Mann & Winn E-commerce

OUTLINE

Part I. The Context of Electronic Commerce

Chapter One: Setting Up Shop in Cyberspace

Assignment 1. The Basics of Domain Names

A. Trademarks and Trademark Infringement
B. Initial Interest Confusion
Brookfield Communications, Inc. v. West Coast Entertainment Corp
C. Trademark Dilution
D. Personal Jurisdiction

Problem Set 1

Assignment 2. Cybersquatting

A. Private Responses: NSI and ICANN Dispute-Resolution Policies
Hewlett-Packard Company v. Burgar
B. Federal Response: The Anticybersquatting Consumer Act
Shields v. Zuccarini

Problem Set 2

Assignment 3. Web-Site Development and Outsourcing

A. What Will the Web Site Do
     1. Informational Sites
     2. Simple Storefronts
     3. Complex Sites
B. Web-Site Development Contracts
C. Intellectual-Property Issues
     1. Ownership of the Site
     2. Infringement
D. Web-Site Hosting and Other IT Outsourcing

Problem Set 3

Assignment 4. Computer Security

A. The Challenge of Information Systems
     1. Problems of Corporate Organization and Resources
     2. Challenge of System Integration
     3. Social Context of Information Systems
B. Vulnerabilities, Threats and Safeguards
     1. Threats
          a. Persons Who Threaten Security
          b. Malicious Code
          c. Network Security
          d. Low-Tech Threats
     2. Safeguards
     3. Security Technologies
C. Industry Best Practices and Technical Standards

Problem Set 4

Assignment 5. Records Management, Company Policies & Electronic Evidence

A. Records Management
B. Information-Technology Policies
C. Electronic Evidence
     1. Discovery of Electronic Evidence
          a. Obtaining Electronic Evidence
          b. Spoliation of Evidence
     2. Admissibility of Electronic Evidence
          a. Authentication
          b. Best-Evidence Rule
          c. Business-Records Exception to the Hearsay Rule

Problem Set 5

Assignment 6. Controlling Access to a Web Site

A. Trespass to Chattels
     eBay, Inc. v. Bidder's Edge, Inc
B. Misappropriation
C. Other Causes of action for Unauthorized Access:
     Breach of Contract and the Computer Fraud and Abuse Act
     Register.Com, Inc. v. Verio, Inc.
D. Unsolicited Commercial Email

Problem Set 6

Assignment 7. Liability for Web Site Content

A. Web Site Operator as Publisher
     1. Defamation and the Communications Decency Act
          Zeran v. America Online, Inc.
     2. Copyright Infringement and the Digital Millennium Copyright Act
          Hendrickson v. eBay Inc.
B. Linking and Framing

Problem Set 7

Chapter Two: Rights in Personal Information

Assignment 8. The Basics of Information Privacy

A. Early Development of Privacy Law
B. Fair Information Practices & Information Privacy Law
C. Fair Credit Reporting Act
     1. Access Restrictions
     2. Erroneous Information
     3. Use by Potential Employers
     4. Credit Header Information
     5. Credit Scoring

Problem Set 8

Assignment 9. The Electronic Communications Privacy Act

A. Electronic Communications Privacy Act
In re DoubleClick, Inc. Privacy Litigation
B. USA Patriot Act of 2001

Problem Set 9

Assignment 10. Information Privacy Law Reform

A. Clickstream Data, Online Profiling, and Data Warehousing
B. Financial Information Privacy Provisions in the Gramm-Leach-Bliley Act
     1. Obligations Under GLB
     2. Enforcement of GLB
     3. Criticisms of GLB
C. Children's Online Privacy Protection Act
D. Privacy of Health Records Under the Health Insurance Portability and Accountability Act

Problem Set 10

Assignment 11. Internet Privacy Policies

A. Privacy Policies
     1. Online Privacy Practices
     2. Developing a Privacy Policy
     3. Revising an Existing Privacy Policy
B. Self-Regulation
     1. Seal Programs
     2. Privacy Enhancing Technologies
C. Enforcement of Privacy Policies
     1. FTC Enforcement Actions
     2. Class-Action Law Suits

Problem Set 11

Assignment 12. Transborder Flows of Personal Information

A. OECD Guidelines
B. EU Data Protection Directive
C. UK Data Protection Act of 1998
D. US-EU Safe Harbor
E. EU Standard Contractual Clauses

Problem Set 12

Part II. The Influence of Information Technology on Transactions

Chapter Three: Sales of Goods

Assignment 13. Remote Contracting

A. Delayed Presentation of Terms ("Shrinkwrap")
     Brower v. Gateway 2000, Inc.
B. Electronic Presentation of Terms ("Clickwrap" and "Browsewrap")
     Rudder v. Microsoft Corp.
     Specht v. Netscape Communications Corp.
C. Mail-Order Rule

