This is the abstract of an article on Software License which is contained in the Internet Law Journal, Vol.3 No.2 published in December 2004.

Nowadays software license is traded very actively in the mass market. Digital products are sometimes so expensive that the users need financial accommodation like installment payments.

Take an example that B Company has bought an expensive business software made by A Company. Though B Co. has not entered into a license agreement, B Co. is going to transfer the software to its client C. Then what kind of rights has C obtained? What if B Co. provides C with financial accommodation?

In the above-mentioned case, the Uniform Computer Information Transactions Act (UCITA) has detailed provisions on the rights, obligations and legal remedies of relevant parties in case both parties have failed to make a perfect agreement.

This article delves into what UCITA provides for in the transfer of software rights and interests. Though UCITA could not make a long list of followers world-wide, it must be the first model legislation on digital products transactions. As it is difficult for parties to make a complete agreement regarding computer softwares, UCITA would be a reliable infrastructure to strike a balance between licensors and licensees and to save time and efforts in making an agreement on the basis of private autonomy.

Against these backdrops, in order to determine whether it is necessary to adopt a UCITA-like legislation, we have to consider the following issues:

- What is the top priority in the area of protection or regulation with respect to computer information transactions? Under UCITA, the computer software license is the first and foremost subject matter.
- What makes an ideal solution in a competition between the copyright and the consumer protection? In Korea, the copyright of computer software shall be protected by the Computer Program Protection Act, while the general terms of software license agreement are governed by the Standardized Contract Regulation Act. It is desirable to settle in a half-way house.
- What will be necessary to adopt the UCITA transactions system? There are some examples like legal relationships of both parties, appropriate warranties, securing performances of the other party, various contractual remedies, and so on.
- Finally, it should be noted that the new legislation shall be conducive to the promotion of domestic IT industries.