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UCITA Changes Fail to Appease

But opponents welcome ban on remote disabling

January 7, 2002 12:00 PM ET

Computerworld - Washington
The drafters of the controversial UCITA software licensing law have done an about-face on some of its key provisions, including recommending a ban on remote system shut-offs by software vendors. But the changes don't appear to go far enough to win support from businesses fighting state-by-state adoption of the measure.
"These changes are not meaningful. They are more window dressing than real substance," said Elaine McDonald, an attorney at Principal Financial Group in Des Moines, Iowa, which is a member of a broad coalition of businesses and groups opposing the measure.
The Uniform Computer Information Transactions Act has been under attack by library and consumer groups and by companies, including giants such as The Boeing Co. in Chicago and Caterpillar Inc. in Peoria, Ill., all of which maintain that the law gives too much power to vendors.
Opponents blocked UCITA in every state where it was introduced last year. Facing the possibility that UCITA could die, its drafting committee met last month and adopted a series of amendments intended to win support. In particular, the committee reversed course on the so-called self-help provision, which would have allowed vendors to remotely turn off systems in a contract dispute without court intervention. Vendors would now have to go to court when such disputes arise.
"I do know that some of the changes that are being proposed will result in satisfying the concerns of some," said Carlyle Ring Jr., chairman of the UCITA drafting committee of the National Conference of Commissioners on Uniform State Laws, a Chicago-based organization that spearheads commercial law adoption in the U.S. "Others are not going to be as satisfied," he said.
UCITA provides a framework for licensing contracts that lack certain specific provisions. Opponents say UCITA's default provisions grant several questionable rights to software publishers.
"It looks like they tried to address a lot of different things. Whether they did them right is another story," said Dave Weidenfeld, senior counsel at fast-food giant McDonald's Corp. in Oak Brook, Ill., who said he plans to study the changes.
The changes did satisfy some opponents. Instead of banning reverse-engineering, new language was included to allow it for system interoperability. That change puts UCITA on par with European law. "We would no longer oppose UCITA" with the new wording, said Jonathan Band, counsel for the American Committee for Interoperable Systems in Washington.
No Changes for Some
However, a key issue that's not addressed in the changes made to date is UCITA's impact on licenses for shrink-wrapped software and software downloaded



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