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Definition

shrink wrap license

What is a shrink wrap license?

A shrink wrap license is an end user agreement (EULA) that is enclosed with software in plastic-wrapped packaging. Once the end user opens the packaging, the EULA is considered to be in effect.

There are some concerns about the legality of an agreement that the user cannot examine prior to purchase. To address these concerns, some manufacturers use an onscreen version that the user must agree to before installation can proceed. 

An onscreen EULA is sometimes referred to as a click wrap agreement.

Learn More About IT
> Wikipedia has more information about shrink wrap licenses and click wrap licenses in its EULA entry.
> Eric S. Freibrun reported on a case in which the court ruled against a shrink wrap license agreement.

This was last updated in September 2008
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