1. David Satola Senior Counsel dsatola@worldbank.org Washington, DC December 14, 2004 Legal Framework for e-Development: Best Practices and Lessons Learned

2. Government (“G”) Business (“B”) Consumer (“C”) Government G2G – coordination G2B – information G2C – information Business B2G – government procurement B2B-e-commerce between businesses B2C – e-commerce in consumer markets Consumer C2G – e.g., tax compliance C2B – price & other comparisons C2C – auction markets Jonathan Coppel, E-Commerce: Impacts and Policy Challenges 4 (OECD Economic Department Working Paper No. 252 23 June 2000) Types of E-Commerce Activities

3. PolicyPolicy LegalLegal MarketMarket Social and other local considerationsSocial and other local considerations and must take account of National vs. Cross Border concernsNational vs. Cross Border concerns Enabling Environment is a mosaic of:

4. The Legal Framework… Will consist of a variety of legal instruments: Treaty and other int’l obligations Laws Regulations Official Acts, etc. And should embody basic principles: Certainty Predictability Transparency Respect for local legal practice and customs

5. A Comprehensive Legal e-Enabling Environment Issues to Address vol. I Communications Infrastructure Regulation Provision of Broadband services/access Regulation of ISPs/service providers Communications Regulator Communications Regulator Competition Regulation Abuse of Dominance Anticompetitive Agreements/Behavior Competition Regulator E-commerceScope/Exclusions Digital Signature Contract Formation Certification Authority/Regulator X Border recognition Party Autonomy/Variance Domain Names Regulation of registration Network Security Content Regulation

6. A Comprehensive Legal e-Enabling environment Issues to address vol. II Data protection and privacy Data collection, storage, protection & use Data integrity Opt-in/Opt-out Safeguards on search and seizure (including data interception) Data retention Surveillance Privacy Authority/Regulator Consumer protection Intellectual property TrademarkCopyright Electronic banking and finance Licensing of Financial Services provided by non-financial entities Secure Payment Systems Information Reporting Requirements Exchange Controls Consumer/Commercial Credit Anti-money laundering Financial Services Regulator

7. A Comprehensive Legal e-Enabling environment Issues to address vol. III Taxation and customs Dispute Resolution Judicial Regulatory Adjudication ADR (arbitration, mediation, ODR, etc.) Enforceability Conflict of laws Jurisdiction Applicable law Recognition of foreign judgments Civil Penalties Copyright/Trademark offences financial loss compromise of data violation of network integrity content false/misleading advertising

8. A Comprehensive Legal e-Enabling environment Issues to address vol. IV C ybercrime Access to/interference with systems Interception of/interference with data Other misuse of devices Content Fraud (applicable to the electronic context) Forgery (applicable to the electronic context) Conspiracy-related offences Copyright offences

9. Regulatory Framework alone is not enough to “enable” “e”:  Maturity of Markets  Tradition of “independent” authorities  Outlets to redress grievances, enforce rights, settle disputes

10. Status Quo IssuesImplementation Reform Process Issue Identification & Resolution Strategies Policies & Objectives Stage 3 Stage 2 Stage 1 LEGAL REFORM Broad Public Consultation Broad Public Consultation Stakeholder Buy-in Stakeholder Buy-in Local Ownership Local Ownership Current Structure New Structure

11. Objective of Legal Framework Design Designing a legal framework that responds to local needs and is informed by international experience… Increased Confidence and Use

12. UNCITRAL http://www.uncitral.org/en-index.htm UNCITRAL http://www.uncitral.org/en-index.htm Model Law on Electronic Commerce, 1996 with additional article 5 bis, 1998Model Law on Electronic Commerce, 1996 with additional article 5 bis, 1998Model Law on Electronic Commerce, 1996 with additional article 5 bis, 1998Model Law on Electronic Commerce, 1996 with additional article 5 bis, 1998 Model Law on Electronic Signatures, 2001Model Law on Electronic Signatures, 2001Model Law on Electronic Signatures, 2001Model Law on Electronic Signatures, 2001 Convention – under preparationConvention – under preparation Convention – under preparation Convention – under preparation INTERNATIONAL INFLUENCES UN/CEFACT – ebXML http://www.unece.org/cefact/ UN/CEFACT – ebXML http://www.unece.org/cefact/ Unidroit Cape Town Convention http://www.unidroit.org/english/conventions/mobile-equipment/mobile- equipment.pdf OECD WSIS http://www.itu.int/wsis http://www.itu.int/wsis NetworkNetwork Security PrivacyPrivacy

