STATE LEGISLATIVE ISSUES:

UCITA - State Contract Law Intersects Federal Copyright Law

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What is UCITA? The Uniform Computer Information Transaction Act (UCITA) is a proposed state contract law developed to regulate transactions in intangible goods such as computer software, online databases and other information products in digital form.

Why are libraries concerned about the proposed law?

• There are a number of concerns, but the primary issue is that UCITA would validate terms in shrink wrap and clickable licenses that restrict uses by libraries and library users that are otherwise allowed under copyright law:

Currently, many software and information products are sold as shrink-wrapped packages or as products downloaded through the Internet from a vendor's web site. Obtaining software and information products through the Internet is a convenience for everyone, libraries included. However, when a buyer breaks the wrapping or clicks "ok" with his or her mouse, that buyer is entering into a contract or license with terms that may restrict otherwise legitimate uses of the product, such as are allowed under copyright law: legally transferring the software or digital works; publicly discussing the product; or providing access to other users. Moreover, the buyer likely does not even know that he or she has agreed to those contract terms. In other words, UCITA would allow an end run around currently legitimate practices under the copyright exceptions for fair use, first sale, and preservation.

• A related concern is that UCITA would increase the costs for libraries of acquiring, preserving and lending information products:

Designated library personnel have already seen the need to be trained and well-versed in contract terms and provisions, so they can understand the implications of license agreements. Other library staff, who may load and add new software or databases to the library system, will need training so that they understand terms included in the click-on licenses as well. Libraries will need to pay close attention to preservation and archival issues, as license provisions could also eliminate or limit the right of libraries to lend information products to library users and to make archival copies.

For additional information:

• ALA Washington Office web page: http://www.ala.org/washoff/copyright.html
• Contact Miriam Nisbet, Legislative Counsel, at or at <>

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This page was last updated: December 18, 2000