Anti-UCITA sentiment growing

by Jessica Davis

April 13, 2001 —

Legislators in the states of Iowa, New York, North Dakota, and Oregon have introduced
anti-UCITA bomb shelter legislation, designed to negate the effects of the software
licensing law on residents of those states.

UCITA, the Uniform Computer Information Transactions Act, is state law governing
the interstate commerce of computer software licenses. Recommended to states
by the National Conference of Commissioners on Uniform State Law, UCITA passed
into law in Virginia and Maryland last year and has been introduced in Arizona
and Texas this year.

UCITA was designed as an update to the sale of goods portion of the Uniform
Commercial Code to include the modern concepts of software and computers. Proponents
of the law, including software vendors, say that it is good for consumers because
it spells out their rights and responsibilities.

But UCITA is widely opposed by consumer organizations and AFFECT, Americans
for Fair Electronic Commerce Transactions. (InfoWorld is a member of AFFECT,
formerly known as 4CITE.) These organizations say that the law shifts the balance
of power to software vendors by allowing them to disclaim warranties, repossess
software with no notice, prohibit consumers and the press from saying negative
things about their software, and other provisions.

"You no longer will buy software; you will just rent a license to use
it," said David McMahon, a member of the AFFECT board of directors and
an attorney in Charleston, W.Va. "That way software vendors get around
traditional protections for buyers in consumer transactions.

"UCITA allows brand new software to be sold the way cheap used cars are
sold in some places -- as is -- with no warranty so you can't get your money
back if it doesn't work or gives you a virus," McMahon said.

Iowa blazed the trail of anti-UCITA bomb shelter legislation last year. This
year the Iowa bill has been reintroduced in the House by Republican Rep. Libby
Jacobs and is currently in the Commerce and Regulation committee.

The New York bill, introduced in the Assembly on March 27 by Democrat Rep.
Helene Weinstein, is currently in the Judiciary Committee. The North Dakota
bill, introduced in the Senate by Republican business owner Sen. Dwight Cook,
was rejected by the Senate in February. The Oregon bill introduced in the House
by Democrat Rep. Phil Barnhart was referred to the Judiciary committee on March
13.

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