DVD Jon sells out to The Man: Dissecting the doubleTwist EULA, ToS, etc

doubleTwist EULA:
(the agreement is indented, portions underlined by me for emphasis, my comments are not indented)

IMPORTANT – PLEASE READ CAREFULLY

Before reading the articles below, please note the following preliminary terms, which use some of the definitions specified in Article 1 below:

Entering into this Agreement: This End User License Agreement constitutes a valid and binding agreement between SpiceFlow Corporation and You, as a user, for the use of the doubleTwist Software. You must enter into this Agreement by clicking on the ACCEPT button in order to install and use the doubleTwist Software. You hereby agree and acknowledge that this Agreement covers all of Your use of doubleTwist Software, whether it be from this installation or from any other terminals where doubleTwist Software has been installed, by You or by third parties. Furthermore, by installing and continuing to use the doubleTwist Software. You agree to be bound by the terms of this Agreement and any new versions hereof.

Ahhh, it just wouldn't be an electronic contract without the assertion that the licensor can unilaterally change the entire agreement, and you're bound to any such changes.  There's an excellent chance that this would invalidate the entire contract -- a contract which leaves essential matters for later determination by one of the parties is incomplete and unenforcable.  A contract which purports to allow one party to rewrite the entire contract would probably suffer the same fate.

Electronic Signatures and Agreement(s): You acknowledge and agree that by clicking on the ACCEPT button or similar buttons or links as may be designated by SpiceFlow Corporation to show Your approval of any of the foregoing texts and/or to download and install the doubleTwist Software, You are entering into a legally binding contract. You hereby agree to the use of electronic communication in order to enter into contracts, place orders and create other records and to the electronic delivery of notices, policies and records of transactions initiated or completed through the doubleTwist Software. Furthermore, You hereby waive any rights or requirements under any laws or regulations in any jurisdiction which require an original (non-electronic) signature or delivery or retention of non-electronic records, to the extent permitted under applicable mandatory law.

This type of clause I haven't seen before in EULAs.  Perhaps they're trying to avoid the requirements in some countries for certain agreements (guarentees, mortgages, contracts for the sale of land, etc) to be made in writing?

Jurisdiction's Restrictions: if You are residing in a jurisdiction which restricts the use of internet-based applications according to age, or which restricts the ability to enter into agreements such as this agreement according to age and You are in such a jurisdiction and under such age limit, You may not enter into this Agreement and download, install or use the doubleTwist Software. Furthermore, if You are residing in a jurisdiction where it is forbidden by law to offer or use software for internet communication, You may not enter into this Agreement and You may not download, install or use the doubleTwist Software. By entering into this Agreement You explicitly state that You have verified that Your use of the doubleTwist Software is allowed in Your jurisdiction.

Pffft, this is the 5th paragraph of the EULA and I guarantee that most users haven't even read this far, let alone made enquiries to ensure that their use of the software is legal.

[relatively uncontroversial stuff removed]

1.8 doubleTwist: refers to the company established under the laws of Cayman Islands, SpiceFlow Corporation, with its address at PO Box 309GT, M&C Corporate Services Limited, Ugland House, South Church St, George Town, Grand Cayman, Cayman Islands

A Cayman Islands company.  That inspires confidence.

[...]

2.3 No Modifications. You will not undertake, cause, permit or authorize the modification, creation of derivative works, translation, reverse engineering, decompiling, disassembling or hacking of the doubleTwist Software or any part thereof.

How many 'no reverse engineering' clauses has DVD Jon broken to create his anti-DRM products?  Probably dozens.  Yet he tries to stop the users of his software doing the same thing.  Sheer hypocrisy.

