Internet Law: Text and Materials

The common fallacy regarding cyberspace is that the Internet is a new jurisdiction, in which none of the existing rules and regulations apply. However, all the actors involved in an Internet transaction live in one or more existing jurisdictions, so rather than being unregulated, the Internet is arguably highly regulated. Worse, much of this law and regulation is contradictory and difficult, or impossible, to comply with. This book takes a global view of the fundamental legal issues raised by the advent of the Internet as an international communications mechanism. Legal and other materials are integrated to support the discussion of how technological, economic and political factors are shaping the law governing the Internet. Global trends in legal issues are addressed and the effectiveness of potential mechanisms for legal change that are applicable to Internet law are also examined. Of interest to students and practitioners in computer and electronic commerce law.

Preface

xi

Table of UK statutes

xiii

Table of statutes - foreign jurisdictions

xvii

Table of European Communities legislation

xxvi

Table of Conventions and Agreements

xxxi

Table of cases

xxxiv

Introduction

1

(306)

1 Aims and methodology

1

(2)

2 The technical and economic context

3

(4)

1 The Internet as a distributed environment

7

(17)

1.1 Introduction

7

(4)

1.1.1 The functions of the Internet

8

(1)

1.1.2 Performance of those functions

8

(1)

1.1.3 The players

8

(1)

1.1.4 Types of connection

9

(1)

1.1.5 A revised perspective of the Internet

10

(1)

1.2 Packet switching, copying and the inchoate nature of internet 'documents'

11

(4)

1.3 The co-operative nature of internetworking and the distributed nature of infrastructure ownership

15

(3)

1.4 Resource hosting, mirroring and other hidden elements of the internet

18

(3)

1.4.1 Resource hosting

19

(1)

1.4.2 Mirroring

20

(1)

1.4.3 Other hidden elements

20

(1)

1.5 The distribution of computing processes and the virtual site

21

(1)

1.6 Penetrating the clouds

22

(2)

2 From each according to his ability: actors and activities in the Internet world

24

(16)

2.1 Principal actors

24

(2)

2.2 Infrastructure providers

26

(1)

2.3 Intermediaries

27

(10)

2.3.1 Transmission hosts

27

(1)

2.3.2 Resource hosts

27

(4)

2.3.3 Communication services

31

(4)

2.3.4 Transaction facilitation services

35

(2)

2.4 The distributed enterprise

37

(3)

3 An infinity of scarce resources: ownership and use of Internet resources

40

(49)

3.1 Exploring the paradox

40

(2)

3.2 Domain names

42

(24)

3.2.1 Initial allocation of domain names

43

(2)

3.2.2 Legal rights in names - an inevitable conflict

45

(7)

3.2.3 Resolution of domain name disputes

52

(13)

3.2.4 Can the conflict be resolved?

65

(1)

3.3 Making use of third party information resources

66

(22)

3.3.1 Licenses to re-use Web resources

68

(3)

3.3.2 Direct copying of the resource

71

(3)

3.3.3 Incorporation of the resource through an automated link

74

(2)

3.3.4 User-selected linking

76

(12)

3.4 From property to propriety

88

(1)

4 New actors on a new stage: intermediary liability in the Internet world

89

(51)

4.1 Service provider liability

90

(4)

4.1.1 Liability for communication failure

90

(2)

4.1.2 Other services

92

(2)

4.2 Liability based on information content

94

(28)

4.2.1 Copyright

96

(10)

4.2.2 Obscenity and indecency

106

(6)

4.2.3 Defamation

112

(9)

4.2.4 Common elements of intermediary liability

121

(1)

4.3 Limitations on intermediary liability

122

(18)

4.3.1 Intermediary contracts

123

(1)

4.3.2 Statutory limitation and immunity

124

(16)

5 On the Internet, nobody knows you're a dog: identity and identification

140

(33)

5.1 The problem of identity

141

(2)

5.2 Uses of identification

143

(4)

5.2.1 Electronic signatures

144

(2)

5.2.2 Information licensing

146

(1)

5.2.3 Status information

147

(1)

5.3 Certification of identity

147

(6)

5.3.1 Issue of ID Certificates

147

(3)

5.3.2 Using the certificate to prove identity

150

(1)

5.3.3 Certificate checking infrastructure

150

(3)

5.4 Accreditation schemes

153

(7)

5.4.1 Rationale

153

(1)

5.4.2 Effects of accreditation

154

(1)

5.4.3 Requirements and supervision

155

(5)

5.5 Liability of certification authorities

160

(11)

5.5.1 General law

161

(9)

5.5.2 Statutory liability

170

(1)

5.6 Towards a global system?

171

(2)

6 Old wine in new bottles: traditional transactions in the Internet environment

173

(44)

6.1 Fundamental concepts revisited

174

(29)

6.1.1 Property rights in information

174

(6)

6.1.2 Signatures

180

(21)

6.1.3 Writing

201

(2)

6.2 Contracts revisited

203

(14)

6.2.1 Contracting via intermediaries

204

(6)

6.2.2 Concluding a contract through electronic agents

210

(2)

6.2.3 Implied terms in on-line supplies of information

212

(5)

7 The long arm of the law: cross-border law and jurisdiction

217

(52)

7.1 Where do internet transactions take place?

218

(13)

7.1.1 The 'cyberspace' fallacy

218

(1)

7.1.2 Localisation in the physical world

218

(5)

7.1.3 Localisation in the Internet world - chasing packets

223

(8)

7.2 Jurisdictional and regulatory competence

231

(25)

7.2.1 Activities undertaken in the jurisdiction

231

(19)

7.2.2 Country of origin regulation

250

(6)

7.3 Human rights and transborder communication

256

(13)

7.3.1 Free speech

258

(4)

7.3.2 Privacy

262

(5)

7.3.3 Home country regulation as a solution?

267

(2)

8 Legislative and regulatory arbitrage

269

(22)

8.1 Decreasing overheads

269

(15)

8.1.1 Reducing the impact of taxation

270

(9)

8.1.2 Internet banking and finance

279

(5)

8.2 Restricted and prohibited activities

284

(5)

8.2.1 Charging for admission to the game or lottery

286

(1)

8.2.2 Advertising

287

(1)

8.2.3 Use of premises

288

(1)

8.2.4 Procurement

288

(1)

8.2.5 Is gambling arbitrage possible?

288

(1)

8.3 The application of Gresham's law?

289

(2)

9 Enforceability in the Internet environment

291

(16)

9.1 Public order rules

292

(4)

9.1.1 Obscenity

293

(2)

9.1.2 Advertising controls

295

(1)

9.2 Private rights and consumer protection

296

(4)

9.3 Self-regulation - sticks and carrots

300

(6)

9.3.1 Unlawful content

301

(1)

9.3.2 Privacy

302

(1)

9.3.3 Consumer protection

303

(1)

9.3.4 Alternative dispute resolution

304

(2)

9.4 The characteristics of enforceability

306

(1)

10 Facing the legislative and regulatory challenge

307

(8)

10.1 Developing new legal concepts

309

(1)

10.2 Solving problems of global reach - convergence of national law

310

(2)

10.3 Insoluble problems

312

(3)

Index

315

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Internet Law: Text and Materials

Summary

Table of Contents

Supplemental Materials