Question:
Ken,
Here's a situation every alarm company experiences both sides of and I was just wondering what your input was. A potential subscriber purchases a home which already has an alarm installed, monitored, and serviced by company A.
The homeowner however chooses to use company B as is his prerogative and calls company A to inform them and to ask them to remove their lockout code and replace it with the factory default code which in most cases can be done remotely without the need to come to the house. In their zeal to try to persuade the new subscriber to remain with their company I have heard various excuses why this could not be done. What is the company's legal responsibility to remove their code?
Mike
Lextar Security
Answer:
       Lock out codes do cause a lot of problems.  Some companies use the same code for all of their subscriber systems and don't want to reveal the code.
Most companies think that not unlocking the code will force the subscriber to continue to do business with them.  The key to the answer, at the moment, is in the contract with the subscriber.  It is the contract terms that govern the issue of the lock out code, absent some law.
       First let me tell you that I have some recollection of hearing about proposed legislation dealing with the lock out code in alarm systems.  I don't recall what state, however.  Perhaps someone will let me know.
       Assuming no law dealing with the issue, the issue is more easily resolved if the contract addresses it.  My standard monitoring contract now provides that once the subscriber completes performance of the initial term (5 years) the alarm company will reveal the code or default it to the
manufacturers code.  By implication, the code is not going to be revealed during the contract term or if the subscriber defaults.
       There are good arguments to support both sides of the argument.  On the one hand the subscriber argues that the system was purchased and the subscriber should be able to reprogram it or do anything the subscriber wants to do with it.  On the other hand, the alarm company can point out that plenty of things, such as computers and software, though purchased are really licensed for use and source codes are not revealed.
       If the contract does not spell out the deal with respect to the code then you will need to listen to the arguments and fight over it.  So the real answer is to make the issue clear in the contract.  If you want to give the code (and many alarm companies do reveal the code because they don't think it
fair to lock the subscriber in like that) then that's fine.  If you don't want to reveal the code then say so in your contract.  Specify that the code is proprietary and won't be revealed or will only be revealed under certain circumstances.  If clearly spelled out you will have less argument from the subscriber who will feel bound by the contract.
Ken Kirschenbaum, Esq
Attorney At Law