October 26, 2001

 

State Representative Chris Hart IV

Chairman, Florida House Committee on Information Technology

404 South Monroe Street

Tallahassee, FL  32399

 

Dear Chairman Hart:

 

We learned that you are currently soliciting input from persons and entities in Florida and elsewhere regarding the Uniform Computer Information Transactions Act (UCITA). As a leading society of 75,000 computer scientists, educators, and other professionals, the Association for Computing Machinery's (ACM) mission is to advance the open interchange of information concerning computing and related disciplines. ACM has an active membership in Florida, including local chapters in Fort Lauderdale, Winter Park, and Palm Harbour.

 

As the co-chairs of ACM's U.S. Public Policy Committee (USACM), we are pleased to take this opportunity to share USACM's concerns about the potential negative impact the proposed Uniform Computer Information Transaction Act (UCITA) could have on small entrepreneurs, consultants, and all users of software. Per your request, we have provided brief replies to your questions. We would be pleased to provide the House Committee on Information Technology more detailed information if necessary.

 

Q1. Do you support or oppose adoption of UCITA in part or in whole, and why?  What parts of UCITA do you support or oppose, and why?

 

A1. While new UCITA laws in Maryland and Virginia have not been in force long enough to establish specific examples of unfortunate behavior, USACM and many professionals in the software engineering industry consider UCITA to be a threat to the professionalism of their work, the safety of the public, the quality of products delivered to the public, and the long-term competitive position of the industry. In particular, USACM's concerns include:

 

* UCITA enables software producers to limit their legal accountability for defective products, reducing the incentive for companies to examine products to detect software defects and ensure secure code. Software producers can disclaim warranties and restrict their liability to the purchase price of the software, even if the producer was aware of the defects or security vulnerabilities prior to sale. UCITA can lead to a lowering of standards in the computer field and undermine efforts to create a robust system that can endure rigorous scrutiny.  At a time when our efforts should be on improving the security and robustness of our national information infrastructure, we will instead be rewarding a "first out the door" mentality for software development.

 

* UCITA enables vendors to subject customers to non-negotiable terms through shrink-wrap licenses. As shrink-wrap licenses go into effect upon the installation and use of the software, and customers can be subjected to these terms even if the company refuses to disclose the terms to the customer before the sale, UCITA could allow software vendors to include outrageous provisions in the license. Customers will not be able to comparison shop over such issues as warranty or service policy.

 

* UCITA allows publishers to ban reverse engineering by means of contractual use restrictions. Reverse engineering is critical for systems interoperability and facilitates the research, development, and testing of information processing systems. The software engineering and research communities utilize reverse engineering to investigate security risks and develop programs that impede the spread of viruses. UCITA allows software companies to impose upon computer researchers the onerous burden of undergoing litigation to get permission to use reverse engineering. The ban could stifle innovation among independent software engineers and limit their ability to create noncommercial applications for the public domain.

 

* UCITA may shift the balance of rights among intellectual property creators, publishers, and users in the United States by undermining the fair use and first sale provisions of intellectual property law. UCITA limits fair use protections by prohibiting comparisons of competitive products and reverse engineering.  UCITA impacts first sale doctrine by limiting users' rights to borrow, lend, and share copies of products. The restrictions could curtail access to published materials in the public domain, such as digitally stored documents in a public library.

 

* UCITA's "self-help" provisions would permit software vendors to place software vulnerabilities in a business's software and threaten disruption of the business's critical systems if a licensee were to violate use restrictions. Even if the software vendor does not itself shut down a customer's software, by creating a weakness in the customer's system security, the vendor exposes the customer to attacks by third parties. If the vendor can shut down a customer's system remotely, someone else may be able to do so as well. UCITA imposes no risk of liability on vendors for third-party attacks, and these attacks could shut down hospital control systems, criminal record or fingerprint search systems, manufacturing assembly line control software, and other systems that are important to the safety and welfare of the public.

 

* Finally, independent software engineers and small consulting firms could also be negatively impacted by UCITA. The restrictions on the sale and transfer of used software and computers could hinder their ability to control costs and form partnerships. Furthermore, vendors can limit the right of licensees to contract independent service providers to perform maintenance functions.

 

Q2.Do you believe your business communications/transactions would be affected by UCITA, and if so, how and to what extent?

 

A2. Through nondisclosure agreements, UCITA permits vendors to ban users from comparing software or publicizing information about unsecure products. Researchers could be restricted from conducting benchmark studies of competitive products and publishing negative reviews. The prohibition of such speech harms the consumer, who is unable to read articles comparing products, and jeopardizes the information infrastructure by enabling companies to produce inferior software without the risk of having weaknesses exposed in the press. The speech restrictions also hinder educators, scholars, and creators of research-driven products because learning from mistakes is essential to the ongoing improvement of work.

 

Q3.  Do you believe there are insurmountable obstacles to adopting UCITA in part or in whole. If so, what are those obstacles and why do you believe they cannot be overcome?

 

A3.  Members of USACM and other organizations have given deep thought to the provisions of the UCITA model legislation. As noted in previous answers to questions 1 and 2, we have identified a number of obvious deficiencies that, on their face, are not in the best interests of the general public. UCITA seems to tip the merchant/consumer balance too far in favor of the merchants at the expense of consumer protection and consumer rights. It is beyond our ability, as technologists, to provide an alternative bill (or replacement parts) that adequately redress this imbalance and also serves the needs of the diverse populations involved in commerce. Furthermore, the elements of the bill may not be separable in their effects.

 

As there appears to be no urgent need for this legislation (business is being conducted under current law with limited examples of pervasive harm to either vendors or consumers), we believe that the best course of action is for the House Committee on Information Technology to defer consideration of UCITA until a thoughtful, balanced revision is made that respects the concerns of all segments of the population. In your efforts, we encourage you to investigate the wide array of scientific, technical, professional, and consumer organizations who have registered public concerns with UCITA (see, for instance, <http://www.badsoftware.com/oppose.htm> and

<http://www.4cite.org/who.html>).   This group also includes a number of commercial software vendors and electronic publishers.  We believe it significant that such a large and broadly-based group of organizations finds UCITA to be concerning and potentially dangerous to small entrepreneurs, consultants, and all users of software.

 

If way we can be of further assistance, please do not hesitate to call Jeff Grove, the Director of the ACM Policy Office, at (202)659-9711.  Thank you for the opportunity to comment on UCITA.

 

Sincerely,

 

Barbara Simons, Ph.D.

Eugene H. Spafford, Ph.D.

 

Co-Chairs

U.S. ACM Public Policy Committee (USACM)

Association for Computing Machinery