Transcript Chapter 19

Chapter 19
Cyberlaw and E-Commerce
Cyberlaw
 Cyberlaw is the area of the law which
concerns computers and computer
related crimes.

Merges many legal fields including criminal
law, tort law, intellectual property law and
contract law and puts them into context of
computers.
Approaches to the
creation of Cyberlaws
The Cybertrespass Approach
 The cybertrespass approach adds
statutes to the traditional criminal code.


Cybertresspass is any illegal activity already
in the criminal code that is committed using
a computer.
Under this approach states do not define
each individual cybercrime.
Approaches to the
creation of Cyberlaws

Rewriting the Code
The rewriting of the criminal code is the
second approach.
 Since criminal statutes must be so specific
some states prefer to write a new statute for
each cybercrime that can possibly be
committed.
Cybercrime
 Cybercrime is any criminal activity
associated with computers.

Can you think of any examples of
cybercrime?
The 7 Cybercrimes

Cyberspoofing – falsely adopts the identity of
another computer user or creates a false identity
on a website in order to commit fraud.
 Example: phishing is when creating a phony website that
simulates a real bank or credit card company then sends
emails to lure people into giving them personal
information.
 This also occurs on ebay where sellers make it seem as
if they have goods for sale but truly do not.
The 7 Cybercrimes

Cyberpiracy – using a computer to steal
computer data stored in a digital form.
Example : downloading software programs and
transmitting them to others without permission
Digital Millennium Copyright Act (DMCA)
prohibits the duplication of copyrighted
computer programs that bypass copyright
protection systems.

2nd offence is up to 10 years in jail
The 7 Cybercrimes

Cyberblackmail – using information
unlawfully obtained by a computer to
pressure a victim into the payoff.
Example : Someone befriends a person in
chat rooms to learn damaging
information.
The 7 Cybercrimes

Identity Theft – using the computer to
steal financial, employment,
educational, medical and personal
data.
Criminals try to obtain personal data for
financial reasons
The 7 Cybercrimes

Cyberterrorism – someone operating a
computer disrupts the national
infrastructure.
Air traffic control, national defense
The 7 Cybercrimes

Cybervandalism – disrupting,
damaging or destroying a computer
network
The 7 Cybercrimes

Cybergerm Welfare – transmitting
computer viruses to people to destroy
their computer system or files.
Firewalls and software can block many
viruses
Cybertorts

Cybertorts are committed against one
person to another. It is invasion, theft,
misuse or deletion of data stored in a
computer to commit a tort.
Cyberdefamation
Cyberinvasion of privacy
Cybertorts

Cyberdefamation communication of
false information meant to damage a
persons reputation. Can include a
company.
Communications Decency Act (CDA) –
protects internet services providers from
being held liable for any defamation
preformed on or by users through their
services.
Cybertorts

Cyberinvasion of privacy – intrusion into the private
matters of an individual through the use of a
computer.
 Fair Credit Reporting Act credit bureaus must tell people
about their files, correct any information and repair any
incidents where someone was misled by false reports.
 The Right to Financial Privacy Act – an institution can not
open a personal file to a government official without the
consent of the customer unless it is a court order.
 The Electronic Communications Privacy Act restricts
unauthorized access to email and instant messaging.
Chapter 19
Internet Transactions
E-Commerce Laws

E-commerce is the process of conducting
commerce (business) online. Purchases
online, ATM withdrawals, online banking are
all forms of e-commerce.
– The advent of these new approaches to business
has added the need for jurisdictional issues,
taxation issues, authentication problems, and
intellectual property rights.
Who has jurisdiction?

Jurisdiction - Doing businesses over the
internet leads to what state has jurisdiction
over the sale transaction should the buyer
not reside in the same state as the seller.
– Just because a website can be accessed in
another state does not give that state
jurisdiction.
– When a website allows a buyer to purchase
something on their site, a state may gain
jurisdiction. Amazon for example, gives the
buyer’s state jurisdiction although the seller is in
another state.
Tax Issues
What state collects sales tax?

Tax issues arise out of jurisdiction
issues.
– Sellers who do not have an office or store
within the state cannot be taxed by that
state.
– A buyer may be taxed at the buyer’s
location, such as sales tax.
– Internet Tax Freedom Act – governs
internet sale transactions
Authentication
Digital Signatures and E-Sign Act

It has become a problem to determine if the
buyer and the seller are who they say they
are.
– E-sign Act – any cybercontract is considered as
legal as the paper contract if the parties have
agreed to use digital signatures.
– Digital signature has an encoded message that
appears at the end of a contract created online.

Confidential password, special card, equipment that
can read a persons fingerprints or retina.
Cyberlaw and Intellectual Property

If the a business invents the following
they are protected under
cyberprotection laws.
– Products distributed digitally
– New computer equipment, such as
hardware devices
– Products that work with computers, such
as software
Intellectual Property
Cyberprotection Laws

Copyrights – as soon as the work is
produced in a tangible means of expression
it is considered copyrighted.
– Computer Software Copyright Act of 1980 –
added computer software to the existing
copyright laws.
– No Electronic Theft Act 1997 (NET) – illegal
publication of another’s work for profit by
posting it on the internet.
– Digital Millennium Copyright Act ( DMCA) –
outlaws pirated copies of software by disabling
the internal protection system of the software.
Trademarks and Domain Names
Cyberprotection Laws


Trademarks are distinguishing marks of a
company.
Domain name is the internet address of the
business.
– You can not use the name of a famous person,
trademark or a name used by another user.
– Cybersquatters register a persons name or
business with no intent to use it but will sell the
name to the entity.

Anti Cybersquatting Consumer Protection Act
Patents
Cyberprotection Laws
To be patentable, a product must…
– Consist of a non-obvious, new and useful
feature
– Must be specific
– Can be reproduced by experts in the field
– Computer software programs are
patentable, if something is created similar
the programmer must invent it a different
way.
Cybercontract Law

The buying and selling of computers
and computer programs.
– Uniform Computer Information
Transactions Act (UCITA) governs
contracts for software agreements,
licenses and maintenance contracts.

parties can use it to resolve anything not
covered in their contract.