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E-COMMERCE E-COMMERCE GOVERNMENTGOVERNMENT

ANDANDGLOBAL ISSUES GLOBAL ISSUES

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DIGITAL DIVIDEDIGITAL DIVIDE

www.worldwatch.org

Personal Computers Per 1,000 People, by Region, 1999 and 2004

0

100

200

300

400

500

600

HighIncomeOECD

East Asia &Pacific

Europe &Central Asia

LatinAmerica

Sub-Saharan

Africa

Middle East& NorthAfrica

World

Source: World Bank

Nu

mb

er

1999

2004

www.worldwatch.org

Top 10 Wired Nations by Percent of Population Online, 2004

0

10

20

30

40

50

60

70

80

90Source: ITU

Perc

ent

Top 10 Wired Nations by Number of Internet Users, 2005

0

50

100

150

200

250Source: Computer Industry Almanac

Mill

ion

5

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While geographical market boundaries may be falling, global interest-based communities will spring up

The emergence of the Internet and the extranets resulted in an inexpensive and flexible infrastructure that can greatly facilitate global trade

World Prices of New Technologies Fall Will this equate to more equal access or Greater Digital Divide?

Global Electronic CommerceIS INTERNET END IS INTERNET END

TO LOCAL TO LOCAL BUSINESS?BUSINESS?

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THE DUTCH FLOWER THE DUTCH FLOWER GROWERSGROWERS

THE DFA•11,000 SELLERS

•3,500 FLOWER TYPES

•5,000 BUYERS

•120 AUCTION GROUPS

VERSUSVERSUS

THE TELE-FLOWER THE TELE-FLOWER AUCTION (TFA)AUCTION (TFA)

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WHAT ARE SOME PROBLEMS ENCOUNTERED WITH WEB GLOBALIZATION?

Barriers to Global ECommerce

Trust & Identification of buyers and sellers

Legal Issues & Role of government (s)

Market Access Issues Financial Issues Security ( for example,

viruses) Cultural diversity International agreements

(multi-lateral agreements) Language and translation

What Do You Think Are Important Issues ?What Do You Think Are Important Issues ?

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DEVELOPED NATIONS PROBLEMS PROBLEM :Japanese prefer to pay cash

SOFTBANK Venture with 7-eleven,Yahoo!Japan and Tohan (book distributor)

Order CDs on web pick up/pay @7Eleven

DEVELOPING NATIONS LACK INFRASTUREShared use of computing, Cafes, Rented computer/cell

phones

Cultural design and locaton specific sites – Regional Sites

Check it out! NIKE.COM AND NIKEBOOTBALL.COM

OVERCOMINGOVERCOMINGGEOPOLITICAL/CULTURAL GEOPOLITICAL/CULTURAL

PERSPECTIVESPERSPECTIVES

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www.bol.com

TARGET > WORLD WIDE SALES

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Source: Global Search

ENGLISH IS DECREASING AS MAJOR LANGUAGEENGLISH IS DECREASING AS MAJOR LANGUAGE

2000

14

site

SITE

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TRANSLATION SOFTWARE IDIOM TECHNOLOGIES

TRACKS ALL SITES REDUCES THE COST OF MAINTAINING

XLANGUAGE SITES LERNOUT & HAUSPIE

VARIETY OF USEFUL TRANSLATION SERVICES ROUTINE CAN USE AUTOMATED SOFTWARE

4,00,000 VS 400 TO 600 WORDS PER MINUTE GENERALLY ”LOCALIZATION” OVER TRANSLATION IT

CONSIDERS MULTIPE ELEMENTS OF LOCAL ENVIRONMENT (E.G. business, cultural,local dialect variations)

Check out altaVista’s translation site BABLE FISH

HOW WILL SHE SELL HOW WILL SHE SELL HERHER

GOODS GOODS INTERNATIONALLY?INTERNATIONALLY?

HOW WILL THEY HOW WILL THEY KEEP PACE WITH KEEP PACE WITH

THE EWORLD THE EWORLD AROUND THEM ?AROUND THEM ?

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•PAYMENT•SHIPPING•WEB MAINTENANCE WOULD YOU CONSIDER IT A LEGITIMATE GOVERNMENT ROLE?

