December 23, 2010

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Question:

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Mr. Kirschenbaum,

    I’ve been looking (without success) for cases related to a system provider “locking” control panel programming on sold (rather than rented / leased) systems.  In this context, “locking” the programming prevents someone without the proper passcode from changing the panel programming (e.g. dialer programming or access to fire alarm walk test / diagnostics).

    Here’s my question:  Where a system provider has sold a security or fire alarm system, does that provider have an obligation to “unlock” panel programming when the owner of the system wants to change service providers.  The assumption here is that the original provider no longer has a contract in place for service or monitoring (i.e. the original contract has expired).  I understand the concept of including certain elements of software ownership in a service / monitoring contract, but where the contract is no longer in force it seems that not “unlocking” the panel may be depriving the owner of the value of the purchased system.

    Your thoughts?

Thanks,

Dennis C. Calvey

Illinois Alarm Service, Inc.

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Answer

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    There are some jurisdictions where the alarm panel codes are dealt with in consumer statutes, local ordinances and alarm license statutes or regulations.  So you need to check your local governing laws to see whether there are any laws dealing with unlocking or defaulting the panel.

    Most jurisdictions do not have any laws governing the panel.  You would then look to the contract between the alarm company and subscriber.  A properly drafted contract should address this issue.  My Standard Form Contracts that include monitoring provide that the panel code will be unlocked or defaulted to manufacturer's code once the contract is completed by the subscriber without default.  Implicit in that contract is that the alarm company does not have reveal the code or default the panel if the subscriber defaults before completing the contract.

    Alarm systems that are sold to the subscriber belong to the subscriber.  Except for the monitoring, the subscriber is entitled to the codes.  Once the monitoring contract is over you should give up the code or default the panel.

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remote disarming system - new technology? 

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    A few articles ago [December 13, 2010] I mentioned remote arming and disarming technology and whether the contracts needed updating for that service.  I am now wondering whether that technology is new. or I just haven't seen it. 

    I watched a movie made in Sweden - The Girl Who Played With Fire.  Must be made in 2008.  So guy breaks into girls apartment.  Alarm panel by the door starts beeping and shows display with 30 second countdown before alarm goes off.  The girl however gets a signal on her smartphone.  She is able to check her CCTV on the smartphone and sees the guy standing looking at the panel trying to decide whether to try a code.  She is then able to disarm the alarm panel through her smartphone before the alarm goes off.

    So - do we have that technology here?  I don't think the contracts need to be changed but the service needs to be explained in the contract.