Problem Set 13

Assignment 14. Electronic Contracting

A. Eliminating Paper Documents
B. Attribution
1. Robotic Devices
2. Signatures
C. Mailbox Rule
D. Mistake

Problem Set 14

Assignment 15. Digital Signatures

A. What is a Digital Signature?
     1. Symmetric and Asymmetric Cryptography
          Figure 15.1 - Conventional Cryptography
     2. Digital Signatures
          Figure 15.2 - Asymmetric Cryptography
          Figure 15.3 - Message Digest
          Figure 15.4 - Digitally Signed Document
     3. Public Key Infrastructure and Certificate Authorities
          Figure 15.5 - Certificate Authority
B. Digital Signatures in Electronic Commerce
     1. Authentication of Network Users and Cross Certification
     2. Closed-Network Applications
     3. Open-System Applications
     4. Communications Security Protocols
          Figure 15.6 - SSL 287
C. Digital Signature Legislation
     1. Technology-Specific Legislation
     2. Technology-Neutral Legislation
     3. EU Electronic-Signatures Directive

Problem Set 15

Assignment 16. B2B Commerce: Electronic Data Interchange and Trading-Partner Agreements

A. Electronic Data Interchange Overview
     1. The History of EDI
     2. EDITechnology
          Figure 16.1 Traditional and EDI Invoices
     3. EDI Applications
     4. Business-Process Reengineering
B. Trading-Partner Agreements
     1. Writings and Records
     2. Contract Formation and Message Acknowledgements
     3. Security Procedures and Message Authentication
     4. Terms and Conditions
     5. Value-Added Networks

Problem Set 16

Assignment 17. B2B Commerce: Internet Exchanges

A. B2B Internet Exchanges: An Overview
B. Structure of a B2B Internet Exchange
     1. Market Models
     2. Technology of a B2B Internet Exchange
     3. Legal Form: Exchange Members Versus Owners
     4. Antitrust Considerations
C. Terms and Conditions of Exchange Transactions
     1. Exchange Membership
     2. Terms and Conditions
     3. Payment
     4. Information Practices

Problem Set 17

Assignment 18. Internet Auctions

A. Auctions & Auctioneers
     1. Traditional Auctions
     2. Licensing of Auctioneers
     3. Non-Auction Remedies for Fraud
B. Online Auctions
C. Online Reverse Auctions

Problem Set 18

Assignment 19. Cross-Border Sale Transactions

A. The Basic Transactions
     1. Documentary-Draft Transactions
          a. Delivering the Goods to the Carrier
          b. Issuing the Draft 352
               Figure 19.1 - Sight Draft for Documentary Collection
          c. Processing by the Seller's Bank
          d. Processing by the Buyer's Bank
               Figure 19.2 - Documentary-Draft Transaction
2. Letter-of-Credit Transactions
          Figure 19.3 - Issuing the Letter of Credit
          Figure 19.4 - Payment by Letter of Credit
B. Electronic Advances
     1. Bolero
     2. The eUCP

Problem Set 19

Assignment 20. Taxing the Internet

A. Taxation by Local Jurisdictions
Quill Corporation v. North Dakota
B. Taxation by National Jurisdictions

Problem Set 20

Chapter Four: Licensing

Assignment 21. The Basics of Licensing

A. The Concept of a License
B. Scope
     Boosey & Hawkes Music Publishers, Ltd. v. The Walt Disney Co.
C. Warranties and Other Obligations of the Seller
     1. Noninfringement
     2. System Integration
D. Termination and Remedies
     1. Licensor Default
     2. Licensee Default

Problem Set 21

Appendix: XYZ Enterprise Service Agreement

Assignment 22. Preemption Issues in Licensing Transaction

A. Two Paradigms
     1. The Distinction Between Fact and Expression
     2. First-Sale Doctrine
          Bobbs-Merrill Co. v. Straus
     3. Fair Use
B. Efforts to Enhance Control
     1. Technological Restrictions
     2. Restrictions by Transactional Design
          DSC Communications Corp. v. Pulse Communications, Inc.
          National Car Rental System, Inc. v. Computer Associates International, Inc.
3. Can the Licensor Prohibit Assignment by the Licensee?

