US software law puts UK users at risk.

US software suppliers are stepping up their support for a controversial proposed law which could allow vendors to pull the plug remotely on users' software. Lawyers this week warned that UK companies could be affected if the Uniform Computer Information Transactions Act (Ucita) is passed by US legislatures next year. Ucita is supposed to give US states a common law for software, but critics say that it gives too much power to software vendors.

The Business Software Alliance, whose members include Microsoft, IBM, Lotus, and Novell, plans to continue to 'educate' policy makers to the importance of the law. The BSA discussed the proposals at its annual meeting last week. Members are believed to be planning a lobbying campaign to push the act through.

Charles Drayson, associate in the IT law team at law firm Eversheds, said it is common for US software companies to use US law in their contracts with firms in other countries, but said it is too early to tell if the US law could be enforced in the UK.

Lawyers are, however, warning UK users to be on their guard. Although most UK software licences are written under English law, US firms may try to replicate the agreement in overseas contracts, according to Rupert Battcock, solicitor at law company Nabarro Nathanson. Contracts under US law would contain Ucita measures.

However, even if a company did contract with a US software supplier under US law, it would still be possible for users to specify that Ucita terms would not apply, Battcock said.

If Ucita were applied in the UK it would be a 'quantum leap' from the current law, Drayson said.

Ray Titcombe, of the IBM Computer Users Association, said: 'This would appear to be a sledgehammer to crack a nut. The vast majority of users strive to be totally legitimate.' A user's systems could even be closed down by a vendor's book-keeping mistake, he warned.