Cyberlaw and E-Commerce Regulation An Entrepreneurial Approach

by Melvin, Sean P.

• ISBN13: 9780324175790
• ISBN10: 0324175795
• Edition: 1st
• Format: Paperback
• Copyright: 2004-06-11
• Publisher: South-Western College/West

Summary

Traditional Cyberlaw textbooks may not cover all you need to know. Only CYBERLAW AND E-COMMERCE REGULATION: AN ENTREPRENEURIAL APPROACH begins with the fundamentals of cyber law and e-commerce regulation in a global business context, then shows you how to make them work in your business. Whether you're an undergrad or an MBA student, this is the Cyberlaw textbook that gives you the edge in both class and the real world.

Table of Contents

Preface	xii
About the Author	xviii
UNIT 1 CYBER ENTREPRENEURS, E-COMMERCE, AND THE LAW	1	(64)
Chapter 1 Overview of CyberLaw and E-Commerce Business Models	3	(22)
Fundamentals of the Internet	5	(4)
Background and Brief History of the Internet	5	(2)
Physical Structure 6 Domain Name System	7	(2)
Accessing the Internet	9	(3)
ISPs, IAPs, and OSPs	9	(1)
Connecting to the Internet	10	(1)
Bandwidth	10	(2)
Wireless Access	12	(1)
The Tech Boom and Entrepreneurism	12	(2)
Bricks-and-Mortar Shift to E-Commerce	13	(1)
Basic Cyber Entrepreneur and E-Commerce Business Models	14	(1)
Inherent Risks	14	(1)
Sources of Law Affecting Cyber Entrepreneurs and E-Commerce Firms	14	(5)
Statutory Law	15	(3)
Constitutional Law	18	(1)
Common Law	18	(1)
The Modern View	18	(1)
Global Perspectives in CyberLaw	19	(6)
Chapter 2 Going Online: Formation Issues	25	(22)
Fundamentals of Selecting the Business Entity	25	(5)
Personal Liability	26	(1)
Organizational Expenses	26	(1)
Management and Control	26	(1)
Capital and Credit	27	(1)
Tax Treatment	27	(3)
Forms of Business Organizations	30	(5)
Sole Proprietorship	30	(1)
Partnerships	30	(1)
Corporations	31	(1)
Limited Liability Entities	32	(3)
Joint Ventures: Special Concerns of Cyber Entrepreneurs and E-Commerce Firms	35	(2)
Corporations as Joint Venture Entities	36	(1)
Partnerships as Joint Venture Entities	36	(1)
Limited Liability Companies as Joint Venture Entities	36	(1)
Contribution of Intellectual Property: Unique Issues for Cyber Entrepreneur Joint Ventures	37	(10)
Joint Ventures and Intellectual Property Licensing	37	(1)
Fiduciary Duties of Officers and Directors	38	(1)
Business Judgment Rule	39	(3)
Global Perspectives in Cyberlaw: Forms of International Business	42	(5)
Chapter 3 Taxation of Products and Services	47	(18)
The States and Their Sales and Use Taxes	47	(1)
Taxation of Mail Order Vendors: A Guideline for Internet Transactions	48	(4)
Other Nexus Theories	52	(1)
Challenges in the Taxation of Internet Sales and E-Commerce	52	(2)
Physical Location	52	(1)
Regulating Parties and Goods	53	(1)
Commercial and Noncommercial Internet Transmissions	53	(1)
The Internet Tax Freedom Act	54	(1)
Special Taxation Issues Facing Cyber Entrepreneurs and E-Commerce Firms	55	(2)
Taxation of E-Commerce and Internet Sales	55	(1)
Internet Access Providers	56	(1)
Bricks and Clicks: E-Commerce Relationships	57	(1)
The States' Treatment of Transactions and Electronic Content	57	(2)
Sales and Use Tax Treatment of Computer Software	58	(1)
State Income and Franchise Taxes	58	(1)
Global Issues in Cyberlaw: International Taxation of E-Commerce	59	(8)
