1. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 1 INTERNET LAW AND E-COMMERCE © 2010 Pearson Education, Inc., publishing as Prentice-Hall CHAPTER 17

2. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 2 Uniform Computer Information Transactions Act Model state law that provides uniform and comprehensive rules for contracts involving: –computer information transactions –software licenses –information licenses

3. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 3 The Internet Collection of millions of computers that provide a network of electronic connections. Used to communicate information and data.

4. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 4 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.

5. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 5 Electronic Mail Widely used application for communication over the Internet. Electronic writing. Unique identifying address. Allows for instantaneous communication around the world.

6. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 6 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.

7. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 7 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.

8. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 8 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.

9. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 9 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.

10. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 10 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.juliaroberts.com

11. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 11 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.

12. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 12 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.

13. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 13 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.

14. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 14 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.

15. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 15 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.

16. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 16 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.

17. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 17 Exclusive License For specified duration, licensor will not grant to any other person rights in the same information.

18. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 18 Licensing Agreement Licensor Licensee License (transfer of rights in intellectual property or information)

19. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 19 Licensing Agreement (continued) Detailed and comprehensive written agreement between the licensor and licensee. Sets forth the express terms of their agreement.

20. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 20 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.

21. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 21 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.

22. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 22 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.

23. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 23 Remedies under UCITA Cancellation Licensor’s damages, including lost profits. Licensee’s damages, depending on whether licensee covered. Parties may agree to limit remedies.

24. © 2010 Pearson Education, Inc., publishing as Prentice-Hall 24 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