Electronic Signature Law (Public Notice From Office of the President, 2001.11.14)

I. General description II. Principle of legislationIII. Essentials of the terms
IV. Full script of electronic signature law V. Description of electronic signature law

I..General description

 Chinese

 

   To establish a safe and reliable network environment and to ensure that the data will not be forged, revised or stolen during the process of network transmission, to examine the identity of both transaction parties and to prevent against denial of the fact of completed transaction afterwards.  This is the key to whether E-Government and E-Commerce can be popular in all areas.  In order to expedite a safe electronic transaction system, government and civilians are sparing their utmost effort in utilization of modern access code technology to establish electronic certification system of various areas and to provide identity certification and transaction certification service so as to improve the confidence of user.

 

 

 

   Traditional communication and transaction behavior employ written document (such as contract) and signature, seal to confirm related rights and obligations.  In the network environment, E-Government and E-Commerce has to rely on electronic document and electronic signature as the basis of communication and transaction. However, present regulation does not clearly standardize the legal position of electronic document and electronic signature and in order to cope with the daily prosperous development of digital economy environment, it is really urgent at present to establish a legal system for electronic signature. Therefore, for various countries in the world, in order to establish the safety and reliability of electronic transaction environment and popular application of E-Commerce, they all actively expedite legislation similar to electronic signature.  For example, Germany (August, 1997), Malaysia (1997), Italy (March 1997), Singapore (June 998), Korea (legislated in December 1998 and was effective in July 1999), Hong Kong (January 2000), Japan (may 2000) US Federation (June 2000) and various states (40 more states had already legislated) and for EEC, formulation of electronic signature order has been completed (January 2000) and various member countries like England (July 2000), France (March 2000) already completed the coordination of domestic law within the member states before July 2001 based on the standard of orders.

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II. Principle of legislation 

 

 

   In order to cooperate with the development of national data communication infrastructure, in 1997 in the country, for the first time, MOEA commissioned Technology and Legal Center of Institute for Information Industry to conduct research on digital signature law and to suggest government how to formulate digital signature law as soon as possible so as to fix the legal position of electronic signature and electronic document and to establish a management system for electronic Certificate Authority and to define the authority and responsibility of the Certificate Authority, CA, to establish system of cross state certification in order to solve insufficiency or uncertainty of present legal standard.  In reference to cases of legislation by various countries and principle of legislation of electronic signature stipulated by international organizations of United Nations and EEC etc., the 『Electronic signature law』shall be formulated. 

 

 

 

Hereunder are a brief description on important legislation principle of this law:

 

 

 

(1)

Principle of neutral technology: Any technology that can ensure the integrity of the information during the process of transmission or storage and can examine the identity of the user can all be used to produce electronic signature and will not adopt 「asymmetric」 form」confidentiality addition technology as the limit of the foundation of 「digital signature」 so as not to block the development of application of other technology.  This law adopts「electronic signature」suggested by international organization including United Nations and EEC as the basis of legislation instead of basing on "digital signature" as limit so as to respond to innovation development of electronic examination technology such as bio-technology. For electronic signature or electronic document produced by any electronic technology, as long as the function and written document and signature and seal is equivalent, they can all be used.                         

(2)

Principle of contract liberty: Regarding electronic transaction behavior in civilian area, it is appropriate that under the principle of contract liberty, both transaction parties concerned shall agree between themselves to adopt what kind of suitable safety technology, procedure and method to produce electronic signature or electronic document as the basis that both parties can mutually trust and abide and that shall be the basis of related legal responsibility.  Therefore, it is not appropriate to intervene the contract principle of both transaction parties with public authority of the government. Both transaction parties should agree amongst themselves on the electronic signature or electronic document produced by technology that they could commonly abide.  In addition, between certificate authority and users, they can use contract to standardize the rights and obligations of both parties.

(3)

 Principle of market direction: Regarding management on certificate authority by the government and development of electronic certification market, it is suitable to be limited to only minimum necessary standard.  In the future, on establishment of electronic certification system and development of electronic certification market, it is better to allow civilians to direct the development of various electronic certification service required by various electronic transactions and its related standard.

