Legal Question in Technology Law in Maryland

netscape browser charges and subscription practices

In June 1997 I purchased netscape browser 4.01 for $80.00 and a one year subscription of free updates for and extra $20.00- Sometime in Sept. I found out netscape is giving away the same stuff I paid for. Am I entittled to any rebate? How about all the paying customers in the US.- Are they entittled to anything?. Netscape has not returned any of my emails into this subject.


Asked on 1/11/98, 7:38 pm

2 Answers from Attorneys

Jonathan Gould Attorney-at-Law

Netscape Purchaser Class Action

My response would largely be determined on the state you reside in and/or from what state you purchased the software. It is conceivable that your claim might be basis for a class action against Netscape but I would have to learn more about the date of purchase and any language on the receipt you received as well as what state law governs.

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Answered on 1/16/98, 12:05 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Netscape purchase

Are you sure Netscape is actually giving away the same items and services you purchased? As I understand it, the "free" version of Netscape is a trial version which users are supposed to buy if they like it. Perhaps more importantly, purchasers (actually "licenses", since software companies are leery about the implications of "selling" their products) get manuals and tech support which non-licensees do not receive. Your subscription entitles you to upgrades which are also not available to others. In other words, you probably got considerabgly more for your money than others are getting for free.

Another problem with trying to sue Netscape is that the company (presumably) never assured you that you were getting the best deal available, or that the best deal wouldn't get better in the future. The computer I bought in 1996 for over $3,000 wouldn't command much more than $1,000 today, but I'm not entitled to a refund. Even if the price dropped the day after my purchase, I would have no basis for a suit.

As an aside, the reason Netscape markets its product so aggressively is to respond to Microsoft's practice of giving away its competing browser, Internet Explorer (and of "bundling" it as part of Windows95). There is some pretty intensive anti-trust litigation going on which claims Microsoft is doing this to shut down its competition -- after all, Microsoft has other sources of revenue and can afford to lose money on IE, but Netscape will go out of business if it can't sell its product. Personally, I think Microsoft should lose this case. My point is that the practices you describe are at least partly attibutable to Microsoft's own practices.

The reply from Mr. Gould, who suggests a possible class action against Netscape, is interesting. I don't think it's likely to get anywhere, though, as it essentially would be based on the assumption that the company should be giving away its product instead of charging for it. Not only would this be an extremely unsound business practice, it would also be quite similar to the behavior that has Microsoft in so much trouble.

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Answered on 1/16/98, 2:03 pm


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