Vol 7 No 1 - Roger Williams University School of Law
Vol 7 No 1 - Roger Williams University School of Law Vol 7 No 1 - Roger Williams University School of Law
the debate has centered on whether to enact UCITA as a whole,enact it with minor amendments, or (at the other extreme) kill thelegislation.The time has come to reevaluate UCITA. It does not makesense to ask what amendments to isolated provisions might makeit “sell” to different constituencies. UCITA contains a number ofcontroversial provisions on which consensus can never beachieved, and the opposition will remain.5 Although it isundoubtedly possible to enact a law about which there is somecontroversy, the fact that UCITA contains so many controversialprovisions compounds the difficulties of enactment. Rather thanfocusing on the controversial provisions and how they can beamended to satisfy the opponents, the focus might better be placedon what positive can be gleaned and saved from UCITA.UCITA stands as a potential roadmap outlining the issues ofimportance for future development, debate and resolution; guidingdevelopments in other venues (such as international law-makingvenues); or identifying those points on which there is sufficientagreement that legislative enactment of those provisions could beachieved. UCITA was (and is) an extremely ambitious project thatinvites and merits intense scrutiny and study. Such a detailedanalysis, however, is beyond the scope of this much more limitedendeavor—to permit someone who was at many stages deeplyinvolved in the process the luxury of ruminating over what hastranspired. I am one who believes that the lessons to be learnedfrom UCITA (and the process by which it was drafted) are worthfar more than its provisions themselves. These lessons may proveextremely valuable to those who toil in the field of legislativereform, both domestically and internationally.idea submission provisions) and section 816 (clarifying limitations on self-help). SeeAmendments to the Uniform Computer Information Transactions Act (ratified Aug. 4,2000), available at http://www.law.upenn.edu/bll/ulc/ucita/ucitaAMD.htm (last visitedOct. 8, 2001); Amendments to Sections 605 and 816 of the Uniform ComputerInformation Transactions Act (as Last Revised in 2000), available athttp://www.ucitaonline.com/docs/0101a.htm (last visited Oct. 8, 2001); AmendmentsApproved by NCCUSL Executive Committee Pending Ratification of the Conference(Feb. 2000), available at http://www.law.upenn.edu/bll/ulc/ucita/approveamend.htm(last visited Oct. 8, 2001).5. An example of this may be § 209, the choice of law provisions. There has beenan inability to reach consensus on them in other fora such as the Hague Conference onPrivate International Law. See Paul Hofheinz, Birth Pangs For Web Treaty SeemEndless, Wall St. J., Aug. 16, 2001, at A11. In UCITA, the real problem comes from thebundling together of many controversial issues such as this into one package.
I. A BIT OF BACKGROUNDOver the last ten years, our economic marketplace hasdramatically changed in many significant ways.6 With the adventof the Internet and the rise of computer technologies generally, wehave witnessed the commoditization of information: informationitself has become the subject of commercial transactions, not justthe medium of performing them. This is, in essence, a key featureof our emerging information economy. Business can now beconducted at lightning speed between parties at great distancesfrom one another; national boundaries and cultural differences areboth invisible. There have been increasing demands on the law,developed in the context of different transactions, to catch up andadapt to these new transactions; cries for clarity, certainty, andinternational uniformity abound.7 Uniformity eliminates the“jurisdictional risk” of non-uniform law in cross-border activities,which is particularly a problem in Internet transactions. Acontractual code, it is argued, will facilitate information exchange;codification lowers negotiation costs by supplying off-the-shelfterms parties can adopt, filling gaps if they cannot agree andproviding the backdrop against which negotiations occur.86. See, e.g., Neil B. Cohen, Introduction to Symposium, Software as aCommodity: International Licensing of Intellectual Property, 26 Brook. J. Int’l L. 3(2000). For an interesting analysis of how technology has transformed society over alonger period, see M. Ethan Katsh, The