A Comparative Study on the e-Commerce Laws of

Taiwan and the Philippines

September 20, 2006

John C.T. Ko & Regina Rose N. Regidor for Taiwan for the Philippines

Part I: Introduction - Overview

1

Businessvia

internet

E-Commerce law:E-Signatures Act (TW, 2002)E-Commerce Act (RP, 2000)E-Transaction Act (SG, 1998)Digital Signatures Law (U.S.)

Lack of confidence:Internet SecurityOnline PrivacyLegal Protection…

Secure reliable online mechanism:Confidentiality ●SecurityIntegrity ●Info. friendlyAuthentication ●Legal frameworkNon-repudiation ●Facilitation

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Part I: Introduction - Background

ReviewSources

ReviewSources

Taiwan The Philippines

ObjectivesObjectives

PrincipalFeatures

PrincipalFeatures

United NationsSingaporeU.S.

United NationsSingaporeU.S.

United NationsSingapore

United NationsSingapore

Encourage e-transactionsEnsure the securityFacilitate e-Com.

Encourage e-transactionsEnsure the securityFacilitate e-Com.

FacilitationRecognition of reliability of e-docPromotion of e-Com.

FacilitationRecognition of reliability of e-docPromotion of e-Com.

•Technology neutrality•Party autonomy•Market orientation

•Technology neutrality•Party autonomy•Market orientation

Not clearly defined, but the same spirit should be embodies.

Not clearly defined, but the same spirit should be embodies.

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Part I: Introduction - Background

Taiwan The Philippines

SignificanceSignificance

LegalFramework

LegalFramework

ScopeScope

Security & privacyLegal protectionDispute reductione-Com. promotion

Security & privacyLegal protectionDispute reductione-Com. promotion

Legal recognitionViolation penalizedPromote e-Com + e-GovGlobal linkage platform

Legal recognitionViolation penalizedPromote e-Com + e-GovGlobal linkage platform

Policy declaratione-record legal effecte-signature legal effectServ. provider regulation Foreign recognition (17)

Policy declaratione-record legal effecte-signature legal effectServ. provider regulation Foreign recognition (17)

Policy declaratione-Com. in generale-Com. in special arease-transactions in gov. Final provisions (42)

Policy declaratione-Com. in generale-Com. in special arease-transactions in gov. Final provisions (42)

Private use of e-doc.Promote e-businessPublic use of e-doc.Promote e-gov.

Private use of e-doc.Promote e-businessPublic use of e-doc.Promote e-gov.

Commercial useNon-commercial useGov. transactions

Commercial useNon-commercial useGov. transactions

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Part II: Comparative Analysis (1)

Taiwan R.P. S or D

CompetentAuthority MOEA DTI S

Other party consent Yes Yes S

e- doc. Legalrecognition

Emphasis on the integrity & reliability of e-document

Same S

Dispatch timeof e-doc

Occurs when outside of sender control Same S

Receipt time of e-doc

Designated info. system Non-designated info.

SystemSame S

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Part II: Comparative Analysis (2)

Taiwan R.P. S/D

Place of dispatch &

receipt

1. Sender/recipient business location2. >1 location closest to transaction3. No biz location domicile

S

Service providers (SP)

Certification service providers On-line SP D

Authentication of e-documents

Gov. agencies Juristic persons

only

Gov.e-NotariesISP…

D

Liability of service

provider (SP)

SP bears liability for damage caused by its operation to the parties, unless the SP proves no mistake

S

PenaltiesNo imprisonmentMin. NTD 1 million Max. NTD 5 million

Jail (0.5-3y) &Min. P 100,000Max. to damage

D

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Part III: Summary (1)

User

Environment

The nature of information.

The current information systems.

The information needs of the organization or community being studied.

Moving Force Behind e-Commerce

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Part III: Summary (2)

Considerations:

Sustained public enlightenment campaign

Development of appropriate infrastructure and workforce

Institution of an e-readiness programme

Establishment of complimentary e-Government structures

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Part III: Conclusion

Important legal foundation

Serves as guidelines for government, private, public sectors, and the consumers

User friendly environment

Remove barriers

Improves government efficiency

Solutions for the development of e-Commerce have to be market-driven, global and flexible.

Thus, legalization of e-Commerce is indispensable for the Philippines and Taiwan to

be competitive.

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Part III: Recommendations (1)

Promulgate simple but effective legislation

Give professional training

Governments should lead in policy development

Regional participation

Increase fines or penalty

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Part III: Recommendations (2)

The national governments of the Philippines and Taiwan , should be the key players and, together with the private sector, should

take a lead role in the development and use of e-commerce.

Taipei Grand Hotel & Manila Hotel

Landmark hotels in Taiwan & the Philippines

Thank you!