CEU eTD Collection (2025); Ahmadova Shabnam: Restrictions on Use in Digital Services Contracts: The Legal Implications of Licensing vs. Ownership Models

CEU Electronic Theses and Dissertations, 2025
Author Ahmadova Shabnam
Title Restrictions on Use in Digital Services Contracts: The Legal Implications of Licensing vs. Ownership Models
Summary People in the digital age depend increasingly on digital services to communicate, produce work, and entertain themselves. However, digital service contracts place limitations on consumers which restrict their rights without their complete understanding. Consumers unknowingly consent to contracts that reshape their legal rights every time they click “I agree” for software updates or stream movies through platforms that can suddenly cut off their access. For example, they frequently accept terms from digital services including “Spotify” or “Netflix” which ban reshare, resale, and offline use beyond a specific period without reading their complete content. The typical digital transactions contain complex contractual systems which transform digital ownership definitions against consumer self-determination. Thus, this research investigates the effects of the licensing model instead of ownership on consumer autonomy and access rights. The primary model of digital services operates through licensing agreements instead of traditional ownership structures, thereby which preventing consumers from acquiring actual ownership of purchased content. The consumers become exposed to unanticipated access removals and service disruptions, often without prior notice or meaningful recourse, as providers retain unilateral control over key aspects of availability, functionality and contractual terms.
Standard form contracts and opaque terms of service within these restrictions limit consumer bargaining power and legal awareness about their diminished rights. The rise of subscription-based and cloud-hosted services intensifies this power imbalance because users need constant platform access to access their content. The digital environment creates new legal uncertainties regarding consumer rights scope, digital transaction durability, and traditional legal doctrines such as exhaustion of rights and transferability.
This research investigates this fundamental distinction through legal and consumer protection analysis to determine if present regulatory systems adequately safeguard consumer rights. Moreover, the research aims to develop legal and policy recommendations which balance consumer and digital service provider interests in the growing digital market through an evaluation of case law, statutory regulations and industry practices.
Supervisor Soave Tommaso
Department Legal Studies MA
Full texthttps://www.etd.ceu.edu/2025/ahmadova_shabnam.pdf

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