2.4 Third Parties. You acknowledge and agree that the doubleTwist Software may be incorporated into, and may incorporate itself, software and other technology owned and controlled by third parties. Any such third party software or technology that is incorporated in the doubleTwist Software falls under the scope of this Agreement. Any and all other third party software or technology that may be distributed together with the doubleTwist Software will be subject to you explicitly accepting a license agreement with that third party. You acknowledge and agree that you will not enter into a contractual relationship with doubleTwist or its Affiliates regarding such third party software or technology and you will look solely to the applicable third party and not to doubleTwist or its Affiliates to enforce any of your rights.

'We can bundle malware with doubleTwist, but what it does to your computer is between you and the malware provider'

2.5 New Versions of the doubleTwist Software. doubleTwist, in its sole discretion, reserves the right to add additional features or functions, or to provide programming fixes, updates and upgrades, to the doubleTwist Software. You acknowledge and agree that doubleTwist has no obligation to make available to You any subsequent versions of the doubleTwist Software, nor any obligation to continue to support prior versions. You also agree that you may have to enter into a renewed version of this Agreement, in the event you want to download, install or use a new version of the doubleTwist Software. Furthermore, You acknowledge and agree that doubleTwist, in its sole discretion, may modify or discontinue or suspend Your ability to use any version of the doubleTwist Software, and/or disable any doubleTwist Software You may already have accessed or installed without any notice to You, for the repair, improvement, and/or upgrade of the underlying technology or for any other justifiable reason, including but not limited to, circumstances where You, in doubleTwist's opinion, are considred to be in breach of this Agreement, creating problems, possible legal liabilities, acting inconsistently with the letter or spirit of our policies, which can be found at www.doubletwist.com/etiquette.html, or engaging in fraudulent, immoral or illegal activities, or for other similar reasons. doubleTwist will not accept any liability in relation to the direct or indirect damages caused by (1) the release and/or the absence of release of new versions of the doubleTwist Software and (2) by the suspension or termination of the license or this Agreement by doubleTwist and/or by You.

Charming.  They can disable the software that you've already installed, for pretty much any reason they feel like.  Including for 'acting inconsistently with the letter or spirit' of their etiquette policy at the above URL.  Except that that document doesn't exist.  You get a '404 Not Found' message when you try to access it.  I guess it's more fun to make that kind of thing up as you go along.  It's funny that they can disable your use of the software if you engage in illegal activities, or 'create problems' or 'possible legal liabilities', given that the main purposes of doubleTwist is the (probably unlawful) copying of copyright material and the (probably unlawful) circumvention of DRM systems.

[...]

4.2 Your Confidential Information and Your Privacy. doubleTwist is committed to respecting Your privacy and the confidentiality of Your personal data. The Privacy Policy that is published on the doubleTwist Website at www.doubletwist.com/privacy applies to the use of Your personal data, the traffic data as well as the content contained in Your communication(s). We do not sell or rent Your personal information to third parties for their marketing purposes without Your explicit consent and we use Your information only as described in the Privacy Policy. We store and process Your information on computers that may be located outside Your country that are protected by physical as well as technological security devices. You can access and modify the information You provide in accordance with the Privacy Policy. If You object to Your information being transferred or used in this way please do not use our services.

Again, the link to their privacy policy given above doesn't work because the page doesn't exist.  Didn't anybody proof-read this thing?  As will be seen later, the terms of their actual privacy policy give the lie to their claim that they're 'committed to respecting Your privacy'.

[...]

B. You agree to not engage in the use, copying, or distribution of any copyrighted Communications Content beyond allowable fair use including any use, copying, or distribution of Communications Content obtained through the doubleTwist Website and/or Services for any commercial purposes.

Fair use only applies to people in the United States of America.

C. You agree not to circumvent, disable or otherwise interfere with security-related features of the doubleTwist Website and/or Services or features that prevent or restrict use or copying of any Content or enforce limitations on use of the doubleTwist Website and/or Services, and the Communications Content made available by use of the Website and/or Services.

