Monday, December 05, 2005

Contemporary Business and Online Commerce Law - Chapter 17

e-commerce, domain names, and Internet law


The Internet



  • Internet -- the Internet is a collection of millions of computers that provide a network of electronic connections between computers

  • World Wide Web -- the Web is an a lot from a collection of computers that support a standard set of rules for the exchange of information called hypertext transfer protocol HTTP

  • electronic-mail/e-mail -- e-mail is electronic written communication between individuals using computers connect to the Internet


e-mail and web contracts


contracts may be formed electronically over the Internet using e-mail and World Wide Web


Electronic Signatures


The Electronic Signature and Global and National Commerce Act (e-sign act). This federal statute recognizes and gives electronic signatures. The same force and effect as a pen inscribed signatures on paper. The act is technology neutral, and that the law does not define or decide which technology should be used to create a legally binding signature of cyberspace.


Electronic Privacy


Electronic Communications Privacy Act -- this federal statute makes it a crime to intercept on electronic communication at the point of transmission, while in transit, once the word by a router or server, or after receipt by the intended recipient.


Domain Name



  • domain name -- a domain name is a unique name that identifies and individuals or a company's web site

  • domain registration -- domain names are registered by filing the appropriate form with the domain name registration service and paying the appropriate fees


Anti-cyber squatting Act


Anti-cyber squatting Consumer Protection Act -- this federal statute permits a court to issue cease and desist orders and injunctions and to award monetary damages against anyone who has registered domain name of a famous name, namebrand, or in bad faith


e-commerce and licensing



  • license -- a contract that transfers limited rights and intellectual property and informational rights

  • licensor -- owner of intellectual property or informational rights who transfers rights in the property were information to the licensee is called a licensor

  • licensee -- party who is granted limited rights or access to intellectual property or informational rights and by the licensor is called a licensee

  • licensing agreement -- a detailed and comprehensive written agreement between the licensor and the licensee that sets forth the express terms of their agreement

  • access contract -- a type of license that grants the licensee access to the licensed information for an agreed-upon time, a number of uses


The UCITA


The Uniform Computer Information Transactions Act -- this model act issued by the National Conference of Commissioners on Uniform State Laws establishes a uniform and comprehensive set of rules that govern the creation, performance, and enforcement of computer information transactions.



  • adoption of UCITA by states -- the UCITA does not become law until a state's legislature enacts it as a state statute


Special Provisions of the UCITA



  • counteroffer rule -- counteroffers are not effective against electronic agents. This is because most electronic agents do not have the ability to evaluate and except counteroffers or make counteroffers

  • electronic errors -- the UCITA provides that a consumer is not bound by their unilateral electronic errors if the consumer:

    • promptly upon learning of the error notifies the other party of the error

    • does not use or receive any benefit from the information, or make the information or benefit available to a third-party

    • delivers all copies of the information to the third-party or destroys all copy of the information pursuant to reasonable instructions from the other party

    • pays all shipping, reshipping, and processing costs of the other party



  • electronic self-help -- if an electronic license has been breached by a licensee, the licensor can resort to electronic self-help such as activating disabling bugs in time bombs that have been embedded in the software or information that will prevent the licensee from further using the software or information.

  • A licensor is entitled to use electronic self-help only if the following requirements are met:

    • the licensee must specifically agree to the inclusion in the license of self-help as a remedy

    • the licensor must give the licensee at least 15 days notice prior to the disabling action

    • the licensor may not use self-help, if it would cause a breach of the peace, risk personal injury, cause significant damage or injury to information other than the licensee's information, result in injury to the public health or safety, or cause great harm to national security




Warranties


Express warranty -- licensors are not required to do so, but they often make express warranties concerning the quality of their software or information. An express warranty is any affirmation of fact were promised by the licensor about the quality of its software or information.