UCITA: An Overview

The Uniform Computer Information Transactions Act (UCITA) was adopted as a proposed uniform act by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in July 1999 and amended in July 2002.

The goal of UCITA is to establish a new commercial law for licensing of information based products. Enactment of UCITA would dramatically alter transactions between vendors and practitioners and adversely impact businesses by shifting significant economic risks onto them as the licensees of computer technologies. This, in turn, would lead to an increase in the cost of doing business and would negatively impact the competitiveness of a licensee’s products.

Opposition to this proposed law is significant and includes numerous consumer groups, including many large and small businesses (licensees) and the American Law Institute (ALI). In addition, thirty-two state attorney generals have voiced opposition to the proposed law and have stated that the UCITA “almost invariably favor(s) a relatively small number of vendors to the detriment of millions of businesses and consumers who purchase computer software and subscribe to Internet services.

While the resistance has been significantly effective to this point, opposition is still important. For more information on UCITA visit recent position statements and press releases and our coalition partners, Americans for Fair Electronic Commerce Transactions, AFFECT.

To volunteer for the Advocacy Team to combat the model law, contact Ruth Nelson  (1.312.245.1581) at SIM Headquarters.