E-Business

E-Business

The Practical Guide to the Laws

This is an easy-to-read, jargon-busting guide to the legal issues affecting online business. The use of bullet points and checklists provide useful aide memoirs, while the sample clauses and contracts are invaluable. The book deals with the E-Commerce Regulations (EC Directive) 2002, and the Privacy and Electronic Communications (EC Directive) Regulations 2003. It explains how these affect on-line trading and marketing.

Category: Business

This is an easy-to-read, jargon-busting guide to the legal issues affecting online business. The use of bullet points and checklists provide useful aide memoirs, while the sample clauses and contracts are invaluable. The book deals with the E-Commerce Regulations (EC Directive) 2002, and the Privacy and Electronic Communications (EC Directive) Regulations 2003. It explains how these affect on-line trading and marketing.

Offering practical advice on how to manage e-business issues, the book also explains various contractual relationships which directors and managers will be asked to enter into. The authors provide useful pointers on negotiation and the practical analysis of contract issues including web site design and build, hosting content, linking, outsourcing and other third party relationships.

This is an easy-to-read, jargon-busting guide to the legal issues affecting online business. The use of bullet points and checklists provide useful aide memoirs, while the sample clauses and contracts are invaluable. The book deals with the E-Commerce Regulations (EC Directive) 2002, and the Privacy and Electronic Communications (EC Directive) Regulations 2003. It explains how these affect on-line trading and marketing.

