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S719a

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  • 1. Local e-commerce issues – where ICANN's jurisdiction ends and e-commerce begins Theresa Swinehart Counsel for International Legal Affairs ICANN 19 July 2002
  • 2. Where does e-commerce begin… <ul><li>E-commerce, whether indirect or direct, is a layer (or several) above the actual infrastructure. It can consist of any range of activities unique to the needs or demands of specific consumer or user groups. </li></ul><ul><ul><li>E.g., On-line business activities </li></ul></ul><ul><ul><li>E.g., On-line information sources </li></ul></ul>
  • 3. Why care about emerging legal and regulatory frameworks? <ul><li>There is an expression that arose from old western movies – “where the pavement ends and the West begins” </li></ul><ul><ul><li>The Internet and emerging e-commerce has created new and emerging business and legal challenges </li></ul></ul><ul><ul><li>Dot ‘com’ companies challenged traditional business models </li></ul></ul><ul><ul><li>E-commerce, whether direct or indirect challenges legal and regulatory frameworks in which they’re developing </li></ul></ul><ul><ul><li>Have seen much activity in Europe, and beginning to see more in other regions of the world. </li></ul></ul>
  • 4. Why care?…. <ul><li>Local policy and regulatory issues impact operations on the Internet </li></ul><ul><ul><li>Each country or distinct economy has unique issues, distinct to respective laws, cultures, perspectives. </li></ul></ul><ul><li>Legal frameworks impact current and future use and functionality of the Internet and and the benefits of e-commerce </li></ul><ul><ul><li>That is, the laws in tangible world apply on-line, and often new ones for on-line are created. </li></ul></ul>
  • 5. Interest by industry and legislators <ul><li>Impact is on all aspects relating to e-commerce, that is conducting some for of business on-line. </li></ul><ul><ul><li>Impacts consumers, and operational costs. </li></ul></ul><ul><li>Perpetuated by Internet explosion </li></ul><ul><li>Social awareness </li></ul><ul><li>Consumer demands </li></ul><ul><li>Solutions to challenges – some technical, much private sector, and some legislative </li></ul><ul><ul><li>National, international, regional. </li></ul></ul><ul><ul><li>The recipe to allow continued development and use </li></ul></ul>
  • 6. Global e-commerce issues – jurisdictional distinctions
  • 7. Issue areas -- examples <ul><li>Authentication </li></ul><ul><li>Privacy and data protection </li></ul><ul><li>liability and responsibility for illegal acts, including content issues </li></ul><ul><li>Cybercrime </li></ul><ul><li>Others </li></ul>
  • 8. Authentication <ul><li>Authentication of users </li></ul><ul><ul><li>E.g, signing, certificates </li></ul></ul><ul><li>Uses include </li></ul><ul><ul><li>verification of source in communication </li></ul></ul><ul><ul><li>authentication of data holders for data protection purposes </li></ul></ul><ul><li>Issues include: </li></ul><ul><ul><li>Mutual recognition and inter-operability </li></ul></ul><ul><ul><li>Responsibilities and Liabilities </li></ul></ul><ul><ul><li>Varying legal recognitions of online authentication </li></ul></ul><ul><ul><li>Opportunity for any business or one national source </li></ul></ul>
  • 9. Data Protection [Privacy] <ul><li>Protection of individuals with regard to the processing of personal data and on the free movement of such data. </li></ul><ul><ul><li>Personal data ranges from name, address, other. </li></ul></ul><ul><li>Collection, use and transmission of personally identifiable data – </li></ul><ul><ul><li>Collection on websites, customers, users, employees. </li></ul></ul><ul><ul><li>Use for purposes other than intended </li></ul></ul><ul><ul><li>Transferred by company, customers, or others to another party our third country. </li></ul></ul>
  • 10. Data Protection cont. <ul><li>Transfer of data to a third country </li></ul><ul><li>Impact on companies, consumers, users </li></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Customer service </li></ul></ul><ul><ul><li>Employees </li></ul></ul><ul><li>Solutions </li></ul><ul><ul><li>Safe harbor areas (abide by mutually approved principles) </li></ul></ul><ul><ul><li>Opt-in versus opt-out </li></ul></ul>
