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In re RealNetworks

United States District Court for the Northern District of Illinois
2000 WL 631341 (2000)


Facts

RealNetworks, Inc. (RealNetwork) (defendant) permitted downloads of free, basic versions of various software products it owned. Before the products could be downloaded, a user had to accept the terms of the License Agreement, which appeared on the computer screen. The agreement included an arbitration clause. The clause was provided in the same font and size as the rest of the agreement and was the final clause on the screen. This pop-up window did not expire, but would only close when directed by the user. The clause also provided Washington as the forum in which a litigant could file the arbitration action. The clause additionally did not provide for class arbitration and provided that the user must pay costs. Lieschke, Jackson, and Simon (plaintiffs) filed a lawsuit individually and on behalf of a class against RealNetworks. RealNetworks moved to enforce the arbitration clause under the Federal Arbitration Act (FAA).

Rule of Law

Issue

Holding and Reasoning (Kocoras, J.)

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