Contents v

Acknowledgements and preface to the second edition xv

Tables of authorities xxi

Cases xxi

Statutes and Regulations xxii

Acts of Parliament xxii

Regulations xxii

European Directives xxiii

CHAPTER 1: Introduction 1

1.1 Thoughts for this book 1

1.2 Background (or the rise and fall of the Internet millionaire) 2

1.3 What do you need to know? 3

1.4 How can you use this book? 4

1.5 Technology update by Rafi Azim-Khan 5

CHAPTER 2: ISPs 7

2.1 What is an ISP? 7

2.2 Free ISPs 8

2.3 Opening an account 8

2.4 Regulation of ISPs 9

2.5 Liability of an ISP 10

2.5.1 Potential liability for content? 10

2.5.2 Similar issues for e-businesses 11

2.6 Requirement for disclosure 11

2.7 Data protection provisions 12

2.8 E-Commerce Regulations 2002 13

2.8.1 Mere conduit 13

2.8.2 Hosting 13

2.8.3 Caching 14

2.8.4 The future 14

2.9 Unbundling the local loop 15

2.10 Wireless 16

2.11 Regulation of Interactive TV 17

ADDITIONAL INFORMATION 18

CHAPTER 3: Employees and e-business 19

3.1 Introduction 19

3.2 Use of the Internet at work 19

3.2.1 Copyright 19

3.2.2 Illegal information or content 20

3.3 E-mail and Instant Messaging (IM) use 20

3.3.1 Discrimination and harassment 21

3.3.2 Defamation 21

3.3.3 Competition 22

3.3.4 Viruses 22

3.3.5 Forming a binding contract 23

3.4 Security and confidentiality 23

3.4.1 Outbound risks 23

3.4.2 Inbound risks 24

3.5 Examples of employee abuse 25

3.6 E-mail and Internet policies 25

3.7 Monitoring 28

3.7.1 Regulation of Investigatory Powers Act 2000 28

3.7.2 Human Rights Act 1998 29

3.7.3 Data Protection Act 1998 29

3.8 Enforcement 31

3.9 Disclaimers 31

3.10 Use of consultants 32

3.10.1 Intellectual property 32

3.10.2 Policies 32

ADDITIONAL INFORMATION 32

CHAPTER 4: Brand protection 33

4.1 Names 33

4.2 Trade name and trade marks 33

4.2.1 What can be protected 33

4.2.2 Making the application 34

4.2.3 Searches 34

4.2.4 Pre-existing marks 35

4.2.5 Objections to an application 35

4.2.6 Duration and need to renew 36

4.2.7 International 36

4.3 Database rights 36

4.4 Copyright 37

4.5 Domain names 38

4.5.1 What is a domain name? 38

4.5.2 Primary domains (TLDs) and secondary domains 38

4.5.3 Sale of sub-category names 39

4.5.4. What should you register 39

4.5.5 Cases 42

4.5.7 How do you register a domain name? 43

4.5.8 Length of ownership and renewal 43

4.5.9 The registration decision 44

4.5.10 Domain name disputes and cybersquatting 44

4.5.11 Other legitimate owners 46

4.6 Software patents 46

4.7 Web-related brand issues 47

4.8 Search engines 47

4.9 Metatags 47

4.10 Spiders and bots/comparative shopping 50

4.11 Domain name hijacking 51

4.12 Lemon and parody websites 51

4.12.1 Lemon sites 51

4.12.2 Parody sites 52

4.13 Linking and deep linking 52

4.14 Framing 53

4.15 Terms of use 54

4.16 Monitoring and enforcement 54

ADDITIONAL INFORMATION 55

CHAPTER 5: Content, advertising and trading 57

5.1 UK regulators 57

5.1.1 Advertising Standards Authority/British Codes of Advertising and Sales Promotion 58

5.1.2 ITC Code/Ofcom 60

5.2 Third-party content 60

5.2.1 Web designer 61

5.2.2 Content provider 61

5.2.3 Customer Blogging 62

5.2.4 User-Generated Content – the wonderful world of web 2.0 65

5.3 Links 67

5.4 Customers 68

5.5 Mobile Content 68

Mobile-friendly websites 68

5.6 Worldwide risks 69

5.6.1 Applicable laws and jurisdiction 69

5.6.2 EEJ NET 70

5.7 Avoiding liability 70

5.7.1 Disclaimers 70

5.8 Protecting the site 71

5.8.1 Intellectual property 71

5.8.2 Copyright notice 71

5.8.3 Database rights 71

5.8.4 Use of legal terms 71

5.8.5 Music and film 71

5.8.6 Digital rights management 72

5.9 Laws applicable to trading in the UK 73

5.9.1 Terms of any agreement with a customer 73

5.9.2 Product-specific provisions 74

5.9.3 Pricing and product description 74

5.9.4 Stock availability 75

5.9.5 Price changes 75

5.9.6 Baskets and storing goods 76

5.9.7 Financial services 76

5.9.8 Disability Discrimination 77

5.10 After-sales/consumer complaints and disputes 78

5.11 Codes of conduct 78

5.11.1 Trust UK 80