  • 11. International Copyright Protection <ul><li>International is Copyright protection on-line </li></ul><ul><ul><li>WIPO Copyright Treaties </li></ul></ul><ul><ul><li>National Implementation </li></ul></ul><ul><ul><ul><li>Digital Millennium Copyright Act </li></ul></ul></ul><ul><ul><ul><li>EU E-Commerce and Copyright Directives </li></ul></ul></ul><ul><li>Responsibilities and Liabilities </li></ul><ul><ul><li>Transmitting content </li></ul></ul><ul><ul><li>Caching content </li></ul></ul><ul><ul><li>Hosting of content </li></ul></ul>
  • 12. International Copyright Protection cont… <ul><li>Main criteria in determining responsibilities and liabilities </li></ul><ul><ul><li>Threshold of knowledge or control </li></ul></ul><ul><ul><ul><li>Where did the content come from </li></ul></ul></ul><ul><li>Model – Notice and Takedown </li></ul><ul><ul><li>Transmission – merely relay it. Can’t monitor </li></ul></ul><ul><ul><li>Hosting – if proven to have knowledge, then take down </li></ul></ul><ul><ul><ul><li>Notice </li></ul></ul></ul><ul><ul><ul><li>indemnification </li></ul></ul></ul>
  • 13. Content – transmissions and hosting <ul><li>Related to the international copyright debate came the discussion of illegal or harmful content. </li></ul><ul><li>But problem – what is legal in one jurisdiction, may be illegal in another. </li></ul><ul><ul><li>E.g., Yahoo case, Google case </li></ul></ul><ul><ul><li>Or advertising -- Lands End in Germany </li></ul></ul><ul><li>Attempted solutions: </li></ul><ul><ul><li>Companies part of connection – either ISP, registry, often sought to monitor </li></ul></ul><ul><ul><li>Introducing a gTLD that is only for one content area, such as .kids – not feasible, what is one parent’s view as appropriate for their child may not be that of another. </li></ul></ul>
  • 14. Content – transmissions and hosting <ul><li>Challenge – </li></ul><ul><ul><li>enforceability </li></ul></ul><ul><ul><li>limited applicability to relevant jurisdiction </li></ul></ul><ul><ul><li>cost goes to consumer </li></ul></ul><ul><li>Solutions </li></ul><ul><ul><li>notice and takedown </li></ul></ul><ul><ul><li>watch groups </li></ul></ul><ul><ul><li>content rating </li></ul></ul><ul><li>It is that content is allowed and encouraged to develop – consumers access sites where there is content, while global, why not have the source local. </li></ul>
  • 15. Cybercrime <ul><li>Recent developments seen in Europe, with the Council of Europe, European Commission, United States, Australia, South Africa, etc. </li></ul><ul><li>Cybercrime convention seeks to </li></ul><ul><ul><li>harmonize domestic criminal substantive law in the area of cyber-crime </li></ul></ul><ul><ul><li>provide domestic procedures to investigate and prosecute offences committed by means of a computer system or evidence in relation to electronic form </li></ul></ul><ul><ul><li>set up a fast and effective regime of international cooperation. </li></ul></ul>
  • 16. Cybercrime – cont. <ul><li>Issues and Impact </li></ul><ul><ul><li>Interception </li></ul></ul><ul><ul><li>Data Retention </li></ul></ul><ul><ul><li>Cost Reimbursement </li></ul></ul><ul><ul><li>Corporate Liability </li></ul></ul><ul><ul><li>Protection when cooperating with law enforcement </li></ul></ul><ul><ul><li>Privacy/Due process </li></ul></ul>
  • 17. Intellectual Property <ul><li>Copyright </li></ul><ul><ul><li>protection on-line </li></ul></ul><ul><li>Trademark </li></ul><ul><ul><li>protection in global market </li></ul></ul><ul><ul><li>domain name and use of trademarks </li></ul></ul><ul><li>Patents </li></ul>
  • 18. Conclusions... <ul><li>Industries (current and emerging), Internet, e-commerce, opportunities, and consumers impacted </li></ul><ul><li>Main challenges to substantive issues </li></ul><ul><ul><li>Avoid patchwork of laws, policies, etc. </li></ul></ul><ul><ul><li>self regulatory v. legislative solutions </li></ul></ul><ul><ul><li>Technical reality … </li></ul></ul>
  • 19. Conclusions cont. <ul><li>These are new and emerging areas in the e-commerce legal field, they have to do with the outcome of using the Internet for all it has to offer. </li></ul>

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