DVD Jon's notoriety is due almost solely to the fact that he has developed numerous tools for circumventing DRM systems.  The doubleTwist software itself is a tool for circumventing DRM systems!  In summary, they're saying that:

1. It's OK for DVD Jon to circumvent other people's DRM;
2. It's OK for DVD Jon to distribute tools for circumventing other people's DRM;
3. It's not OK for other people to circumvent DVD Jon's own DRM.

It doesn't get much more hypocritical than that.

[...]

6.1 Exclusive Ownership. You acknowledge and agree that any and all IP Rights to or arising from the doubleTwist Software are and shall remain the exclusive property of doubleTwist and/or its licensors. Nothing in this Agreement intends to transfer any such IP Rights to, or to vest any such IP Rights in, You. You are only entitled to the limited use of the IP Rights granted to You in this Agreement. You will not take any action to jeopardize, limit or interfere with the IP Rights. You acknowledge and agree that any unauthorized use of the IP Rights is a violation of this Agreement as well as a violation of intellectual property laws, including without limitation copyright laws and trademark laws. You acknowledge and understand that all title and IP Rights in and to any third party content that is not contained in the doubleTwist Software, but may be accessed through use of the doubleTwist Software, is the property of the respective content owners and may be protected by applicable copyright or other intellectual property laws and treaties.

Purports to exclude exceptions to copyright.

[...]

8.2 Termination by doubleTwist. Without limiting other remedies, doubleTwist may limit, suspend, or terminate this license and Your use of doubleTwist Software, prohibit access to the doubleTwist Website and delete Your User Account and/or User ID, with immediate effect, if we think that You are : in breach of this Agreement, creating problems, possible legal liabilities, acting inconsistently with the letter or spirit of our policies, which can be found at www.doubletwist.com/etiquette.html, infringing someone else's intellectual property rights, engaging in fraudulent, immoral or illegal activities, or for other similar reasons. doubleTwist shall effect such termination by providing notice to You to the email address You have provided, and/or by preventing Your access to the respective User Account. We reserve the right to cancel User Accounts that have been inactive for more than one (1) year.

The non-existant etiquette guide again, and termination for 'creating problems', whatever that means.

8.3 Termination by You. You may terminate this Agreement with immediate effect at any time, with or without cause and without recourse to the courts, provided that You will meet with the conditions as set forth in Article 8.4 below.

In a rather sneaky manner, purports to prevent the user from suing if they elect to terminate the agreement.  Probably an unfair term.

[...]

Article 9 Your Representations and Warranties; Indemnification of doubleTwist

Here comes the fun stuff.

[...]

9.2 Indemnification. You agree to indemnify, defend and hold harmless doubleTwist, Affiliates and the doubleTwist Staff from and against any and all liability and costs, including reasonable attorneys' fees incurred by said parties, in connection with or arising out of Your (a) violation or breach of any term of this Agreement or any applicable law or regulation, whether or not referenced herein, or (b) violation of any rights of any third party, or (c) use or misuse of the doubleTwist Software, or (d) communication spread by means of the doubleTwist Software.

'If we get sued for what you did, you owe us'

[...]

Article 10 Disclaimer of Warranties
[...]
Article 11 Limitation of Liability
[...]

The content of these parts is fairly standard.  They disclaim everything and have no liability at all, except to the extent that the law requires otherwise.

Article 12 General Provisions

12.1 New versions of the Agreement. doubleTwist reserves the right to modify this Agreement at any time by providing such revised Agreement to You or by publishing the revised Agreement on the doubleTwist Website. The revised Agreement shall become effective within thirty (30) days of such publishing or provision to You, though you can expressly accept the revised Agreement earlier by clicking on the accept button. The express acceptance by You, or Your continued use of the doubleTwist Software after expiry of the notice period of thirty (30) days, shall constitute Your acceptance to be bound by the terms and conditions of the revised Agreement. You can find the latest version of this Agreement at www.doubletwist.com/legal/eula. doubleTwist reserves the right to make changes to this Agreement from time to time.