5.12 Issues relating to minors 80

5.12.1 Contracts 80

5.12.2 Age restricted goods 81

5.12.3 Means of payment: cards 81

5.12.4 The US 81

ADDITIONAL INFORMATION 82

CHAPTER 6: Customer relationships 83

6.1 Business to consumer relationships 83

6.2 Legal relationships with consumers 85

6.3 Making terms and conditions binding 85

6.4 Terms of use 88

6.4.1 Who owns the site? 88

6.4.2 Intellectual property 89

6.4.3 Links 89

6.4.4 Cookies 89

6.4.5 Other terms 90

6.5 Registration 90

6.5.1 Password 90

6.6 Terms of sale 91

6.7 Selling and contract formation 91

6.7.1 Invitation to treat 91

6.7.2 Offer and acceptance 92

6.7.3 True story: Argos 92

6.7.4 E-mails or communications from the seller 95

6.7.5 Stages of contract formation 95

6.7.6 When is the contract formed? 96

6.8 The requirements of distance selling 97

6.8.1 Sale at a distance 97

6.8.2 The E-Commerce Regulations 97

6.8.3 Information requirements pre-sale 98

6.8.4 Provision in a durable medium or permanently accessible form 102

6.8.5 Failure to provide this information 105

6.8.6 Gift sales 105

6.8.7 Duty to supply the goods or services 105

6.8.8 Substitute goods 106

6.8.9 Cooling off periods/cancellation rights 106

6.8.10 Return of the goods 107

6.8.11 Refund on rejection 108

6.8.12 Cancellation of fraudulent transactions 109

6.8.13 Contracting out 109

6.8.14 Failure to comply with these provisions 110

6.9 Terms of sale: content 114

6.10 Methods of payment for goods and services 114

6.10.1 Card payments 114

6.10.2 Credit 114

6.10.3 Cheques 115

6.11 VAT: a competitive disadvantage? 115

6.12 Other customer relationships 116

6.12.1 Services 116

6.12.2 Downloads 116

6.12.3 Commercial communications 117

6.13 Business to business 117

ADDITIONAL INFORMATION 117

CHAPTER 7: Security 119

7.1 Security and fraud 119

7.2 Your business and third parties 119

7.2.1 Viruses 120

7.2.2 DNS attacks – denial of service 121

7.2.3 Encryption and digital signatures 122

7.3 Employees 126

7.3.1 Monitoring 126

7.3.2 Confidentiality 128

7.4 Customers 128

7.4.1 Data 128

7.4.2 Secure payment systems 128

7.4.3 Refunds for fraud/chargebacks 130

7.4.4 Technical solutions/the future 131

7.4.5 Where are we now? 133

7.5 Terrorism and cybercrimes 134

7.6 Conclusion 135

ADDITIONAL INFORMATION 137

CHAPTER 8: Customer data and communications 139

8.1 Data collection 139

8.2 Data Protection Act and notification 140

8.2.1 Notification 140

8.2.2 Data controller 141

8.2.4 Processing data 141

8.2.5 Sensitive personal data 142

8.2.6 Data subjects’ rights 142

8.2.7 Offences 145

8.3 Collection notices 146

8.3.1 What is personal data? 146

8.3.2 What action must be taken? 148

8.4 Click boxes 148

8.5 Opt-in rather than opt-out 149

8.6 Solicited and unsolicited commercial communications 150

8.7 Cookies 151

8.8 Spam 152

8.9 Databases 153

8.10 Preference service/opt-out registers 153

8.11 Viral marketing 153

8.12 Data from third parties 155

8.13 Unsubscribe 156

8.14 Data cleansing 157

8.15 Third-party data requests 158

8.16 Privacy policies 159

8.17 Cross-border transfers 159

8.18 Padlock system 159

8.19 Data security 160

ADDITIONAL INFORMATION 162

EU model clauses 162

CHAPTER 9: Contracts 163

9.1 Background 163

9.2 Boiler plates 163

9.2.1 Waiver 163

9.2.2 Severance 163

9.2.3 Entire agreement and amendment 163

9.2.4 ‘Force majeure’ 164

9.2.5 Notices 164

9.2.6 Term and termination 164

9.2.7 Governing law and jurisdiction 164

9.2.8 Arbitration/dispute resolution 165

9.2.9 IT/e-commerce boiler plate 165

9.2.10 Intellectual property licence or assignment 165

9.2.11 Software licence 165

9.2.12 Intellectual property warranties and indemnities 165

9.2.13 Cap on liability and insurance 166

9.3 Software licences 166

9.4 Web design and build contracts 171

9.4.1 Two-phase contract? 171

9.4.2 Specification and site structure 172

9.4.3 Look and feel 173

9.4.4 Timing and milestones 173

9.4.5 Change control 174

9.4.6 Key personnel 174

9.4.7 Payment terms 174

9.4.8 Intellectual property and code 175

9.4.9 Upgrades, modifications and enhancements 176

