The Nature of Digital Product Transactions in the Legal System of the United States with an Approach to Islamic Jurisprudence and Iranian Law

Document Type : Research Paper


1 Assistant Professor, Allameh Tabataba'i University,Tehran

2 MA. in Private Law/ Shahid Beheshti University/ Tehran


Today, digital products join a very high commercial value. According to the formal and informal data, the United States is one of the most successful countries in this regard. Nonetheless, trades of these products have always being debated in the above said system. Therefore, this paper tries to answer two fundamental questions on behalf of the U.S law. Firstly, it is whether a digital product is goods or a kind of service. The second question deals with the nature of digital products transactions. As such it establishes a sale contract or a sort of license or service. The first question is set under the realm of the property law that the first part of the article obliged to deals with. And the second one established under the contract law to deals with the matter during the second part of the article. Considering the American case law here, a test is suggested which could be accepted by U.S courts. In accordance with this test, the most digital products are known as goods and are governed under Article 2 of the Uniform Commercial Code. In responding to the second question, an economic analysis is proposed to distinguished sale contract from license. In the last section, with an approach to Islamic Jurisprudence and re-reading of the Articles of Iranian civil law, the digital product is examined as 'Ein'(goods).