The European Union	59	(1)
OECD Report	59	(1)
Foreign Tax Incentives	60	(1)
Double-Taxation Remedies	61	(1)
Foreign Tax Credit and Tax Treaties	61	(4)
UNIT 2 INTELLECTUAL PROPERTY LAW	65	(72)
Chapter 4 Patents: Legal Protection of Inventions and Processes	67	(22)
Viability of a Patent	67	(1)
Fundamentals of Patent Law	68	(1)
Novelty	68	(1)
Nonobviousness	69	(1)
Patentable Subject Matter	69	(5)
Modern Trends	72	(2)
The American Inventors Protection Act	74	(1)
Types of Patents	74	(2)
Business Method Patents	74	(2)
Design Patents	76	(1)
Plant Patents	76	(1)
From Idea to Patent	76	(2)
Party Qualified to File	76	(2)
The Patent Application and Examination Process	78	(1)
Patent Infringement	79	(3)
Literal Infringement	79	(1)
Equivalence	79	(1)
File Wrapper Estoppel	79	(3)
The Public Use Doctrine	82	(1)
Remedies and Damages	82	(1)
Actual Damages	82	(1)
Attorneys' Fees	82	(1)
Limitations	83	(1)
Notice	83	(1)
Infringement Defenses	83	(1)
Global Issues in CyberLaw: Intellectual Property	83	(6)
International Patent Law	84	(5)
Chapter 5 Protection of Trade Secrets, Trademarks, and Trade Dress	89	(20)
Trade Secret Protection	89	(1)
Legal Protection of Trade Secrets	90	(2)
Misappropriation	90	(1)
Economic Espionage Act	91	(1)
Exclusive Rights	92	(1)
Trademarks, Service Marks, and Trade Dress	92	(2)
Business Value of Trademarks	93	(1)
Protection under the Law	93	(1)
Trademark Classification	93	(1)
Acquiring Rights	94	(2)
Applications and the Patent and Trademark Office	95	(1)
Preserving Trademark Protection	96	(1)
Violation of Trademarks	96	(4)
Trademark Infringement	96	(1)
Trademark Dilution	97	(2)
Infringement Defenses	99	(1)
Remedies	100	(1)
Trademarks in Cyberspace	100	(4)
Domain Names, Virtual Kidnapping, and Cybersquatting	100	(4)
Metatags	104	(1)
Framing	104	(1)
Global Perspectives in Cyberlaw	104	(5)
International Protection of Trademarks	104	(1)
The Trademark Law Treaty	105	(1)
Non-TLT Signatories	105	(1)
The European Union	105	(4)
Chapter 6 Copyrights	109	(28)
Copyright Law	110	(2)
Originality and "Sweat of the Brow"	110	(2)
Evolution of U.S. Copyright Law	112	(6)
Audio Home Recording Act of 1992	112	(2)
Digital Performance Right in Sound Recordings Act of 1995	114	(1)
No Electronic Theft Act of 1997	115	(1)
Digital Millennium Copyright Act of 1998	115	(2)
Copyright Term Extension Act of 1998 and Length of Ownership	117	(1)
Copyrights and Computer Programs	118	(1)
Rights of Copyright Owners	118	(4)
Copyright Protection	118	(4)
Copyright Infringement	122	(4)
Direct	122	(1)
Indirect	122	(3)
RIAA's Plan B-A Scorched Earth Litigation Strategy at the Individual User Level	125	(1)
Vicarious Infringement	126	(1)
Remedies	126	(1)
Injunctive Relief	126	(1)
Damages	127	(1)
Attorney's Fees and Costs	127	(1)
Criminal Sanctions	127	(1)
Copyright Infringement Defenses	127	(3)
Fair Use	127	(3)
First Sale	130	(1)
Public Domain	130	(1)
Global Perspectives in Cyberlaw: The Berne Convention and U.S. Isolationalism	130	(7)
UNIT 3 LEGAL ISSUES OF OPERATION, MANAGEMENT, AND WINDUP OF E-COMMERCE FIRMS 135
Chapter 7 Litigation and Alternative Methods of Dispute Resolution	137	(22)
Litigation	137	(1)
Phases of Litigation	137	(9)
Prelawsuit	138	(1)
Pleadings Phase	138	(4)
Discovery Phase	142	(2)
Pretrial	144	(1)
