Legal issues and Ethical issues

Laws are enacted by govt. and developed through case

precedents.
Laws are strict legal rules governing the acts of all
citizens within their jurisdictions.
If a person breaks the law, they have done something
illegal and can be held liable for punishment by the legal
system.
Ethics is a branch of philosophy that deals with what is
considered to be right and wrong.





Understanding Ethical, Social, and
Political Issues in E-commerce
Internet technology and its use in e-commerce
disrupts existing social and business
relationships and understandings.
Costs and benefits of technology must be
carefully considered, especially when there are
as yet no clear-cut legal or cultural guidelines.

Unique Features of E-Commerce
Technology and Their Potential Ethical,
Social and/or Implications
Ubiquity technology is available everywhere
Global reach The technology reaches across the
boundaries
Universal standards there is one set of standards
Richness video, audio, text messages are possible
Interactivity It works with the user
Information density Technology reduces information
costs, raises quality
Customization The technology allows deliver a
personalized as well as group messages.

Issues
Issues raised by Internet and e-commerce can
be viewed at individual, social, and political
levels
Four major categories of issues
Information rights
Property rights
Governance
Public safety and welfare
Issues
Information rights : what information rights do
individuals and organizations posses with respect
to information about themselves.
Property rights
Governance
Public safety and welfare
Legal issues and Ethical issues
Privacy : It is the right to be left alone and the right to be free of
unreasonable personal intrusions.
Collecting information about individuals
By reading an individuals newsgroups postings.
By looking up an individuals name and identity in an internet directory
By conducting surveillance on employees
By asking an individual to complete a website registration
By recording an individuals actions as they navigate the web with a
browser, usually using cookies.
Ms product called passport is beginning to raise some of the same
concerns as cookies. Critics say that passport affords the same
opportunities as cookies to invade an individuals privacy. They also
feel that the product gives MS an unfair competitive edge in EC.
Legal issues and Ethical issues
Protection of privacy
Notice/awareness. Consumers must be given notice of an
entitys information practices prior to collection of personal
information.
Choice/consent. Consumers must be made aware of their
options as to how their personal information may be used.
Access/participation. Consumers must be able to access
their personal information and challenge the validity of the
data.
Integrity/security. Consumers must be assured that their
personal data are secured and accurate.
Enforcement/redress. A method of enforcement and
remedy must be available.
Legal issues and Ethical issues
Protection of privacy in US various committee are
made
Federal Internet Privacy Protection Act
Consumer Empowerment Act
Federal Trade Commission
Legal issues and Ethical issues
Intellectual property rights
It refers to Creations of the mind: inventions, literary
and artistic works, and symbols, names, images, and
designs used in commerce.
Four main types of intellectual properties
Copyright, Trademarks, Domain Names, and patents.
Legal issues and Ethical issues
Copyright : An exclusive grant from the government
that allows the owner to reproduce a work, in whole
or in part, and to distribute, perform or display it to
the public in any form Literary works ( e.g. books and
s/w)
Musical works (compositions)
Dramatic works ( plays)
Artistic works ( drawings, paintings)
Sound recordings, films, broadcasts, cable programs.
or manner, including the internet.
Legal issues and Ethical issues
Trademarks : it is symbol used by businesses to
identify their goods and services. The symbol can be
composed of words, designs, letters, numbers,
shapes, a combination of colors, or other such
identifiers.
Use the trademark on goods and services for which
the trademark is registered.
Take legal action to prevent anyone else from using
the trademark without consent on goods and services
for which the trademark is registered.
Legal issues and Ethical issues
Domain names: a variation of a trademark is a domain
name.
Network solutions Inc.
Cyber squatting.
Legal issues and Ethical issues
Patents: a patent is a doc that grants the holder
exclusive rights on an invention for a fixed number of
years
Copyright 2004 by Prentice-Hall. All rights reserved.
Uniform Computer Information
Transactions Act (UCITA) of 1999
A model state law that provides uniform and
comprehensive rules for contracts involving:
computer information transactions
software licenses
information licenses
Copyright 2004 by Prentice-Hall. All rights reserved.
E-Mail Contracts
E-mail is sometimes the method 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, an e-mail contract is valid
and enforceable.
Printing a paper version of the electronic contract
from the e-mail message meets the writing
requirement of the Statute of Frauds.
Copyright 2004 by Prentice-Hall. All rights reserved.
Electronic Communications
Privacy Act
Makes it a crime to intercept an electronic
communication
At the point of transmission
While in transit
When stored by a router or server
After receipt by the intended recipient
Copyright 2004 by Prentice-Hall. All rights reserved.
Internet Domain Names
Domain name a unique name that identifies
an individuals or companys Web site.
Domain names may be registered by filing the
appropriate form with the domain name
registration service and paying the appropriate
fee.
Copyright 2004 by Prentice-Hall. All rights reserved.
Anticybersquatting Consumer
Protection Act of 1999
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.
Copyright 2004 by Prentice-Hall. All rights reserved.
Licensing of Informational
Rights
Intellectual property and information rights are
valuable assets of individuals and businesses.
License a contract that transfers limited
rights in intellectual property and informational
rights.
Copyright 2004 by Prentice-
Hall. All rights reserved.
Licensing Arrangement
License
(transfer of rights in
intellectual property or
information)
Licensor
Licensee
Copyright 2004 by Prentice-Hall. All rights reserved.
Licensing Arrangement (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.
Copyright 2004 by Prentice-Hall. All rights reserved.
Exclusive License
A license that grants the licensee
exclusive rights to use informational
rights for a specified duration.
Copyright 2004 by Prentice-Hall. All rights reserved.
Licensing Agreement
Detailed and comprehensive written
agreement between the licensor and
licensee.
It sets forth the express terms of their
agreement.
Copyright 2004 by Prentice-Hall. All rights reserved.
Software and Information Access
Contract
Grants the licensee the right to access
information in the possession of the licensor.
For an agreed-upon time or number of uses.
The licensees access to the information must
be available at times and in a manner that
complies with the express terms of the
contract.
Copyright 2004 by Prentice-Hall. All rights reserved.
Licensing Information Technology
Rights
The Uniform Computer Information
Transactions Act (UCITA) creates contract law
for the licensing of information technology
rights.
Copyright 2004 by Prentice-Hall. All rights reserved.
Licensing Information Technology
Rights (continued)
The UCITA covers the following aspects of
licensing information rights:
Formation of a contract
Authenticating the record
Attribution procedure
Performance
Warranties
Breach of license agreements
Limitations of remedies
Copyright 2004 by Prentice-Hall. All rights reserved.
Other Key Legislation
Uniform Electronic Transactions Act (UETA)

Electronic Signature in Global and National
Commerce Act
Copyright 2004 by Prentice-Hall. All rights reserved.
Performance
A party to a licensing agreement owes a duty
to perform in a manner that conforms to the
contract.
Each party owes a duty to tender performance
when performance is due.
Risk of loss of the copy
Acceptance of a copy
Excuse of performance