drt 6455 eCommerce Lawlesson 1 – Introduction

associate professorfaculty of law

university of montrealuniversity of montreal chair

in e-Security and e-Business law www.gautrais.com

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me

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you

?

• Law Degree• eCommerce Course

• Internet Usage1. Web

2. Social network3. Etc.

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course

1. website

2. calendar

3. assessment

4. general / question

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website

See http://www.gautrais.com/-LAW-6455-2-cr-

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calendar - tuesday June 3rd, 2008 - thursday June 5th, 2008- tuesday June 10th, 2008- thursday June 12th, 2008- tuesday June 17th, 2008- thursday June 19th, 2008- monday June 23th, 2008- thursday June 26th, 2008

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assesment

See http://www.gautrais.com/Assessment • Two (2) blog posts 10%• Contribution in class 10%• 2 Opinions 30% • Final Paper 50%

Be Careful with cheatingcheating

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general / question

- 3 hours each lesson (+ or -)

- 2 breaks

- Etc.

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course description

- Introduction- Security and Law

- eCommerce and Liability - eContract

- Internet and Privacy - IT and Intellectual Property

- Web 2.0 and Law - Electronic Dispute Resolution

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Lesson 1 presentation

- Definitions - Legal sources - Legal History

- Is IT Law different from more traditional areas ?

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1.1 definitions

Law

eCommerce

Security

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1.1 definitions

At the biginning … Law is not Just … – Social Norms – Community-based Approach (tribe)

• Societies became more and more complex with some need for organization (structure)

• Solutions • Platon: education process • Aristotle: norms

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1.1 definitions

• Law versus Morality – Classical Vision

• Jeremy Bentham (1748-1832) proposed a clear distinction between Morality (relationship between God and Human) and Law (humans between them)

– Modern Vision• Law is moral

– Legal Fundamentals (EX: Criminal Code : « Thou shalt not kill »)– Judges Interpretation (EX: Dell and Suprem Court of Canada)

• Links between Law and Morality are function of States culture » State-oriented countries » Place of private actors (press, association, etc..) » EX: Napster Case (place of Lobbying, of communities)» EX: New Copyright law in Canada (EX: Michael Geist

Crusade)

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1.1 definitions

• Law versus Justice – Distinction between both (19th century) – Links (porosity) between both (20th century)

• EX: Canadian Charter of Rights • EX: Business Law

– SCC = Houle (1990) – SCC = Soucisse (1981)

• Law versus Equity – EX: 1434 CCQ: « A contract validly formed binds the

parties who have entered into it not only as to what they have expressed in it but also as to what is incident to it according to its nature and in conformity with usage, equity or law.  »

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1.1 definitions

• Secondary Sources and Law – Classical

• History (EX: Rome Convention) • Comparative Law (EX: Napster Case)• Philosophy (EX: contrat)

– Modern • Sociology (EX: Contractual usage and spam)• Political Perspective (EX: copyright)• Management (EX: Publicity Law) • Computer Science (EX: security)

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1.1 definitions

Law is …

• Law Functions – Classical: endorsement / Infraction Management

• EX: Criminal Law • EX: Privacy

– Modern: facilitation / promote eCommerce• EX: Contract Law

– 1387 CCQ– Dell Case

– Commonly both

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1.1 definitions

• Law Characteristics • Generality • Impersonality • Permanent• Political mechanism ? (state-oriented?)

• EX: 1372 CCQ: « An obligation arises from a contract or from any act or fact to which the effects of an obligation are attached by law. »

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1.1 definitions

• Law Categories – Private Law

• Civil Law• Commercial Law• Consumer Law• Criminal Law

• Etc.

– Public Law• Constitutional Law• Administrative Law • Taxation Law • Public International Law• Etc.