That URL doesn't work.  I see a pattern developing here.

[...]

12.5 No Assignment by You. You are not allowed to assign this Agreement or any rights hereunder.

12.6 Assignment by doubleTwist. doubleTwist is allowed at its sole discretion to assign this Agreement or any rights hereunder to any Affiliate, without giving prior notice.

Allowing the supplier to assign without the consumer's consent is another indicator of an unfair term.

12.7 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California without giving effect to any conflict of laws or provisions whether contained in California law or the laws of your current state or country of residence.

12.8 Competent Court. Any legal proceedings arising out of or relating to this Agreement will be subject to the jurisdiction of the courts located within the State of California.

Why on earth would they choose California?  Contracts like this one have been taking an absolute pounding from courts in California -- it's probably one of the least favourable jurisdictions.  Why not try and make people sue in the Cayman Islands?

[...]

YOU EXPRESSLY ACKNOWLEDGE THAT YOU HAVE READ THIS AGREEMENT AND UNDERSTAND THE RIGHTS, OBLIGATIONS, TERMS AND CONDITIONS SET FORTH HEREIN. BY CLICKING ON THE ACCEPT BUTTON AND/OR CONTINUING TO INSTALL THE DOUBLETWIST SOFTWARE, YOU EXPRESSLY CONSENT TO BE BOUND BY ITS TERMS AND CONDITIONS AND GRANT TO DOUBLETWIST THE RIGHTS SET FORTH HEREIN.

Requiring customers to EXPRESSLY ACKNOWLEDGE that the sky is pink with purple polkadots doesn't make it so.

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Terms of Service:

There's a lot of stuff in here which is duplicative of what's in the EULA.

[...]

2. Accepting the Terms of Service

2.1 In order to use the Services, you must first agree to the Terms of Service. You may not use the Services if you do not accept the Terms of Service.

2.2 You can accept the Terms of Service by:

(A) clicking to accept or agree to the Terms of Service, where this option is made available to you by doubleTwist in the user interface for any Service; or

(B) by actually using the Services. In this case, you understand and agree that doubleTwist will treat your use of the Services as acceptance of the Terms of Service from that point onwards.

... even if you haven't read the Terms of Service.  A browse-wrappy feature.

[...]

2.4 Before you continue, you should print off or save a local copy of this Terms of Service for your records.

Surely they jest.  In any case, what's the point of printing it?  They claim to be able to change the entire contract on a whim and hold you to the new terms.

[...]

5. Use of the Services by you

5.1 In order to access certain Services, you may be required to provide information about yourself (such as identification or contact details) as part of the registration process for the Service, or as part of your continued use of the Services. You agree that any registration information you give to doubleTwist will always be accurate, correct and up to date.

Otherwise the advertisers who pay for advertisements targeted on that information might get annoyed.

[...]

5.3 You agree not to access (or attempt to access) any of the Services by any means other than through the interface that is provided by doubleTwist, unless you have been specifically allowed to do so in a separate agreement with doubleTwist.

Interoperability is bad.  Heaven forbid that someone should reverse-engineer the doubleTwist protocols and release an interoperable client program that isn't lousy with advertising!

[...]

5.5 Unless you have been specifically permitted to do so in a separate agreement with doubleTwist, you agree that you will not reproduce, duplicate, copy, sell, trade or resell the Services for any purpose.

How do you reproduce or duplicate a service?  Maybe they mean that you can't develop a competing service?

[...]

7.1 For information about doubleTwist's data protection practices, please read doubleTwist's privacy policy. This policy explains how doubleTwist treats your personal information, and protects your privacy, when you use the Services.

7.2 You agree to the use of your data in accordance with doubleTwist's privacy policies.

'Bundled consent', gotta love it.  The Privacy Policy is next in line for dissection.

[...]