9.4.10 Maintenance and training 176

9.4.11 Warranty and indemnity 177

9.4.12 Testing and acceptance 177

9.4.13 Additional services 178

9.5 Web content contracts 180

9.5.1 Specification of what is purchased 180

9.5.2 Exclusivity of content 181

9.5.3 Delivery of content 181

9.5.4 Service levels 182

9.5.5 Content use 182

9.5.6 Legality of the content 183

9.5.7 Intellectual property rights 184

9.5.8 Advertising and sponsorship 185

9.5.9 Warranties and indemnity 185

9.5.10 Cost and payment terms 185

9.6 Web hosting contracts 187

9.7 Advertising contracts 191

9.7.1 Form of advert 191

9.7.2 Advert placement 191

9.7.3 IP and code 192

9.7.4 Revenue 193

9.7.5 Legal and regulatory considerations 193

9.7.6 Spec/site commitment 193

9.8 Linking contracts 196

9.8.1 Link itself 196

9.8.2 Look and feel 196

9.8.3 Intellectual property licence 197

9.8.4 Location of link on page 197

9.8.5 Home page or deep links 197

9.8.6 One-way or two-way link 198

9.8.7 Warranty and indemnity 198

9.8.8 Competitors 199

9.8.9 Customer data collection and customer ownership 199

9.8.10 Financial model 199

9.8.11 Payment terms 200

9.8.12 Monitoring and measuring 200

9.8.13 Right to cut links 201

9.8.14 Term and termination 201

9.8.15 Affiliate/partnership/loyalty agreements 201

9.8.16 Click to buy 202

9.9 Download contracts 204

9.9.1 Overview 204

9.9.2 Services 205

9.9.3 Site structure, amendment and linking 205

9.9.4 Software itself 206

9.9.5 Taxation 207

9.9.6 Customer data collection and data transfer 207

9.9.7 Distance selling and returns 207

9.9.8 After-sales 208

9.9.9 Exclusivity 208

9.9.10 Warranty and indemnity 208

9.9.11 Payment 209

9.9.12 Terms of sale and software licences 209

9.10 Interactive TV (iTV) contracts 211

9.10.1 Overview 211

9.10.2 Walled garden 211

9.10.3 Specification 212

9.10.4 Repurposing of an existing site/content 212

9.10.5 Licences 213

9.10.6 Customer experience 213

9.10.7 Customer data collection 214

9.10.8 Fulfilment, delivery and after-sales 214

9.10.9 Framing of the site 214

9.10.10 Linking 214

9.10.11 Menu placement 214

9.10.12 Legal compliance 215

9.10.13 Warranty and indemnity 216

9.10.14 Testing and acceptance 216

9.10.15 Payment 216

9.10.16 Term and termination 216

9.11 Wireless 218

9.11.1 Wi-Fi – Exciting accessibility, or, the opening of a legal Pandora’s box? 218

9.11.2 The Key Risks 219

9.11.3 The Wi-Fi service provision 219

9.11.3 Wi-Fi terms of use 219

9.11.4 Wi-Fi security risks & user policy 221

9.11.5 What is Wi-Fi? 221

9.11.6 The obvious security risk 222

9.11.7 IT Staff Wi-Fi Policy 222

9.11.8 Employee Wi-Fi Use Policy 223

9.12 Mobile Communications 223

9.12.1 The fast changing “m-commerce” world 223

9.12.2 Mobile Web Access Contract Considerations 225

9.12.3 Design/Development 225

9.12.4 Content 226

9.12.5 Hosting 228

APPENDIX 1: SAMPLE TERMS 231

A1.1 ISP terms and conditions 233

A1.2 Employee E-Mail and Internet Use Policy 234

A1.3 Email & Website Disclaimers 245

A1.4 Dixons.co.uk – Terms of Sale 249

A1.5 Dixons.co.uk – Terms of Use 257

APPENDIX 2: CONTRACT PRECEDENTS 258

IMPORTANT NOTE: 258

A2.1 Boilerplate Examples 259

A2.2 Software Licence and Maintenance Support 269

A2.3 Website / Web Services Development 281

A2.4 Website Hosting 299

A2.5 Website Content and Linking 319

APPENDIX 3: INTERNET GLOSSARY 335

APPENDIX 4: CONTACT DETAILS 341

A4.1 The authors 342

A4.2 Government and regulatory 343

Index 345

“There is very little relating to e-commerce law which is not contained in this book which would be a very useful addition to library shelves for all commercial lawyers and those involved in the IT sector.”

Susan Singleton

Solicitors Journal
Imprint
Spiramus Press
Publisher
Spiramus Press
Language
English
Product Format
Paperback
Publication Date
26 Jan 2009
Number of Pages
376
ISBN
9781904905875
Product Format
Hardback
Dimensions
234 x 152
Weight
703 grams
Publication Date
11 Jan 2008
Number of Pages
357
ISBN
9781904905493
Edition
2
Product Format
PDF
Publication Date
28 May 2010
ISBN
9781904905677