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1.1 definitions• Law and State

– Legislative Branch – Executive Branch – Judicial Branch

Supreme Court of Canada

Court of Appeal

Municipal Court Court of Quebecchambre criminelle

Superior Court

Court of QuebecCivile chamber

Court of QuebecYouth Division

Administrative tribunals

Federal Court

Federal Administrative

tribunals

Federal Court of Appeal

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1.1 definitions

• eCommerce definition – Depending from the structure

• EDI (Large Industry) • Marketplace (EX: Music example) • Point to Point (EX: Email Contract)

– Depending from actors• B2B• B2C• B2G

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1.1 definitions

• eSecurity definition – Advantages

• Universal• Feasable

– Inconvenient • New• Many standards • Vulnerability

– Myths• Cheaper (EX: SOX) • Easy

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1.2 legal instruments

1. Constitution

2. Treaties

3. Laws

4. Regulations

5. Jurisprudence

6. Usages et customs

7. Doctrine

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1.2 legal instruments

1. Constitution – The Canadian Charter of Rights and Freedoms

(1982)• Life, liberty and security of person ART.7 • Freedom of expression ART. 2 b) • Freedom of association ART. 2d) • Freedom of Conscience and Religion ART. 2 a) • Equality before and under law and equal protection and

benefit of law ART. 15 • EX:

– Yahoo! Case in France and United States – Blog Liability (Lesson 7)

– Charter of human rights and freedoms, R.S.Q. c. C-12 (1975)

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1.2 legal instruments2. Treaties

– «Real» Treaties• WIPO Copyright Treaty (1996) • WIPO Performances and Phonograms Treaty (WPPT)

(1996) • United Nations Convention on the Use of Electronic

Communications in International Contracts (2005)• Convention on Cybercrime (2001)

– «False» Treaties • UNCITRAL Model Law on Electronic Commerce with Guide to Enactment

(1996) • OECD Papers

– On Cyberconsumer Protection – On Privacy

• UNCITRAL Model Law on Electronic Signatures with Guide to Enactment (2001)

• Council of Europe and Privacy Protection • United Nations Guidelines concerning Computerized Personal Data Files

(1990) • Special texts of European Union; Directives examples

» eCommerce 2000» Electronic Signature 1999» Copyright 2001

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1.2 legal instruments

3. Laws – Legal framework for information technology,

An Act to establish a, R.S.Q. c. C-1.1– Copyright Act – CCQ. – Loi sur la protection des renseignements personnels

• Provincial (Public Sector) • Provincial (Private Sector) • Federal (both sectors)

– Securities Act

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1.2 legal instruments

4. Regulations – Act:

• Unilateral• general • Impersonal• Empowered by a law

– EX:• Article 62 and f. of et suivants Legal framework for

information technology, An Act to establish a , R.S.Q. c. C-1.1

• Regulations of Securities Law

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1.2 legal instruments

• Jurisprudence – Decision Structure

• Difference between common law / droit civil from Europe

• Holding / Obiter dicta • Facts • Developpement• Conclusions

– Stare Decisis – Quebec Acculturation

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1.2 legal instruments

• Usages and Customs

• Usage is an old and vague Concept– Trade Usage versus Customs

• In France • In USA (1-303 UCC)

– Is a Usage a Norm (per se) or a Implicit Contract extension (Contractual Approach)

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1.2 legal instruments

• Usages and Customs • It’s rebirth because others norms are unsufficient

• Laws (EX: Utah) • Regulations • Treaties • Jurisprudence

• Intrinsic reasons of its rebirth • Formal Reasons

– Flexibility – Vague

• Subtantial Reasons – Technical (EX: T.J. Hooper) (1932) – Commercial (lex mercatoria) – International (EX: consumer protection)– New and variable

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1.2 legal instruments

• Usages and Customs • CCQ. recognition

– « 1434 CCQ. : A contract validly formed binds the parties who have entered into it not only as to what they have expressed in it but also as to what is incident to it according to its nature and in conformity with usage, equity or law.  »

• But limited recognition – Rare Jurisprudence – « To vague to be Honest »– Outside the Law?

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1.2 legal instruments

• Usages and Customs• Example of Recognition Criteria:

Caisse Populaire Desjardins St.-Cœur de Marie c. Foresterie Bertrand Lapointe, (1994) J.E. 94-668 (S.C.)

