Question
lock out codes
Will you please examine the legality as well as moral responsibilty of companys
putting lock out codes on alarm system that they sell to end user is it not
like buying a car and the dealer putting a code on the cars computer that restricts the owner
to have his system worked on by whomever he pleases. please address local and monitored
alarms. feel free to call me gary estes 8659833473 continental protection, p.o.box 5374
maryville,tn 37802
Answer:
Your question pretty much tells me that you think that it is immoral and
perhaps illegal for an alarm company to withhold the lock out code. The
situation arises most often when the subscriber wants to switch alarm
companies. The new company either gets the source code or has to replace the
panel (excuse me if it's more technical than that). The irrate subscriber then
has to decide whether its worth switching alarm companies (which is the
original alarm company's idea) or incur the additional expense.
As an advocate for the party I am representing you need to keep in mind
that my perpective is usually attorney for the original alarm company, the one
who wants to withhold the code. Often I am called by the new alarm company who
calls on behalf of the subsciber or itself, asking how it forces the code
information out of the out going alarm company. I typically advise that I do
not help subscribers get out of their alarm contracts; my law practice is suing
subscribers who breach their alarm contracts. Of course I can make a good
argument either way.
I am not aware of any statutes or cases that deal with the issue
specifically. In order to avoid the issue for erupting I made a change to the
standard alarm contracts some time ago by adding a provision that the alarm
company retained ownership of the source code and would, upon the subscriber
completing the monitoring contract, disclose the code or default the system to
the manufacturer's default code. Thus, when the five year (now it's 10 year)
monitoring contract is fully performed by the subscriber the subscriber is
entitled to the code, by contract, not law. If there is a breach of the
monitoring contract then the alarm company does not have to reveal the code and
the subscriber and the new alarm company will have to go to whatever expense is
necessary. This makes sense (to the original alarm company only when there is
on going relationship, either with a monitoring contract or service contract,
or both. Here I am referring to a system that has been sold to the
subscriber. With a leased system the subscriber never gets the code since the
system is always owned by the alarm company.
Some alarm companies use the same code for all their systems and they
don't want to reveal the code. Not a particularly good idea if the code
ultimately has to be revealed or the code changed.
Subscribers can make a good argument that the original alarm company
should only be able to lock out the communication source, but I don't know if
the code is for the entire panel or can be limited that way for just
communication.
To summarize, if it's outright sale and no monitoring or service contract,
the alarm company should provide the code, at time of sale. If there is
legitimate reason to withhold the code, a service or monitoring contract, then
I think it's acceptable, but I think the alarm contract should deal with the
issue, as the standard ones I offer to the trade do.