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III. Essentials of article

 

 

There are seventeen articles  of this law and its essentials are as follows:

 

 

 

(1)

Definition of the terms of articles of this law. (Article 2)

(2)

Stipulation of legal behavior and legal provision that should be conducted in writing can be based on electronic document as essential document and effect of electronic document can base on its production according to specific terms. (Article 4).

(3)

Based on provision of the law that the original or original copy has to be presented, it can be substituted by electronic document based on specific terms. (Article 5)

(4)

Based on provision of the  law that document should be kept in writing, it can be substituted by electronic document based on specific terms. (Article 6)

(5)

Standard of electronic communication and transaction receive and dispatch time and place. (Article 7 and Article 8).

(6)

Based on provision of the  law that signature and seal is necessary, it can be substituted by electronic signature based on specific terms. (Article 9)

(7)

Essentials of preparation of digital signature should be confirmed. (Article 10)

(8)

Certificate Authority should announce to outside the operation standard of certification practice. (Article 11)

(9)

Penalty rules. (Article 12)

(10)

Handling method when service of Certificate Authority is terminated. (Article 13)

(11)

Damage indemnity liability that the Certificate Authority should bear. (Article 14).

(12)

Effect of certificate signed by foreign Certificate Authority. (Article 15)

(13)

Sub-laws of this law shall be stipulated by supervisory institution. Article 16)

(14)

Date of implementation of this law shall be stipulated by Executive Yuan. (Article 17)

 

 

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IV. Full script of electronic signature law

Only provided for reference, standard of  actual script shall be based on the terms publicly announced by the President and passed by Legislative Yuan.

 

 

(Purpose of legislation)

Article 1

In order to expedite common utilization of electronic transaction and to ensure safety of electronic transaction and to promote e-Government and e-Commerce, this law is specifically stipulated.

 

When this law has not been regulated, it will be applicable to regulation of other law.

 

 

Definition of term )

Article 2

Definition of terms used in this law shall be as follows:

 

1.

Electronic document:Refers to word, voice, picture, image, symbol or other information and by means of electronic or method that other people cannot directly understand with sense to produce record that is sufficient to express its meaning and is provided for use in electronic processing.

2.

Electronic signature:Refers to attachment to the electronic documents and is associated with them and is used to identity and confirm the identity, qualification of the electronic document signature party and the true and false of the electronic document.

3.

Digital signature:A certain length of digital information of electronic document by mathematical method or other formula, then confidentiality will be added with the secret key of the signature party forming an electronic signature and the key can be opened to public for certificatiion.

4.

Added confidentiality:Electronic document with be processed in the form of disorderly code by means of mathematical method or other method,.

5.

Certification organization:Refers to institution, finance corporation signing and issuing certificate.

6.

Certification:Refers to an electronic certification on certification material with signature for use in confirming identity and qualification of the signature party.

7.

Certification practice operation standard:Certificate Authority will publicly announce to outside to describe the operation standard of certificate authority for issuance of certificate and handling of other certification business.  

8.

Information system:System that can generate, send out, receive, store or handle other form of electronic message and data.

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(Supervisory institution of this law)

Article 3

Supervisory institution of this law shall be Ministry of Economic Affairs

 

 

(Written document can be prepared with electronic document)

Article 4

Upon consent by corresponding party, electronic document can be used as a way of expression.

 

If processing by writing is based on provision in law, if its content can be displayed completely and can be provided for examination at a later date, then it can be conducted by electronic document upon consent by the corresponding party.

 

The previous two provisions shall base on law or public announcement of administrative institution and for expulsion of its suitability or on its application technology and procedure they will be regulated separately.  However, regulation on application technology and procedure shall be fair, reasonable and shall not have different treatment without proper reason.

 

 

(Original or original copy of the written document can be prepared with electronic document)

Article 5

Based on the provision of law to present document original or original copy, if the document is prepared in the form of electronic document and its content can be completely displayed and can be retrieved at a later date for examination, it can be conducted in electronic document except if writing mark and chop mark has to be checked or other necessity to identify the true and false of document or there is other provision in law.

 

Content of previous item that can be completely displayed does not include information dispatched, received, stored in the form of electronic form and display of information attached in the operation.

 

 

(Legal custody of written document can be prepared with electronic document)

Article 6

Based on provision in law, if the document has to be kept in written form, if its content can be completely displayed and can be acquired for examination at a later date, then it can be conducted in the form of electronic document.

