Its Legal, Ethical & Global Environment 6 th Ed. Its Legal, Ethical & Global Environment 6 th Ed. B U S I N E S S MARIANNE M. JENNINGS Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. Chapter 8 Cyber Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 2 Overview of Cyber Law  Cyber law is traditional law applied to disputes in the on-line venue. Tort Issues Contract Issues Intellectual Property Issues Criminal Violations Constitutional Restraints, and Securities Law Issues  Cyber law is traditional law applied to disputes in the on-line venue. Tort Issues Contract Issues Intellectual Property Issues Criminal Violations Constitutional Restraints, and Securities Law Issues

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 3 Tort Issues in Cyber Law  Privacy Issues and Worker Privacy 90 Million Americans send 2.8 billion s per day. exists as an electronic record not only between sender and receiver but across the network as well. Do the parties have an expectation to privacy? Generally, Employers do have the right to access an employee’s .  Privacy Issues and Worker Privacy 90 Million Americans send 2.8 billion s per day. exists as an electronic record not only between sender and receiver but across the network as well. Do the parties have an expectation to privacy? Generally, Employers do have the right to access an employee’s .

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 4  Case 8.1 Kyllo v. U.S. (2001) Was the use of thermal imaging a violation of privacy? Was the use of thermal imaging a “search” under the Fourth Amendment? Was a search warrant required?  Case 8.1 Kyllo v. U.S. (2001) Was the use of thermal imaging a violation of privacy? Was the use of thermal imaging a “search” under the Fourth Amendment? Was a search warrant required? Tort Issues in Cyber Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 5  Case 8.2 Smyth v. Pillsbury (1996) Did Smyth have an expectation of privacy? Was Smyth wrongfully discharged? Did Pillsbury violate its own policies?  Case 8.2 Smyth v. Pillsbury (1996) Did Smyth have an expectation of privacy? Was Smyth wrongfully discharged? Did Pillsbury violate its own policies? Tort Issues in Cyber Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 6  Privacy and Statutory Protections Electronic Communications Privacy Act (1986) prohibits the interception of “live” communications. What about the information collected by online e-tailers in their ‘cookies’?  Privacy and Statutory Protections Electronic Communications Privacy Act (1986) prohibits the interception of “live” communications. What about the information collected by online e-tailers in their ‘cookies’? Tort Issues in Cyber Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 7  Appropriation in Cyberspace Making an image or likeness and then using it for commercial advantage.  Defamation in Cyberspace Elements of traditional defamation are the same. What about chat room defamation? (Mark S. Jakob’s press release)  Appropriation in Cyberspace Making an image or likeness and then using it for commercial advantage.  Defamation in Cyberspace Elements of traditional defamation are the same. What about chat room defamation? (Mark S. Jakob’s press release) Tort Issues in Cyber Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 8 Tort Issues in Cyber Law  Trespass in Cyberspace Is sending a ‘robot’ to another internet server a form of trespass?  Case 8.3 Compuserve v. Cyber Promotions (1997) When does free speech in an become trespass?  Trespass in Cyberspace Is sending a ‘robot’ to another internet server a form of trespass?  Case 8.3 Compuserve v. Cyber Promotions (1997) When does free speech in an become trespass?

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 9 Contract Law in Cyber Space  Formation Issues Online contracts formed between businesses (B2B) and business and consumers (B2C). Is there an offer and acceptance? Is there a writing? Is the contract enforceable?  Formation Issues Online contracts formed between businesses (B2B) and business and consumers (B2C). Is there an offer and acceptance? Is there a writing? Is the contract enforceable?

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 10 Contract Law in Cyber Space  Case 8.4 Caspi v. Microsoft Network, LLC (1999) Do you think Caspi received adequate notice of the contract terms? When was the contract accepted? What about online resolution of this online contract?  Case 8.4 Caspi v. Microsoft Network, LLC (1999) Do you think Caspi received adequate notice of the contract terms? When was the contract accepted? What about online resolution of this online contract?

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 11 Contract Law in Cyber Space  E-SIGN, federal law on Electronic Contracts and Signatures.  UETA, the Uniform Electronic Transactions Act, adopted in over 18 states, including Texas.  These laws provide a framework for enforcing online contracts.  E-SIGN, federal law on Electronic Contracts and Signatures.  UETA, the Uniform Electronic Transactions Act, adopted in over 18 states, including Texas.  These laws provide a framework for enforcing online contracts.

