Uniform Computer Information Transactions Act

• Author: Jeffrey Lehman, Shirelle Phelps

Page 158

The Uniform Computer Information Transactions Act (UCITA) was promulgated to fill a void in existing contract law in the treatment of computer information. In a preface to UCITA, its creators wrote, "Our economy has experienced fundamental change ? legal rules that are not relevant to commercial practice or that are uncertain in application inhibit contracting or raise transaction costs. UCITA was drafted in response to this fundamental economic change and need for clarity in the law."

UCITA had a somewhat complex history. It was originally envisioned as a new Article 2B of the UNIFORM COMMERCIAL CODE, but its various drafts were unable to satisfy the needs of the affected companies and consumers. Consequently, the National Conference Commission on Uniform State Laws (NCCUSL) decided to redraft the proposal as UCITA, narrower than what had been envisioned for the UCC. It was first introduced in 1999.

UCITA applies to computer-information transactions, defining them as "an agreement or the performance of it to create, modify, transfer, or license computer information or informational rights in computer information." UCITA further defines computer information as "information in electronic form that is obtained from or through the use of a computer or that is in digital or equivalent form capable of being processed by a computer." This definition includes a copy of information in that form and any documentation or packaging associated with the copy.

UCITA applies only where there are computer-information transactions, if computer information is not the primary matter of the transaction but is a secondary matter, UCITA applies only to the portion of transaction involving computer information. UCITA applies to agreements to create, modify, transfer, or distribute computer software, interactive multimedia products, computer data and databases, INTER-NET and online information and other computer-information transactions. Other than those areas that do not fit into the definitions of computer information or computer-information transaction, UCITA expressly states that it does not apply to (a) financial services transactions; (b) motion pictures or audio or visual programming, other than in (i) a mass-market transaction or (ii) a submission of an idea or information or release of informational rights that may result in making a motion picture or a similar information product; or sound recordings, musical works, or...