National Conference of Commissioners on Uniform State Laws

211 E. Ontario St., Suite 1300, Chicago, IL 60611
tel 312-915-0195, fax 312-915-0187

For Immediate Release

UCITA SUMMIT HELD IN DC

Chicago, November 21, 2001— From November 16 to 18, 2001, the Standby Committee on Uniform Computer Information Transactions Act (UCITA) met in Washington, D.C., to consider suggested amendments to UCITA. The meeting was held in coordination with representatives from the American Bar Association (ABA). Over 100 observers from a wide variety of business, consumer and other interest groups participated in open and wide-ranging discussion of the limited number of provisions of UCITA that were identified by the suggested amendments.

UCITA is the first comprehensive attempt to draft uniform rules for computer information transactions. It was promulgated by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in 1999 after almost a decade of open discussions and drafting. It has been enacted in Virginia and Maryland and introduced in several other jurisdictions.

Despite broad consensus on a number of core issues, policy differences have emerged concerning a number of specific provisions of UCITA, and this meeting was intended to allow concerned parties to address these provisions specifically with the objective of developing a greater consensus about the act. At the meeting, a large number of pre-submitted proposals to amend a limited number of specific UCITA provisions were discussed and considered. These proposals were distributed in advance to interested parties and were available on the NCCUSL Web site.

Proposals that were pre-submitted included amendments prepared by Americans for Fair Electronic Commerce Transactions (AFFECT); Digital Commerce Coalition (DCC); Red Hat, Inc. and MandrakeSoft.Inc, companies that provide open source software services; Joel Wolfson; Stanley A. Klein; and Attorneys General from three states, Kansas, Oklahoma and Utah. Other amendments were submitted by individuals, including NCCUSL members acting in an individual capacity. Carlyle C. Ring and Ray Nimmer (respectively Chair and Reporter of the UCITA Standby Committee) collated many of these proposals into an integrated agenda for discussion purposes, and prepared responses and possible alternatives to the proposals.

Also, a letter on the letterhead of the National Association of Attorneys General, and signed by 32 attorneys general, expressing general opposition to UCITA without any specific recommendations for amendments, was also provided to the Standby Committee in advance of the meeting.

The issues that were raised and discussed over the three days of intensive debate were the manner in which license agreements are formed, mass market licensing, exceptions for libraries and the open source software community; consumer protections, reverse engineering, restrictions on electronic self-help, warranties and the validity of contractual prohibitions against public criticism. At the conclusion of the meeting, the UCITA Standby Committee announced that it would undertake review of the specific proposals in light of the discussion, with the objective of preparing possible amendments.

"The committee was gratified by the large number of responses to its solicitation for amendments to address specific concerns, and the willingness of participants to engage in valuable and open debate. The committee will prepare promptly amendments addressing the merits of the concerns raised," said Chairman Ring.

The National Conference of Commissioners on Uniform State Laws is an organization of more than 300 practicing attorneys, judges, law professors, legislators and other state officials -- also all lawyers, appointed by every state, the District of Columbia, Puerto Rico and the U.S. Virgin Islands to draft proposals for uniform state laws and work for enactment of uniform legislation in their jurisdictions. Since it first convened in 1892, the Conference has produced more than 250 uniform laws on many subjects in various fields of law. Among the most widely enacted laws are the Uniform Commercial Code, the Uniform Partnership Act, the Uniform Transfers to Minors Act and the Uniform Interstate Family Support Act.

For further information, please contact John M. McCabe, NCCUSL Legislative Director/Legal Counsel, at (Tel.) 312-915-5976, or by email at jmmccabe@nccusl.org.

Correction Statement Relating to Release Issued November 19, 2001

On November 19, 2001, the Conference issued a release reporting on the meeting held in Washington, D.C., from November 16 through 18, 2001, on the Uniform Computer Information Transactions Act. This meeting was called to give interested parties an opportunity to enter into a constructive dialogue with the UCITA Standby Committee and to make proposals to amend UCITA, The release incorrectly states that the National Association of Attorneys General (NAAG) submitted proposals for amendment to UCITA for this meeting. That is incorrect. There were specific proposals for amendments submitted by the attorneys general from three states: Kansas, Oklahoma and Utah. These proposals are not endorsed or supported by NAAG, and the Conference apologizes for inferring that they are proposals from NAAG. A letter from the National Association of Attorneys General, signed by attorneys general from 32 states, was submitted to the UCITA Standby Committee on November 13, 2001. It contains criticisms of UCITA in general, but contains no substantive proposals for any amendments of any kind. The letter effectively states that there are no conceivable amendments of any kind that might be proposed to improve UCITA as suitable law for computer information contracts. A copy of this letter is now available on the Conference's web site along with the specific proposals from the other groups and individuals. Again, the Conference apologizes for the inference that NAAG submitted any specific proposals for amendments to UCITA, or agreed to participate in the meeting in any form other than the submission of the November 13 letter. The release is corrected and we hope this statement will accurately set out the facts respecting NAAG submissions to the Standby Committee.