 

The previous electronic document shall be limited to its place of issue, place of receipt date and information of certification, and examination on the true or false of the content of electronic document shall combine its main content keeper.

 

The first provision shall base on law or public announcement of administrative institution and for expulsion of its suitability or on its application technology and procedure they will be regulated separately.  However, regulation on application technology and procedure shall be fair, reasonable and shall not have different treatment without proper reason.

 

 

(Electronic document receipt and dispatch time inference standard)

Article 7

For electronic document, the document issuing time shall be the time of information system

that the entering issuing party cannot control.  However, if there is separate agreement by

the party concerned or there is separate public announcement by administrative institution,

then it shall be based on its agreement or public announcement.

 

Electronic document shall base on the following time as the document receipt time. However, if there is separate agreement by the party concerned or there is separate public announcement by administrative institution, then it shall be based on its agreement or public announcement.

 

1.

If the receiving party has designated information system for receiving electronic document, then the time of entry into that information system  by that electronic document shall be time of receipt. If the electronic document is sent to information system is not designated by the receiving party, then the receipt time shall be the time when the receiving party acquires the electronic document.

2.

If the receiving party does not designate information system for receiving electronic document, then the time of entry into that information system of the receiving party shall be the time of receipt.

 

 

 (Place for receipt and dispatch of electronic document)

Article 8

Place of business execution of issuing party shall be inferred as the place of issue of electronic document.  Place of business execution of receiving party shall be inferred as the place of receipt of electronic document.

 

When issuing party and receiving party has more than one business execution place, then the most closely related business place with major transaction or communication behavior shall be the issuing place or receiving place.  If major transaction or communication behavior is unclear, then the major place of business execution shall be the issuing place and receiving place.

 

When the issuing party and receiving party has no business execution place, then its residence shall be the issuing place and receiving place.

 

 

 (Signature or seal can be conducted in electronic signature)

Article 9

If signature or seal is necessary based on provision in law, upon consent by the corresponding party, it can be conducted in electronic signature.

 

The previous provision shall base on law or public announcement of administrative institution and for expulsion of its suitability or on its application technology ad procedure they will be regulated separately.  However, regulation on application technology and procedure shall be fair, reasonable and shall not have different treatment without proper reason.

 

 

(Digital signature should base on a certain procedure for its production before becoming effective)

Article 10

For signing electronic document with digital signature, it is necessary to conform to the following provisions in various articles before Item 1 of the previous article can become effective.

 

1

Utilize certificate issued by Certificate Authority based on law through approval by Article 11 or Article 15. 

2

Certificate is still valid and has not exceeded the area of utilization.

 

 

 (Certificate Authority should prepare and publicly announce certification practice operation standard)

Article 11

Certificate Authority shall prepare certification practice operation standard stating clearly the  certificate authority operation or provide related operation procedure of certification service. After submission to supervisory institution for approval, it will be publicly announcing in the open website established by the certificate authority for public inquiry before providing certification issuance service to outside. When the certification practice operation standard change, the procedure will be the same. 

 

Certification practice operation standard should state clearly the following items:

 

1.

Reliability that will affect the certificate issued by the certification institution or important information of its business execution.

2.

Cause of direct cancellation of the certificate by the certificate authority.

3.

Examination on the content of the certificate 

4.

Method and procedure for protection on personal information of the party concerned.

5.

Other important items stipulated by supervisory institution.

 

Before the execution of this law, when the certification institution has conducted certificate-issuing service, then within six months after execution of this law, submit certification practice operation standard to supervisory institution for approval.  However, before completion of aprpoval by the supervisory institution, the institution can still continue to provide certification service to outside.

 

Supervisory institution should publicly announce name list of approved Certificate Authority.

 

 

(Penalty rules)

Article 12

When the certification violates the regulation of the previous article, depending on its condition, the supervisory institution can sentence for penalty of over NT$1,000,000 and under $5,000,0000 and shall instruct the certification institution to improve within a time limit.  If correction cannot be made after the expiry date, then continuous penalty based on each time shall be imposed.  For matters that are major, part or all of its business shall be suspended.

 

(Termination of service)

Article 13

Before termination of its service, certificate authority should complete the following measures:

 

1.