9.2 Unless you have agreed otherwise in writing with doubleTwist, nothing in the Terms of Service gives you a right to use any of doubleTwist's trade names, trade marks, service marks, logos, domain names, and other distinctive brand features.

So don't criticise us, or else you're infringing our trademarks.

[...]

10. Software updates

10.1 doubleTwist software may automatically download and install updates from time to time from doubleTwist. These updates are designed to improve, enhance and further develop the doubleTwist services and may take the form of bug fixes, enhanced functions, new software modules and/or completely new versions. You agree to receive such updates (and permit doubleTwist to deliver these to you) as part of your use of the Services.

Automatic updates, to add more revenue-generating features, as and when doubleTwist please.

[...]

15. LIMITATION OF LIABILITY

15.1 SUBJECT TO OVERALL PROVISION IN PARAGRAPH 12.1 ABOVE, YOU EXPRESSLY UNDERSTAND AND AGREE THAT DOUBLETWIST, ITS SUBSIDIARIES AND AFFILIATES, AND ITS LICENSORS SHALL NOT BE LIABLE TO YOU FOR: [...]

Interestingly, the limitation of liability in the Terms of Service doesn't contain a 'to the extent permitted by applicable law'-type clause.  It purports to exclude liability in all circumstances.  May contravene s 53(g) of the TPA.

[...]

17. Advertisements

17.1 Some of the Services may be supported by advertising revenue and may display advertisements and promotions. These advertisements may be targeted to the content of information stored on the Services, queries made through the Services or other information.

Now we get to the meaty stuff -- targeted advertising, based on information you provide, searches you make of the service, or any 'other information' about you.

[...]

19. Changes to the Terms of Service

19.1 doubleTwist may make changes to the Terms of Service or Additional Terms from time to time. When these changes are made, doubleTwist will make a new copy of the Terms of Service available at www.doubletwist.com/dt/Legal/Terms.dt and any new Additional Terms will be made available to you from within, or through, the affected Services.

19.2 You understand and agree that if you use the Services after the date on which the Terms of Service or Additional Terms have changed, doubleTwist will treat your use as acceptance of the updated Terms of Service or Additional Terms.

You get 30 days before changes to the EULA, but changes to the Terms of Service can be made with immediate effect.

[...]

20.7 The Terms of Service, and your relationship with doubleTwist under the Terms of Service, shall be governed by the laws of the State of California without regard to its conflict of laws provisions. You and doubleTwist agree to submit to the exclusive jurisdiction of the courts located within the State of California to resolve any legal matter arising from the Terms of Service. Notwithstanding this, you agree that doubleTwist shall still be allowed to apply for injunctive remedies (or an equivalent type of urgent legal relief) in any jurisdiction.

A somewhat common provision, but very hypocritical.  If you want an injunction against doubleTwist, you have to get it in California, but they can get one against you wherever they like.  At least there aren't mandatory arbitration clauses.

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Privacy Policy:

The following text is long, dry and painful to read because attorneys have no sense of humor. Basically, we won't spam you with stuffed polar bear gift ideas for your friends, call to sell you newspaper subscriptions, or send your personal data to the Chinese government.

I'm not kidding.  Their privacy policy really says that.

doubleTwist is committed to respecting Your privacy and the confidentiality of Your personal data, traffic data and communications content. This Privacy Statement is designed to assist You in understanding how doubleTwist uses and safeguards the information that You provide to doubleTwist while using doubleTwist’s Communications Service.

Please note that this Privacy Statement is not a binding contract and does not create any legal rights. It is made available to you so that you can make an informed decision about using the doubleTwist website and services after considering the steps doubleTwist takes to protect your private personal information.

What is that supposed to mean?  'Here's a wishy-washy non-binding statement of what we intend to do with your personal information, but if we break it, we never promised to obey it and you can't sue us.'?

The following terms are used in this Privacy Statement, in both the singular and plural forms:

[...]

