Shrinkwrap prohibits Reverse Engineering

I'm lifting this directly from Furdlog:

Via Slashdot: a federal circuit court of appeals decision has apparently upheld a shrinkwrap EULA the prohibited reverse engineering! A U.S. Supreme Court decision could call into question a common practice among software companies: studying competitors' products to improve their own offerings. The legality of this practice, called reverse engineering, is in question after a lower court found that a software company had violated a shrink-wrapped license contract when it reverse-engineered a competitor's piece of software. Last week, the Supreme Court decided not to hear the accused software company's appeal.