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  UCC 2B: The New Law of Shrink-Wrap April 19, 1999 | ||
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EXECUTIVE SUMMARY Some of the nation's largest corporations are running scared of a revision of the Uniform Commercial Code that could be enacted as early as next year. By making many of the noxious terms in shrink-wrap licenses enforceable, Article 2B threatens to be more devastating than the blip in time that is Y2K. It enforces remote-software shutdown without a court order, enforces restraints on software transfer, and could lead to licenses that prohibit software reviews and restrict other criticism. In anticipation of 2B, a few large businesses are subjecting their non-negotiated, quantity shrink-wrap purchases to legal scrutiny, and are being told that certain licenses won't fly. Such increased scrutiny and negotiation of license terms threatens to be an expensive add-on to the cost of doing business and to delay software rollouts. With states preparing to introduce 2B into legislation, it's time for business buyers, MIS and those who set corporate directions to start planning policies that will address the changes.
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