echosign international electronic signature summary

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Global Primer and Best Practices for DeployingElectronic Signatures Worldwide

Beginning in 1999, most of the world’s major industrialized nations began to adopt electronicsignature and electronic commerce legislation with the goal of expediting commerce across theinternet.

The goal of all the global legislation is essentially the same: to set out a clear set of criteria that,if met, deem an electronic signature the same as a written signature. Each nation has taken itsown legislative approach, however, to the specific criteria and how they are to be implemented.

EchoSign provides a variety of web-based signature solutions, from standard, extremely easy-to-use electronic signatures, to advanced ink-like biometric signatures, to fax-based signatures.

By combining these options with other best practices such as targeted choice of law provisions,and EchoSign Global Edition, which allows e-signing in dozens of languages, EchoSign can beused and rapidly deployed across the globe.


Green, Yellow, and Orange Categories:Where an Electronically Signed Contract is Deemed the Same as

a Written Contract – and Where it’s Not

All G20 and most other economically advanced nations have adopted electronic signaturelegislation. However, the individual approaches are different. Broadly, speaking, they break up intothree categories (technology neutral, technology specific, and still evolving):

Green Category: Countries Where Electronic Signatures for Business are Deemedthe Same as a Written Signature Under Law

U.S., the U.K., Canada, Mexico, Benelux countries, Sweden, Australia, New Zealand.

The U.S. and other Green Category countries explicitly state that electronic signatures aredeemed the same as written signatures, broadly speaking, so long as the parties (x) agree touse electronic signatures and (y) the electronic signature service used can accurately matchthe transaction record to the parties and the contract. These countries’ approach istechnology neutral and focuses on ensuring the parties intended to electronically contract.

EchoSign meets the criteria and standards in these countries, marked green on page 1.

Yellow Category: Countries Where Electronic Signatures for Business are DeemedEnforceable, But Not Necessarily the Same as a Written Signature

Most of Southern Europe (Germany, Italy, France, Spain, etc.), Turkey and Singapore.

Broadly speaking, these countries have taken a technology-specific “certificate” approach.Their legal provisions deem an electronic signature to be equivalent to a written signaturewhen individual, private “keys” or tokens are provided to each party in a transaction by aregistered certifying authority.

EchoSign is an on-demand web service and does not provide (nor is it practical to provide),such use certificates to each signer in real-time over the web. Signers are forced toindividually procure signing certificates to meet the criteria in these countries.

In most Yellow Category nations, electronic signatures signed without a certificate are givenvalid legal status, but are not necessarily deemed the same as a written signature.Discretion is left to the courts to interpret (like other signatures) the meaning of a givenelectronic signature.

Orange (and Red) Category : Countries with Electronic Signatures Laws, but anUnclear Status in Practice


China, India, Russia, Malaysia, among others.

Both China and India have electronic signatures laws, but it is not clear how they will beenforced in practice for international transactions. Brazil and Argentina similarly haveelectronic signature legislation but with limited visibility on how they are enforced incommercial transactions. Russia similarly has detailed electronic signature legislation, butwith no clear record of enforcement, is deemed a Red Category.

Malaysia’s Digital Signature Act requires centralized certificate authorities to pre-issuecertificates for all signers before signing, which makes using an ad-hoc service such asEchoSign impractical.


Best PracticesA basic tenant of contract law across the developed world is that written contracts which have beenagreed to by all parties in writing are enforceable. Indeed, basic common law in the U.S. andEurope have supported electronic signatures since well before the legislation adopted in 1999-2003,and contracts have been “electronically signed” since the 19th century and the first days of thetelegraph.

For customers deploying EchoSign globally, we recommend a variety of best practices to maximizethe benefits of the safe harbors and legislation in the above countries:

1. Include a U.S. choice of law provision in all contracts.

In the body of each contract electronically signed, include a specific reference that allparties (x) are agreeing to use electronic signatures and (y) are agreeing to beingsubject to the provisions of the U.S. E-SIGN Act (i.e., the Electronic Signatures in Globaland National Commerce Act (ESIGN, Pub.L. 106-229, 14 Stat. 464, enacted June 30,2000, 15 U.S.C. ch.96). For many of our customers, this is seen as a simple andeffective worldwide approach.

2. In Yellow Category countries, where the courts are given discretion to interpreton a case-by-case basis, do a business benefit analysis.

The contracts in these countries will be legally binding for standard commercialtransactions, but e-signing could add some complexity to adjudication. Consider thebenefits of (x) expedience, higher close rates, and visibility against (y) a potential needto persuade a court with detailed evidence in the event of a dispute. EchoSign providesan automated audit trail for every transaction, including dates, times, parties, and IPaddresses.

In addition, in Yellow Category countries, EchoSign recommends considering selectingour biometric signature option (see example on the following page) which additionallyprovides an actual written signature (via mouse or smartphone) on the document forforensic evidence.

3. In Orange Category countries, electronic signatures may still be the choicegiven their expediency benefits, but EchoSign recommends selecting a paper-likesignature process.

EchoSign recommends defaulting to our fax-back, or biometric/on-screen signatureoptions in Orange Category countries, and using a U.S.-choice of law provisionwherever practical.


EchoSign Electronic Signature Types


Additional Resources

Wikipedia has a well-developed list of most developed countries electronic signatureslaws and hyperlinks to the actual legislation:http://en.wikipedia.org/wiki/Digital_signatures_and_law

International Association for Contract and Commercial Management: “E-SignatureTechnology Survey Report 2008”:http://www.echosign.com/static/EchoSign%20-%20IACCM%20E-Signature%20Technology%20Report.pdf

Gartner: “The Legal Precedent for E-Signatures is a Non-Issue”:http://www.gartner.com/DisplayDocument?id=547316&ref=g_sitelink

EchoSign and the E-SIGN Act: http://www.echosign.com/public/static/ESIGNAct.jsp

More resources from EchoSign:http://www.echosign.com/public/static/aboutEsignatures.jsp


Detailed Country-by-Country

Wikipedia has a well-developed list of most developed countries electronic signatureslaws and hyperlinks to the actual legislation:http://en.wikipedia.org/wiki/Digital_signatures_and_law

International Association for Contract and Commercial Management: “E-SignatureTechnology Survey Report 2008”:http://www.echosign.com/static/EchoSign%20-%20IACCM%20E-Signature%20Technology%20Report.pdf

Gartner: “The Legal Precedent for E-Signatures is a Non-Issue”:http://www.gartner.com/DisplayDocument?id=547316&ref=g_sitelink

EchoSign and the E-SIGN Act: http://www.echosign.com/public/static/ESIGNAct.jsp

More resources from EchoSign:http://www.echosign.com/public/static/aboutEsignatures.jsp

Note: This primer and best practices guide is not intended as legal advice or as areplacement for careful review with your corporate counsel.

echosign international electronic signature summary

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