from performance under the agreement.
 
Infringement
An unauthorized use of material protected by copyright, patent or trademark law.
 
Interlibrary Lending ("ILL")
Loaning materials owned or licensed by one library to another library or its users.
 
Internet
A worldwide system of interconnected networks and computers.
 
Internet Protocol ("IP")
A standard developed to identify computers and networks linked to the Internet.
 
IP Address
A unique identifier of computers and/or networks linked to the Internet.
 
Liability
Legal responsibility for an act or failure to act.
 
License
Permission to do something which, without such permission, would be illegal. For example, a license to use digital information gives the Licensee permission to access and use the information under the terms and conditions described in the agreement between the Licensor and the Licensee.
 
Licensee
The person or entity that is given permission through a License to access or otherwise use digital information.
The Licensee, often a library, educational or research organization, generally pays the Licensor a fee for permission to use digital information.
 
License Agreement
A written contract setting forth the Terms under which a Licensor grants a License to a Licensee.
 
Licensor
The person or entity that gives or grants a License. The licensor owns or has permission to distribute digital materials to a Licensee.
 
Local Area Network ("LAN")
A network linking two or more computers and peripheral devices in a specific geographic area.
 
Modification
A change or alteration to the terms of an agreement. See also Amendment.
 
Negotiations
Communications between two or more parties towards the development and maintenance of  contractual relationships.
 
Network
A group of computers linked together to share information. Networks can consist of a number of linked computers in a specific physical location, a Local Area Network ("LAN"), or they may consist of computers located at different physical sites linked together by means of phone lines and modems or other forms of long distance communications.
 
Node
A specific connection point in a network.
 
Non-assignable
The licensing agreement and/or the rights, obligations and terms thereof may not be assigned to any party who is not a signatory to the agreement. For example, a library licensee may not assign the right to access licensed materials to another library. See also Non-transferable.
 
Nondisclosure
An agreement to treat specific information confidentially.  See Confidentiality.
 
Non-exclusive
The rights granted to the licensee under the licensing agreement are not given just to that licensee; the licensor reserves the right to give the same or similar rights to use the licensed materials to other parties.
 
Non-transferable
=20
The licensing agreement and/or the rights, obligations and terms thereof may not be sold, given, assigned or otherwise conveyed to any party who is not a signatory to the agreement. For example, a library licensee may not sell or give the right to access licensed materials to another library. See also Non-assignable.
 
Penalty
A specific cost to be assessed against a party for breach of a term of an agreement.
 
Perpetual License
The continuing right to access digital information after the termination of a license agreement.
 
Public Access Terminals
Terminals are made available to the patrons of a library or other research institution for use by the general public.
 
Remedies
The special rights a party has when another party defaults or breaches an agreement. Remedies include lawsuits or injunctions to stop an action that may harm a party.
 
Remote Access
The ability to access and use digital information from a location off-site from where the information is physically located.
 
Rights
Powers or privileges granted by an agreement or law.
 
Security
Means used to protect against the unauthorized use of and prevent unauthorized access to digital information.
 
Server
A computer that stores digital information to be "served" to other computers or Workstations through a Network or Dial-up Access.
 
Severability
A clause which provides that in the event that one or more provisions of the agreement are declared void or unenforceable the balance of the agreement remains in force. Such provisons may also be referred to as Separability clauses.
 
"Shrinkwrap" Agreement
The method by which electronic information providers establish the terms under which users may gain access to the information without any negotiation with the user. The term developed in connection with the purchase of software. Ordinarily, software is provided in a box enclosed in a plastic wrap known as "shrinkwrap". The box would state that by removing the shrinkwrap from the box, the purchaser of the software was agreeing to the terms of a licensing agreement included inside the box. The term has been expanded to include the presentation of licensing agreements to software buyers and information users before the program will permit use of the product or information. Known also as "click-on" or "click-through" licenses, this process requires users to affirmatively click on a button indicating their acceptance of the licensing agreement before they can install the software or view the information.

While the issue is not settled in all jurisdictions, the trend in the law has been to consider such agreements enforceable and binding, provided that the user has the opportunity to return the product for a full refund in the event that he or she does not wish to be bound by the terms of the agreement.=20
 
Site
As used in a Licensing Agreement, a site is a physical location affiliated with the Licensee where the Licensee may permit access to digital information to Authorized Users.
 
Site License
A particular type of Licensing  Agreement that permits access and use of digital information at a specific site.
 
Subscription
A type of Licensing Agreement by which a Licensee pays for access to digital information by payment of a periodic fee.
 
Term
1. A word or phrase; an expression, particularly one that has been defined in an agreement.
2. A clause or provision of an agreement.
3. A fixed and definite period of time. The term of a Licensing Agreement is the period of time during which the agreement is in effect.
 
Termination
The cancellation or ending of an agreement.
 
Terminal
A computer Workstation linked to a Server or other computer over a Network on which a user may display information. When it is merely a video display, it may be referred to as a "Dumb Terminal".
 
Third Party
A party who is not a signatory to an agreement but who may nevertheless have rights and obligations relating to that agreement.
 
Unauthorized User
A person designated in the Licensing Agreement as not having permission to access or otherwise use the digital information that is the subject matter of the agreement or, more often, any person who is not an Authorized User,
as that term is defined.
 
Venue
The particular jurisdiction where a legal dispute is tried.
 
Waiver
The intentional or voluntary relinquishment of a known right or privilege granted under an agreement, or the failure to take advantage of some failure of performance or other wrong. For example, if a Licensee fails to complain about a series of interruptions in connecting to a Licensor's database, the Licensor may later claim that the Licensee has Waived any claim that the service interruptions constituted a breach of the License Agreement.
 
Warranty
A statement or representation that the goods and/or services will perform as promised in the agreement; a guaranty. For example, a License Agreement relating to a database of samples of musical compositions may contain a Warranty that the Licensor has obtained permission from the composers and performers of the individual musical works to provide access to the database to the Licensee.
 
Workstation
A single terminal or personal computer that may or may not be connected to a larger Network.


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