Legal Aspects Pf E-Commerce

Front 1

What is law and where does it come from?

Back 1

• ‘rules’ – what to do, what not to do
• ‘rights’ – things you are entitled to
• international, national, federal, local...

Front 2

Name two different national systems of law.

Back 2

• Civil law – codified – Sweden, France, Germany, etc
• Commonlaw– ‘judge made’ – USA, UK, Australia, etc

Front 3

What is treaties?

Back 3

• Treaties – high level agreements between countries

Front 4

How does the EU work?

Back 4

• The European Union (based on treaties)
– Precedence of community law
– Primary legislation (Treaties – core principles of common
market)
– Secondary legislation
(Regulations and Directives), case law (ECJ)

Front 5

Describe 4 things to remember when approaching the law.

Back 5

• E-businessesneedtoremember:lawsdifferfrom country to country, BUT there are certain international standards – in particular EC Directives (although not complete harmonisation)
• Think critically – what matters is what the law says, thus consider your sources.
• Don’t forget laws change over time.
• In practice this is a risk assessment: be aware of
issues, take informed decisions, ask for help (use lawyers and their insurance policies!)

Front 6

Why does the law matter?

Back 6

• Consequences of non-compliance: legal and practical
• Use law to your advantage: protect your rights – competitive edge

Front 7

Name soem traditional legal issues.

Back 7

company, employment, contract, consumer protection, IP, tax

Front 8

Describe some new laws for the information society.

Back 8

EC Directives on e-commerce, distance selling, data protection, email marketing, copyright protection for online content, e-signatures, VAT

Front 9

Explain content issues.

Back 9

• Content issues in setting up an e- business (creating a website) – IPR, data protection, required information

Front 10

Explain trading issues.

Back 10

• Trading issues in conducting e- commerce – contracts, consumers, marketing,

Front 11

What is intellectual property?

Back 11

• Any product of human intellect that is intangible but has value in the marketplace.
• Key word in the definition: (1) intellect, (2)intangible and (3) value
• Definition from the World Intellectual Property Organization (WIPO)
– Intellectual property refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.

Front 12

What are intellectual property rights?

Back 12

• Umbrella term for various distinct rights: patents, TMs, copyright, design right, database right
• National rights / international regimes
• Registered and unregistered
• Exclusiverightstodo,orstop
others from doing, certain things
– The grit in the wheels of industry?
– Reward for innovation and creativity?

Front 13

How has the importance of intellectual property evolved?

Back 13

• Traditionally, businesses have thought of their physical assets, such as land, buildings, and equipment as the most important.
• Increasingly, however, a company’s intellectual assets are the most important.
• IP rights are relevant to all businesses–but especially online and hi-tech

Front 14

Name the four main types of intellectual property.

Back 14

1. Patents
2. Trade marks
3. Design right
4. Copyright
(Trade secrets)

Front 15

What is copyright?

Back 15

• The right to copy (hence the name)
• Protects: literary and artistic (creative) works:
– text, graphics, pictures, music, films, dramatic works, compilations, computer software

Front 16

Further describe copyright.

Back 16

• Primarily national laws e.g. Upphovsrättslag (1960:729)
• International treaties include Berne 1886, TRIPS 1994, WIPO Copyright Treaty 1996
– harmonisation & mutual protection
• Some EU harmonisation
– First generation: Directives on computer programs, duration of rights, rental rights, satellite broadcasting, databases
– Second generation: Directive 2001/29/EC – Copyright in the Information Society

Front 17

Which intellectual properties does copyright protect?

Back 17

– Original (= not copied)
– Expressed in a particular form:
Article 9.2 of TRIPS (WTO Agreement on Trade- Related Aspects of Intellectual Property Rights): “Copyright protection shall extend to expressions and not to ideas, procedures, methods of operation or mathematical concepts as such”

Front 18

Do you need to register to get copyright?

Back 18

No

Front 19

Name 10 things that can be copyrighted.

