What type of license is activated when the plastic wrapping of a new software package is removed?

The shrink-wrap license is correctly identified as the type of license activated when the plastic wrapping of a new software package is removed. This type of license typically indicates that by unwrapping the software, the user agrees to the terms and conditions stated within the package, which are often found on the inside cover or included documentation.

Shrink-wrap licenses are commonly used for physical software products. The act of removing the wrapping signifies acceptance of the associated legal terms without requiring the user to explicitly sign an agreement. This creates a binding contract between the software publisher and the end user solely through the user’s actions.

In contrast, click-wrap licenses require users to actively click a button indicating acceptance of the license terms during the software installation process, often seen in digital downloads rather than physical packaging. End-user license agreements (EULAs) can refer broadly to agreements that may be presented in both shrink-wrap and click-wrap formats. Open-source licenses differ in that they allow users to modify and distribute the software freely, which is not applicable in the case of shrink-wrapped proprietary software.