Re: verbal permission to cite from book

From: Andrew C. Greenberg <werdna[_at_]gate.net>
Date: Mon, 23 Aug 1999 07:55:03 -0400

On Sat, 21 Aug 1999, Bob Stock <bstock[_at_]mindspring.com> wrote:
>
> Like in any contract, express and implied licenses require
> consideration. However, what this means practically in the copyright
> context is interesting. For example, if I ask Author if I can copy
> his book and he says yes, even though I have offered him nothing in
> return, I can still lawfully copy his book. Absent consideration,
> though, he can revoke the license. On the other hand, if I have
> supplied consideration for the license, then whether Author may
> revoke the license would depend on the its terms.

This may or may not be true, depending upon which definition of the term "license" is used. The term "license" is frequently used both to refer to (i) a grant of consent to exercise exclusive rights, but also to (ii) a contract in which a license (used per sense (i)) is granted as part of the consideration.

The first use of the term does not require consideration to be legally effective. A unilateral grant of a license is legally sufficient to bar the grantor from suing the grantee for invasions of the exclusive right during the term of the license, notwithstanding the lack of any consideration from the grantee.

As Bob noted, of course, licenses can be revocable and irrevocable. Licenses are ordinarily revocable except in certain circumstances, usually the coupling of the license with a property interest or the creation of a reliance interest. While these exceptions may result from the execution of a license contract, I'm not sure whether an actual enforceable contract in every case to render a license irrevocable.

For example, if I say, "go ahead, use the right to copy and distribute my software and put it in with the next issue of your magazine," knowing that this would entail investment of some amount of money getting ready to go to press, change my mind just after the book was printed and just before distribution and tried to revoke, would the reasonable reliance I engendered preclude me from suing for distribution of the magazine?

Likewise, if I unilaterally assign without consideration a property interest and together with, or as part of, the assignment also grant a coupled license, why should the absence of a written agreement preclude the license from becoming irrevocable.

Finally, what if I grant (without consideration) an oral or written license, expressly stating that the license is irrevocable? Is that, in itself, sufficient to make it irrevocable, or is some reliance a predicate condition to avoid revocation?

Andrew C. Greenberg
<werdna[_at_]gate.net> Received on Mon Aug 23 1999 - 11:56:12 GMT

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