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 12  Misrepresentation and Fraud in Cyberspace Federal Trade Commission is actively involved in shutting down illegal online activity. Identity Theft occurs when hackers find social security numbers and personal information.  Misrepresentation and Fraud in Cyberspace Federal Trade Commission is actively involved in shutting down illegal online activity. Identity Theft occurs when hackers find social security numbers and personal information. Contract Law in Cyber Space

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 13 Intellectual Property Issues in Cyber Space  I.P. law has not changed, even though the internet allows the easy exchange of documents, pictures and music.  Jeff Bezos, founder of Amazon.com, patented the ‘one-click’ process.  Free Music (Napster) vs. Royalties  I.P. law has not changed, even though the internet allows the easy exchange of documents, pictures and music.  Jeff Bezos, founder of Amazon.com, patented the ‘one-click’ process.  Free Music (Napster) vs. Royalties

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 14  Copyright Infringement and Technology Digital Millennium Copyright Act provides ‘safe harbors’ for ISP’s.  Protecting Domain Names ICANN UDRP: domain name disputes  Trademarks in Cyberspace Federal Trademark Dilution Act provides private cause of action.  Copyright Infringement and Technology Digital Millennium Copyright Act provides ‘safe harbors’ for ISP’s.  Protecting Domain Names ICANN UDRP: domain name disputes  Trademarks in Cyberspace Federal Trademark Dilution Act provides private cause of action. Intellectual Property Issues in Cyber Space

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 15 Criminal Law Issues in Cyberspace  Most cyber crime is ordinary crime carried out by a computer.  Computer Fraud and Abuse Act and Economic Espionage Act (see Ch.9)  Case 8.5 U.S. v. Czubinski (1997) What is computer fraud? Why did the court caution about the broad application of the wire fraud?  Most cyber crime is ordinary crime carried out by a computer.  Computer Fraud and Abuse Act and Economic Espionage Act (see Ch.9)  Case 8.5 U.S. v. Czubinski (1997) What is computer fraud? Why did the court caution about the broad application of the wire fraud?

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 16 Constitutional Restraints and Protections in Cyberspace  First Amendment in Cyberspace Speech on the internet enjoys the same protections as ‘real space’ speech. Cyber Promotions v. AOL (1996) Child Pornography Prevention Act was ruled unconstitutional in U.S. v. Hilton (1999) and Free Speech Coalition v. Reno (1999).  First Amendment in Cyberspace Speech on the internet enjoys the same protections as ‘real space’ speech. Cyber Promotions v. AOL (1996) Child Pornography Prevention Act was ruled unconstitutional in U.S. v. Hilton (1999) and Free Speech Coalition v. Reno (1999).

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 17  Commerce Clause in Cyberspace Constitutional requires some “nexus” between taxing authority and business paying tax.  Due Process in Cyberspace When does an out-of-state, online company have sufficient presence to be hailed into local court? See Bensusan Restaurant v. King.  Commerce Clause in Cyberspace Constitutional requires some “nexus” between taxing authority and business paying tax.  Due Process in Cyberspace When does an out-of-state, online company have sufficient presence to be hailed into local court? See Bensusan Restaurant v. King. Constitutional Restraints and Protections in Cyberspace

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 18 Securities Law Issues in Cyberspace  ‘Pump and Dump’ occurs when online traders post information on the web to make gains on their stock.  SEC and FTC still monitor and prosecute on-line security offerings and scams.  Any disclosures made to the public must apply same principles to real-space companies.  ‘Pump and Dump’ occurs when online traders post information on the web to make gains on their stock.  SEC and FTC still monitor and prosecute on-line security offerings and scams.  Any disclosures made to the public must apply same principles to real-space companies.

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 19 Cyberspace and International Law  Traditional notions of American jurisdiction do not always fit on the web.  Case 8.6 Yahoo! v. La Ligue Contre le Racisme (2001) Yahoo! appealed French court order and U.S. Court held France had no jurisdiction over Yahoo!.  Traditional notions of American jurisdiction do not always fit on the web.  Case 8.6 Yahoo! v. La Ligue Contre le Racisme (2001) Yahoo! appealed French court order and U.S. Court held France had no jurisdiction over Yahoo!.