Problem Set 22

Assignment 23. Custom Development, Mass Market, and General Public Licenses

A. Software Development: Source and Object Code
B. Custom Software Development Agreements
     1. Product Specifications and Delivery Schedules
     2. Acceptance Testing
          Rocky Mountain Microsystems, Inc. v. Public Safety Systems, Inc.
     3. Source Code Escrow
C. Mass-Market Software Licenses
D. General Public Licenses and Open Source Software
     1. GNU Gneral Public License
     2. Mozilla Public License
     3. Open Source Initiative

Problem Set 23

Assignment 24. Information Licensing

A. Information as Commercial Property
     1. Special Characteristics of Information
     2. Information in Internet Commerce
B. Legal Protections for Information
     1. Copyright
     2. Trade Secret
     3. Misappropriation
          National Basketball Association v. Motorola, Inc.
     4. Contract
     5. Trespass to Chattels
C. EU Sui Generis Right in Databases
          British Horseracing Board Ltd. v. William Hill Organisation, Ltd.

Problem Set 24

Assignment 25. Antitrust Issues in Licensing Transactions

A. The Basics of Antitrust Law
     1. Unreasonable Restraints of Trade
     2. Monopolization
B. The Players
C. Antitrust and Intellectual Property
     Image Technical Services, Inc. v. Eastman Kodak Co.

Problem Set 25

Assignment 26. Microsoft

United States v. Microsoft Corporation
I. Introduction
     A. Background
     B. Overview
II. Monopolization
     A. Monopoly Power
          1. Market Structure
               a. Market definition
               b. Market power
          2. Direct Proof
     B. Anticompetitive Conduct
          1. Licenses Issued to Original Equipment Manufacturers
               a. Anticompetitive effect of the license restrictions
               b. Microsoft's justifications for the license restrictions
          2. Integration of IE and Windows
               a. Anticompetitive effect of integration
               b. Microsoft's justifications for integration
          3. Agreements with Internet Access Providers
          4. Dealings with Internet Content Providers, Independent Software Vendors, and Apple               Computers
          5. Java
               a. The Incompatible JVM
               b. The First Wave Agreements
               c. Deception of Java Developers
               d. The Threat to Intel
          6. Course of Conduct
     C. Causation
III. Attempted Monopolization
IV. Tying
     A. Separate-Products Inquiry Under the Per Se Test
     B. Per Se Analysis Inappropriate for this Case
     C. On Remand

Problem Set 26

Chapter Five: Electronic Payments

Section A: Electronic Technology and the Checking System

Assignment 27. The Road to Truncation

A. The Basics of Check Collection
     1. Direct Presentment
               Figure 27.1 - Direct Presentment
     2. Indirect Collection
          a. Clearinghouse Collection
               Figure 27.2 - Clearinghouse Collection
          b. Direct-Send Collection
               Figure 27.3 - Direct-Send Collection
          c. Federal-Reserve Collection
               Figure 27.4 - Federal-Reserve Collection
               Figure 27.5 - MICR Line
B. Allocation of Loss in the Checking System
     1. The General Rules
     2. Special Liability Rules (Negligence and the Like)
C. Payor-Bank Truncation
D. Depositary-BankTruncation
     1. Factual Summary
     2. Legal and Practical Issues
          a. Fractionated Check Processing
          b. The Need for a Tangible Image
          c. A Middle Ground for Now: Recovering the Originals

Problem Set 27

Assignment 28. Electronic Checks

A. POS Conversion
Figure 28.1 - POS Conversion
B. ACH "Checks"
Figure 28.2 - ACH "Checks"
C. True Electronic Checks

Problem Set 28

Section B: Internet Payments and Emerging Payment Systems

Assignment 29. Paying for Retail Internet Purchases

A. Credit Cards
     1. Fraud
     2. Privacy
     3. Micropayments
B. Debit Cards

Problem Set 29

Assignment 30. Person-to-Person Payments

A. Providing Funds for Payment
B. Making Payments
C. Collecting Payments

Problem Set 30

Assignment 31. Electronic Bill Presentment and Payment

A. How it Works
     1. Biller Websites
     2. Bill Aggregators
          Figure 31.1 - Bill Aggregators
B. Errors
     1. Customer Errors
     2. Bank and Intermediary Errors
          a. Bill-Distribution Errors
          b. Excessive and Duplicative Payments
     3. Biller Errors
C. Fraud
     1. Interloping Bills
     2. Interloping Payments

Problem Set 31

Assignment 32. Electronic Money

A. Portability: Stored-Value Cards
     1. History and Basic Concepts
     2. Using Stored-Value Cards
          a. Storing Value on the Card
          b. Spending the Value from the Card
          c. Obtaining Payment from the System
               Figure 32.1 - Using Stored-Value Cards
     3. Error and Fraud in Stored-Value Card Systems
B. Remote Transactions: Internet-Capable Electronic Money
     1. Obtaining E-Money
     2. Spending E-money
     3. Clearing and Settling E-money Transactions
               Figure 32.2 - Using Electronic Money
     4. Problems with E-money Systems
          a. Privacy
          b. Duplicate Spending
          c. Forged Ecoins

