You may be diligently taking all the necessary steps to secure your computer and information against viruses and worms and still be at risk because of the End User License Agreement (EULA) covering the software you use on your computer.

How can a license agreement put you at risk?  Well, the harm comes from ignoring the warnings contained in EULAs - and by agreeing to their terms without reading the license agreement.  Yes, that's right, this means you really do have to read everything in a EULA before you install it on your computer.  In fact, the potential risk of blindly agreeing to certain EULA terms is not limited to just your own computer or information, but can even extend to other computers and data that may be connected to your network!

What exactly is a EULA?  A EULA is a legal contract between you and the software publisher. It spells out the terms and conditions for using the software. For instance, it might say you can only install the software on one computer for your personal use.  This is a common restriction.  A EULA might also say that by using the software you agree to third-party monitoring or to allowing other users to access parts of your computer.

If a EULA requires you to allow the software publisher or a third party to collect information about your internet activity in exchange for use of the software, this information could include not only the web sites you visit, but also information you supply in online transactions such as your name, address, credit card number, and items purchased. Once collected, the security of this information is totally out of your control. 

By carefully reading and understanding the EULA covering software before you install it, you can make an informed decision that takes into account any privacy and security issues. If you don't like what you read, you can refuse to accept the terms and conditions of the EULA.  This also mean you cannot legally use the software. 

You can agree to EULA terms in several ways, depending on the publisher and how it distributes its software. Be careful as there are some very tricky ways you can “agree” to a EULA that don’t involve clicking on an "I ACCEPT" button, or signing a contract.  Depending on individual circumstances, here are several ways you might agree to a EULA...

• Clicking an “I ACCEPT” button during the installation process

• Installing the application

• Using the application

• Opening the shrink wrap software packaging

• Breaking the seal on the software CD

• Mailing a registration card to the software publisher

You should seriously consider the terms of a EULAs before installing the software because...

• EULAs are legally binding agreements and number of significant court decisions have upheld the legality of EULAs.

• EULAs restrict how you can use the software.

• EULAs may force you to agree to certain conditions when using the software. Many software bundles force you to use all bundled components, including software produced by third-party publishers. They may also require you to agree to monitoring of your internet activity and/or sharing your computer’s resources.

• EULAs can limit your ability to sue for damages. Most EULAs include a clause that says you cannot sue the publisher for any damages caused by using the software.

Although well known software publishers are less likely to engage in questionable business practices such as misleading, or camouflaged terms and conditions in their EULAs, you should still read them completely before installing the software. When dealing with software published by a company you’re unfamiliar with, you should review its EULA with more scrutiny. Particular care should be used when the software is bundled with other software from third-party publishers as the EULAs requiring you to allow monitoring, directory access, etc. may be in the third-party software EULAs.

During installation, if your firewall generates a prompt asking whether you want to allow certain inbound or outbound connections, consider this a red flag and proceed carefully. Verify that the software requires changes to your firewall settings for normal operation, and that you are comfortable with this. If the EULA requires you to allow monitoring of your activity, access to specified directories (as in file-sharing programs), or use of your computer’s resources, these may create dangerous holes in your personal firewall. 

Firewall prompts may be a sign that you’re installing problematic software on your computer.   If you’re in doubt about whether to change your firewall settings based on prompts received during software installation, consult the software’s user or installation guide.  If no guide is available, contact the software publisher before making any changes.  Some personal firewalls include options to allow one-time or case-by-case connections - for instance, to connect to a server during the registration process.

Beware of free software.  In exchange for your use of the "free" software, many programs often require an unconventional charge via their EULA - such as the installation of components that put your security and privacy at risk.

Here are some recommendations for protecting yourself from potential security and privacy problems associated with EULAs...

• Read the EULA carefully and completely before you install the software and agree to the EULA’s terms.

• Take the software publisher into account. If you have questions about a software publisher, be extremely diligent in reading the EULA.

• When installing software, beware of firewall prompts that ask you to change your settings.

• Be skeptical of “free” software, especially free file-sharing software.