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7/30/2019 Chapter 10 : Public Policy : From Legal Issues to Policy
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Chapter 10
Public Policy: From Legal
Issues to Policy
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Legal and Ethical Issues
Privacy
Intellectual PropertyDifficult to protect since it is easy and inexpensiveto copy and disseminate digitized information
Free SpeechInternet provides the largest opportunity for free
speech; but, some postings are offensive to peopleTaxation
Illegal to impose new sales taxes on Internetbusiness at the present time (U.S. and some other
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Legal and Ethical Issues (cont.)
Computer crimesUsually refers to computer fraud and computer
abuseConsumer Protection
Many legal issues are related to electronictrade
Other legal issuesValidity of contracts, legality of public keyencryption infrastructures, jurisdiction overtrades, encryption policies
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Ethical Issues
What is considered to be right and wrong?
What is unethical is not necessarily illegal.Whether these actions are consideredunethical depends on the organization,
country, and the specific circumstancessurrounding the scenarios.
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Ethical Issues (cont.)
Code of Ethics
A collection of principles intended as a
guide for its members
Many companies and professionalorganizations develop their own codes
of ethicsA guide for members of a company oran association
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A Framework for Ethical Issues
Privacyregarding information aboutindividuals
CollectionStorage
Dissemination
PropertyOwnership and value of information andintellectual property
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A Framework for Ethical Issues (cont.)
Accuracy of:
Authenticity
Fidelity
Information collected and processed
Accessibility
Right to access informationPayment of fees for the access
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Protecting Privacy
Privacy
The right to be left alone and the right to be free
of unreasonable personal intrusions
Information Privacy
The claim of individuals, groups, or institutions
to determine for themselves when, and to whatextent, information about them is communicatedto others
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Protecting Privacy (cont.)
Two basic rules
The right of privacy is not absolute. Privacymust be balanced against the needs ofsociety
The public's right to know is superior to the
individuals right of privacy
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How is Private Information Collected?
Reading your newsgroups postings
Finding you in the Internet Directory
Making your browser record informationabout you
Recording what your browsers say about you
Reading your e-mail
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Protecting Your Privacy
Think before you give outpersonal information ona site
Track the use of yourname and information
Keep your newsgroupsposts out of archives
Use the Anonymizer
when browsingLive without cookies
Use anonymousremailers
Use encryption
Reroute your mailaway from youroffice
Ask your ISP oremployer about aprivacy policy
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Legislation
The Consumer Internet Privacy Act
The Federal Internet Privacy Protection ActThe Communications Privacy and ConsumerEmpowerment Act
The Data Privacy Act
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Personal Information in Databases
Databases of:
Banks and financial institutions
Cable TV
Telephones
Employers
SchoolsInsurance companies
Online vendors
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Personal Information
in Databases (cont.)
Concerns
Data collectionData accuracy
Data confidentiality
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Protecting Intellectual Property
CopyrightA statutory grant that provides the creators ofintellectual property with ownership of it for 28
years
Trade SecretIntellectual work such as a business plan, which isa company secret and is not based on public
informationPatent
A document that grants the holder exclusive rightson an invention for 17 years (U.S.)
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Copyrights
Protects original expression of ideasLiterary works
Musical worksDramatic works
Artistic works
Sound recordings, films, broadcasts, cable
programsPublished editions of literary and musicalworks
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Copyright Protection Techniques
Digital watermarks
Embedding of invisible marksCan be represented by bits in digitalcontent
Hidden in the source data, becominginseparable from such data
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International Aspects of
Intellectual Property
The World Intellectual Property Organization
More than 60 member countries come up with aninternational treaty
Part of the agreement is called the databasetreaty
Its aim is to protect the investment of firms thatcollect and arrange information
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Patents
Patenta document that grants the holderexclusive rights on an invention for 17 years
Satisfy following legal criteriaNoveldoes not already exist as part of thepublic domain
Involves sufficiently inventive step
Capable of individual application (be put topractical use)
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Trademarks
Trademarksgraphical sign used bybusinesses to identify their goods and
servicesGives exclusive rights to:
Use trademark on goods and servicesregistered to that sign
Take legal action to prevent anyone fromusing trademark without consent
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Domain Names
Domain name refers to the upper categoryof Internet address (URL)
Three controversiesWhether top-level domain names (similar tocom, org and gov) should be added
The use of trademark names by companies for
domain names that belong to other companiesIf companies in different countries have thesame name, who can use it as the domainname?
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Defining Freedom of Speech
The Bill of Rights First Amendment to theConstitution of the U.S. of America reads:
Congress shall make no law respecting anestablishment of religion, or prohibiting the freeexercise thereof; or abridging the freedom ofspeech, or of the press; or the right of the people
peaceably to assemble, and to petition thegovernment for a redress of grievances.
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The Debate About
Free Speech on the Internet
Free speech debate
Most citizens are implacably opposed to
censorship in any formexcept censorship ofwhatever they personally happen to findoffensive.
The debate: what restrictions, if any, should
there be on Internet content, and how should itbe monitored?
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The Debate About
Free Speech on the Internet (cont.)
What are the boundaries, and how should they beenforced?
