IT vendors and tech industry groups say a new set of legal principles for software contracts developed by the American Law Institute (ALI) could stifle innovation and raise the cost of software, even though they are meant to protect consumers.
One section in the sprawling, 300-plus page document, "The Principles of the Law of Software Contracts," is particularly drawing fire. It states that parties who receive payment for software "warrants to any party in the normal chain of distribution that the software contains no material hidden defects of which the transferor was aware at the time of the transfer."
More: http://pcworld.com/article/169010/
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One section in the sprawling, 300-plus page document, "The Principles of the Law of Software Contracts," is particularly drawing fire. It states that parties who receive payment for software "warrants to any party in the normal chain of distribution that the software contains no material hidden defects of which the transferor was aware at the time of the transfer."
More: http://pcworld.com/article/169010/
