Submitted By:-Hilal Ahmad MirRoll no.21Zakir NazirRoll no. 16Ishfaq FarooqRoll no.22

Submitted To:- Manveen Ma’am

Major Legal and Essential Issues in Electronic Commerce

PrivacyIntellectual PropertyFree SpeechTaxationComputer CrimesConsumer ProtectionMiscellaneous

Legality vs. EthicsIllegal acts break the law while unethical acts may

not be illegalEthics

Branch of philosophy that deals with what is considered right or wrong

Right and wrong not always clearConsider

Company sells profiles of customers with information collected through cookies

Company allows personal use of Web but secretly monitors activity

Company knowingly sells tax software with bugs

Privacy IssuesInformation privacy: claim of individuals, groups, or

organizations to determine when and to what extent information about them is disseminated.

Right to privacy is not absolutePublic’s right to know superceded individuals right to

privacy

How is private information collected?

Reading your newsgroup postingsFinding you in an Internet DirectoryMaking your browser collect information about

youRecording what your browser says about youReading your email

From Rainone, et al, 1998)

Most common methods are cookies and site registration

Web Site RegistrationMust fill in registration to get to siteSometimes sold to third partiesUser survey found (Eighth User Survey, 1998)

40% users falsify informationNearly 67% (US and Europe) don’t register because of

privacy concernsNearly 57% say they don’t trust sites collecting

informationOnly 6% will always register when asked

CookiesHelp maintain user statusA temporary passportUsed for

Customizing sites (Yahoo)Improve online services (Amazon)Collect demographics and usage statistics (Doubleclick)

ProtectionDelete cookiesAnti-cookie software

PGP’s Cookie Cutter Luckman’s Anonymous Cookie CookieCrusher Cookie Monster

Five Principles of Privacy Protection

Notice/AwarenessNotice of collection practices prior to collecting information

Choice/consentConsumers to be made aware of options and give consent

Access/participationMust be able to access and challenge information

Integrity/SecurityMust be assured data is secure

Enforcement/RedressGovernment legislation or legal remedies

EU’s Data Privacy DirectiveStronger protection of personal data such

as race, politics, finances, religion, health and union membership

Other countries following suitArgentina, Australia, Canada, Switzerland and

New ZealandBush rejects EU laws as being unduly

burdensomeSafe Harbor Agreement is a bridge

between the US and European positions

PatentsGrants holder exclusive rights on inventions for fixed

time17 years in US20 years in UK

Innovation must beNovelSufficiently inventive step (not trivial)Capable of industrial application

Amazon sued Barnes and Noble for patent infringement (1-click ordering)

Priceline has patent on reverse-auction model – sued Expedia

TrademarksGraphical sign used by business to identify their

goods and servicesType of IPMust meet criteria of distinctive, original, and not

deceptiveDomain names can be trademarked if they meet above

criteriaWWF won first ever ruling against man who filed

for worldwrestlingfederation.com

Free Speech, Internet Decency, Spamming, and CensorshipCensorship – attempts to control material on the

WebCommunications Decency Act (CDA) was passed by

Congress but later ruled unconstitutionalProtecting Children

Parental controlGovernmental controlISP accountability

AOL does not allow hate sites CompuServe was forced by Germany to shut down 200 newsgroups

related to sex – CompuServe forced to shut them down worldwide

SpammingIndiscriminate distribution of messages without

permission of receiverSpam comprised 30% of all AOL mail in 1998

Now down to 10% with spam blockersSome legislation out there

Unsolicited Commercial Electronic Mail Act Requires all spam to start with word “advertisement” Includes name and address of sender

TaxationInternet Tax Moratorium Act (1998-2001)

prohibits states from taxing the fees that Internet service providers collect for providing Internet service and from collecting Internet-specific taxes on e-commerce transactions

President George W. Bush signed into law a bill from Congress proposing a new two-year moratorium extension (starting Nov. 29, 2001)