1. Copyright © 2004 by Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany BUSINESS LAW E-Commerce and Digital Law International Law and Ethics 5 th Edition by Henry R. Cheeseman Slides developed by Les Wiletzky Wiletzky and Associates, Puyallup, WA Chapter 18 Internet Law, Domain Names, and E-Commerce Chapter 18 Internet Law, Domain Names, and E-Commerce

2. 18 - 2Copyright © 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 computer information transactions software licenses software licenses information licenses information licenses

3. 18 - 3Copyright © 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.

4. 18 - 4Copyright © 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 At the point of transmission While in transit While in transit When stored by a router or server When stored by a router or server After receipt by the intended recipient After receipt by the intended recipient

5. 18 - 5Copyright © 2004 by Prentice-Hall. All rights reserved. Internet Domain Names  Domain name – a unique name that identifies an individual’s or company’s Web site.  Domain names may be registered by filing the appropriate form with the domain name registration service and paying the appropriate fee.

6. 18 - 6Copyright © 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 name must be famous. The domain name was registered in bad faith. The domain name was registered in bad faith.

7. 18 - 7Copyright © 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.

8. 18 - 8Copyright © 2004 by Prentice-Hall. All rights reserved. Licensing Arrangement License (transfer of rights in intellectual property or information) Licensor Licensee

9. 18 - 9Copyright © 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.

10. 18 - 10Copyright © 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.

11. 18 - 11Copyright © 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.

12. 18 - 12Copyright © 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. For an agreed-upon time or number of uses.  The licensee’s access to the information must be available at times and in a manner that complies with the express terms of the contract.

13. 18 - 13Copyright © 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.

14. 18 - 14Copyright © 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 Formation of a contract Authenticating the record Authenticating the record Attribution procedure Attribution procedure Performance Performance Warranties Warranties Breach of license agreements Breach of license agreements Limitations of remedies Limitations of remedies

15. 18 - 15Copyright © 2004 by Prentice-Hall. All rights reserved. Other Key Legislation  Uniform Electronic Transactions Act (UETA)  Electronic Signature in Global and National Commerce Act

16. 18 - 16Copyright © 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 Risk of loss of the copy Acceptance of a copy Acceptance of a copy Excuse of performance Excuse of performance

17. 18 - 17Copyright © 2004 by Prentice-Hall. All rights reserved. Warranties  Certain warranties may attach to a license of informational rights because either the licensor has made express warranties or the law has imposed one or more implied warranties.

18. 18 - 18Copyright © 2004 by Prentice-Hall. All rights reserved. Warranties (continued)  Warranties of noninterference and noninfringement  Express warranty  Implied warranty of merchantability of the computer program  Implied warranty of informational content  Implied warranty of fitness for a particular purpose  General disclaimer of warranties

19. 18 - 19Copyright © 2004 by Prentice-Hall. All rights reserved. Breach of License Agreements  The parties to a contract for the licensing of information owe a duty to perform the obligations stated in the contract.  If a party fails to perform as required, there is a breach of the contract.

20. 18 - 20Copyright © 2004 by Prentice-Hall. All rights reserved. Breach of License Agreements (continued)  Licensee’s refusal of defective tender  Licensee’s revocation of acceptance  Adequate assurance of performance

21. 18 - 21Copyright © 2004 by Prentice-Hall. All rights reserved. Remedies  The UCITA provides various remedies that injured parties can obtain against breaching parties. Cancellation Cancellation Licensor’s damages Licensor’s damages Licensor’s right to cure Licensor’s right to cure Licensee’s damages Licensee’s damages Specific performance Specific performance

22. 18 - 22Copyright © 2004 by Prentice-Hall. All rights reserved. Limitations of Remedies  The UCITA provides that the parties to an agreement may limit the remedies available for breach of the contract.  Limitation of remedies in licenses subject to the UCITA are enforceable unless they are unconscionable.