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The Business of IT
W O R K S H O P  
Software Legislation: Read the Fine Print

  December 1, 2002
  By Sean Doherty


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Utica Fact

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Utica Fact
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Utica: Shrinking From Its Duties?

Doesn't UCITA mean 'exit' in Italian?

No. That's uscita. UCITA is the Uniform Commercial Information Transactions Act proposed by the National Conference Commission on Uniform State Laws, or NCCUSL.

What does UCITA do?

It provides the ground rules for the license, sale or transfer of software and other computer information in systems like online databases.

What prompted UCITA, and why should I care about it?

The NCCUSL decided that not having uniform commercial laws for selling, leasing and transferring software and other computer information across states and on the Web was detrimental. The hope was that a uniform act would reduce the cost of doing interstate business for vendors, and therefore reduce the cost to you, the IT buyer.

What will it take to make UCITA a law in my state?

Each state legislature has to propose it and enact it as a state law.

Is it an all-or-nothing affair, or can a state enact some provisions of UCITA while leaving others?

The NCCUSL recommends states enact the entire proposed law for uniformity purposes. But state legislatures can modify or exclude certain provisions of UCITA.

Does UCITA outlaw free or open-source software?

No. Open-source software is not covered by UCITA, so it is not subject to implied warranties under the act.

Does UCITA allow shrink-wrap licenses?

Yes, as long as the customer can return the product for a refund, including shipping costs, after he or she has opened the package and reviewed the license.

Does UCITA replace laws that cover unfair and deceptive business practices?

No. UCITA doesn't preclude state laws that prohibit unfair and deceptive business practices, such as price fixing, monopolistic behavior, fraud and deceptive advertising.

Does UCITA bar reverse-engineering?

No. But UCITA can limit reverse-engineering to only interoperability purposes.


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