Compuserve Inc. V. Patterson Case Summary

In the case of CompuServe Inc. v. Patterson, the court held that uploading shareware onto a computer subjects the programmer to jurisdiction where the computer is located. CompuServe is a proprietary information service company headquartered in the state of Ohio where its main servers operate. Subscribers to CompuServe offered access to the Internet and to proprietary information and software products on the private CompuServe network. Programmers of CompuServe and authorized subscribers authored software products, called “shareware”. The shareware is available to CompuServe subscribers through the CompuServe network. The shareware was available by end users paying voluntarily directly to CompuServe and CompuServe, after taking a 15% cut, would remit the remaining balance of the payment to the shareware author. …show more content…
Prior to authorization as a shareware developer, Patterson entered into a “Shareware Registration Agreement” (SRA) with CompuServe. The SRA authorized Patterson to place shareware that he developed on the CompuServe network in Ohio, distributing his shareware programs worldwide on CompuServe’s network. The SRA incorporated by reference two standard contracts: (1) the Service Agreement and (2) the Rules of Operation, published by CompuServe on the CompuServe information service. Patterson entered the contract electronically over the CompuServe network by typing from his own computer in Texas, the word “AGREE” in various points of the form agreement sent to him by CompuServe. Patterson then emailed the completed forms back to CompuServe in Ohio. The contract applied to Ohio law, because CompuServe’s shareware servers are located in Ohio. Patterson also transmitted his software files electronically from Texas to CompuServe in