Principles of the law of software contracts

An electronic record or signature is attributed to a person if it was an act of that person. UETA recognizes that an electronic signature is just as effective, valid, and enforcement as paper. However, questions of authority, forgery, and contract formation are determined by other state law. The parties to the contract are free to enter into agreements concerning their use of electronic media.

UETA ties the determination of when an electronic record is sent or received to the communications systems used by the parties to the contract.

E-sign does not contain such provisions for dealing with mistakes in electronic communications, while UETA does contain such provisions for breaches in security procedures and mistakes made by an individual dealing with an electronic agent. Unless otherwise specified, the rules of mistake apply. UETA specifies that electronic records cannot be excluded as evidence solely because they are in electronic format.

Antitrust and E-Marketplaces. As discussed in Chapter 4, a business-to-business e-marketplace is an Internet exchange where goods are traded. Department of Justice have raised questions about the potential for price fixing and collusion. Two different types of e-marketplaces exist.

The first type, those run by a neutral third party in which buyers pool their requirements for specific items, such as office suppliers, are not under scruntiny. The second type, industry sites owned and operated by competitors who together represent more than 50 percent of an industry market share, raise antitrust concerns. Three activities cause the concern: 1 the potential for sharing information among competitors that may allow for price increase or the development of a monopoly, 2 the danger of one buyer or a consortium of buyers acting as one to coerce a supplier to accept a price lower than what would occur in a competitive market, and 3 suppliers that may not be in a position to freely decide not to participate.

Supporters of industry e-marketplaces argue that firewalls can be used to protect against competitors sharing information. Such e-marketplaces also are compared to Internet shopping malls where direct competitors co-late and share expenses for things like security. Well-crafted B2B operating rules may be enough to eliminate concerns and traditional antitrust analysis is feasible.

Intellectual Property Laws. In the Knowledge Age, more and more wealth is derived from intellectual capital. According to the World Intellectual Property Organization WPO , intellectual property IP refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. Intellectual property is divided into two categories. Industrial property includes inventions patents , trademarks, industrial designs, and geographic industries of source.

Copyright includes literary and artistic works such as novels, poems, and plays; films; musical works; artistic works such as drawings, paintings, photographs, and sculptures; and architectural designs. Rights related to copyright include those of performing artists in their performances, producers of sound recordings, and those of broadcasters in their radio and television programs.

Emerging Issues in Intellectual Property Rights. According to the World Intellectual Property Organization WIPO , the emerging issues in intellectual property range from the Internet to health care to nearly all aspects of science and technology and literature and the arts.

The legal issues of who actually owns intellectual capital are of great concern globally. New technology enables the rapid and widespread duplication and transfer of information. However, should access give unlimited rights when intellectual property interests are involved? What is fair use? Does existing domestic and international law adequately address the challenges caused by new technology?

WIPO is an international organization dedicated to promoting the use and protection of intellectual property. It has nations as member states and administers 23 international treaties dealing with different aspects of intellectual property protection. The World Trade Organization also has new agreements on trade in services and intellectual property rights. WIPO research has dealt with intellectual property issues related to access to drugs and health care, small and medium-sized enterprises, electronic commerce programs and activities, Internet domain disputes, genetic resources, and traditional knowledge and folklore.

Copyright Law. Cornell Law Faculty Publications. Advanced Search. Privacy Copyright. Skip to main content. The Principles will aid lawyers, persons who are in the software business or who rely on software, and eventually common-law judges and legislators. The volume will be supplemented by an annual pocket part. Chapter 1. Definitions, Scope, and General Terms Topic 1. Definitions Topic 2. Scope Topic 3.

A contractual clause may transfer this responsibility to the buyer. If there is a charge of infringement of a patent or trademark, the buyer may be liable to legal action. There is a tacit representation on the part of the buyer that the seller will be safe in manufacturing according to the specifications, and the buyer then is obliged to indemnify the seller for any loss suffered UCC Section If a charge of patent infringement is made against the buyer, the supplier should be notified promptly so that the charge can be defended, or settlement made, in a timely manner.

Also, if a seller attempts to include a patent disclaimer clause in the sales contract, the buyer should be extremely cautious in accepting such a clause, since there may be costly litigation if patent infringement has occurred. Protection Clause. This often happens in high-technology industries. To guard against losing the right to the new development and possible subsequent financial rewards, the buyer includes a protection clause in the contract. Recent Developments.

Two recent developments in patent law are of interest to supply managers. A trademark is a logo, brand name, or design that is new or distinctive enough to market or represent a company or its goods and services. It protects the owner of the mark by ensuring the exclusive right to use it to identify goods or services, or to authorize another to use it in return for payment.

The protection period varies but a trademark can be renewed indefinitely for a fee. Trademark protection is enforced by the courts, which in most systems have the authority to block trademark infringement.

The trademark system facilities global trade. It promotes initiative and enterprise worldwide by rewarding the owners of trademarks with recognition and financial profit. If enforced, it also hinder unfair competitors, such as counterfeiters, from using similar distinctive signs to market inferior or different products or services. The manufacture and sale of counterfeit goods is a problem in some industries. In some, such as aerospace, counterfeit parts of inferior design, material, and manufacture may cause loss of life.

In others, such as shoes, clothing, and accessories the loss is a degradation of brand as well as financial losses. The lack of international intellectual property laws exacerbates this situation. What is illegal in one country is a perfectly acceptable sector of the economy in another.

Industrial Design. An Industrial design is the ornamental or aesthetic aspect o0f an article. This includes its three-dimensional features, such as the shape or surface of an article, or two-dimensional features, such as patterns, lines, or color.

Industrial designs are applied to wide variety of products of industry and handcraft such as clinical and medical instruments, luxury items, housewares, electrical appliances, vehicles, and architectural structures. To be protected under most national laws, an industrial design must appeal to the eye. It does not protect any technical features of the article to which it is applied. Geographical Indication. A geographical indication is a sign used on goods from a specific geographical origin that posses qualities or a reputation due to its origin.

Yes, that is why California bubbly is called sparkling wine, not champagne. Product Liability. From lead paint on toys to e-coli on spinach to melamine in milk and pet food, keeping products safe for consumers is an ongoing challenge across industries and countries. Product liability refers to the liability of any or all parties along the manufacturing supply chain for damage caused by that product.

This includes the manufacturer, the wholesaler, and the retail store owner. Liability suits have been filed over inherent defects in products that are harmed customers. Product safety and product liability considerations have been more important for several reasons: 1 Lawsuits, large settlements, and greater public awareness have occurred when government regulations and oversight increase and judicial interpretations of the existing laws favor plaintiff; 2 a reduction or elimination of either regulations or oversights leads to lax control within and among supply chains, resulting in large product recalls; 3 the growth of global supply chains and the inherent difficulties of managing all aspects of safety and quality across borders and across legal and regulatory systems increase the risk of harm to consumers.