– Generality– Publicity – Firm– Old – Uniform– Frequent

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1.2 legal instruments

• Usages and Customs

• Few jurisprudence about usage definition – 1267623 Ontario Inc. et al. v. NEXX Online,

Inc. (1999), 45 O.R. (3d) 40 (netiquette) (contractual vision)

– Arbitral Sentence of Virtual Magistrate (1996) (normative vision)

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1.3 legal history

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1.3 legal history

• Common law• 1066 and Hastings battle• Law and Procedure • King Bench (until 14th century)• Cours des plaids communs (civil)• Magna Carta (1215)

– Recognize Cour des plaids communs competence

– Recognize substantial principles– Recognize Cour des plaids communs

appeal before the king

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1.3 legal history

• Droit civil• Complexe et few structure

– L ’ancien droit (… at 1789) » Writing law in the south » Oral law in the North (EX.: Coutume de Paris) » Three main sources1. Royal ordonnances2. Religious Court 3. Doctrine (Domat, Pothier))

– Revolutionnary Law (1789 - 1799) » 5 Constitutions » Few constancy

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1.3 legal history

• Droit civil

• 1804 Civil Code

• Codification versus consolidation

• Suppose to contain everything – Suppose to be comprehensive

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1.3 legal history

• Droit civil in Quebec • Influence on Code civil du Bas Canada

(1867) • Less Influence on 1994 CCQ

– More practical as the french model• Concept are more practical• Writing is more practical

– Common Law influence• EX: evidence (2811 and f.) • Succession

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1.3 legal history

• Droit civil versus common law

• Not the same techniques of writing

– EX: 1457 CCQ (very différent from common law)

– EX: 2837 CCQ (substantial difference too)

• Judge interpretation is not the same

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1.3 legal history

• Common law versus droit civil

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1.4 Is IT Law different from more traditional areas?

• Evolution or Revolution

• Authors perpectives

• My point of view

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1.4 Is IT Law different from more traditional areas?

• Factual Perspective

• Historical perspective – Michel Serres– 2 different generation

• Technological perspective

• Legal resistances to change

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1.4 Is IT Law different from more traditional areas?

• Factual Perspective

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1.4 Is IT Law different from more traditional areas?

• Historical Perspective

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1.4 Is IT Law different from more traditional areas?

• Historical Perspective

Les nouvelles technologies :

révolution culturelle et cognitive(New Technologies: Cultural and

Knowledge Revolution)

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1.4 Is IT Law different from more traditional areas?

Miche Serres

« dès le moment où change le couplage support - message, c’est-à-dire le moment de l’invention de l’écriture, alors dans nos civilisations, tout change ! »

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1.4 Is IT Law different from more traditional areas?

Michel Serres« un professeur de science qu’elle que soit cette science dans une université enseigne aujourd’hui 60 à 70% de contenu scientifique qu’il n’a pas lui même appris sur les bancs de cette université ».

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1.4 Is IT Law different from more traditional areas?

• Technological Perspective– Hyperlink first generation– Web 2.0 second generation

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1.4 Is IT Law different from more traditional areas?

• Technological Perspective

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1.4 Is IT Law different from more traditional areas?

• Legal Resistances to change

– Resistance is inherent to Law

– Ciceron

– EX: Dell Case

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1.4 Is IT Law different from more traditional areas?

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1.4 Is IT Law different from more traditional areas?

romantic classical

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1.4 Is IT Law different from more traditional areas?

• Lawrence Lessig

• 4 ways to control cyberspace • Law• Social Norms • Market• Architecture or Code

• All of them may apply together

• IT Law is different from other Laws

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1.4 Is IT Law different from more traditional areas?

• John Barlow • Libertarian Vision

– No more Frontier– No more States – No more Law (EX: Copyright) (EX: A Declaration of

the Independence of Cyberspace)

• Wrong but …– Difficulties inherent to Internet – Even more true with Web 2.0

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1.4 Is IT Law different from more traditional areas?

• Justice Easterbrook

• No change

• Reference to the « Law of the Horse »

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1.4 Is IT Law different from more traditional areas?

• Revolution = IT Law is Different – New Laws – Laws are oftenly based on Process

• Evolution = Techniques of Law – Old tools

• Fiction• Presumption

– Old concept to reconsider • EX: Trade Usage• EX: Contract Law

• Law is very present in Cyberspace because– Potential is Huge – Lot of Money and Commerce is searching stability