Passive Information: Information obtained from your computer without any effort on your part, that is used to provide You with the desired functionality of the doubleTwist Software, such as a session ID token, technical and related information, including but not limited to technical information about your computer, system, application software, and peripherals, source and destination addressing information, and the version of the software You are using.

Exactly why do they need this information to provide you with functionality of the software?

Personal Data: any information that doubleTwist possesses relating to an identified or identifiable user of doubleTwist Software, including that individual’s Communications Content, Feedback Information, Passive Information, Registration Information, Subscriber Information, Traffic Data and User Profile.

Registration Information: any information provided by You when You register at the Website or install doubleTwist desktop software, including, but not limited to, username and password.

doubleTwist: means under this Privacy Statement, the SpiceFlow Corporation, a company incorporated under the laws of Cayman Islands, having its registered office at 309GT, M&C Corporate Services Limited, Ugland House, South Church St, George Town, Grand Cayman, Cayman Islands, and any SpiceFlow Corporation subsidiaries or affiliated companies.

doubleTwist Software: Any software (or software updates) provided by doubleTwist for Your use, including but not limited to, that desktop software that allows You to communicate and/or exchange data files or Communications Content with other doubleTwist users.

Subscriber Information: Information that is used to verify Your identity and to provide You Subscription Services, including, but not limited to, Your name, billing information and e-mail address.

Traffic Data: any data processed for the purpose of the conveyance of communication or determining bandwidth usage, including, but not limited to, the duration and size of Communications Content and information relating to the recipient(s).

User Profile: any information about the user, filled in by the user on the Website or on the doubleTwist desktop client, that is meant to be shared with other users of the doubleTwist Website or doubleTwist Software, that can be searched for by other doubleTwist users. This includes, but is not limited to, information made available by You that can be shown on another user’s “Friend List.” In the future, doubleTwist may provide You with the option of making your media play list public, and should you choose to do so, such information would become part of your User Profile.

Subscription Service: means any subscription service provided by doubleTwist and/or doubleTwist’s partners, including but not limited to, the doubleTwist Pro service, basic doubleTwist services, and other services which may be offered.

[...]

2. What information does doubleTwist collect?

In order to provide the doubleTwist desktop, doubleTwist gathers and processes the following information.

• Registration Information
• User Profile
• Feedback Information
• Passive Information
• E-mail addresses
• Mobile phone number
• Personal Data from other doubleTwist users you have added to your “Friends” list

In order to provide You with Subscription Service, doubleTwist shall, in addition to the above mentioned information, collect and process the following information.

• Subscriber Information
• Traffic Data

3. How does doubleTwist use this information and for what purpose?

Our primary purpose in collecting information is to provide You with a safe, smooth, efficient, and customized experience. We may use Personal Data to: provide services and customer support You request; resolve disputes, collect fees, and troubleshoot problems; enforce our Terms of Service; customize, measure, and improve doubleTwist Software, VoIP Service and Website content and layout; inform You about targeted marketing, service updates, and promotional offers (unless You opt out); compare information for accuracy, and verify Your identity; provide other services for You as described when we collect the information.

Should read: 'Our primary purpose in collecting information about you is to make money by selling advertising which is targeted at you, based on whatever information we can find out about you'

4. To whom does doubleTwist transfer Your personal information?

Except as provided below, doubleTwist shall not sell, rent, trade or otherwise transfer any Personal and/or Traffic Data or Communications Content to any third party without Your explicit permission, unless it is obliged to do so under applicable laws or by order of the appropriate authorities.

Exactly what constitutes 'your explicit permission'?  Clause 7.2 of the Terms of Service says that 'You agree to the use of your data in accordance with doubleTwist's privacy policies' -- does this constitute explicit permission to sell/rent/trade/transfer this data, or is something more required?

[...]

