American Bar Association Working Group Evaluates the Uniform Computer Information Transactions Act

In January 2002, the American Bar Association's (ABA) Board of Governor's Working Group submitted a report of its evaluation of the Uniform Computer Information Transactions Act (UCITA) to the Board of Governors. In its report, the Working Group agreed that a uniform law governing computer software and information transactions is desirable. However, according to the Working Group's assessment of UCITA, the proposed law is extremely difficult to understand and apply, and should therefore be redrafted. In addition to raising concerns about the difficulty of applying UCITA, the Working Group specified numerous provisions that it considered particularly concerning and offered suggested approaches for improvement. The ABA has not yet taken an official position on the merits of UCITA but created the Working Group at its 2001 Annual Meeting to evaluate the proposed uniform state law.

The National Conference of Commissioners of Uniform State Laws ("NCCUSL") promulgated UCITA in the summer of 1999. The proposed uniform state law applies to licenses of computer software and other computer information transactions. UCITA has been surrounded by controversy since its inception, and has only been enacted in two states, Virginia and Maryland. A number of state legislatures have considered legislation similar to UCITA, but have voted against its adoption. In order to avoid vendor/licensor selected "anti-consumer" choice of law or choice of forum provisions of a contract that purport to be governed by UCITA, several states have adopted "bomb shelter" legislation, which declares such provisions against public policy, and therefore void or voidable and unenforceable.

NCCUSL's response to the Association's concerns are unknown. However, if NCCUSL does not propose amendments to UCITA that are responsive to the concerns raised by the Working Group, the ABA's House of Delegates may be asked to take an official position opposing the proposed law at its annual meeting this August.

Nikki Levin, MTTLR

To read the ABA Working Group Report, click on:
http://www.abanet.org/leadership/ucita.pdf