Class Discussion Notes MKT April 10, 2001

Ethics and Law Internet issues Ownership of intellectual property Privacy Freedom of expression Use of data Children’s access Self regulation Pros  Speedy reaction time unencumbered by government red tape  Technical expertise  Economic opportunity will force compliance Cons  Lack of compelling incentives  Commercial self-interest  Fraudulent behavior is incented by short-term gains

Ethics and Law Privacy Violations  Unreasonable intrusion  Unreasonable publicity  Use of a person’s name or likeness  Publication of personal information that is false Data collection and access  Opt-in  Opt-out Pros Customer preference for targeted advertising Cons Complicated and time consuming to opt-out

Ethics and Law Data collection and access – con’td  Administrative policy  Hostile applets Java programs that access information stored on hard drives  Intelligent agents Automated Web-based tasks such as searching or buying

Ethics and Law Privacy protection  Children’s Online Protection Act Governs collection of data from children under 12  Fair Credit Reporting Act Governs misuse of consumer data  Electronic Communication Privacy Act – ECPA Governs misuse of consumer data  Direct Marketing Association – DMA Contains guidelines for Web privacy  European Union (EU) Data Protection Directive Safe harbor agreement with US  FTC Published minimum requirements for ethical use of consumer information

Ethics and Law Copyright  Protects the expression of original ideas  The primary means of protecting most information on the Internet  NET Act Copyright protection for computer content Definition of infringement Permanent or semi-permanent reproduction Now expanded to include electronic distribution without reproduction  Digital Millennium Copyright Act – DMCA Grants ISPs protection from acts of infringement by their subscribers Criminalizes circumvention of software protection and development of circumvention products

Ethics and Law Trademarks  Protects the ownership of intellectual property that identifies goods or services  May be registered, but not required  Mark must be protectable (unique, distinguishable)  Prohibits dilution  Protection applies to Internet domains In cases of similarities, type of business and product are considered  Cybersquatting Registration of domains resembling that of corporations or entities for purpose of resale Anticybersquatting Consumer Protection Act

Ethics and Law Trademarks –cont’d  Metatags HTML that describes Web site contents  Keywords  Hyperlinks Deep linking  Framing Patents  Protects inventive processes or steps Software E-business processes

Ethics and Law Licenses  Contract between consumer and software vendor Allows use Restricts copying and distribution Shrinkwrap Clickwrap  Uniform Computer Information Transactions Act (UCITA) Governs all legal agreements involving software transactions including sales Not yet ratified by states Trade secrets  Economic Espionage Act Criminal offense to divulge trade secrets Covers formulas, plans, market data, algorithms, programs, codes and models

Ethics and Law Data ownership  Protective technologies  Spidering Using robots to enter Web sites and obtain data  Facts Not covered by copyright laws Arrangements of data within electronic databases  Trade Related Intellectual Property Rights (TRIPs)  EU Database Directive

Ethics and Law Online expression  Spam Unrequested  Inline discussion Comments made about a site which are stored on another server  Computer Decency Act (CDA) Attempted to regulate content sent to children known to be under 18 Failed in US Supreme Court test

Ethics and Law Online governance  Internet Corporation for Assigned Names and Numbers (ICANN) Administrates Internet name and address system  Jurisdiction Applies when person knowingly did business in the state Does not necessarily apply if person advertised within the state Does not necessarily apply if the Web site is accessed within the state  Virtual magistrate Mediation programs  WIPO Arbitration and Mediation Center  United Nations Commission of International Trade Law (UNCITRAL) Provides global uniformity in digital commerce

Ethics and Law Fraud  The use of deception and false claims to obtain profit  Technical nature of Internet Spoofing  Psychology of digital environments  FBI  FTC  Organizational requirements and sanctions