Electronic Media and the Transformation ofLaw (1989).7. See, e.g., William J. Clinton & Albert Gore, Jr., A Framework for GlobalElectronic Commerce (1997), available at http://www.iitf.nist.gov/eleccomm/ecomm.htm(last visited Nov. 11, 2001) [hereinafter Clinton & Gore, Framework].Many businesses and consumers are still wary of conducting extensivebusiness over the Internet because of the lack of a predictable legalenvironment governing transactions. This is particularly true forinternational commercial activity where concerns about enforcement ofcontracts, liability, intellectual property protection, privacy, security andother matters have caused businesses and consumers to be cautious.Id. The White House report noted the work being done by the United Nations and theNational Conference of Commissioners on Uniform State Laws in developing rulesgoverning electronic documents and signatures, and observed:The United States Government supports the adoption of principles alongthese lines by all nations as a start to defining an international set of uniformcommercial principles for electronic commerce. We urge UNCITRAL, otherappropriate international bodies, bar associations, and other private sectorgroups to continue their work in this area.Id. (emphasis added).8. See, e.g., Mary Jo Howard Dively & Carlyle C. Ring, Jr., Overview of Uniform
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the debate has centered on whether to enact UCITA as a whole,enact it with minor amendments, or (at the other extreme) kill thelegislation.The time has come to reevaluate UCITA. It does not makesense to ask what amendments to isolated provisions might makeit “sell” to different constituencies. UCITA contains a number <strong>of</strong>controversial provisions on which consensus can never beachieved, and the opposition will remain.5 Although it isundoubtedly possible to enact a law about which there is somecontroversy, the fact that UCITA contains so many controversialprovisions compounds the difficulties <strong>of</strong> enactment. Rather thanfocusing on the controversial provisions and how they can beamended to satisfy the opponents, the focus might better be placedon what positive can be gleaned and saved from UCITA.UCITA stands as a potential roadmap outlining the issues <strong>of</strong>importance for future development, debate and resolution; guidingdevelopments in other venues (such as international law-makingvenues); or identifying those points on which there is sufficientagreement that legislative enactment <strong>of</strong> those provisions could beachieved. UCITA was (and is) an extremely ambitious project thatinvites and merits intense scrutiny and study. Such a detailedanalysis, however, is beyond the scope <strong>of</strong> this much more limitedendeavor—to permit someone who was at many stages deeplyinvolved in the process the luxury <strong>of</strong> ruminating over what hastranspired. I am one who believes that the lessons to be learnedfrom UCITA (and the process by which it was drafted) are worthfar more than its provisions themselves. These lessons may proveextremely valuable to those who toil in the field <strong>of</strong> legislativereform, both domestically and internationally.idea submission provisions) and section 816 (clarifying limitations on self-help). SeeAmendments to the Uniform Computer Information Transactions Act (ratified Aug. 4,2000), available at http://www.law.upenn.edu/bll/ulc/ucita/ucitaAMD.htm (last visitedOct. 8, 2001); Amendments to Sections 605 and 816 <strong>of</strong> the Uniform ComputerInformation Transactions Act (as Last Revised in 2000), available athttp://www.ucitaonline.com/docs/0101a.htm (last visited Oct. 8, 2001); AmendmentsApproved by NCCUSL Executive Committee Pending Ratification <strong>of</strong> the Conference(Feb. 2000), available at http://www.law.upenn.edu/bll/ulc/ucita/approveamend.htm(last visited Oct. 8, 2001).5. An example <strong>of</strong> this may be § 209, the choice <strong>of</strong> law provisions. There has beenan inability to reach consensus on them in other fora such as the Hague Conference onPrivate International <strong>Law</strong>. See Paul H<strong>of</strong>heinz, Birth Pangs For Web Treaty SeemEndless, Wall St. J., Aug. 16, 2001, at A11. In UCITA, the real problem comes from thebundling together <strong>of</strong> many controversial issues such as this into one package.