59.1-506.5 - Electronic regulation of performance. - Virginia Statutes

§ 59.1-506.5. Electronic regulation of performance.

(a) In this section, "automatic restraint" means a program, code, device,or similar electronic or physical limitation the intended purpose of which isto prevent use of information contrary to the contract or applicable law.

(b) A party entitled to enforce a limitation on use of information mayinclude an automatic restraint in the information or a copy of it and usethat restraint if:

(1) a term of the agreement authorizes use of the restraint;

(2) the restraint prevents a use that is inconsistent with the agreement;

(3) the restraint prevents use after expiration of the stated duration of thecontract or a stated number of uses; or

(4) the restraint prevents use after the contract terminates, other than onexpiration of a stated duration or number of uses, and the licensor givesreasonable notice to the licensee before further use is prevented.

(c) This section does not authorize an automatic restraint that affirmativelyprevents or makes impracticable a licensee's access to its own information orinformation of a third party, other than the licensor, if that information isin the possession of the licensee or a third party.

(d) A party that includes or uses an automatic restraint consistent withsubsection (b) or (c) is not liable for any loss caused by the use of therestraint.

(e) This section does not preclude electronic replacement or disabling of anearlier copy of information by the licensor in connection with delivery of anew copy or version under an agreement to replace or disable the earlier copyby electronic means with an upgrade or other new information.

(f) This section does not authorize use of an automatic restraint to enforceremedies because of breach of contract or for cancellation for breach. If aright to cancel for breach of contract and a right to exercise restraintunder subdivision (b) (4) exist simultaneously, affirmative acts constitutingelectronic self-help must be taken pursuant to § 59.1-508.16, including itsprohibition on mass-market transactions, instead of this section. Affirmativeacts under this subsection do not include (i) use of a program, code, device,or similar electronic or physical limitation that operates automaticallywithout regard to breach or (ii) a refusal to prevent the operation of arestraint authorized by this section or to reverse its effect.

(2000, cc. 101, 996; 2001, c. 763.)