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UCC 2B: The New Law of Shrink-Wrap
April 19, 1999


2B or Not 2B: What are the Shrink-Wrap Software Alternatives?
If UCC 2B is anathema to many users, the need to clarify digital information law is not.

That's why many user organizations favor killing 2B and revisiting the topic at a later date--perhaps five years from now.

Among those asking that the draft be withdrawn or tabled are the Association for Computing Machinery, the Independent Computer Consultants, the Society for Information Management, the Consumers Union, the Consumer Project on Technology and attorney Cem Kaner, co-author of Bad Software:What To Do When Software Fails. Many other organizations representing print publishers, broadcasters, entertainment industries, writers and library associations also favor existing laws over 2B.

The argument against delay is put forward by 2B Committee Chairman Carlyle (Connie) Ring. Ring says that 2B is needed to foster the creativity and entrepreneurial activity of this vital economic growth segment.

If that's the case, then why can't shrink- and click-wrap be sold like any other product under existing laws? Many businesses and users think software could be. Then, it would be crystal clear that the public-interest protections in intellectual property law apply to software sales.

Among those favoring this approach is Commissioner Stephen Y. Chow, who fathered the early 2B effort only to wrestle with his increasingly truculent child. Chow would like to see the more generalized rules for online and off-line goods sales (laid out in UCC Article 2) apply to information technologies. He thinks it important that as many information industries converge on digital technologies they have clear--but not highly detailed software-industry-specific--legal frameworks on which to rely.

Most 2B detractors don't favor congressional legislation, given the software industry's strength in Washington. Some grasp at speculation that a mediation effort might be put together. Others think the only option left is to fight 2B in state legislatures. Most acknowledge that if they've been stretched to keep up with 2B's revisions and geographically rotating meetings, it will be extremely difficult to fight the legislation on 50 state fronts.

-Christy Hudgins-Bonafield




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