Uniform Computer Information Transactions Act

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Uniform Computer Information Transactions Act (UCITA) was an attempt to introduce a Uniform Act for the United States to follow. As a model law, it only specifies a set of guidelines, and each of the States should decide if to pass it or not, separately. UCITA has been drafted by National Conference of Commissioners on Uniform State Laws (NCCUSL). [1]

Contents

UCITA has been designed to clarify issues which were not addressed by existing Uniform Commercial Code. "Few disagree that the current Uniform Commercial Code is ill-suited for use with licensing and other intangible transactions", said practicing attorney Alan Fisch. [2]

UCITA has faced severe opposition from various groups. [3] [4] [5]

UCITA has only been passed in two states, Virginia and Maryland. The law did not pass in other states. [2] Nevertheless, legal scholars, such as noted commercial law professor Jean Braucher, believe that the UCITA offers academic value. [2]

A resolution recommending approval of UCITA by the American Bar Association (ABA) has been withdrawn by the NCCUSL in 2003, indicating that UCITA lacks the consensus which is necessary for it to become a uniform act. [6]

Provisions

UCITA focuses on adapting current commercial trade laws to the modern software era. It is particularly controversial in terms of computer software. The code would automatically make a software maker liable for defects and errors in the program. However, it allows a shrinkwrap license to override any of UCITA's provisions. As a result, commercial software makers can include such a license in the box and not be liable for errors in the software. Free software that is distributed gratis and through downloads, however, would not be able to force a shrinkwrap license and would therefore be liable for errors. Small software makers without legal knowledge would also be at risk. [3]

UCITA would explicitly allow software makers to make any legal restrictions they want on their software by calling the software a license in the EULA, rather than a sale. This would therefore take away purchasers right to resell used software under the first sale doctrine. Without UCITA, courts have often ruled that despite the EULA claiming a license, the actual actions by the software company and purchaser clearly shows it was a purchase, meaning that the purchaser has the right to resell the software to anyone.

History

UCITA started as an attempt to modify the Uniform Commercial Code by introducing a new article: Article 2B (also known as UCC2B) on Licenses. [1] The committee for drafting UCC2B consisted of members from both the NCCUSL and the American Law Institute (ALI). At a certain stage of the process, ALI withdrew from the drafting process, effectively killing UCC2B. Afterwards, the NCCUSL renamed UCC2B into UCITA and proceeded on its own. [1]

Passage record

Before ratification, each state may amend its practices, thus creating different conditions in each state. This means that the final "as read" UCITA document is what is actually passed and signed into law by each state governor. The passage record typically indicates each version of UCITA submitted for ratification.

Two states, Virginia and Maryland, passed UCITA in 2000, shortly after its completion by the NCCUSL in 1999. However, beginning with Iowa that same year, numerous additional states have passed so-called "bomb-shelter" laws enabling citizen protections against UCITA-like provisions.

Passage of UCITA
Passage of Anti-UCITA Bomb Shelter Laws (UETA)

Related Research Articles

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<i>Step-Saver Data Systems, Inc. v. Wyse Technology</i>

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<i>ProCD, Inc. v. Zeidenberg</i>

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Registered agent

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Uniform Probate Code

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<i>MDY Industries, LLC v. Blizzard Entertainment, Inc.</i>

MDY Industries, LLC v. Blizzard Entertainment, Inc and Vivendi Games, Inc., 629 F.3d 928, is a case decided by the United States Court of Appeals for the Ninth Circuit. At the district court level, MDY had been found liable under theories of copyright and tort law for selling software that contributed to the breach of Blizzard's End User License Agreement (EULA) and Terms of Use (ToU) governing the World of Warcraft video game software.
The court's ruling was appealed to the United States Court of Appeals for the Ninth Circuit, which reversed the district court in part, upheld in part, and remanded for further proceedings. The Court of Appeals ruled that for a software licensee's violation of a contract to constitute copyright infringement, there must be a nexus between the license condition and the licensor’s exclusive rights of copyright. However, the court also ruled, contrary to Chamberlain v. Skylink, that a finding of circumvention under the Digital Millennium Copyright Act does not require a nexus between circumvention and actual copyright infringement.

<i>Vernor v. Autodesk, Inc.</i> United States district court case

Vernor v. Autodesk, Inc. was a case in the United States District Court for the Western District of Washington regarding the applicability of the first-sale doctrine to software sold under the terms of so-called "shrinkwrap licensing." The court held that when the transfer of software to the purchaser materially resembled a sale it was, in fact, a "sale with restrictions on use" giving rise to a right to resell the copy under the first-sale doctrine. As such, Autodesk could not pursue an action for copyright infringement against Vernor, who sought to resell used versions of its software on eBay. The decision was appealed to the United States Court of Appeals for the Ninth Circuit, which issued a decision on September 10, 2010, reversing the first-sale doctrine ruling and remanding for further proceedings on the misuse of copyright claim. The Ninth Circuit's decision asserted that its ruling was compelled by Ninth Circuit precedent, but observed that the policy considerations involved in the case might affect motion pictures and libraries as well as sales of used software.

Charles ("Chuck") W. Mooney Jr. is the Charles A. Heimbold, Jr. Professor of Law at the University of Pennsylvania Law School, as well as the former interim Dean of the law school.

References

  1. 1 2 3 Huggins, James S. (October 25, 2002). "UCITA: Uniform Computer Information Transactions Act". James S. Huggins' Refrigerator Door. Archived from the original on April 16, 2020. Retrieved June 8, 2013.
  2. 1 2 3 Thibodeau, Patrick (August 11, 2003). "Sponsor's surrender won't end UCITA battle". Computerworld . Retrieved June 8, 2013.
  3. 1 2 Stallman, Richard (February 28, 2013) [2000]. "Why we must fight UCITA". The GNU Operating System. Retrieved June 8, 2013.
  4. Foster, Ed (November 27, 2000). "A world with UCITA may allow fine print to outweigh the right thing". InfoWorld. Archived from the original on April 14, 2003. Retrieved June 8, 2013.
  5. Toft, Dorte (July 12, 1999). "Opponents blast proposed U.S. software law". CNN . Retrieved June 8, 2013.
  6. "UCITA withdrawn from the ABA". LWN.net . February 12, 2003. Retrieved June 8, 2013.

See also