Back 19

• Books
• Articles
• Software
• Databases
• Music
• Photographs
• Films
• Webpages
• Pictures
• Sculptures
• Multimedia works

Front 20

Explain the rights given by copyright.

Back 20

• Exclusive rights include
– Reproducing the work (in
whole or in part, in any medium
or form)
– Adapting the work (e.g.
translation)
– Distributing copies
– Communicating the work to the • Civil remedies
public (e.g. concert, TV, webcasting)

Front 21

What happens if you break a copyright?

Back 21

Civil remedies (damages, injunctions) and criminal penalties (fines, imprisonment)

Front 22

Describe the exceptions to copyright infringement.

Back 22

• Consent! = permission, licence, transfer • Statutory exceptions:
– Research (non-commercial)
– Teaching / education
– News reporting
– Criticism / review
– Parody
– Personal use
N.B. National variations

Front 23

What is database right?

Back 23

• Directive 96/9/EC on the legal protection of databases
• Systematic collection of independent works, data or other materials, individually accessible
• Protects investment of time, money and effort, even if not innovative/original

Front 24

What is a trademark?

Back 24

It is "a sign which is capable of being represented graphically and which is capable of distinguishing the goods and services of one undertaking from those of another"
In particular:
• Words (including personal names)
• Designs
• Shape of goods or their packaging
• Colours
• Sensory marks: smells, sounds (jingles), gestures – so
long as they are capable of being represented graphically

Front 25

Explain how trademarks can be infringed by use in the course of trade.

Back 25

– Identical TM on identical goods/services, or
– Identical TM on similar goods/services, or
– Similar TM on identical goods/service, or
– Similar TM on similar goods/service if likelihood of confusion

Front 26

What is patents?

Back 26

• Exclusive right to a new (novel) invention
• Product,useofaproduct,method(butnot
mathematical methods, or business methods in Europe, cf. USA))

Front 27

What is not patentable?

Back 27

Discoveries, scientific theories, aesthetic
creations, schemes or rules, computer software (cf. copyright)

Front 28

Name the conditions of patentability.

Back 28

– Absolute novelty – different from what has come before
– Inventive step
– Europe: ‘Industrially applicable’ / US: ‘Useful’

Front 29

Explain the design right.

Back 29

– Design: the appearance of the whole or part of a product resulting from the features of...the lines, contours, colours, shape, texture or materials of a product or its ornamentation
– Product: any industrial or handicraft item, including parts of a complex product, packaging, graphic symbols and typographic typefaces but excluding computer programs

Front 30

Further describe design right.

Back 30

• Emphasis is on ‘industrial designs’, in relation to products, rather than artwork in itself
• US–part of Patent Law – ‘Design Patents’
• EU–separate, Registered Design Right
• Some countries including UK also have an
unregistered Design Right

Front 31

How can you protect your trade secret?

Back 31

– Never tell anyone about it
– Make everyone who knows it sign a ”non-
disclosure contract”.

Front 32

How do i get IP rights for patents?

Back 32

• Patents: register (claims, drawings, specification) – via national patent offices, or the EPO or PCT

Front 33

How do i get IP rights for trade marks?

Back 33

• Trade marks: register (word or logo, in certain classes of goods or services) – at OHIM for a CTM, or via national registries (and WIPO) (national)

Front 34

How do i get IP rights for copyright?

Back 34

• Copyright: arises automatically on creation; international mutual recognition under various copyright treaties

Front 35

How do i get IP rights for designs?

Back 35

• Designs: register (design as applied to a product) – at OHIM, or via national registries for national rights

Front 36

How do i get IP rights for trade secrets?

Back 36

• Trade secrets: keep confidential – secrecy (e.g. Coca- Cola recipe), non-disclosure agreements

Front 37

To whom does the website information requirements applY?

Back 37

Applies to any online commercial trade or advertising, whether or not goods or services are themselves sold or supplied online – i.e. any commercial
• Information needs to be provided “easily, directly and permanently accessible”