30 days before date of termination of service notify supervisory institution.

2.

On certificate that is valid at time of termination, arrange other certificate authority to undertake its business.

3.

30 days before date of termination, other certificate authority shall undertake its business and the fact shall be notified to the party concerned.

4.

File record shall be transferred to the certificate authority that undertakes its business.

 

If there is no Certificate Authority undertaking the business of that certificate authority based on the provision in Item 1 and Item 2, supervisory institution shall arrange other certificate authority to undertake.  If necessary, supervisory institution can publicly announce the certificate that is still valid at that time.

 

The above regulation is also applicable to certification that is ordered to suspend its business based on this law or other law.

 

(Compensation obligation)

Article 14

If operation of the Certificate Authority or related operation procedure of its certification service causes damage on the party concerned, or due to proper intention, the third party suffer damage due to trust on that certificate, the institution should bear compensation except that it can prove it has no error in its behavior.

 

When the usage area on the certificate has accurate limitation, on damage caused that exceeds the usage area, the certificate authority will not bear compensation responsibility.

 

(Principle of International mutual benefit )

Article 15

For certificate authority registered based on foreign legal organization, under the principle of international mutual benefit and safety condition, upon approval by supervisory institution, certificate issued by them and certificate issued by domestic certificate authority shall bear the same effect.

 

Approval method of the previous item shall be stipulated by supervisory institution.

 

Supervisory institution should announce publicly name list of the approved certificate authority in Item 1.

 

 

 (By-laws)

Article 16

By-laws of this law can be stipulated by supervisory institution.

 

 

(Date of implementation)

 Article 17

Date of implementation of this law shall be stipulated by Executive Yuan.

 

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V. Description on electronic signature law

 

1

What is the purpose of formulation of electronic signature law?

 

1)

To conduct transaction and transaction behavior with other party in the real world it can rely on conversation, signature or display of identity card to allow other party to identity, to confirm and to generate a trust relationship. However, to network world it is possible that both parties concerned will never meet, how to confirm the real identity of each other to conduct transaction is a real big problem. As transaction in the network and its transaction content will all be transmitted through electromagnetic record, how to avoid malicious change by third party during  transmission of information and how to avoid condition of 「denial afterwards」after the transaction is completed, they are all important topics that must be solved during promotion of e-Commerce.

2)

Presently, technological world has invented may application technology to solve the above mentioned problem.  For example, electronic certification technology is a solution plan on this aspect.  By means of reliable scientific technique the safety of transaction on-line can be solved and it can ensure confirmation on identity identification so that consumers can generate sense of trust on network.  Following that a common utilization confidence can be really established and then further expand the application level of e-commerce.

3)

After possession of usable electronic certification application technology, it is necessary to complete stipulation of related legal system and matching environment al measures in time and the important foundation stone is the electronic signature law.Through electronic signature law, the legal effect of usage of electronic signature and electronic document can be regulated by this law and by standardizing management system of certificate authority the legal system can be established as the basis of standard.  In this way, the electronic certification system can be properly operated.

 

 

2

What is electronic signature? What is electronic document?  What is the difference with traditional signature and seal, and written document?

 

1)

Electronic signature and electronic documents exist in the form of electronics and can be transmitted in network is obviously different from traditional hand written signature, seal chopping and written paper. Whether new technology of electronic signature or electronic documents actually can be deemed as equal of 「written paper, signature and seal」and will be granted with legal position and effect is the focus that electronic signature law will concern about. Simply speaking, "electronic Signature" exists in the form of electronics and is attached on electronic documents and is related to its logic that can be used to identify the indemnity of signing party on the electronic document and expresses that the signing party agrees on the content of the electronic document.  Electronic document means record of words, sound, picture, image, symbol or other information that its meaning is expressed in the form of electronics or the sense of other party cannot direct recognize and identify and is provided for use for electronic processing.

