Chapter One. The Background: Regimes for Resolving Disputes

Assignment 1. Jurisdiction and Conflict of Laws
A. Jurisdiction and Internet Commerce
1. Minimum Contacts and Internet Commerce
Neogen Corp. v. Neo Gen Screening, Inc.
Gator.com Corp. v. L.L. Bean, Inc.
2. Judgment Enforcement
3. Cross-Border Issues
(a) Jurisdiction to Prescribe and Adjudicate
(b) Jurisdiction to Enforce
B. Conflict of Laws and Internet Commerce
CAT Internet Services v. Magazines.com Inc.
Problem Set 1

Assignment 2. Contractual Choice of Regime
A. Contractual Choice of Law
1. Choice of Law and Interstate Commerce
2. Choice of Law and Cross-Border Commerce
B. Contractual Choice of Forum
1. Choice of Forum and Interstate Commerce
Groff v. America Online, Inc.
2. Choice of Forum and Cross-Border Commerce
C. Arbitration
1. Arbitration Clauses and Interstate Commerce
Comb v. PayPal, Inc.
2. Arbitration Clauses and EU Commerce
Problem Set 2

The Camford Books Problem (Part I)

Part II. The Context of Electronic Commerce

Chapter Two. Setting Up Shop on the Internet

Assignment 3. Trademarks and Domain Names
A. Trademarks and Trademark Infringement
B. Initial Interest Confusion
Playboy Enterprises, Inc. v. Netscape Communications Corp.
U-Haul International, Inc. v. WhenU.com, Inc.
Problem Set 3

Assignment 4. Cybersquatting
A. Private Responses: NSI and ICANN Dispute-Resolution Policies
Hewlett-Packard Company v. Burgar
Wal-Mart Stores, Inc. v. Richard MacLeod d/b/a For Sale
B. Federal Response: The Anticybersquatting Consumer Protection Act
Dluhos v. Strasberg
The Taubman Company v. Webfeats
Shields v. Zuccarini
Problem Set 4

Assignment 5. Web Site Development and Hosting
A. What Will the Web Site Do
1. Informational Sites
2. Simple Storefronts
3. Complex Sites
B. Web-Site Development Contracts
1. Defining and Implementing the Project
(a) Site Design: How the Site Looks
(b) Site Performance: How the Site Performs
(c) Implementing the Statement of Work
(d) The Customer"s Obligation to Provide Materials
(e) Delivery and Acceptance
2. Ownership
(a) IP Issues
(b) Drafting Issues
3. Allocating Risks
(a) Representations and Warranties
(b) Limitations of Liability
(c) Indemnification
C. Web-Site Hosting and Other IT Outsourcing
Problem Set 5

Assignment 6. Controlling Access to a Web Site
A. Trespass to Chattels
Intel Corp. v. Hamidi
B. Misappropriation
C. Other Causes of Action for Unauthorized Access: Breach of Contract and the Computer Fraud
and Abuse Act
EF Cultural Travel BV v. Zefer Corp.
D. Unsolicited Commercial Email
Problem Set 6

Assignment 7. Owner Liability
A. Liability as a Publisher
1. Defamation and the Communications Decency Act (CDA)
Batzel v. Smith
2. Copyright Infringement and the Digital Millennium Copyright Act (DMCA)
CoStar Group, Inc. v. Loopnet, Inc.
B. Linking and Framing
C. Respondeat Superior: Blogs and Chat Rooms
D. Securities Issues
1. The Duty to Update
2. Forward Looking Statements
Problem Set 7

Assignment 8. ISP Liability
A. The Role of the ISP
B. Liability as a Publisher
1. Defamation and the CDA
Doe v. GTE Corp.
2. Copyright Infringement and the DMCA Act
Ellison v. Robertson
C. A Note on Gatekeeper Liability
Problem Set 8

The Camford Books Problem (Part II)

Chapter Three. Protecting Information

Assignment 9. Protecting Information: The Basics
A. Clickstream Data, Online Profiling, and Data Warehousing
B. Inadequate Security
C. Data Protection in the US
1. Fair Information Practices
2. COPPA
Problem Set 9

Assignment 10. Data Protection in the EU
A. EU Data Protection Directive
B. UK Data Protection Act of 1998
C. Accommodations Between the US and the EU
Problem Set 10

Assignment 11. Internet Privacy Policies and Related Practices
A. Privacy Policies
1. Online Privacy Practices
2. Developing a Privacy Policy
(a) What Information Will Be Collected?
(b) Who Will Have Access to the Information?
(c) How Can the Policy Be Changed?
B. Self-Regulation
1. Seal Programs
2. Privacy Enhancing Technologies
Problem Set 11

Assignment 12. The Electronic Communications Privacy Act
A. Electronic Communications Privacy Act
In re Pharmatrak, Inc. Privacy Litigation
United States v. Councilman
B. USA Patriot Act of 2001
Problem Set 12

The Camford Books Problem (Part III)

