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UCITA Revealed

By Marie Flores
August 20, 2003

UCITA (the Uniform Computer Information Transactions Act) was drafted as a revision to the Uniform Commercial Code (UCC) ' a body of law adopted in almost every U.S. state that aims to ensure consistency in rules governing contract laws.

Drafters of the UCC have spent the last several years attempting to amend the code to provide uniform rules for intangible products involved in computer-information transactions. The American Law Institute (ALI) and the National Conference of Commissioners on Uniform State Laws must jointly adopt any changes to the UCC.

In 1994, the National Conference of Commissioners and ALI began working jointly to create a new UCC article titled Article 2B. But a rift developed as the drafting process neared its end. The National Conference and ALI couldn't agree on language for numerous code sections, so ALI withdrew support of the legislation in 1999. The proposed article also drew protest from many consumer groups who felt the draft didn't provide sufficient consumer protections and gave software licensing companies too much power.

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