 

       

2)

Electronic document can display words and symbols on the screen.  However, from the point of view of technical level, each display on electronic document all belong to generation of regrouping of digital electromagnetic record 0 and 1 and there is no substantial body that can be provided for existence of attachment and that is different from document with paper. If electronic document encounters malicious change by third party, just the addition or increase of bits cannot possibly display marks of correction as actual physical paper.  Therefore it is very easy to change electronic document and is hard to sense.   These differential characteristics compared with physical documentary paper makes that electronic document obviously cannot conform to the present legal 「documentary」form and behavior regulation requirement and therefore it cannot have similar legal effect and electronic signature will face with similar difficulty.  To breakthrough present legal barrier, legal effect of utilization of electronic signature and electronic document must be granted.  Therefore it is necessary to formulate related laws in electronic signature law actively and to establish a proper utilization environment so as to reduce disputes on various kinds of applicable law.

 

 

3

In practice, what area that electronic signature technology can apply to? To general public, in order to lower utilization risk burden, in regard to electronic signature application, what things should be understood and attention should be paid to?

 

1)

The passing of legislation of our electronic signature law can expedite popular utilization of electronic transaction between parties concerned and can ensure electronic transaction safety.  In addition, it will standardize usage of electronic signature and document and will establish electronic certification system and enhance safety of electronic communication and transaction safety.  Therefore, electronic signature law will allow more people to be willing to use electronic signature and document.  The popular network purchasing, remote teaching and entertainment, network finance business and network securities order-placing operations are areas that can be applied to electronic signature technology.

2)

After all, electronic signature and document are products of new technology and to the public it is a brand new experience.  Public should establish a correct perception as soon as possible on usage concept of related technology and usage habits in order to effectively reducing the risk of improper usage.  For example, in international field, in regard to electronic certification practice operation, there are usage of electronic certification technology with different safety level under various kinds of usage situation.  For example, daily communication of e-Mail dispatch will definitely be different than the class of electronic certification used in large amount of electronic transaction with companies and the concept of different usage must be established.

3)

Furthermore, electronic certification technology after all is conducted in the form of electronics and how to establish individual safety usage habits, it cannot be ignored.In the real world, seal of a person is the main method of certification.  However, in the future, it is possible that electronic signature will be kept in different media like diskette and IC card etc. and duplication in the form of electronics like diskette) can be easier than illegal carving of seal. In order to effectively reduce and to avoid the risk of forgery on electronic signature, the safety diskette and IC card etc. should be properly kept like the seal of an individual and the personal access code cannot be leaked out to any third party. When people can establish the habit of safety usage, they can even ensure their own rights and benefits.

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4

What is the difference between 「Digital signature」and 「Electronic signature?」 How come international legislation samples mostly tends towards 「Electronic Signature Law」as standard?

 

1)

In order to solve the problem of transaction safety and on-line identity identification, various types of electronic certification technology is used.  These technologies all based on "electronic form" to exist and is attached on electronic document and is related to its logic.  In addition, it is used to identify the identity of the signing party and to express the content agreed by signing party that these technologies all belong to the area of "electronic signature" technology.  In fact, in practice, for electronic signature technology, digital signatures were developed earliest and its maturity is high.  Its operation principle is by means of "Asymmetric Cryptosystem" encryption technology and is different than other electronic signature technology. Simply speaking, digital signature is  a kind of electronic signature technology.

2)

 As the type of electronic signature technology that can be applied is not just digital signature, for example all kinds of "Biometric Authentication Technologies" are getting more matured. Many companies have developed like human physiological outer appearance identification, finger print identification, pupil identification, sound wave identification and DNA comparison identification etc.  In the same way they can provide function of on-line identity identification and these are all electronic signatures in its broad meaning.

3)

As there are many electronic signature technology that can be provided for is solution, the main legislation trend internationally are formulating "electronic signature law" so that I an coverall instead of just singly formulate the 「digital signature law」   Neutrality"The "Draft Uniform Rules on Electronic Signature" presented by (UNCITRAL)clearly announce the principle of "Technology Neutrality". What it means by principle of technology neutrality means that there should be foresight in the direction of principle law formulation and there should be no bias on specific technology.  In legislature , there should not be limitation or bias effect on technological development.  If only legal standard is formulated on digital signature,  the result is in later days other electronic signature technology cannot be used. The formation of electronic signature law of our country should consider the trend of legislation internationally and should retain the flexibility of inclusion of other electronic signature technology.  Therefore a broader definition area should be adopted to formulate the electronic signature law.