Part II: The Influence of Information Technology on Commercial Transactions

Chapter Four. Transactions in Electronic Commerce

Section A. Sales of Goods

Assignment 13. Electronic Contracting I
A. Delayed Presentation of Terms ("Shrinkwrap")
Brower v. Gateway 2000, Inc.
James J. White, Contracting Under Amended 2-207
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 II
A. Eliminating Paper Documents
B. Attribution
1. Robotic Devices
2. Signatures
C. Mailbox Rule
D. Mistake
Problem Set 14

Assignment 15. Internet Auctions
A. Traditional Auctions
B. Licensing of Auctioneers
C. Online Auctions
1. Auctions on eBay
2. Contracting out of Auctioneer Status
Gentry v. eBay, Inc.
Problem Set 15

Assignment 16. Taxing the Internet
A. Taxation by Local Jurisdictions
Quill Corporation v. North Dakota
B. Taxation by National Jurisdictions
Problem Set 16

Section B. B2B Transactions

Assignment 17. Electronic Data Interchange and Trading-Partner Agreements
A. The Basics of EDI
1. The History of EDI
2. EDI Technology
Figure 17.1 – Traditional and EDI Invoices
3. EDI Applications
B. Trading-Partner Agreements
1. Writings and Records
2. The Interchange of Documents
3. Security Procedures and Message Authentication
4. Terms and Conditions
Problem Set 17

Assignment 18. Digital Signatures
A. What is a Digital Signature?
1. Symmetric and Asymmetric Cryptography
Figure 18.1 – Conventional Cryptography
2. Digital Signatures
Figure 18.2 – Asymmetric Cryptography
Figure 18.3 – Message Digest
Figure 18.4 – Digitally Signed Document
3. Public Key Infrastructure and Certification authorities
Figure 18.5 – Certification 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 18.6 – SSL
C. Digital Signature Legislation
1. Technology-Specific Legislation
2. Technology-Neutral Legislation
3. EU Electronic-Signatures Directive
Problem Set 18

Assignment 19. B2B on the Internet
A. Structure of B2B Sites
1. Market Models
2. Technology of a B2B Internet Exchange
3. B2B Structure: Industry Operated or Third Party Operated
4. Antitrust Considerations
B. Terms and Conditions of Exchange Transactions
1. Role of the Exchange and Its Members
2. Terms and Conditions
3. Authentication
4. Payment
5. Information Practices
Problem Set 19

Section C. Sales of Intangibles

Assignment 20. Transactions in Information
A. Special Characteristics of Information
B. Information in Internet Commerce
C. Legal Protections for Information
1. Copyright
2. Trade Secret
3. Misappropriation
National Basketball Association v. Motorola, Inc.
4. Contract
5. Trespass to Chattels
D. EU Sui Generis Right in Databases
British Horseracing Board Ltd. v. William Hill Organisation, Ltd.
Problem Set 20

Assignment 21. Sales of Music
A. Musical Works and Sound Recordings
1. The Exclusive Right to Reproduce
2. The Exclusive Right to Perform
B. Digital Performances
R. Anthony Reese, Copyright and Internet Music Transmissions: Existing Law, Major
Controversies, Possible Solutions
C. P2P Trading of Music
A&M Records, Inc. v. Napster, Inc.
Metro-Goldyn-Mayer Studios, Inc. v. Grokster, Ltd.
Problem Set 21

Section D. Software Licensing

Assignment 22. The Basic Framework
A. The License as a Contract
B. Licenses and Intellectual Property
1. Two Paradigms
(a) First-Sale Doctrine
(b) Fair Use
2. Efforts to Enhance Control
(a) Technological Restrictions
(b) Restrictions by Transactional Design
(I) Is a Licensee an "Owner"?
DSC Communications Corp. v. Pulse Communications, Inc.
(II) Can the License Retain Greater Rights for the Licensor?
Bowers v. Baystate Technologies, Inc.
3. Can the Licensor Prohibit Assignment by the Licensee?
Problem Set 22

Assignment 23. The Proprietary Software License
A. Types of Licenses
1. Upstream Licenses
2. Mass-Market Licenses
B. The Major Terms of a License
1. Scope
2. Warranties and Other Obligations of the Seller
(a) Noninfringement
(b) System Integration
C. Termination and Remedies
1. Licensor Default
2. Licensee Default
Problem Set 23
Appendix: Forms
A. Sample License Agreement
B. End-User License Agreement

Assignment 24. 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
1. Monopolization
Image Technical Services, Inc. v. Eastman Kodak Co.
United States v. Microsoft Corporation
2. Unreasonable Restraints of Trade
Antitrust Guidelines on the Licensing of Intellectual Property § 2.3
Antitrust Guidelines on the Licensing of Intellectual Property § 3.1
United States v. Microsoft Corporation
Problem Set 24

Assignment 25. Open-Source Licenses
A. Software Development: Source and Object Code
B. The Open-Source Movement
Jonathan Zittrain, Normative Principles for Evaluating Free and Proprietary Software

C. Open-Source Licenses
Robert W. Gomulkiewicz, How Copyleft Uses License Rights to Succeed in the Open
Source Software Revolution and the Implications for Article 2B
D. Open Source and Intellectual Property
Problem Set 25

