Electronic Commerce - Report Example

E-business/E-commerce Law Question Electronic commerce covers a broad range of online business operations and transactions, performed through the Internet. In spite of all the benefits of this type of business, e-commerce can cause some sort of problems that would be encountered in an e-commerce transaction. The most common problems relate to: integrity, necessity, secrecy, and authentication issues (Botha, 2004). Integrity problems arouse when there is an unauthorized modification of data in the Internet channel (Botha 2004, p.43). Some of these include active wiretapping, cyber vandalism, and masquerading. Necessity or availability problems occur when there is a tampering with the effective technical functioning of the Internet, the website and server, by prevention of data, denials and delays (Botha 2004, p.44). Secrecy threats are considered to be the most significant issue because it refers to the problem of unauthorized data disclosure and the authentication of the source (Botha 2004, p.45). Authentication issues also play an important role in e-commerce transaction, because parties doing business or trading through the Internet should be sure in the identity of each other (Botha 2004, p.46). To overcome some problems associated with the e-commerce transactions it is not obligatory to resort to litigation. An alternative for solving this type of dispute relates to Mediation or Arbitration (Ecommercedisputeresolution.Com, n.d.). This Alternative Dispute Resolution method is a legal process, which is quick, less adversarial and cheaper than Ecommerce lawsuit (Ecommercedisputeresolution.Com, n.d.). Thus, “injured” party is enabled to resolve its dispute without legal precedence. However, if the parties fail to honor the settlement agreement, Ecommerce Mediation is enforceable in the Court (Ecommercedisputeresolution.Com, n.d.). Question 2 Intellectual property rights are the rights that enable people, companies, institutions or other structures to have the right to prevent the unauthorized use or sale of their intangible creations (Field, n.d., p.2). The key forms of intellectual property affecting online contracts include: copyright, trade marks, patents, trade secrets, registered designs and some others (Field, n.d., p.2). Copyright Copyright is a form of intellectual property, which is given to creators of artistic or literary works (Field, n.d., p.4). This includes the right for reproducing the work, making copies, or displaying/performing it publicly (Field, n.d., p.4). Patents Patents are aimed to protect various inventions, including high-tech products, designs, manufacturing processes, molecular compounds, etc. (Wayne, n.d., 12). On the contrast of copyright, the concept of a patent is based on a trade-off (Wayne, n.d., 12). Thus, this form of intellectual property gives an innovator or inventor an exclusive right to make or use the invention for a definite period of time (Wayne, n.d., 12). After this time expires, anyone can use, make or sell the innovation (Wayne, n.d., 12). Due to the Copyright, Designs and Patents Act 1988, creators of literary, dramatic, artistic and musical works are enabled to control legally the ways in which their intellectual property may be used (Copyright Service, n.d.). This act is the current UK copyright law, which covers the issues of: copying, issuing, broadcast and public performance, adapting, lending copies to the public and renting (Copyright Service, n.d.). Trademarks Trademark is the form of intellectual property, defined as a commercial source indicator or a distinctive sign used to identify certain goods or services (Field, n.d., p.7). To be enforceable, trademarks should be registered and registrations must be renewed (Field, n.d., p.7). To register or protect trademark it is necessary to refer to the Trade Marks Act of 1994, which provides new provisions for this form of intellectual property (Trade Marks Act 1994). One of the cases of breaching registered trade marks rights happened with such companies as Marks & Spencer, BT, Virgin, when defendant offered their own names as defendant and then attempted to cash in on the companies registrations (Case Examples, 17). Registered Designs Another form of intellectual property, defined by an “eye appeal of an object” is referred to the registered designs (Simpkin, 2010, p.1). In Britain there is also a Design Right according to which designer gains an automatic protection for 15 years from the date of creation (Simpkin, 2010, p.1). Question 3 Electronic Commerce Law deals with online businesses and their obligations towards consumers, such as, respect of privacy, personal data collection, scams, and many other issues (HG.org. n.d.). Also there are several laws, which provide regulations on the process of online business start-up (HG.org. n.d.). Common themes that relate to e-commerce law include: Intellectual Property Rights, accumulation and dissemination of information, trading in information products, harmonization of national laws and dematerialization. The E-commerce regulations apply to businesses that provide their services or sell goods to consumers (B-to-C) and to businesses (B-to-B) through the World Wide Web; to businesses that advertise their goods/services on the Internet or by e-mail; and to businesses that either store electronic content for clients or provide access to a communications network (E-commerce and the law). There can arise different legal issues out of e-commerce including insurance and security factors, ambiguous terms, protection of data and privacy, cyber crimes, exclusion of certain people, etc. Additionally, some legal concerns may relate to the problems with the domain names. Sometimes it happens that two different companies in unrelated areas have disputes because of the same abbreviations. Good example was illustrated by two organizations the World Wrestling Federation and World Wide Fund for Nature, both willing to use the letters WWF for their domains (Case Examples, 17). One more example of domain threatening letters was discussed in the case of Prince v. Prince, where one of UK IT company’s registered www.prince.com”, and US Sports company sent a threatening letter in response (Case Examples, 17). Question 4 Defamation is “a false and unprivileged statement of fact that it is harmful to someone’s reputation, and published with fault, meaning as a result of negligence or malice” (Online Defamation Law, n.d.). Defamation can arise under both ordinary circumstances and under electronic commerce. Under ordinary circumstances it includes both libel and slander, while under electronic commerce is recognized only libel. In order to establish online defamation (Libel) there should be a publication to one other than the person defamed; the defamatory statement or fact, that is understood as being of and concerning the plaintiff and tending to harm the reputation of plaintiff (Online Defamation Law, n.d.). When libel is clear, there is no need to explain and proof the matter; this libel is called as “libel per se” (Online Defamation Law, n.d.). References: Botha J. (2004). “Managing E-commerce”. Juta & Co. PaarlPrint, South Africa, pp.43-47. Case examples (n.d.). “Trade Marks, Copyright and Databases” p.17. Copyright Service, (n.d.). “Copyright, Designs, and Patents Act 1988”. UK Copyright Law. Retrieved Dec.04, 2010, from www.copyrightservice.co.uk/copyright/uk_law_summary Ecommercedisputeresolution.Com. (n.d.). “Ecommerce Mediation”, Retrieved Dec.04, 2010, from http://www.ecommercedisputeresolution.com/ Electronic Commerce and Law (n.d.). Electronic Commerce Regulations. Retrieved from www.businesslink.gov.uk/ Filed T.(n.d.). “What is intellectual property?”, Focus on Intellectual Property Rights, pp. 4-7 Retrieved Dec.04, 2010, from http://www.america.gov/media/pdf/books/iprbook.pdf HG.org. (n.d.). “E-Commerce Law - Guide to E-Commerce Law”. World Wide Directories, Retrieved Dec.04, 2010, from http://www.hg.org/ecommerce-law.html Online Defamation Law (n.d.). F&A on Online Defamation Law. Retrieved Dec.04, 2010, from www.eff.org/book/export/html/7391 Simpkin J (2010). “Introduction to registered designs”, Business & IP centre. Retrieved Dec.04, 2010, from http://www.bl.uk/reshelp/pdfs/Designs.pdf Trade Marks Act (1994). Trade Marks Act. Retrieved Dec.04, 2010, from http://www.ipo.gov.uk/tmact94.pdf Wayne A. (n.d.). “Why protecting IP rights matters”, p. 12. Focus on Intellectual Property Rights. Retrieved Dec.04, 2010, from http://www.america.gov/media/pdf/books/iprbook.pdf Read More