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IP: Re: Time to bury proposed software law (: [risks] Risks Digest 21.41


From: David Farber <dave () farber net>
Date: Thu, 24 May 2001 10:50:30 -0400



Date: Thu, 24 May 2001 10:33:49 -0400
From: "R. Polk Wagner" <polk () law upenn edu>
To: <farber () cis upenn edu>

On 5/24/01 9:13 AM, "David Farber" <dave () farber net> wrote:


Date: Sun, 13 May 2001 18:14:02 -0400
From: Monty Solomon <monty () roscom com>
Subject: Time to bury proposed software law (Dan Gillmor)

UCITA, the ``Uniform Computer Information Transactions Act,'' is the

In the spirit of balance, I suggest that IP-ers consider the actual law
itself before resorting to hyperbolic characterizations and quick
conclusions.  The question is a _lot_ more complex then Gillmor lets on.

While I'm hardly a defender of UCITA, I think its important to recognize
that the issues it raises simply must be addressed.  We live in a world
where electronic transactions are increasingly the norm, yet existing laws
may not deal effectively with disputes that arise from these transactions.
If we want electronic commerce to flourish, we're going to need to establish
a legal framework.

UCITA represents a first attempt at such a framework.  At root, the
controversy over UCITA stems from its philosophical bent: freedom of
contract.  As a general matter, UCITA allows parties to electronic contracts
to structure their behaviour without much government interference.  This
includes the blessing of a variety of new contract forms ("shrinkwrap",
"clickwrap", "check-the-box"), as well as broad provisions that allow the
parties to specify things like the forum for disputes, warranty terms (or
the lack thereof), and so forth.

In response to early criticism, UCITA now includes several specific
protections for consumers, including a mandatory right to return any good if
the details of the contract are deemed unacceptable upon full review.  UCITA
also maintains the traditional American contract law approach of disallowing
extremely one-sided or unfair contracts.

UCITA doesn't, however, include many other mandatory terms, such as a
prescribed warranty length, specific rules against enforcing contracts
electronically (what Gillmor refers to as "turn[ing] off . . . computer
systems from remote locations"), unalterable privacy protections, and so
forth.  None of these protections are excluded, but none are required.
Again, the animating force of UCITA is freedom of contract -- e.g., minimal
government regulation.

I teach UCITA to law students, and invariably many (if not most) in the
class seem to conclude that the harsh criticisms of UCITA are unfair.  To be
sure, there are a number of problems with UCITA, including its acceptance of
software sales as a license, and its relationship with federal laws.  And
those who hoped to use a law on digital contracts as a vehicle for extensive
commercial regulation are going to be profoundly disappointed.  But a close
look at the law reveals that the reality is something different from the
rhetoric.


Polk


FWIW, the full text can be found here:

http://www.law.upenn.edu/bll/ulc/ucita/ucita1200.htm


--
=====================================
R. Polk Wagner
University of Pennsylvania Law School
3400 Chestnut Street
Philadelphia, Pennsylvania  19104
http://www.law.upenn.edu/polk/
=====================================



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