In the countdown to the year 2000, it is crucial that companies are upfront and open about Y2K compliance. Fear of litigation is preventing businesses from fully addressing the millennium bug problem. Anticipation, not litigation, is the answer. Two new Y2K legal measures have been introduced to overcome the barriers preventing disclosure of relevant information. Both initiatives seek to provide a legal framework or procedure that will combat the lack of openness and communication that exists at present. Zero litigation is the goal.

In London on July 29, 1998, Action 2000, the UK government body tackling the millennium bug, launched Pledge 2000^TM. The Pledge proposes a code of conduct to help alleviate litigation before Jan. 1, 2000. Tarlo Lyons, a London IT law firm, authored Pledge 2000. Over 180 organizations, including the UK government, have signed up to the Pledge. Signatories include Prudential, IBM, Cadbury-Schweppes, British Airways and the Bank of England.

Pledge 2000 is a public scheme that enables companies to work cooperatively with business partners to tackle Y2K issues. The Pledge does not create legal obligations, and it is not a guarantee. It allows organizations to work together to solve Y2K problems. Companies who sign the Pledge are publicly declaring their commitment to six courses of action:

• to tackle Y2K issues and ensure business continuity
  
  
• to share information on Y2K projects
  
  
• to help users of products and services to overcome Y2K problems and give access to compliance information
  
  
• to keep shared Y2K information confidential
  
  
• to work with supply chain partners
  
  
• to solve the problem rather than take legal action

Then, on Aug. 19, 1998, Tarlo Lyons announced the launch of the Millennium Moratorium^TM. The Moratorium is a unique, not-for-profit, UK scheme that consists of a public domain legal document available to all organizations. The Millennium Moratorium is a legally binding document that preceded President Bill Clinton's proposed "Good Samaritan" legislation. The Moratorium offers immunity to suppliers, so that information they disclose to customers cannot be used against them in court. It also enables companies to agree to a temporary ban on legal action, while freezing the time limit on claims which could otherwise expire before the year 2000.

The Pledge and Moratorium are designed to complement one another. Companies have to assess which initiative suits their needs. They may initially abide by the Pledge, and only implement the Moratorium when a situation runs the risk of escalating into a legal dispute.

As the year 2000 moves closer, all businesses can approach the date change with a degree of confidence and openness about their readiness, thanks to measures like Pledge 2000 and the Millennium Moratorium. Information on both documents is available on the Tarlo Lyons Web site at

John Mawhood, a partner at Tarlo Lyons, is the author of the Millennium Moratorium and one of the architects of Pledge 2000.

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