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Public Policy News Update
May 24, 2000
UCITA ENACTED IN MARYLAND:
Gov. Parris N. Glendening signed into law the Maryland Computer
Information Transactions Act (UCITA) on April 25th and it becomes
effective July 2000.
UCITA NEWS ELSEWHERE:
In Virginia, the appointment of the special UCITA study committee is
pending; their report is due in December 2000. The Virginia law will
become effective in July, 2001. UCITA has been introduced recently in
the District of Columbia (13-607), Delaware (S.B. 307), and New Jersey
(S.B. 1201). In Louisiana, the bill may be brought forward for possible
action next year. UCITA has been tabled in some states and delayed in
others, including California, Hawaii, Illinois, Maine, and Oklahoma.
(Information provided by Mary Alice Baish, Associate Washington Affairs
Representative, American Association of Law Librarians)
SHRINKWRAP DECISION UPHELD BY WASHINGTON STATE SUPREME
COURT:
The Uniform Computer Information Transactions Act (UCITA) is pending
legislation in most U.S. state legislatures that will validate software
licenses that excuse software vendors from responsibility for "buggy"
software. It will even allow vendors to prevent users and reviewers
from publicly discussing a product. Both the ruling by the Supreme Court
of the State of Washington and Microsoft's demand to Slashdot.org to
remove Internet postings about one of its products are evidence of a
disturbing erosion of customer protections in state contract law.
The Supreme Court of the State of Washington ruled that "not our fault"
language contained in a shrink wrap license for software was valid,
even if the customer never read the disclaimer and the software
company knew about the defect before the product was sold. In the
Washington case , a construction company made a $1.95 million error in
a bid it submitted to build a medical center because of a defect in the
software. The construction firm discovered the error only after the bid
had been accepted. The construction company sued the software
developer and distributor to recover the $1.95 million and the court ruled
that a liability waiver in the shrink-wrap license provided complete
protection to the software company.
UCITA would make the Washington Supreme Courts ruling law in every
state that adopts the legislation. According to Skip Lockwood, director of
4CITE (For a Competitive Information Technology Economy), "UCITA takes
away software firms' incentive to pre-test their software in order to
distribute bug-free programs. Software companies can ship programs
with known defects, secure in the knowledge that UCITA will shield them
from liability."
In another case, Microsoft has demanded that Slashdot.org remove
postings on its web site about a Microsoft security product. Microsoft
contends that when the users downloaded the product from the
Microsoft site, they clicked on a confidentiality agreement. Therefore,
users are unable to publicly comment on the software.
UCITA would render this click-on confidentiality agreement (and many
other onerous provisions) completely enforceable. "UCITA will allow
software vendors to bind thousands, if not millions, of people to secrecy.
Consumers and competitors will not be able to comment on or criticize
the vendor's products." according to Lockwood.
4CITE is a 29 member cross-industry, for-profit/non-profit partnership
actively supporting the expansion and competitive use of e-commerce by
addressing the many legal and public policy inadequacies of UCITA.
[ARLIS/NA is a charter member of 4CITE.]
The majority opinion is available at:
http://www.courts.wa.gov/opinpage/opindisp.cfm?docid=677964MAJ.
The dissent is at:
http://www.courts.wa.gov/opinpage/opindisp.cfm?docid=677964DI1
A related article on the Microsoft/Slashdot controversy is at:
http://www.tnr.com/online/cohen052300.html
COMPULSORY LICENSING AND INTERNET STREAMING/TELECASTING:
The following story discusses the topic and reports a House Copyright
Subcommittee hearing earlier this month.
http://www.law.com/cgi-bin/gx.cgi/AppLogic+FTContentServer?pagename=law/View&c=A
"FREENET" SOFTWARE FACILITATES ANONYMOUS EXCHANGE OF
DIGITAL INFORMATION:
The following New York Times article (May 10, 2000) describes a
reaction to recent copyright developments:
"The Concept of Copyright Fights for Internet Survival"
http://www.nytimes.com/library/tech/00/05/biztech/articles/10digital.html
CONGRESSIONAL SUBCOMMITTEE PROPOSES CUTS TO US
GOVERNMENT PRINTING OFFICE:
Threats of congressional cuts in funding for its own agencies - including
the Government Printing Office - have brought a rain of criticism down on
U.S. congressional Republicans. ABC News reported on the matter
5/9/00, and you can view the report at www.abcnews.com. Search
their video files for "congressional cuts."
(Information provided by John Crosby, SLA Government Affairs Liaison,
and Skip Lockwood, Digital Future Coalition)
Roger Lawson
Chair, ARLIS/NA Public Policy Committee
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