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Europe Solicits Input About Online Disputes
by William New
Issues of jurisdiction in cross-border e-commerce disputes have stymied governments, lawyers and businessmen worldwide, and this week the European Union further opened the debate with a Tuesday hearing on the proposed update of an EU jurisdictional treaty.
The European Commission's directorate on justice and home affairs gathered comments on the so-called "Rome II" draft treaty the directorate is considering. Christopher Kuner, an attorney at Hunton and Williams in Brussels, Belgium, said the hearing was important because "it was the first chance anyone has had to talk openly with the commission on this." The dialogue was especially important because an explanatory memorandum did not accompany the draft, he said.
Participants expressed doubts about the proposal, Kuner said. "There was a general feeling that this was being forced on people without a clear justification" as to why, he said.
One concern is whether the EU proposal might reach too much into national-level laws of EU nations, which would violate the conflict-of-laws rule. Participants also questioned whether the law should be applicable in any "country of destination" where damage from an e-commerce transaction occurs rather than in the "country of origin" of the transaction. Such a case could arise, for example, when an article defaming a person in Germany is published in France.
The concept troubles online companies that, in order to avoid being subjected to an unpredictable variety of national laws, prefer the country-of-origin principle. The country-of-destination approach would place jurisdiction in the location of the consumer. A further worry is that the approach would conflict with the soon-to-be-implemented EU e-commerce directive, which follows the country-of-origin principle.
"The concern is [that] there would be legal uncertainty," Kuner said.
An additional concern is whether the treaty should include specific rules for intellectual property rights, such as copyrights and patents, or general rules addressing all intellectual property.
The commission launched the public comment process with a call for written submissions in the fall. More than 80 comments were filed. Since the proposal is a regulation, not a directive, it does not need parliamentary approval. The 15 EU nations must approve it, however.
U.K. Ponders Biometric ID Cards
The United Kingdom Home Office is consulting until the end of January on a plan to require all citizens to register for and receive identity cards possibly bearing biometric data such as fingerprints.
The government sees the plan as a way to curtail illegal immigration by making it harder to obtain entitlements within the country, thereby reducing the "pull" to the country. It also is seen as a way to improve administrative efficiency and prevent identity theft.
The proposal says that government would like to explore the recording of biometrics into a database as part of the card system. But a recent article in Risks Digest said the over-reliance on one document could make ID theft easier. It also said that although similar systems exist in many countries, British privacy groups strongly oppose the plan.
Think Tank: U.S. Exporting 'Misguided' Telecom Policy
The Cato Institute this week criticized the Office of the U.S. Trade Representative for sending "harmful and contradictory" telecommunications policy to other nations, such as Japan.
Cato's report, "Is America Exporting Misguided Telecommunications Policy?" asserts that domestic U.S. telecommunications policies rely too much on increased regulation and innovation-stifling rules and thus should not be the model for international free trade-negotiations in the telecommunications sector. The authors took particular aim at the 1996 Telecommunications Act.
Instead of exporting flawed policy, the U.S. officials should instead "refine their telecommunications and trade policies to reflect technological advances and conduct constructive negotiations based on emerging market realities," the report said. Also, more encouragement should be given to direct foreign investment in telecom markets, Cato said.
Professors from the Massachusetts Institute of Technology and University of Maryland, meanwhile, have requested papers on information and communications technologies in the developing world by Jan. 31. The papers will be considered for the first issues of a new scholarly journal called Information Technologies and International Development.
U.S. Firms Prepare For China-U.S. Summit
Some leading technology corporations have committed to attend the China-U.S. Telecom Summit on Feb. 20-22, according to the Telecommunications Industry Association (TIA). TIA is cosponsoring the event with the Commerce Department.
TIA still is looking for sponsorship from telecom and tech companies. Firms that earn less than $50 million pay $6,000 to be sponsors, and larger companies pay $12,000.
Agilent Technologies, Andrews Telecommunications, Cisco Systems, Intel, Lucent Technologies, Motorola, Nortel Networks, Qualcomm and Verizon Communications will be part of the U.S. delegation. Government participants will include: FCC Commissioner Michael Copps; Nancy Victory, administrator of the National Telecommunications and Information Administration; and officials from the International Trade Administration and State Department.
Chinese officials that will meet with the delegation include the minister and other officials from the Ministry of Information Industry, as well as officials from key provinces and industry.
Elsewhere on the telecom front, Spain's telecom operators would be able to trade radio spectrum under legislation proposed by the Spanish government, Science and Technology Minister Josep Pique said last week. Reuters reported that Pique said the legislation would be submitted to Prime Minister Jose Maria Aznar's Cabinet in February and be accompanied by bills on the audiovisual sector and e-signatures.
China Closes 3,300-Plus Internet Cafes
China has closed more than 3,300 Internet cafes in the past six months, Li Rongrong, minister in charge of China's State Economic and Trade Commission, reported last week to the National People's Congress.
The clampdown came after a June fire at a Beijing café in which 25 people died, Li said. Some 45,000 cafes were inspected and 12,000 were suspended due to workplace safety concerns.
The Chinese government has been taking steps to improve safety and availability of content to young people, with rules such as one that took effect in November banning minors from Internet cafes, he said. Shop managers are required to record customers' identities and close by midnight.
In other Internet news, a senior Indian official has announced that the government is drafting a bill for this year that would regulate broadcast content, according to press reports. Information and Broadcasting Minister Sushma Swaraj said the government has not yet decided whether the bill would cover the Internet.
An earlier proposal had addressed electronic media, but the government is consulting on the final form of the broadcasting authority. She said the authority could be a way to redress concerns about obscenity and violence in electronic media.
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