KOREAN GOVERNMENT DESIGNES AN INTERESTING

APPROACH

E-MALLS FOR ARTISIANS

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UP NEXT - THE ROLE OF THE GOVERNMENT AND

REGULATIONS

WHAT DO YOU BELIEVE IS THE ROLE OF

GOVERNMENT ?SOME ISSUES:

SELF REGULATION VS GOVERNMENT REGULATION

NEW TECHNOLOGIES HAVE CREATED CHALLENGES FOR REGULATONS

FREE SPEECH. PRIVACY, INTELLECTUAL PROPERTY HOW IS INTERNET REGULATED?

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REGULATION OF INFRASTRUCURE (EG. TELECOMMUNICATIONS)?

STANDARDIZATION? INFO EXCHANGE? PHYSICAL INFRASTURE? Intellectual property?

PROMOTING INDUSTRY/GOV ACTIVITIES?

DEVELOPMENT OF HIGH LEVEL PLANNS?

AWARENESS, EDUCATION? LAW ENFORCEMENT? TAXATION? ASSISTANCE DEV. NATIONS?

WHAT DO YOU BELIEVE IS THE ROLE OF GOVERNMENT ?

The U.S. Policy Global EC Clinton – Gore, 1997

1. Private sector should lead2. Governments should avoid undue

restrictions on EC3. Where government involvement is

needed, its aim should be to support and enforce a predictable minimalist, consistent and simple legal environment for commerce (Intect. protection, fraud etc)

4. Governments should recognize the unique qualities of the Internet

5. Electronic commerce on the Internet should be facilitated on a global basis

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Should the internet be taxed?Should the internet be taxed?

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Tax Issues United States alone, 36,000 state/ local tax jurisdictions. the global nature of the Internet there can be hundreds of thousands jurisdictions

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Internet has avoided most tax 1998 Internet Tax Freedom Act.But The Pressure is Mounting

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Are some tax issues really ways to protect state business?

RANK THE FOLLOWING:RANK THE FOLLOWING: COST & USE COST & USE

US NEW ZEALAND

JAPAN SWITZERLAND

ICELAND GERMANY

FINDLAND PORTUGAL

ITALY NORWAY

HO

ST P

ER

10

00

COST 20 HOURS OF INTERNET USE

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WHAT ABOUT INTERNET WHAT ABOUT INTERNET GAMBLING ?GAMBLING ?

WTO Rules Against U.S. Web-Gambling BanWTO Rules Against U.S. Web-Gambling Ban by Allison Aubrey by Allison Aubrey All Things Considered, All Things Considered, March March

25, 2004 · 25, 2004 · The WTO has ruled that U.S. laws prohibiting on-The WTO has ruled that U.S. laws prohibiting on-

line betting violate global trade pacts. If the line betting violate global trade pacts. If the ruling stands, the United States would be forced ruling stands, the United States would be forced to either change its gambling laws or face trade to either change its gambling laws or face trade sanctions. sanctions.

Ruling US is in violation 2008Ruling US is in violation 2008

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WTO Rules Against U.S. Web-Gambling BanWTO Rules Against U.S. Web-Gambling Ban by Allison Aubrey by Allison Aubrey All Things Considered, All Things Considered,

March 25, 2004 · March 25, 2004 · The WTO has ruled that U.S. laws The WTO has ruled that U.S. laws

prohibiting on-line betting violate global prohibiting on-line betting violate global trade pacts. If the ruling stands, the trade pacts. If the ruling stands, the United States would be forced to either United States would be forced to either change its gambling laws or face trade change its gambling laws or face trade sanctions. sanctions.

Rulling US is in violation 2008 Rulling US is in violation 2008

SEEMS AGREEMENT ON SEEMS AGREEMENT ON 3 CATEGORIES OF 3 CATEGORIES OF ECOMMERCE LAWECOMMERCE LAW

PHYSICAL LAYER OF INFRASTRUCTURE

CONTENT

BUSINESS LOGIC AND CODES

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Internet Corporation for Assigned Names and Numbers (ICANN)

PHYSICAL LAYERPHYSICAL LAYER

WHO IS ICANN?WHO IS ICANN?

Internet Corporation for Assigned Names and Numbers (ICANN)• Created 1998- www private/nonprofit

Consortium to engage in internet regulation (DNS domain name system)

• Headquartered in Marina Del Rey, California, is a California non-profit corporation certify web sites/privacy policies

• to oversee a number of Internet-related tasks/ managing the assignment of domain names and IP addresses on behalf of the U.S. Government

The tasks of ICANN include To date, much of its work has concerned the introduction of new generic top-level domains.

