E Commerce Law Solicitors in UK. Technology & Internet solicitors

The principal points of contact for e-commerce matters is Alexandra Booth. Our e-commerce and internet pages are an overview of UK law relating to on-line business and certain implications for insurers and insureds.

The e-commerce team at Elborne Mitchell can assist in a wide range of work including:-

* Drafting and advising on terms and conditions of sale that protect e-merchants;
* Advice on the regulatory requirements for selling financial services/insurance on-line;
* Advice on data protection issues;
* Drafting confidentiality agreements for e-merchants seeking investors; and
* Advice on copyright and trade mark applications.

Insurance for E-Commerce Risks and Cyber Liabilities

Find out what the new areas of potential exposure are for insurers and the risks that policies will cover. This and further information can be found on our Insurance for E-Commerce Risks and Cyber Liabilities page.

Internet Contracting

A contract may be formed electronically either by means of an email or through an interactive website. Our Internet Contracting area lists some issues which may arise.

On-line Insurance & Investment Business

Our On-line Insurance and Investment Business area lists specific issues for e-businesses selling financial services or insurance on-line.

Security

The Internet as an international network of interconnected computers is inherently insecure. Find out what can be done to assist in protecting data and websites from potential hackers in our Security area.

Data Protection

The Data Protection Act 1998 attempts to ensure that businesses are aware of the eight 'data protection principles' that govern data collection and control. For more information on these and points that companies should consider, see our Data Protection area.

Intellectual Property & Copyright

In the rush to create the most attractive website, website developers may be tempted to utilise words, graphics and even sounds without checking the origin. Our Intellectual Property and Copyright area lists ways to protect websites.

Defamation

Our Defamation area highlights some of the potential liabilities that companies should be mindful of when publishing information on a site.

Future Developments

Future developments include the e-Europe 2005 Initiative, Dot EU domain name and distance selling of financial services directive; all detailed in our Future Developments area.

Legislation

Our Legislation area details those regulations and directives affecting the e-commerce industry, including the Privacy and Electronic Communications (EC Directive) Regulations 2003 and the Copyright and Related Regulations 2003 (SI 2003 2498). Elborne Mitchell Solicitors

e-commerce

Commercial solicitors here are used to advising on legal issues as they affect e-businesspeople. Our solicitors offer a broad range of commercial and corporate legal support including in relation to: business acquisitions and disposals, start-ups, joint ventures, partnerships, shareholder agreements, stock options, software, branding, domains, internet, confidential information, data protection, finance, supply of goods and services, deal-documentation and insolvency.

Software licensing and litigation

Solicitors here supply all documentation in relation to the development, ownership and licensing of software. Our solicitors conduct litigation arising from claims of infringement of copyright and misuse of confidential information in software.

Humphreys & Co

© Copyright Humphreys & Co., solicitors

e-Commerce/ e-Business

Lawdit regularly advises its clients on e-commerce and e-business issues relating to businesses' on-line activities.

Where permitted, Lawdit always advises its clients to be transparent

Survey after survey has shown that customers are not happy with their e-commerce experience owing to the lack of information being provided to them.

By being completely and fully transparent about basic facts relating to the name and full address including contact numbers of the supplier of the goods/ service, the cost, delivery, cancellation rights, warranties, indemnities etc businesses find that not only do they comply with the law but they also have happy customers. Lawdit Solicitors

The most comprehensive policies will include cover for risks such as:

* Service interruption: for example due to a "ping storm" or other hacker attack or failure of an Internet service provider or communication network not in the control of the relevant business i.e. a form of business interruption cover.
* The costs of combating negative publicity caused by damage to the insured's website: e-traders may not just lose trading time and expend money on rectification but also the cost of loss of confidence by the consumer in the business and the security of the information which the consumer is passing to it e.g. credit card details.

Areas for which businesses might consider obtaining insurance cover include:

* Information provided on a website.
* Data on a website. Data must be correct to avoid actions for misrepresentation: consumer law in certain jurisdictions allows for the imposition of fines on an e-business which offers a service or product on its website that is not available or incorrectly advertised.
* Defamation on a website - defamatory statement made by employees using e-mail.
* In the future, costs and damages for alleged breaches of patent, copyright and trademark of a third party and the defence costs for an intellectual property action.

What are the new areas of potential exposure for insurers?

* Damage to third party hardware or software or to the insured's own systems. The cover may be for companies conducting business on the net or sending e-mails who suffer or cause damage due to hackers, "viruses" or malfunctioning equipment.
* Many e-companies store valuable assets in the form of software. Damage of this type can have grave consequences; there are a number of potential new risks which may be covered under D&O, E&O and property policies.
* Breaches of confidentiality (particularly for fiduciaries) either by e-mail or deal rooms. Breaches of security and cryptography may give rise to D&O and E&O issues.
* Unauthorised processing or access to data. Non-compliance with statutory requirements.
* EP&L issues arising out of the Data Protection Act 1998, the Human Rights Act 2000 and the Regulation of Investigatory Powers Act 2000 (RIPA):

o interrogation of e-mail traffic without employee/recipient/sender consent.
o employer liability for discriminatory actions of employees.

Beware - Even if an existing insurance policy does not specifically afford cover in respect of cyber-liabilities, this is no guarantee that insurers will not be called on to pay out.

* It is for the courts to determine the extent to which general liability, property and other policies may respond to these new liabilities.
* E-commerce law is in its infancy, so the courts have little choice but to consider disputes which arise out of these new technologies in the context of the existing legislative and common law framework.
* The UK Court of Appeal's decision in Victor Chandler International -v- Commissioners of Customs and Excise (judgment 29.2.00) is an example of this - "documents" were held to have been circulated and distributed by being electronically reproduced, even though the Betting and Gaming Duties Act 1981 could not have been drafted with the intention to cover electronic dissemination of information.

How can insurers best attempt to avoid the pitfalls associated with e-commerce?

* Obtain as much information as possible about the e-commerce ventures in which existing and new insureds are involved.
* Obtain security audits of insureds.
* Keep up to date with rapidly changing technology - this is the only way to be aware of emerging liabilities.

© Elborne Mitchell 2004