Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 12-1© 2007 Prentice-Hall, Inc ELC 200 Day 19

12-2 © 2007 Prentice-Hall, Inc Agenda Quiz 3 –Today –Password “Andreessen” –Chap 7, 8, 9, 10 & 11 Assignment 6 Due Assignment 7 posted –Due April 16 –Assignment7.docAssignment7.doc ECommerce Initiative Frameworks –GuidelinesGuidelines –Due May 8 1:30 PM Finish Discussion On E-Core values

12-3 © 2007 Prentice-Hall, Inc End of days? (subject to change) Today –Quiz 3 –Assignment 6 due April 12 –Chap 16 Going on line April 16 –Chap 13 eSecurity –Assignment 7 due April 19 –Chap 14 Encryption April 23 –Chap 15 getting the money April 30 –Review –Assignment 8 Due May 3 –Quiz 4 May 10 –8 AM eCommerce frameworks due –Student presentations 5 mins each

12-4 © 2007 Prentice-Hall, Inc Copyrights, Trademarks, and Trade Names Intellectual property : includes software, books, music, videos, trademarks, copyrights, and Web pages Copyright : ownership of an original work created by an author –Copyright law is a law that gives the author or creator of a tangible product the right to exclude others from using the finished work –Protected works include: Graphic works Web sites –Good for the life of its author plus an additional 70 years after the author’s death The Digital Millennium Copyright Act (DMCA) –Can’t “crack” software protection Trademark : registration of a company’s trade name so that others cannot use it; a word or a symbol that distinguishes a good from other goods in the market

12-5 © 2007 Prentice-Hall, Inc Taxation Issues Sales tax is a very controversial issue On the Internet, tax collection is not easy The rules for taxation differ by country All indicators suggest that sales-tax revenue loss is projected to increase exponentially unless something is done to collect the tax Internet Tax Freedom Act

12-6 © 2007 Prentice-Hall, Inc Taxation Issues (Cont’d) Internet Tax Freedom Act –A three-year (extended till November 2007) moratorium on special, multiple, or discriminatory taxes on the Internet that would be imposed by any state or local governments –An advisory committee to explore different issues relating to Internet taxes, government Internet policy, and its effects on e-commerce –The federal government is barred from taxing the Internet or any transaction that takes place through it

12-7 © 2007 Prentice-Hall, Inc Jurisdiction The legitimate scope of government power Whose laws apply? State and federal laws limit a court’s jurisdiction over a defendant from another state International jurisdiction is especially complex and controversial –In an international dispute over e-commerce, whose laws apply? –Violations of IP

12-8 © 2007 Prentice-Hall, Inc Guidelines Regarding Domain Names and Trademarks Find out whether the proposed domain name infringes on any trademarks Secure federal trademark registration of the proposed name Register the proposed domain name with InterNIC, In the event of a poached domain name, bring a lawsuit to force InterNIC to reassign the name to the original owner Get permission before linking to other Web sites

12-9 © 2007 Prentice-Hall, Inc International Issues What right does any one country have to determine the materials that should be available on the Internet? Can a country regulate an entity in cyberspace, but not on the soil of that country? World Intellectual Property Organization (WIPO) succeeded in two treaties to adapt copyright rules for e-commerce EU’s Electronic Commerce Directive gave online business firms assurance, in 2000, that the firms would have to comply with laws only where the firms are based, not in any other country in the union

12-10 © 2007 Prentice-Hall, Inc International Issues (Cont’d) Digital Millennium Copyright Act of 1998 EU’s Rome II Directive hopes to allow consumers to sue e-businesses in their home country Hague Convention drafted a treaty in 1992 designed to set global standards for defamation, copyright, and libel on the Internet

12-11 © 2007 Prentice-Hall, Inc Intellectual Property Intellectual property describes the ideas, inventions, technologies, music, and literature that are intangible when created and are converted into tangible products for market consumption IP laws and cultural norms vary from country to country

12-12 © 2007 Prentice-Hall, Inc Management Implications Legal rules that define the Internet are yet to be clarified Long-range effect of Internet patents, especially those held by e-companies like Amazon.com that cover fundamental online business practices Ultimate goal in doing business on the Internet is to promote standards that everyone can accept or adopt Management must focus on legal and consumer protection issues surrounding B2C e-commerce

12-13 © 2007 Prentice-Hall, Inc Chapter Summary Legal and ethical implications of the Internet are attracting attention in industries and governments around the world Question of ethics in e-commerce is the current challenge confronting U.S. organizations Several threats to ethics Privacy is a basic American value Many of the legal questions that arise in e- commerce are not settled due to lack of specific laws or legal guidelines

12-14 © 2007 Prentice-Hall, Inc Chapter Summary (Cont’d) Internet copyright and trademark violations fall under intellectual property laws The question of whether a Web site is a product or a service elicits varied opinions One the Internet, tax collection is not easy The ultimate goal of doing business on the Internet is to promote ethics through standards that everyone can accept or adopt