Problem Set 32

Chapter Six: Lending in the Information Age

Section A: Lending Against Intellectual Property

Assignment 33. Lending Against Copyrights

A. The Basics of Secured Lending
B. The Copyright Act
     1. The Basics of Copyright
     2. Perfecting Security Interests in Copyrightable Materials
          National Peregrine, Inc. v. Capitol Federal Savings & Loan Ass'n
         (In re Peregrine Entertainment, Ltd)
         Aerocon Entineering, Inc. v. Silicon Valley Bank
        (In re World Auxiliary Power Co.)

Problem Set 33

Assignment 34. Financing the Acquisition of Software

A. Software Leases
     Figure 34.1 - Software Leasing
     Figure 34.2 - Article 9 View of General Intangibles
B. Finance Licenses
     Figure 34.3 - Finance Licensing

Problem Set 34

Assignment 35. Lending Against Patents

A. The Basics of Patent law
B. Perfecting Security Interests in Patents
Moldo v. Matsco, Inc. (In re Cybernetic Services, Inc.)

Problem Set 35

Assignment 36. Lending Against Other Forms of Intellectual Property

A. Trademarks
In re Together Development Corporation
B. Trade Secrets
C. Web Sites and Domain Names
Network Solutions, Inc. v. Umbro International, Inc.

Problem Set 36

Section B: Electronic Enhancements of Lending Transactions

Assignment 37. Registry Systems - Electronic Filing

A. The Basics of Loan-Supporting Filing Systems
B. Updating Personal-Property Filing Systems
C. Updating Real-Property Filing Systems
1. The Existing Mortgage Filing Systems
2. E-SIGN and Electronic Mortgage Filings
D. The Dark Side

Problem Set 37

Assignment 38. Account Systems - Financial Assets

A. Account-Based Lending Systems
      Figure 38.1 - Account-Based Lending Systems
B. The Article 8 System
     1. The Indirect Holding System
          a. The Basic Framework
               Figure 38.2 - The Indirect Holding System
          b. Rights Against the Intermediary
               Powers v. American Express Financial Advisors, Inc.
          c. Rights Against Third Parties
     2. Lending Against Securities Entitlements
C. Lending Against Deposit Accounts

Problem Set 38

Assignment 39. Token Systems - Electronic Notes

A. Transferable Records Under E-SIGN and the UETA
     1. The Basics of Negotiability
     2. Negotiability Under E-SIGN and the UETA
     3. Implementation for Real-Estate Notes
B. Electronic Chattel paper Under Article 9

Problem Set 39

Part III. Procedural Issues

Chapter Seven: Problems of Cross-Border Dispute Resolution

Assignment 40. Jurisdiction and Conflict of Law

     A. Jurisdiction and Interstate Internet Commerce
          1. Minimum Contacts and Internet Commerce
               Zippo Manufacturing Company v. Zippo Dot Com, Inc.
          2. Judgment Enforcement
     B. Conflict of Laws and Interstate Internet Commerce
               CAT Internet Services v. Magazines.com Inc.
     C. Jurisdiction and Cross-Border Internet Disputes
          1. Jurisdiction to Prescribe and Adjudicate
          2. Jurisdiction to Enforce
     D. Conflict of Laws and Cross-Border Internet Disputes
     E. Jurisdiction Avoidance

Problem Set 40

Assignment 41. Contractual Choice of Law and Forum

A. Contractual Choice of Law
     1. Choice-of-Law Terms and Interstate Commerce
     2. Choice of Law and Cross-border Internet Commerce
B. Choice of Forum
     1. Choice of Forum and Interstate Commerce
          Carnival Cruise Lines, Inc. v. Shute
          Gross v. America Online, Inc.
          Mark Williams v. America Online, Inc.
2. Choice-of-Forum Terms in Cross-Border Internet Disputes

Problem Set 41

Assignment 42. Online Dispute Resolution

A. Alternative Dispute Resolution
     1. Arbitration
          Green Tree Financial Corp.-Alabama v. Randolph
          Brower v. Gateway 2000, Inc.
     2. Mediation
B. Online Dispute Resolution
     1. ICANN Uniform Dispute Resolution Procedure
     2. Digital Millennium Copyright Act Take-Down Procedures
     3. Spam and the Realtime Blackhole List
     4. eBay and SquareTrade Mediation Service
     5. Automated Settlement Systems
C. EU Regulation of ADR
     1. Arbitration Agreements in Consumer Transactions
     2. EU Regulation of Online Dispute Resolution

Problem Set 42