Governments protective of their role in society
Parents concerned about exposing their children toinappropriate Web pages and chat rooms
Federal agencies attempting to deal with illegal actions
Citizen action groups desiring to protect every ounce oftheir freedom to speak
Individuals concerned about their right to information onthe Internet
Organizations seeking to empower the citizens of theearth
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Protecting Children
3 approaches (regarding the protection ofchildren from inappropriate material on theInternet)
No information should be held back and parentsshould be responsible for monitoring their ownchildren
The government is the only one who can truly
protect children from this materialTo hold the Internet providers responsible for allthe material and information they provide, orenable access to it
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Protecting Children (cont.)
Parents governing their own children
Government protecting the children
Responsibility of the Internet providers
Forcing Internet providers to be accountable,or enable access to information
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Legal Perspectives in the USA
Child Online Protection Act
Internet Tax Freedom ActFamily Friendly Internet Access Act
Internet Protection Act
Internet School Filtering Act
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Controlling Spamming
What is spamming, why is it bad?
Spamming
The practice of indiscriminate distribution of
messages (for example junk mail) withoutpermission of the receiver and withoutconsideration for the messages appropriateness
Spam comprised 30% of all mail sent on AmericaOnline (in the past, now less than 10%)
Slows the internet in general
Shuts ISPs down completely
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Legislation, Legal
The Electronic Mailbox Protection ActThe Unsolicited Commercial Electronic Mail Act
The Netizens Protection Act
The Telephone Consumer Protection Act
Controlling Spamming (cont.)
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Controlling Spamming (cont.)
How to cut spammingTell users not to validate their addresses by
answering spam requests for replies if they wantto be taken off mailing lists
Disable the relay feature on SMTP (mail) serversso mail cannot be bounced off the server
Delete spam and forget itits a fact of life andnot worth wasting time over
Use software packages, e.g. getlost.com andjunkbusters.com
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Other Legal Issues
What are the rules of electronic contracting, andwhose jurisdiction prevails when buyers, brokers,and sellers are in different states and/or
countries?How can gambling be controlled on the Internet?Gambling is legal in Nevada and other states.How can the winners tax be collected? By
whom?When are electronic documents admissibleevidence in the courts of law? What do you do ifthey are not?
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Other Legal Issues (cont.)
Time and place can carry different dates for the buyersand sellers when they are across the ocean. Which
time should be considered?
Is a digital signature legal?
The use of multiple networks and trading partners
makes the documentation of responsibility difficult.How is such a problem overcome?
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Electronic Contracts
Uniform Electronic Transactions Act
Uniform Commercial Code (UCC)Shrink-wrap agreements (or box-toplicenses)
The user is bound to the license by opening thepackage
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Computer Crimes
Computer crimes refers to computer fraudand/or computer abuse
Computer fraud committed by:
Alteration of input
Alteration of computer data
Alteration/misuse of programs
Destruction/suppression/misappropriation ofoutput
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Computer Crimes (cont.)
Computer abuse committed by:
Misuse of company computerservice/resources by performing unauthorizedprivate work or playing games by employees
Compromise of system integrity by:
Altering company dataIntroducing viruses
Hacking into the system
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Computer Crimes (cont.)
Characteristics of computer crimeChronic underreporting of abuse
Security not introduced until abuse has occurred
Organizational size unrelated to severity ofpunishment
Abuses by high-level employees less likely to beprosecuted
Programmers most difficult to identify
Publicity discourages abuse
Security efforts reduce abuse
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Computer Crimes (cont.)
Effective measures in deterring computercrime
Make computer security visibleDefine and communicate companys policyregularly
Make staff aware of penalties
Report cases to policePublicize successful prosecution
Deploy security technologies extensively
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Fraud on the Internet
Internet Stocks FraudSEC brought charges against 44 companies and
individuals who illegally promoted stocks oncomputer bulletin boards, online newsletters andinvestment Web sites
Other Financial Fraud
Selling bogus investments, phantom businessopportunities, and other fraud schemes
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Fraud on the Internet (cont.)
Other Fraud in EC
Customers may:Receive poor quality products andservices
Not get products in time
Be asked to pay for things they assumewill be paid for by sellers
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Authentication
If authentication online can be verified
Students will be able to take exams online from
homeFraud of recipients of government entitlementsand other payments will be reduced to a bareminimum
Buyers will be assured who the sellers are andsellers will know who the buyers are with a veryhigh degree of confidence
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Biometric Controls
Matching against a template:Photo of face
Fingerprints
Hand geometry
Blood vessel pattern in the retina of a personseye
Voice
Signature
Keystroke dynamics
Iris
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What Can Vendors Do?
Use intelligent software that signalsquestionable customers
Develop a list of warning signals for possiblyfraudulent transactions
Ask customers to have shipping address
added to their bank account if different frombilling address
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Managerial Issues
Multinational corporations face differentcultures in the different countries in which
they are doing business
Issues of privacy, ethics, and so on may seemto be tangential to running a business, but
ignoring them may hinder the operation ofmany organizations
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Managerial Issues (cont.)
The impact of EC and the Internet can beso strong that the entire manner in whichcompanies do business will be changed,with significant impacts on:
Procedures
People
Organizational structureManagement
Business processes