Trial	144	(1)
Posttrial Motions and Appeals	145	(1)
Collecting the Judgment	145	(1)
Alternate Dispute Resolution	146	(1)
Fundamentals	146	(1)
Methods of Alternate Dispute Resolution	147	(5)
Arbitration	149	(2)
Mediation and Med-Arb	151	(1)
Expert Evaluation	152	(1)
Online Dispute Resolution	152	(2)
Transactions and Relationships	153	(1)
Online Mediation	153	(1)
Online Arbitration	153	(1)
Global Perspectives in Cyberlaw: International Dispute Resolution	154	(5)
International Arbitration	154	(2)
International Mediation	156	(3)
Chapter 8 Jurisdiction in and out of Cyberspace	159	(16)
Jurisdiction	160	(4)
Source of Law	160	(1)
Personal Jurisdiction	160	(2)
Subject Matter	162	(2)
Exclusive Jurisdiction and Concurrent Jurisdiction	164	(1)
Venue	164	(1)
Evolution of Cyber Jurisdiction and E-Commerce	164	(6)
Other Views: Narrowing Zippo	167	(3)
Global Perspectives in Cyberlaw: International Jurisdiction and the Internet	170	(5)
Directive on Electronic Commerce of the European Union	171	(4)
Chapter 9 Contracts, Sales, and E-Commerce Transactions	175	(22)
Overview of Contract Law	176	(1)
Sources of Law	176	(1)
Statutory Sources of Law in the Tech Sector	176	(1)
Formation of a Contract	177	(8)
Agreement	177	(1)
Consideration	178	(3)
Capacity	181	(1)
Legality	181	(1)
Statute of Frauds	182	(1)
Parol Evidence and Common Law Contracts	183	(1)
Performance and Conditions	183	(2)
Breach and Remedies	185	(1)
Article 2-Contracts for the Sale and Lease of Goods	185	(1)
Merchants v. Non-Merchants	186	(1)
Article 2A-Leases	186	(2)
Forms of Leases	186	(1)
Offer	186	(1)
Open Terms	186	(1)
Acceptance	187	(1)
Consideration	187	(1)
Statute of Frauds	188	(1)
Parol Evidence and the U.C.C.	188	(1)
Electronic Contracts	188	(9)
UETA	188	(2)
UCITA	190	(7)
Chapter 10 Torts, Cyber Torts, and Product Liability	197	(16)
Torts	197	(1)
Cyber Torts	198	(1)
Defamation	198	(4)
Defenses to Defamation	199	(1)
Liability of Publishers	199	(3)
Other Intentional Cyber Torts	202	(3)
Trespass	202	(3)
Negligence	205	(2)
Hypothetical Negligence Case	205	(1)
Defenses	206	(1)
Strict Liability for Products in the Technology Sector	207	(6)
Product Liability and Value-Added Resellers in the Tech Sector	207	(6)
Chapter 11 Raising Capital and Regulation of Securities	213	(26)
Sources of Capital	213	(5)
Equity Instruments	213	(2)
Debt Instruments	215	(3)
Securities Law	218	(6)
Security Defined	218	(2)
Federal Securities Regulation	220	(1)
The Securities Act of 1933	221	(1)
Exemptions from the '33 Act	221	(2)
The Securities Act of 1934	223	(1)
Insider Trading	223	(1)
State Regulation of Securities: Blue Sky Laws	223	(1)
Abuses in Litigation: Amendments to the Securities Acts	224	(1)
Securities Litigation Uniform Standards Act of 1998	224	(1)
Technology's Impact on Raising Capital	224	(3)
Marketing Securities over the Internet	225	(2)
New Securities and the Internet	227	(6)
Federal Regulation	227	(2)
State Regulation	229	(1)
Public Offerings of Securities on the Web	229	(1)
A Streaming Road Show	230	(1)
Online Offerings of Exempt Securities	231	(1)
Trading on the Secondary Market in Cyberspace	231	(2)
Antifraud Laws, Cyber Entrepreneurs, and E-Commerce	233	(6)
Antifraud and the Cyber Entrepreneur	234	(5)
Chapter 12 Antitrust Law and Technology	239	(22)