The Camford Books Problem (Part IV)

Chapter Five. Electronic Payments

Section A. Electronic Technology and the Checking System

Assignment 26. The Road to Truncation
A. The Basics of Check Collection
1. Direct Presentment
Figure 26.1 – Direct Presentment
2. Indirect Collection
(a) Clearinghouse Collection
Figure 26.2 – Clearinghouse Collection
(b) Direct-Send Collection
Figure 26.3 – Direct-Send Collection
(c) Federal-Reserve Collection
Figure 26.4 – Federal-Reserve Collection
Figure 26.5 – 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-Bank Truncation and the Check 21 Act
Figure 26.6 – Check Processing Under Check 21
Figure 26.7 – Substitute Check
Problem Set 26

Assignment 27. Electronic Checks and ACH Transfers
A. True Electronic Checks
B. ACH Transfers
1. The Basics of ACH Transfers
(a) The Basic Terminology
Figure 27.1 – ACH Entries
(b) The Mechanics
(c) Types of ACH Entries
(d) Finality, Fraud, and Error in ACH Transfers
2. POS Conversion
Figure 27.2 – POS Conversion
C. Telephone-Initiated Payments
Problem Set 27

Section B. Internet Payments and Emerging Payment Systems

Mark A. Lemley & David McGowan, Legal Implications of Network Economic Effects
Ronald J. Mann, Making Sense of Payments Policy in the Information Age

Assignment 28. Paying for Retail Internet Purchases
A. Credit Cards
1. The Basics of Credit Cards
(a) The Issuer-Cardholder Relationship
(b) Processing Credit Card Transactions
(c) Fraud and Error in Credit Card Transactions
2. Credit Cards on the Internet
(a) Processing the Transactions
(b) Problems
(I) Fraud
(II) Privacy
(III) Micropayments
B. Debit Cards
1. The Basics of Debit Cards
(a) Payment with a Debit Card
(b) Error and Fraud with Debit Cards
2. Debit Cards on the Internet
C. ACH Transfers (WEB Entries)
Figure 28.1 – ACH "Checks"
D. Foreign and Cross-Border Payments
E. A Note on Mobile Payments
Problem Set 28

Assignment 29. P2P Payments and EBPP Systems
A. The Basics
Ronald J. Mann, Regulating Internet Payment Intermediaries
B. State Regulation
C. Foreign and Cross-Border Transfers
Problem Set 29

Assignment 30. Electronic Money
A. Portability: Stored-Value Cards
1. The Basics
2. Legal Issues
(a) The EFTA
(b) Other Issues
B. Remote Transactions: Internet-Capable Electronic Money
1. Obtaining E-Money
2. Spending E-Money
3. Clearing and Settling E-Money Transactions
Figure 30.1 – Using Electronic Money
4. Problems with E-Money Systems
(a) Privacy
(b) Duplicate Spending
(c) Forged Ecoins
5. Legal Issues with E-Money
Problem Set 30

Section C. B2B Payments

Assignment 31. Cross-Border Sale Transactions
A. The Basic Transactions
1. Documentary-Draft Transactions
(a) Delivering the Goods to the Carrier
(b) Issuing the Draft
Figure 31.1 – Sight Draft for Documentary Collection
(c) Processing by the Seller's Bank
(d) Processing by the Buyer's Bank
Figure 31.2 – Documentary-Draft Transaction
2. Letter-of-Credit Transactions
Figure 31.3 – Issuing the Letter of Credit
Figure 31.4 – Payment by Letter of Credit
B. Electronic Advances
1. Bolero
2. The eUCP
3. Future Advances
Problem Set 31

Chapter Six. Lending in the Information Age

Assignment 32. Registry Systems – Electronic Filing
A. The Basics of Secured Lending
B. The Basics of Secured Credit Filing Systems
C. Updating Personal-Property Filing Systems
D. Updating Real-Property Filing Systems
1. The Existing Mortgage Filing Systems
2. E-SIGN and Electronic Mortgage Filings
E. Problems with Electronic Filing
Problem Set 32

Assignment 33. Account Systems – Financial Assets
A. Account-Based Lending Systems
Figure 33.1 – Account-Based Lending Systems
B. The Article 8 System
1. The Direct Holding System
2. The Indirect Holding System
(a) The Basic Framework
Figure 33.2 – The Indirect Holding System
(b) Rights Against the Intermediary
Powers v. American Express Financial Advisors, Inc.
(c) Rights Against Third Parties
3. Lending Against Securities Entitlements
C. Lending Against Deposit Accounts
Problem Set 33

Assignment 34. 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 34

Chapter Seven. Financing the Technology Company

Assignment 35. Lending Against Copyrights
A. The Basics of Copyright
B. 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 35

Assignment 36. Financing the Acquisition of Software
A. Software Leases
Figure 36.1 – Software Leasing
Figure 36.2 – Article 9 View of General Intangibles
B. Finance Licenses
Figure 36.3 – Finance Licensing
Problem Set 36

Assignment 37. 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 37

Assignment 38. 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 38

A Note on Equity Financing of Startups