UCITA

Uniform Computer Information Transactions Act (UCITA) was an attempt to introduce a Uniform Act for US 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).

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.

UCITA has faced severe opposition from various groups.

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

A resolution recommending approval of UCITA by the American Bar Association (ABA) has been withdrawn by the NCCUSL in 2003, indicating that UCITA lacks the consensus which is necessary for it to become a uniform law.

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 normally distributed 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.

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.

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