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5

"Digital signature" technology party concerned relationship chart and operation flowchart

 

    The following is a simple explanation of the operating procedure and principle of digital signature (refer to the pictorial description). Core of digital signature is in two parts, one is the private key that is solely owned by signing party and the other is public key that will be held by the certification party for certification and receipt of documents.   Assuming a certain consumer (signing party A) has completed an  E-mail and send to electronic shop (certification party B) to place order. Its operation principle is to made use of the private key of the Asymmetric Cryptosystem , then Party A will add confidentiality to the mail with private key and convert this document as a disorderly code and will generate a digital signature attached at the end of the letter and will transmit to Party B afterwards. After Party B has received, then it will compare the private key o Party A one by one with the corresponding public key.  After certification by this public key to identify that digital signature and its original script will be revealed after secret is annulled.   If it is smooth without error, Party B can prove that it is sure it is issued by Party A. Therefore in technological theory, only private key owners Party A can issue such signature and Party A cannot deny this fact with Party B. In this way, identity identification problem on line can be solved.


 

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6

What is certification authority? In the country mainly which company is in the process of devoting in this area and operation of related business?

 

1)

Certification Authority,CA)means organization that can provide digital signature production and electronic certification service. Certification authority must base on related management regulation and standard of the electronic signature law to provide related certification service: including examination on identity of applicants for certification, quality and attribute and issuance of private gold key to applicant and issue public key certificate so as to provide certification on the matching relationship between public key and private key and to prove identity and ensure safety.   Simply speaking, certificate authority plays the role of 「household administration office」in network environment and shall be responsible for personal identity examination and issuance of identity proof.

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2)

Looking at the future rapid development and future huge market of network application, many companies in the country have progressively invested in capital , establish company and department and actively strive for certificate authority that is a market with extremely good potential. Hereunder are major companies:

(1)

Government Certification Authority (GCA) of Chung Hwa Telecomm Co. Ltd. GCA is responsible for trial processing of tax return on net in our country. Reference website http://www.pki.gov.tw/

(2)

"HiTrust" who is the agenet of US Verifsign Company which is the first electronic certification service company in the world provides electronic certification product and technology as well as electronic certification service and e-commerce service.Reference website http://www.hitrust.com.tw/home.htm

(3)

Taiwan network certificate company and is mainly formed by Finance Information Co. Ltd. Kuan Mou Network Co. Ltd. Taiwan Securities Exchange Bureau, Taiwan Securities Concentrate Custody Co. Ltd. who plan to provide certification service domestically in securities and finance field.

(4)

Other companies in the process of development and formation.

 

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7

In order to standardize transaction safety and application standard for identity confirmation, which countries already are completed or actively in the process of legislation on related area of electronic signature?

 

 In order to establish the safety and reliability of electronic transaction environment and popular application of e-commerce, various countries in Europe and America all actively expedite legislation similar to electronic signature.  For example, Germany (August, 1997), Malaysia (1997), Italy (March 1997), Singapore (June 998), Korea (legislated in December 1998 and was effective in July 1999), Hong Kong (January 2000), Japan (may 2000) US Federation (June 2000) and various states (40 more states had already legislated) and for EEC, formulation of electronic signature order has been completed (January 2000), various member countries like England (July 2000), France (March 2000) already completed the coordination of domestic law within the member states before July 2001 based on the standard of orders.

 

 

8

What is the principle of legislation of electronic signature law?

 

1)

Principle of neutral technology: Any technology that can ensure the integrity of the information during the process of transmission or storage and can examine the identity of the user can all be used to produce electronic signature and will not adopt asymmetric form」confidentiality addition technology as the foundation of 「digital signature」as the limit so as not to block the development of application of other technology.  This law adopts「electronic signature」suggested by international organization including United Nations and EEC as the basis of legislation instead f basing on (digital signature) as limit so as to response to innovation development of electronic examination technology such as bio-technology. For electronic signature or electronic document produced by any electronic technology, as long as the function and written document and signature and seal is equivalent, they can all be used.

