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The political process behind the Uniform Computer Information Transaction Act (UCITA) and the implications for higher education are described. The negotiation, acquisition, and delivery of digital information to students and faculty are core services of academic libraries. UCITA is a proposed USA state contract law intended to regulate commercial transactions of intangible digital goods, such as computer software, online databases, and other digital information resources. UCITA may weaken the ability of libraries to negotiate balanced contracts. Group theory is used as a conceptual framework for explanation and analysis. Conclusions are: higher education institutions need to be aware of their role as economic entities in public policy formation, and librarians need to educate college and university administrators regarding the significance and institutional impact of digital information public policy.