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Software Legislation: Read the Fine Print: Page 9 of 9

Don't expect much change to shrink-wrap and online software licensing rules under the Uniform Computer Information Transactions Act (UCITA). UCITA doesn't really change much here--it just upholds existing shrink-wrap and online software licensing regulations and practices.

Today, you don't get to see the terms of a software license until after you've paid for the product or opened an online database account. That's the nature of over-the-counter, shrink-wrap licenses in the mass market. Shrink-wrap licenses represent a contractual relationship between a software publisher or information services provider and the end user. This type of license has been a thorn in the side of IT managers and consumers for some time and it's gotten mixed reviews from state and federal courts. That's because breaking the seal of the software package means you accept the license (whether you've read it or not) and it then becomes binding between you and the software vendor.

The story is the same for online software purchases once you click the "I Agree" button. The difference is you get to read the terms of this so-called "click-through" license before you accept them. Some e-commerce sites, however, don't let you view the terms of the license before accepting them and making a purchase online. You only get to see the license when you download and install the software. Click-through licenses, like shrink-wrap, have held up in court also.

So what does UCITA do for these types of licenses? It sanctions these shrink-wrap and click-through licenses for mass-market software. But it also says if a vendor doesn't make its mass-market software license available for you to review before you make your purchase, you're entitled to a refund if you don't agree with the terms after you've broken the seal or downloaded the product. If all this sounds familiar, that's because UCITA's provisions are basically in line with today's industry practice and other regulations. What UCITA doesn't do is go the next step and require all kinds of software licenses be available to you before you buy. That would save both vendors and IT departments time and money in the long run.