 

2)

Principle of contract liberty: Regarding electronic transaction behavior in civilian area, it is appropriate that under the principle of contract liberty, both transaction parties concerned shall agree between themselves to adopt what kind of suitable safety technology, procedure and method to produce electronic signature or electronic document as the basis that both parties can mutually rust and abide and shall be the basis of related legal responsibility.  Therefore, it is not appropriate to intervene the contract principle of both transaction parties with public authority of the government. Both transaction parties should agree amongst themselves on the electronic signature or electronic document produced by technology that they could commonly abide.  In addition, between certification institution and users, they can use contract to standardize rights and obligation for both parties.

3)

Principle of market-directed: Regarding management on certification institution by the government and development of electronic certification market, it is suitable to be limited to only minimum necessary standard.  In the future, on establishment of electronic certification system and development of electronic certification market, it is better to allow civilian to direct the development of various electronic certification service required by various electronic transactions and its related standard.

 

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9

How electronic signature law can be legislated to grant legal effect to electronic signature and electronic document and to standardize related legal effect?

 

 

1)

To establish electronic signature and documents usage standard system, to establish complete usage environment and to grant legal effect to electronic signature and document is one of main mission of electronic signature law. Furthermore, usage of electronic signature and document cannot conform to present legal standard requirement for signature and regulation of legal requirement form and behavior of document.  In order to breakthrough this legal barrier, this is the second major mission of electronic signature law.

2)

Confirm the legal effect of electronic signature and document utilization:

   First of all, legal recognition on electronic signature and document should be granted.  Treatment for electronic signature and document cannot solely due to the reason of existence in the form of electronic record and cannot conform to the essential terms of signature and writing and directly deny its effect. Reference shall be made to UNCITRAL of United Nations, US Illinois state, Australia, Singapore and Malaysia that also has regulation on legal recognition on its position; The purpose is that there should be no discriminating attitude on electronic signature and document law and that is the principle of "non discrimination". Presently, in many E-Commerce activities, commonly speaking it is possible that it only belongs to E-mail document transaction or simple behavior of on-line transaction and absolutely most part belongs to "unnecessary behavior". The law specifies that the percentage of the necessity to fulfill "necessary behavior" is not high. Stipulation of this term can educate people in their daily live to hold an equal attitude on electronic signature and document used by them and actual physical signature and written document.  Agreement, commitment, commitment etc. between parties concerned, as long as it is not a legal required form behavior, law originally should not interfere and regulate party concerned that it must be done in electronic document or in writing.   Therefore, most of on-line transaction behavior, communication will confirm more on its legal effect and other people cannot deny it arbitrarily.  This is the first principle and not only it has the meaning of declaration, it can even allow electronic signature and document to obtain the effect of a common legal position.

3)

Breakthrough present barrier of legal provision of 「legally determined『written signature』required form behavior」
   If due to legal requirement of requirement behavior that signature or written document  is necessary and if it is transmission behavior of electronic signature and electronic document etc. then they cannot possess similar legal effect as it cannot conform to legal essentials.  In order to eliminate the barrier of legal applicability, various countries in the world all formulate similar regulation that when behavior is conducted by electronic signature and document, if its contents can be displayed completely in the form of electronics and can be acquired for examination on its true and false at a later date, then it is deemed that it can conform the essential requirement of "signature, written document" in law. UNCITRAL of united Nations even more clearly describe the principle of this "Functional-Equivalent". The point of consideration is not to allow electronic signature and document to be directly equal to traditional signature and paper and instead it considers their reason and requirement of regulation in law for "signature, written document" to induce necessary functional essential.  Possession of similar functional essential electronic signature and document can conform to the so called legal requirement for signature and written document.  Legislation on this part is to breakthrough the difficult problem in legal applicability of electronic signature and document so that it has the same effect as signature and written document.

 

 

10

Electronic signature application technology is a new technology and if people cannot use it, will it affect their rights and benefits?

 

   In order to protect the rights and benefits of the people and to avoid people to be in an disadvantageous position due to their inability to use electronic signature and document, the stipulation of electronic signature law should not enforce requirements that government institution and civilian organization and transaction party concerned must use electronic signature and document to prepare documents, to store , to transmit and to receive.  Instead, principle of self-decision by the party concerned should be adopted that the party concerned can use electronic signature in the form of agreement and  people should not be foreced to use. In other words, in the future, even if government department or enterprise department has a high level of digitization and networking, they still must provide manual operation service so as to ensure the rights and benefits of all people.

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