Antitrust Statutes	239	(1)
The Sherman Act: Per Se Violations and the Rule of Reason	240	(1)
Horizontal Restraints among Competitors	241	(5)
Price Fixing	241	(1)
Allocation of Markets or Customers	242	(1)
Boycotts: Concerted Refusal to Deal	243	(2)
Trade Associations	245	(1)
Vertical Restraints	246	(15)
Monopolization	249	(1)
The Microsoft Case	250	(3)
Microsoft on Appeal	253	(2)
The Clayton Act	255	(1)
The Robinson-Patman Act	256	(5)
Chapter 13 Bankruptcy, Dissolution, and Windup	261	(22)
Bankruptcy Law	261	(1)
Chapter 7: Liquidation	262	(6)
Steps in a Chapter 7 Proceeding	262	(6)
Chapter 11: Reorganization	268	(2)
Steps of a Chapter 11 Proceeding	268	(2)
Chapter 13: Consumer Adjustment Bankruptcy	270	(1)
Bankruptcy and E-Commerce	270	(1)
Dissolution and Windup	271	(14)
Dissolution as an Alternative to Bankruptcy	271	(1)
Dissolution of Partnerships	271	(2)
Dissolution of Corporations	273	(5)
Windup	278	(5)
UNIT 4 HUMAN RESOURCES AND OTHER GOVERNMENT REGULATION	283	(38)
Chapter 14 Hiring, Employee Supervision, and Termination	285	(20)
Overview of the Employment-At-Will Doctrine	285	(1)
Implied Employment Contracts	286	(1)
Public Policy Exception to the Employment-at-Will Doctrine	286	(4)
Whistle-Blower Protections	287	(1)
Employee Privacy Rights	288	(2)
Federal Solutions: Existing Legislation	290	(8)
The Electronic Communications Privacy Act of 1986	290	(3)
Overview of ECPA Title II: Prohibition Against Accessing Stored Electronic Communications	293	(1)
Exceptions for the Interception of and Access to Electronic Communications	293	(1)
Disclosure under Title I and Title II	294	(1)
Damages under the ECPA	295	(1)
State Statutes	295	(1)
Employment Discrimination	295	(1)
Overview of Employment Discrimination Laws	296	(1)
Theories of Liability under Employment Discrimination Statutes	297	(1)
Harassment	297	(1)
Employer Liability for Harassment	297	(1)
Bona Fide Occupational Qualification (BFOQ)	298	(7)
Discrimination Concerns and Technology	298	(1)
E-Mail and Electronic Bulletin Boards	298	(2)
The Americans with Disabilities Act: Discrimination Against Online Consumers	300	(5)
Chapter 15 Computer Crime, Internet Regulation, and Obscenity	305	(16)
Crackdowns in Cyberspace	305	(1)
Regulating E-Mail Solicitations: State Legislation and the CAN-SPAM Act of 2003	306	(1)
Computer-Related Crime	306	(4)
Unauthorized Use	307	(1)
Denial of Service Attacks	308	(1)
Virtual Vandalism	309	(1)
Programs Intended to Cause Damage	309	(1)
Cyber Stalking	310	(1)
Computer Crime Statutes	310	(2)
Computer Fraud and Abuse Act of 1986 (18 U.S.C. § 1030)	311	(1)
Global Perspectives on Cyberlaw: The European Union's Cyber Cops	312	(2)
Civil Liability and Remedies	313	(1)
Obscenity	314	(1)
Overview of the Historical Background of Obscenity Regulation	314	(1)
Obscenity in Cyberspace	314	(1)
The Communications Decency Act	314	(1)
Congressional Response to Reno I: Child Online Protection Act of 1998	315	(6)
State Attempts to Regulate Internet Obscenities	316	(5)
Appendix A Amendments to the U.S. Constitution	321	(2)
Appendix B Federal Trademark Dilution Act	323	(1)
Appendix C Uniform Dispute Resolution Policy (UDRP)	324	(1)
Appendix D Excerpt from the Digital Millennium Copyright Act (1998)	325	(10)
Glossary	335	(8)
Table of Cases	343	(2)
Index	345