Page 121 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

E-Commerce and E-Business

9.2.2 Risks of Electronic Documents

Electronic documents are common these days because of the ease with which the documents can be
located and retrieved on a database. Electronic documents help in reducing storing space, as it is not
required to store countless number of paper hard copies. Nowadays, hard copies are less common in
use. However, when compared to paper documents, electronic documents have more risks. They are:
1. Data Corruption: A file can be corrupted due to a number of different reasons. Documents are
damaged due to viruses or technological malfunction, which are not accurately retrievable or
readable by any computer program. Sometimes, the damaged files can be repaired but the process
can be time consuming. It is always suggested to keep backups of all the electronic documents on
a different storage device so that it can safely and quickly recover any data which gets corrupted.

2. Data Theft: It takes some time to take a hard copy document and photocopy it, but an electronic
document can be duplicated instantly and e-mailed to any destination in the world. This makes
data security an important priority for any business or government agency. Although there are
safeguards and programs, when implemented these avoid industrial data theft. However
measures to get around safeguards get more advanced at the same rate. In this age of the Internet,
it is often difficult to guarantee security of a computer file.

If a company’s confidential site is hacked, all the vital information can leak out
and this will lead to various kinds of loss for the company.

3. Editing: The electronic documents can be easily edited and saved, which can be a security
nightmare for the businesses and agencies with sensitive records that get changed without the
agency’s knowledge or consent. There are ways to avoid document editing electronically
including file locks and ‘read-only’ classifications, but the hackers are also adept at circumventing
the safeguards. In case of paper documents, authenticity of the original documents is done by
getting a signature and stamp of the notary which is very difficult to forge especially in a short
period. A document stored electronically has the potential to be edited and saved in seconds in
case someone gets the security protocols.

9.3 Legal Issues for Internet Commerce
Internet commerce has raised legal issues through the provision of the following services:
1. Online retailing - ordering of products and services
2. Online marketing
3. Online publishing

4. Exchange of electronic messages and documents
5. Financial services such as banking and trading in securities
6. EDI, electronic filing, electronic transactions, and remote employee access
Trade and commerce over the Internet gives rise to many legal issues like trademarks and domain
names, copyright and trademark, jurisdiction issues, service provider liability, and formation of
enforceable online contract.
9.3.1 Trademarks and Domain Names
The dot-com domain is used by commercial entities to identify them in cyberspace. The latter is
worldwide, since the Internet is not confined to any geographical boundaries. The advantages pose a
problem too. A company uses its name to take a domain name from the registry. Unlike the traditional
commercial world where different companies may have the same trademark in different products or
services, in cyberspace only one name can be given as Name.com. Therefore, the company, which
registers its name first as the domain name removes all the others from the cyberspace. As one would
expect, this leads to legal battles. It has been argued in the court of law that a domain name functions as
a trademark, but using it as a domain name is guilty of the trademark infringement.

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