©2004 West Legal Studies in Business A Division of Thomson Learning 1 Cyberlaw –Law governing the use of computers and the Internet –Made up of state and federal constitutional, statutory, and case law –Builds on traditional laws that apply to brick- and-mortar companies

©2004 West Legal Studies in Business A Division of Thomson Learning 2 The Internet –Network of computer networks Used for , file transfer, chatrooms –Different from the World Wide Web (WWW) Used for commerce and information dissemination

©2004 West Legal Studies in Business A Division of Thomson Learning 3 History of the Internet 1969 ARPANET –Department of Defense built to enable defense researchers at various sites across the country to communicate and collaborate Universities Began to Use –Discussion groups, access to databases, and file transfers 1973 ARPANET Grew –Connected to more networks, including those in other countries 1980’s National Science Foundation –Built its own network 1990 ARPANET –Ceased to exist WWW in 1991 –Until this time commercial use was prohibited

©2004 West Legal Studies in Business A Division of Thomson Learning 4 WWW 1991 CERN European Laboratory for Particle Physics –For physicists to exchange formatted academic and technical papers –1990 Tim Berners-Lee developed and named the WWW

©2004 West Legal Studies in Business A Division of Thomson Learning 5 Internet Works Individual user connects to an Internet Service Provider (ISP) by phone line, satellite dishes, or cable television lines Slower connections use modems; faster connections use network interfaces The bandwidth is the capacity of the line Larger ISPs connected to the backbone of the Internet, and have their own international networks

©2004 West Legal Studies in Business A Division of Thomson Learning 6 Internet Addresses Every computer connected to the Internet has a unique Internet protocol (IP) address that consists of four series of three numbers ranging from 1 to 256, separated by periods. Hard to remember 12 numbers Domain Name System (DNS) implemented in 1984 –Matches the 12 numbers with a text name in a manner similar to a telephone directory. –Type in the text address into a browsers (IE), the domain server connects the name with the number and connects the two computers

©2004 West Legal Studies in Business A Division of Thomson Learning 7 Domain Names Top-level domain name and subdomain names –TLDs - Every country given a top-level domain name UK = co.uk for company in United Kingdom US = com, gov, net, org –Legal Issue – conflict between domain name and trade name or mark

©2004 West Legal Studies in Business A Division of Thomson Learning 8 Language of the Internet –Need for a common language –Hypertext markup language (HTML) = common language –Hypertext transfer protocol (http) = a way of exchanging such files –HTML can be viewed on any type of computer, using any operating system, as long as it has an appropriate viewer = web browsers

©2004 West Legal Studies in Business A Division of Thomson Learning 9 URL Uniform Resource Locator Within a domain, there may be many web pages or files Each file is identified by its URL Files are stored on the web server of that Internet node Files are transferred from server to a client or browser

©2004 West Legal Studies in Business A Division of Thomson Learning 10 Transmitting Information All info is transmitted by digital transmissions, represented by zeroes and ones All data travels in packets –Each packet has a header with the address of the computer to which it is being sent

©2004 West Legal Studies in Business A Division of Thomson Learning 11 Packet Communication Files and messages are carved (Packetized) into standard size bundles of information. –A network must have a system for carving information into packets at the sending end (packetizing) and reassembling the packets into messages and files at the receiving end (de-packetizing) Not all packets follow the same route to the end address

©2004 West Legal Studies in Business A Division of Thomson Learning 12 Netiquette Culture on the Internet

©2004 West Legal Studies in Business A Division of Thomson Learning 13 Regulation of Cyberspace No one owns the Internet = self policing Internet Society oversees boards and task forces that make policy –Engineering Steering Group = Internet Standards –Internet Engineering Task Force = protocol engineering and development group –ICANN = domain names –WWW Consortium (W3C) develops Web technologies

©2004 West Legal Studies in Business A Division of Thomson Learning 14 Designed to be “Open” and Unsecured Now e-commerce lacks security & privacy –Cookies = server stores on user’s machine Information about last visit: may include name, address, sex, pages visited, etc. –Java enables the sender to execute programs on the visitor’s machine JVM java virtual machine program in the browser supposed to protect user from harmful java programs being put on the user’s machine – does not always work

©2004 West Legal Studies in Business A Division of Thomson Learning 15 Cache Temporary storage space on the user’s hard drive When a web page is viewed, a copy is held in this storage space Overwritten each time web page is visited

©2004 West Legal Studies in Business A Division of Thomson Learning 16 Information Security Firewalls –programs that limit the access to computers or files on a computer by many methods: passwords, time of day, etc. Filters –Block access to certain sites based on keywords contained in the document –W3C developed Platform for Internet Content Selection (PICS) – how to insert labels in documents based on rating criteria developed by others

©2004 West Legal Studies in Business A Division of Thomson Learning 17 Information Security cont. Need to protect packets as they travel through the Internet –Private key – encrypt and decrypt using same key –Public key – encrypt and decrypt using two keys

©2004 West Legal Studies in Business A Division of Thomson Learning 18 Information Security cont. Carnivore – FBI’s system capable of monitoring Internet transmission by intercepting at the ISP level –Foiled by good encryption Magic Lantern - a program that enables FBI to install a program on a user’s computer that will capture the key strokes of the user, key logging systems (KLS) and reveal the password to the encryption to the FBI

©2004 West Legal Studies in Business A Division of Thomson Learning 19 Information Security cont. Digital signatures –Encrypt your signature with your private key –Receiver has public key to unencrypt –This proves it is your signature and not spoofing

©2004 West Legal Studies in Business A Division of Thomson Learning 20 Weaknesses of the Internet Denial of service attacks by overloading a server – Ping of Death Viruses Passwords stolen

©2004 West Legal Studies in Business A Division of Thomson Learning 21 Business Uses of Internet Technologies Intranet - solely within an organization Extranet - open your intranet to a limited number of people on the outside (customers, clients) Virtual Private Networks ( secure a piece of the Internet for your use only) File transfer protocol (FTP) – move files from one computer to another Peer-to-Peer networks: Kazaa and Gnutella –Connect individual machines for the purpose of sharing files without the need for a third-party server

©2004 West Legal Studies in Business A Division of Thomson Learning 22 Business Uses continued Instant messaging – communicating in real time Videoconferencing – –Spam –Flooding

©2004 West Legal Studies in Business A Division of Thomson Learning 23 Globalization 2002 more than two-thirds of the Internet users are outside of U.S.

©2004 West Legal Studies in Business A Division of Thomson Learning 24 Law and Cyberspace –Chapter 1 E-Business an Cyberlaw –Chapter 2Jurisdiction –Chapter 3Trademarks –Chapter 4Copyrights –Chapter 5Business Method Patents –Chapter 6Online Contracting and Licensing Agreements –Chapter 7Sales Tax in E-Commerce –Chapter 8Online Security Offerings –Chapter 9Privacy –Chapter 10Obscenity –Chapter 11Defamation –Chapter 12Internet and Information Security –Chapter 13 Internet and Computer Crime