By Terrance S. Carter, B.A., LL.B., Trade-Mark Agent
September 1999
1. A Recent Neilson Survey Reports That
currently there are 50.6 million people on the internet
internet users have doubled in last 18 months
30% of population use the internet, up from 10% in fall of 1995
women make up 42% of on line users
the number of people who search the web for products has doubled to 39% from 19% in 1995
in 1996, 700 million dollars worth of business was transacted electronically
2. Future Predictions
by the year 2001 it is expected that most global commerce will be done on the internet
the future is now seen in terms of electronic commerce
the internet is moving from an informational source to a transactional forum
participation on the internet is no longer an option for anyone who plans to survive in the 21st century
for example, LL.Bean has rapidly expanded into Japan market primarily by means of internet
orders
1. The Internet Is The New Legal Frontier
technology of the internet challenges the boundaries of the existing law
technology is forcing change in the law similar to how the printing press forced the creation of
copyright law
2. The Internet Is Difficult To Legally Regulate
the problem is that no one owns the internet
there are no clear universal rules or enforcement of rights
the internet is not limited by international borders
the internet involves new and quickly expanding technology
there are many "outlaws" who are abusing the privileges of the internet
presently there are more questions than answers concerning the law and the internet
3. Some Of The Legal Issues That Arise In Using The Internet Include Potential
defamation of character
invasion of privacy
copyright violation
trade-mark infringement
domain name protection
criminal law
pornography
hate literature
cyber-stalking
electronic contracts
consumer protection law and international boundaries
limitation on free speech
destruction of property, i.e., computer viruses
1. Current Law
author of a text, image or work of art owns the original copyright during the life of the author and 50 years after his death
copyright need not be registered
a copyright notice of © does not need to be affixed to documents to invoke protection
copyright law has generally been standardized internationally by convention
2. What Constitutes Copyright Violation
basic violations occur if a person makes copies without the author's permission
downloading from a web site may be a violation
browsing the internet involves copying on RAM memory
copying onto a computer disk is a more obvious violation
service providers only provide access to information and therefore are not in possession of material
links to other web sites through use of "frame sites" may result in copyright violations
need to obtain consent of author to copy material unless there is clear permission already granted
3. Posting Information On The Net
posting information on the internet normally means that you are giving implied consent for others to copy
if you want to retain copyright, the material posted should clearly state that copyright applies and consent must be obtained
ensure that use of other material that is posted on a web site has been approved by the author
4. What Is The Law Doing About Copyright On The Internet
very difficult to prosecute copyright violations at home or abroad
U.S. and Canada are both studying the copyright issue on the internet
Copyright Bill before Parliament is presently silent on copyright issues
Parliamentary committee has concluded that browsing a work on the net, even temporarily, would be considered a breach of copyright unless pre-authorized
parliamentary committee also suggests that owners and operators of electronic bulletin boards should be liable for copyright infringement
a simple license arrangement will likely be developed to obtain access to internet material in the
future
1. What Is A Domain Name
domain name is the numeric name of a computer on the internet
usually includes the operating name of organization, i.e., "microsoft.com"
first level of the domain name are the international categories of .com, .org, .net, .edu, .gov
the second level of the domain name, i.e., "pepsi.com", "mcdonald.com", are the operative part of the domain name
there are also regional first level names such as .ca for Canada or .us for the United States
2. The Importance Of Obtaining A Domain Name
there are limited number of domain names available because no two domain names can be the same
there may be increased number of first level categories in the future but unlikely to be enough to avoid emerging competition for names
better to obtain domain name sooner as opposed to later
domain name will become prime source of goodwill in the future i.e., "microsoft.com"
3. Conflict Between Domain Names And Trade-Marks
trade-marks are national, the internet is international
trade-marks relate to specific products or services, domain names have no restrictions to goods or services
trade-marks are based on first to use, domain names are based on first to register
4. Avoiding Problems In Obtaining A Domain Name
a confusing domain name may constitute a trade-mark infringement
need to conduct a nuans name search in Canada
need to conduct trade-mark search in Canada and possibly in the United States
5. Preserving Domain Name
obtain trade-mark registration for domain name to comply with Internic Domain Name Dispute Policy
in the short term, it may need to obtain expeditious foreign trade-marks registration
watch for potentially confusing domain name by others
6. Challenging Existing Domain Names
it is possible to challenge an existing domain name
obtain a trade-mark with date of first usage prior to domain name to "bump" existing domain name
rely upon Internic Domain Name Dispute Policy to force other domain name to change
1. The Internet Is As Private As A Postcard
technology does not lend itself to privacy without supplementary security programs
it should be assumed that information may be "leaked"
2. The Person Sending The Information On The Internet Is Responsible For Its Confidentiality
ask customer if the information should be sent on the net at all
if so, confirm in writing the consent to communicate on the internet
3. Businesses Need To Implement Appropriate Level Of Security Measures Required
develop password controls
implement data encryption
don't send credit card numbers or bank information until the banks advise it is safe to do so
with a credit card number the vendor is normally responsible for fraud or theft
possibly erect a "fire wall" to insulate office network from third party internet access
DISCLAIMER: This summary of Business, Internet and the Law is distributed with the understanding that it does not constitute legal advice or establishing the solicitor/client relationship by way of any information contained herein. The contents are intended for general information purposes only and under no circumstances can be relied upon for legal decision making without first consulting with a lawyer and obtaining a written opinion concerning the specifics of your particular situation.
tsc/updates/legalupdates/internet.2