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INTERNET LAW AND

E-COMMERCE

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CHAPTER 17 CHAPTER 17

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Uniform Computer Information Transactions Act

• Model state law that provides uniform and comprehensive rules for contracts involving:– computer information transactions– software licenses– information licenses

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The Internet

• Collection of millions of computers that provide a network of electronic connections.

• Used to communicate information and data.

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The World Wide Web

• Millions of computers supporting HTTP.

• Web sites and pages are stored on servers operated by Internet service providers.

• Pages are viewed through web browsers.

• Facilitates online commercial activities.

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Electronic Mail

• Widely used application for communication over the Internet.

• Electronic writing.

• Unique identifying address.

• Allows for instantaneous communication around the world.

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CAN-SPAM Act

• Prohibits falsified headers in e-mails.

• Prohibits deceptive subject limes.

• Allows recipients to opt-out.

• Requires labeling of sexually oriented e-mails.

• Administered by Federal Trade Commission.

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Internet Service Providers

• Companies providing access to Internet to individuals and businesses.– Via dial-up, cable, DSL, broadband wireless,

Ethernet, etc.

• Provide e-mail accounts, Internet access, storage on Internet.

• Under Communications Decency Act, ISPs not liable for content transmitted by e-mail users and websites.

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Electronic Communications Privacy Act

• A crime to intercept electronic communication at any point.

• But– Employer may access employees’ stored

e-mail using employer’s service.– Government may access when investigating

criminal activity, with proper warrant.

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Domain Name

• Unique name that identifies an individual’s or company’s website.

• Memorable domain names may be valuable.

• May be registered by filing the appropriate form with the domain name registration service and paying the appropriate fee.

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Anticybersquatting Consumer Protection Act

• Aimed at cybersquatters who register Internet domain names of famous companies and people and hold them hostage by demanding ransom payments from the famous company or person.– The name must be famous.– The domain name was registered in bad

faith.– E.g., juliaroberts.com,

ernestandjuliogallo.com.

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E-Contracts

• E-mail used to negotiate and agree on contract terms and to send and agree to the final contract.

• Assuming that all of the elements to establish a contract are present, e-mail contract is valid and enforceable.

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E-Contracts Writing Requirements

• Electronic Signatures in Global and National Commerce Act– Electronic contracts meet writing

requirements of the Statute of Frauds.– Electronically signed contracts cannot be

denied effect because they are in electronic form and are stored and delivered electronically.

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E-Signatures

• Electronic Signatures in Global and National Commerce Act– Recognizes electronic signatures.– Same force and effect as pen-inscribed

signature on paper.– Allows for verification of digital signatures.

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E-Licensing

• Uniform Computer Information Transactions Act (UCITA) governs creation, performance, and enforcement of computer information transactions.

• Model law– Some states have adopted UCITA.– Other states apply state law and equity

principles.

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Licensing

• Intellectual property and information rights are valuable assets of individuals and businesses.– Patents, trademarks, copyrights, trade

secrets, etc.

• License – a contract that transfers limited rights in intellectual property and informational rights to other parties.

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Licensing (continued)

• Licensor – The owner of intellectual property or informational rights who transfers rights in the property or information to the licensee.

• Licensee – The party who is granted limited rights in or access to intellectual property or informational rights owned by the licensor.

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Exclusive License

• For specified duration, licensor will not

grant to any other person rights in the

same information.

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Licensing Agreement

LicensorLicensor

Licensee

License

(transfer of rights in (transfer of rights in intellectual property intellectual property or information)or information)

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Licensing Agreement (continued)

• Detailed and comprehensive written agreement between the licensor and licensee.

• Sets forth the express terms of their agreement.

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Breach of Licensing Agreements

• Parties owe a duty to perform the obligations stated in the contract.

• If a party fails to perform as required, contract is breached, and remedies owed.

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Breach of Licensing Agreements (continued)

• Licensor tenders a defective copy.

• Licensee fails to accept or pay for conforming copy.

• Either party fails to give adequate assurances.

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UCITA—Consumers Protected

• Consumers not bound by unilateral electronic errors if– Promptly notify licensor– Do not use information– Return or destroy all copies of information– Pay all costs of licensor (shipping, etc.)

– E.g., if consumer mistakenly orders 100 instead of 10 copies of video game.

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Remedies under UCITA

• Cancellation

• Licensor’s damages, including lost profits.

• Licensee’s damages, depending on whether licensee covered.

• Parties may agree to limit remedies.

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Cyber Crimes

• Counterfeit Access Device and Computer Fraud and Abuse Act

• Electronic Funds Transfer Act

• Identity Theft and Assumption Deterrence Act

• Information Infrastructure Protection Act

• State Criminal Laws