By using doubleTwist Software or Communications Service You consent to any such transfer of information outside of Your country. As doubleTwist continues to develop its business, doubleTwist might sell or buy subsidiaries or business units. In such transactions as well as in the event that doubleTwist or substantially all of its assets are acquired by a third party, personal information of doubleTwist users will be one of the transferred business assets. We reserve the right to include Your personal information, collected as an asset, in any such transfer to a third party.

At least they're relatively open about this possibility.  To the extent that putting it in a pile of legalese that even they describe as 'long, dry and painful to read' constitutes being open about it.  If doubleTwist gets bought out by somebody else, all your personal information are belong to them.

Third Party Advertising

The advertisements appearing on doubleTwist’s website and the doubleTwist desktop may be delivered to you by our advertising partners. Information such as the number of times you have viewed an advertisement (but not your name, address, or other personal information), is used to serve advertisements to you.

Hang on, clause 17.1 of the Terms of Service says that 'advertisements may be targeted to the content of information stored on the Services, queries made through the Services or other information' -- there seems to be an inconsistency between the Privacy Policy and the Terms of Use on exactly what information is shared with advertisers or otherwise used to target advertising.

[...]

9. Can this Privacy Statement be modified?

doubleTwist reserves the right to modify the provisions of this Privacy Statement if deemed necessary. We will inform You of these changes by publishing the revised Privacy Statement at www.doubleTwist.com/privacy.html. The revised Privacy Statement shall become effective within thirty (30) days of such publishing, but you can expressly accept the revised statement earlier by clicking on the “accept” button. You agree that the express acceptance by You, or Your continued use of the doubleTwist Software or Subscription Service after the notice period of thirty (30) days, shall constitute Your acceptance of the Privacy Statement.

So if doubleTwist decide that they want to make money by spaming you with stuffed polar bear gift ideas for your friends, calling to sell you newspaper subscriptions, or selling your personal data to the Chinese government, they can amend the Privacy Policy/Statement, and you're deemed to accept the change after 30 days.

What happens if you don't accept the change?

10. What kind of options do I have regarding my Personal Data?

If You would like to view, correct, complete or remove Your Personal Data, please contact doubleTwist at delete@doubletwist.com. Within a reasonable period of time and upon verification of Your identity, doubleTwist will fulfill Your request, as long as such compliance is consistent with applicable law.

This, at least, seems to be more generous than what some sites such as Facebook allow.

[...]

• Listening data
  If you choose to download the doubleTwist desktop software, it will analyze your music library, play lists and music sync choices on your computer (even if you are not online). It will then send this information to the doubleTwist servers. This information will then be integrated into doubleTwist to compile statistical data about our users’ listening habits and portable device sync settings. (We will never publicly disclose your musical preferences without your explicit authorization.)

This is literally hidden at the very end of the Privacy Policy.  There's a lot of privacy-invasive stuff that they can do with this information short of 'public disclosure'.  For example, what might happen when the doubleTwist software compiles a list of your MP3 collection, sends that information to doubleTwist, and then the RIAA sues doubleTwist to get a copy of this database?

For that matter, would selling this information to spammers constitute 'public disclosure'?  The term itself is far too vague for my liking.  Also, for a product whose website claims it contains 'no spyware', this behaviour certainly smacks of spyware to me.  Perhaps they mean that it isn't bundled with software that spies on you, the main application does that instead?

Here endeth the dissection.  While these aren't the worst examples of these types of contracts/agreements that I've seen, they contain many provisions that I consider objectionable.  They also contain many provisions the inclusion of which I assert is rank hypocrisy for a product developed by one of the most notorious reverse-engineers and DRM-circumventors of the Internet age.  It seems that what's good for the goose is not good for the gander.

Furthermore, it is hypocrisy to say that doubleTwist can suspend or terminate your access to the service and your use of their software if you use it to break the law, when the primary uses of doubleTwist (circumventing DRM and copying copyright material) are likely to be illegal in must countries.

I won't be using the software.  I suggest that you don't either.