Law E-Commerce 5P24 PPT

E- CommerceMBAB 5P24

BUSINESS LAW

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G o o d m a n S c h o o l O f B u s i n e s s | B r o c k U n i v e r s i t y

E-Commerce

SellerClient / Server

MiddlewareBuyer


• Three tier architecture

• All traditional laws of commerce apply.

• Broadly classified into

• B2B• B2C

Areas of Legal Interest In E-Commerce

Intellectual Property• Copyright• Trademarks• Domain

Names

Jurisdiction

Internet Advertising Spamming


Intellectual Property• Definition: Results of the creative process, such as ideas, the

expression of ideas, formulas, schemes, trademarks, and the like; also refers to the protection attached to ideas through patent, copyright, trademark, industrial design, and other similar laws.

• For E-Commerce, • Copyrights• Trademarks• Domain names


Copyrights

• The Copyright Act of Canada• Passed in 1921• Ammended in 1988, and 1991

• Copyright Modernization Act• Passed on June 29, 2012 receiving Royal Assent.• Provides stronger provisions to protect the rights of

creators while legalizing a number of common activities for users (for non-commercial purposes only).


Now Users Can –

include copyrighted material in their own original work as long as it is not for commercial gain and does not affect the artist’s reputation or market.

may include copyrighted content in their own products and activities if it pertains to areas of education, satire, or parody.

can make back-up copies of material as long as they are not protected by a digital lock or part of an on-demand service.

are prohibited from breaking digital locks, the technological measures that copyright holders have implemented to prevent users from copying the material.

Service providers are prohibited from offering services over the internet that will assist in the violation of copyright laws. Ex: P2P file sharing activities.


CONSIDERATIONS FOR BUSINESSES• Do you have the right to use or copy all the materials (including text and images) on your website? You

should realize that most material available through the Internet is copyright protected. This includes e-mails and downloaded material.

• Have you obtained permission for the use of any copyright material (including information found on the Web)?

• Do your Internet-related agreements (e.g. agreements with web hosting service, web developers, website use agreements) outline the permitted and prohibited use of the website content? Do they include procedures for responding to claims of copyright infringement and other misconduct?

• Have you checked whether your web developer has copyright over the material (information and images)? If you want to own the copyright to the work contained on your website, you will need to have a written agreement that transfers the copyrights to you.

• If you are a copyright owner, have you registered your copyright? Have you included copyright notices in your materials?


http://canlii.ca/t/fsgzv


Trademarks

• Content can infringe on trademark rights• Can infringe across several jurisdictions while being within legal

boudaries at home country.• Meta tags and links to other site may lead to infringement.


Trade marks Act R.S.C. 1985

Defines a trademark.Rights of use.Infringement.Confusion.Passing Off.

Considerations• Conduct a thorough web search for trademark you intend to use before

registering.

• Search the web for unauthorized use of your own trademark.

• Register the domain name as a trade mark (additional support for claims in case of a dispute).

• Register in as many common domains as possible (.com, .ca, .org, .net, etc.)

• Declare trademark use rights on the website and the website use agreement.

• Use other trade-marks only after being authorized by a trademark license.


D O M A I N N A M E SAddresses of websites on the internet. They can include key trademarks and can be valuable.

Registration and use subject to trademark laws.

Should not include the name of other company or product.

May wish to buy more than one domain to ensure brand protection and attract customers.

• The Canadian Internet Registration Authority – • www.cira.ca

• Internic.ca • www.InterNIC.ca

• ICANN • www.icann.org

Registration of a “.ca” domain is possible only through an accredited registrar. Ex -


Jurisdiction• An e-commerce business is subject to any and all jurisdictions within

which it chooses to conduct its trade.• Rules for contract vary from jurisdiction to jurisdiction.• Special rules may exist in certain jurisdictions for online contracts.


TYPES OF FORESEEABLE DISPUTES

Contractual disputes•Disputes between the enterprise and the Internet Service Provider (ISP) or web-hosting services provider, including disagreements over interruptions in service, breach in data security etc.

•Business-to-business (B2B) disputes between the enterprise and its suppliers such as non-performance of contractual obligations, misrepresentations, and complaints from customers regarding services provided by suppliers.

•Business-to-consumer (B2C) disputes between the enterprise and its customers such as non-payment for goods or services, non-performance of contractual obligations, poor performance of contract, misrepresentations, breach of the privacy policy, and breach of security of confidential information. It is between the enterprise and its customers that lies the greatest possible scope for disputes.

Non-contractual disputes•Copyright - The enterprise might be liable for copyright infringement if it uses copyrighted material in excess of fair use, and without permission.

•Data protection - The enterprise may be liable for sharing or revealing confidential data on customers, as discussed in the segment on Privacy.

•Right of free expression - The enterprise may be subject to defamation suits for defamatory material posted online.

•Competition law, Domain name disputes - The enterprise may be subject to trademark infringement suits if it infringes a registered or otherwise legally recognized trademark. If the enterprise has registered a domain name which corresponds to a registered or common law trademark, it may be subject to a complaint under ICANN's Uniform Domain Name Dispute Resolution Policy (UDRP), or the U.S. federal Anticybersquatting Consumer Protection Act).


http://canlii.ca/t/1qpmr


Considerations

Does the website define the

geographical area of the sales

territory.

Legal awareness of the

jurisdiction(s) intended to

operate within.

Obtain appropriate

accounting, tax, and legal advice.


Internet Advertising• Governed by provisions of Criminal Code, and Competition Act, in addition

to provincial laws for consumer protection and business legislation in Canada.

• Subject to other jurisdictional legislations in e-commerce.


Spam!

ProvisionsA business must

obtain consent from a customer before

sending commercial electronic messages

to them. This includes messages to

their email, social media accounts, and

cell phone.

In the message, the sender must identify

themselves or the agency on whose behalf they are

sending the message.

All messages sent to recipients must have

an unsubscribe function that takes effect immediately.

False representation or misrepresentation is prohibited in the

online promotions of products or services.

The collection of electronic addresses through computer

programs is prohibited.


New Anti-Spamming Legislation passed in December 2010, enforceable in the near future.

Good Internet Advertising PracticesView your online advertisements from the viewpoint of an average consumer.

Does the consumer have enough information to make an informed choice? Is the information clear? Is the information easy to find?

When using disclosures, make sure they are clear and easy to find. (Disclosure may be required to prevent an ad from being misleading and to ensure that

consumers receive sufficient information – e.g. about the terms of the transaction). You should also display disclosures prior to purchase.

When using disclaimers, make sure they are clear and easy to find.

Clearly identify the business associated with the product or service being advertised. The advertisements should not mislead consumers as to the type of organization or as to the purpose of the representations. The geographic origin

of the advertiser should be clear.


https://www.youtube.com/watch?v=sFg5LLDZ3zY

https://www.youtube.com/watch?v=sFg5LLDZ3zY

Thank You

Documents

Law E-Commerce 5P24 PPT