Article Abstract:
The US 7th Circuit Court of Appeals in 1996's ProCD, Inc. v. Zeidenberg correctly upheld the validity of computer software shrink-wrap licenses which limit the dissemination of noncopyrightable proprietary information. States should quickly adopt Article 2B of the UCC which contains provisions consistent with the holding in ProCD. The increase in such licenses and their formation through the medium of the Internet creates an immediate need for uniform guidance and judicial treatment throughout the US.
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Article Abstract:
Section 2B-617 of Article 2B of the UCC governing licenses generally provides a positive framework for parties to computer software development contracts to determine relative intellectual property rights. The section mirrors industry practice and the reasonable expectations of parties to such contracts when negotiated terms are nonexistent or not comprehensive. A few clarifications and elimination of some inconsistencies remain to perfect the section.
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Article Abstract:
Article 2B of the UCC retains the principle of freedom of contract in its provisions guiding licensing transactions while providing new consumer protections where necessary. Article 2B is by necessity the result of compromise between drafters, information users, and the information industry. Minor impingements on contracting freedom and increased complexity result from consumer provisions in areas such as choice of law and forum.
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