Electronic Commerce - Chapter 2: Electronic Commerce Environment - Tran Thi Que Nguyet

Legal environment
• Jurisdiction on the Internet
• Much more difficult
• Use contract: promises between 2 or more legal entities for
exchanging values
• Violation of contract: filed in courts with jurisdiction
• Conflict of laws
• Online businesses: look to federal laws for guidance
• How about international issues? 

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  1. Electronic Commerce Chapter 2: Electronic Commerce Environment Email: ttqnguyet@hcmut.edu.vn
  2. Legal environment • All businesses must comply to laws • Borders and Jurisdiction • Physical world: territorial borders mark range of culture and applicable laws • Jurisdiction: the ability to control a person or corporation of the government
  3. Legal environment • Jurisdiction on the Internet • Much more difficult • Use contract: promises between 2 or more legal entities for exchanging values • Violation of contract: filed in courts with jurisdiction • Conflict of laws • Online businesses: look to federal laws for guidance • How about international issues?
  4. Online crime, terrorism, warfare • Online crime • Online version of physical crimes: theft, stalking, pornography distribution, gambling • New online crime: using computers to attack other computers, cyberbullying, stealing or destroying important data • Difficult to enforce laws due to jurisdiction issues • Advantages of the Internet • Track perpetrators of online crimes • Criminals brag on social networking sites • Criminals leave clues in online profiles
  5. Online crime, terrorism, warfare • Online warfare • Actions by a nation-state to penetrate another nation's computers or networks for the purposes of causing damage or disruption • Espionage • Sabotage
  6. Intellectual property • Copyright infringement • Difficult to apply • Napster peer-to-peer file sharing • Case-by-case basis • Patent • Exclusive right granted to an individual to make, use, and sell an invention • Limited time (20 years) • Invention: must be genuine, novel, useful, and not obvious given current technology state • Business process patent: controversial
  7. Intellectual property • Domain name issues • Cybersquatting • Name changing (typosquatting) • Name stealing • Protecting intellectual property • Digital watermark • Digimarc: provides watermark protection systems and software • Copy control • Electronic mechanism limiting number of copies
  8. Ethical issues
  9. Ethical issues • Privacy policies • Opt-out approach • Assumes customer does not object to company’s use of information • Unless customer specifically denies permission • Opt-in approach • Company collecting information does not use it for any other purpose • Unless customer specifically chooses to allow use • Communication with children • Children less capable of evaluating information sharing and transaction risks
  10. End of chapter 2