13. E-commerce Directive - 2000/31/EC of 8 June 2000E-commerce Directive - 2000/31/EC of 8 June 2000E-commerce Directive - 2000/31/EC of 8 June 2000E-commerce Directive - 2000/31/EC of 8 June 2000 Electronic Signature Directive - 1999/93/EC of 13 December 1999Electronic Signature Directive - 1999/93/EC of 13 December 1999Electronic Signature Directive - 1999/93/EC of 13 December 1999Electronic Signature Directive - 1999/93/EC of 13 December 1999 Distance Contracts Directive - 1997/7/EC of 20 May 1997Distance Contracts Directive - 1997/7/EC of 20 May 1997Distance Contracts Directive - 1997/7/EC of 20 May 1997Distance Contracts Directive - 1997/7/EC of 20 May 1997 Privacy and Electronic Communications - 2002/58/EC of 12 July 2002Privacy and Electronic Communications - 2002/58/EC of 12 July 2002Privacy and Electronic Communications - 2002/58/EC of 12 July 2002Privacy and Electronic Communications - 2002/58/EC of 12 July 2002 EU Selected Directives REGIONAL INFLUENCES Examples as reflected in National Legislation http://europa.eu.int/ida/en/chapter/424 http://europa.eu.int/ida/en/chapter/362

14. REGIONAL INFLUENCES Cont … Council of Europe - Convention on Cybercrime (ETS 185) Council of Europe - Convention on Cybercrime (ETS 185) http://conventions.coe.int/treaty/EN/cadreprincipal.htm UNCECE UNCECE UNESCAP UNESCAP OAS OAS Caricom Caricom ASEAN ASEAN APEC APEC

15. INDUSTRY & PRIVATE SECTOR INFLUENCES SPeRS http://www.spers.org Hague Conference on Private International Law - Draft Convention on International Jurisdiction and Foreign Judgments in Civil and Commercial Matters http://www.hcch.net/e/workprog/jdgm.html International Chamber of Commerce – Task Force on Electronic Contracting Draft ICC e-Terms 2004Draft ICC e-Terms 2004 Draft ICC Guide to electronic contractingDraft ICC Guide to electronic contractinghttp://www.iccwbo.org/law/ OASIS http://www.oasis-open.org/home/index.php

16. Current Factors Effecting Legal Framework Resonance and Dissonance of Communications regulationCommunications regulation E-commerce applicationsE-commerce applications Communications/Critical InfrastructureCommunications/Critical Infrastructure Financial sectorFinancial sector TechnologyTechnology Break down silo approach to addressing issues

17. Current Issues 1.Interoperability Technical standardsTechnical standards cross border legal recognitioncross border legal recognition Protection of data privacyProtection of data privacy Protection of IPRsProtection of IPRs 2.Network security / critical infrastructure 3.Jurisdiction 4.Cybercrime (including AML) 5.Party autonomy

18. East Asia Pacific Example Even where international models used, X-border interoperability is not ensuredEven where international models used, X-border interoperability is not ensured General legislation may not expressly preclude legal validity of e-contracts, applicability to on-line world is not court-testedGeneral legislation may not expressly preclude legal validity of e-contracts, applicability to on-line world is not court-tested Legal Frameworks for data privacy protection are weakLegal Frameworks for data privacy protection are weak Consumer protection “online” is underdevelopedConsumer protection “online” is underdeveloped Little specific in the area of CybercrimeLittle specific in the area of Cybercrime 23 countries benchmarked against 55+ criteria