Brief Overview of Selective Legal and Regulatory Issues in Electronic Commerce

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Brief Overview of Selective Legal and Regulatory
Issues in Electronic Commerce
Ningbo, 23-24 April 2001Dr. Carlos Moreno
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Legal issues

• Legal uncertainties
• Main commercial legal obstacle
• Basic legal infrastructure for building trust
• International solutions
• Policy considerations

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Legal uncertainties
I - Commercial law issues

• writing
• document
• original
• signature

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Legal uncertainties
Commercial law Evidentiary value of data
messages,storage of data messages, validity and
formation of contracts, incorporation of general
terms and conditions.

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Legal uncertainties
II - Intellectual property issues WIPO Treaties
and Domain Names
III - Consumer protection OECD Guidelines
IV - Authentication and security Electronic
signatures legislation
V - Jurisdiction and applicable law ADR/ODR
Mechanisms
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Legal uncertainties
VI - Taxation WTO standstill on customs
duties on e-transmissions.
VII - Internet content regulation
EU Commerce Directive (ISPs)
VIII - Computer crime Criminal
legislation.
IX - Data privacy OECD Guidelines,
Council of Europe Conv. EU Directive, US
legislation... .
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Main commercial legal obstacle

• Negotiability
• Need for physical possession of
• original document.
• Documents are negotiable
• common law (i) statute
• (ii) custom
• civil law open system

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How to establish a functional equivalent
replicating the uniqueness of the document
? Contractual solution (Central Registry)
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Basic Legal Infrastructure for Building Trust

• Legal recognition of e-messages
• E-signatures legislation
• Online dispute resolution

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Electronic SignaturesFunctions

• Data origin authentication
• Message integrity
• Non-repudiation

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Legislative Approaches

• Minimalist removes legal obstacles to
  recognition/enforceability of e-signatures.
• Digital signature establish legal framework for
  PKIs.
• Two-tier standards for the operation of PKIs and
  broad view of e-signature.

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Online Dispute Resolution (ODR)

• Online Settlement
• Online Arbitration
• Online Mediation
• Online Resolution of Consumer Complaints

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(No Transcript)
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International solutions
I - Model laws/guidelines

• UNCITRAL Model Law on
• Electronic Commerce

• UNCITRAL Uniform Rules on
• Electronic Signatures

• EU Directives on Electronic Commerce

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But...
UNCITRAL Model Law might not be
sufficient to overcome legal obstacles arising
from mandatory international conventions.
(Vienna Convention on the Law of Treaties,
1969).
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International solutions
II - Contractual approaches

• European Model EDI Agreement

• ECE Model Interchange Agreement

• ECE Electronic Commerce Agreement

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Problems encounteredby contractual solutions
(i) Obligations arising from mandatory legislati
on. (ii) Rights and obligations of third
parties. (iii) Communication in an open network.
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International solutions
III - Code of Conduct - Self regulation

• OECD work
• UN/CEFACT Model

IV - International Convention ?
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Policy Considerations

• There is a need for a favourable legal
  environment to accommodate e-commerce
• Governments should not over-regulate
• Legislation adopted should be technology-neutral
• Party autonomy should be preserved.