ICANN technical work is referred to as the IANA function; the rest of ICANN is mostly concerned with defining

policy.

entity that oversees global IP address allocation, DNS root zone management

, and other Internet protocol assignments. It is operated by ICANN.

On September 29, 2006, ICANN signed a new agreement with the United States Department of Commerce (DOC)

step forward toward the full management of the Internet's system of centrally coordinated identifiers

through the multi-stakeholder model of consultation that ICANN represents

2000 held direct election for half of directors email basedDemonstrated impossibility of global representationNEW PLAYERS: G-8 DIGITAL OPPORTUNITY TASK FORCEUN INFORMATION AND COMMUNICATIONS TASK FORCEEUROPEAN AND WORLD PRESSURE 2008

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question for you: who has the right to pass on, or to bar, the

transmittal of Wireless Internet services.

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ISSUES OF CONTENT:ISSUES OF CONTENT: FREE SPEECH OVERVIEW

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there have actually only been a few laws passed to deal directly with them. The Child Online Privacy Protection Act (COPPA), (15 U.S.C. §§ 6501-6506, P.L. No. 105-277, 112 Stat. 2681-728) requires firms to follow specific guidelines relating to children’ protection issues. specifically protects privacy of children under 13 by requiring parental consent for the collection or use of any personal information of the users. The Act, originally passed in 2000,

personal information that is collected from children online

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Additional Security ReferencesOnGuard OnlinePractical tips from the federal government and the technology industry to help you be on guard against Internet fraud secure your computer and protect your personal information.

Stay Safe OnlineCyber security tips for families, educators and small business, from the National Cyber Security Alliance.

Get Net WiseA public-service site that puts you only one click away from the resources you need to make informed choices about your and your family's use of the Internet.

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Who decides what can be Who decides what can be traded and what you own?traded and what you own?

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The Copyright Act of 1976 owner of the copyright the ability to replicate and distribute the material. The Fair Use Doctrine that provides for the public the right of fair use of this material.

Of specific interest to InternetDigital Millennium Copyright Act of 1998Digital Millennium Copyright Act of 1998

(1) Prohibits the circumvention of copyright protection system (2) Protects ISPs from being liable if subscribers infringe copyright laws.

The Digital Millennium Copyright Act of 1998, placed into law by President Clinton, made it a crime to:

(1) go around a technologically protection measure as mandated by the World Intellectual Property Organization (WIPO). (2) that a copyright owner can not hold an online service provider liable if a subscriber infringes on the owner's rights.

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ISSUES OF CONTENT:ISSUES OF CONTENT: IS PRIVACY A IS PRIVACY A RIGHT?RIGHT?

5 Privacy Protection Basics1. NOTICE AWARENESS - given notice to

make informed decisions.2. CHOICE CONCENT —aware of how

personal information used. Consent granted through ‘opt-Out’ clauses.

3. ACCESS/PARTICIPATION- able to access personal information & challenge data.

4. INTEGITY/SECURTIY—assured data is secure and accurate.

5. ENFORCEMENT/REDRESS— Enforcement & remedy. Alternatives: gov., private legal action, or self-regulation.

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Content: privacy Intrusions of the Wireless Network

"poor" Paris Hilton - PDA hacked at an airport (2005) and the names of her "rich

and famous" friends stolen.

a 17 year old Massachusetts youth pleaded guilty to

obtaining and posting on the Web Hilton's cell phone address book.

Sentenced to 11 months' detention in a juvenile facility, to be followed by two years of supervised release.

Paris Hilton sleep easy - he is barred from possessing or using any computer, cell phone or other electronic equipment

capable of accessing the Internet any time during the detention or supervised release.

Is the sentence for breaking into Paris's phone a bit severe? Over the past few years there has been an escalation of the number of cases brought to court by state and federal prosecutors.

In 2004, a Michigan court handed down one of the harshest sentences to a Michigan man (1 of 3) who hacked into the national computer system of Lowe's hardware stores trying to steal customers' credit card information. He was sentenced to nine years in federal prison

Play Hackers

IS THE THREAT TO NATION’S SECURITY

A MYTH OR A REALITY?

ATTACK ON ESTONIA MAY 9,10 2007

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THE ENDTHE END