Salient Features of The E-Commerce Act: Mark Dexter M. Ferniz

SALIENT FEATURES OF
THE E-COMMERCE ACT
MARK DEXTER M. FERNIZ

A. Legal recognition, admissibility and evidential weight of
electronic data messages, electronic documents;
B. Recognition of electronic signatures.

C. Recognition that an electronic data message or an electronic
document suffices as an original document;
D. Electronic data message or electronic documents can be authenticated
by any party involved including third-party ISPs or Certificate Authorities
(CA)(chosen by the parties, although CAs are not specifically mentioned
in the bill, until such time that Supreme Court may adopt other
authentication procedures including electronics or cyber-notarization;
E. Express mandate within two years from the effectively of the Act for
all government departments, bureaus, offices, agencies, entities, and
instruments, and government owned and controlled corporations to
use and accept electronic documents and electronic signatures in their
transactions;
F. Installation within two years from the effectively of the Act of an
electronic online network otherwise known as the RPWEB to
promote the use of electronic documents and electronic data
messages by the government and the general public;
G. Authority of the DTI to direct and supervise the promotion of E-
commerce in the country in coordination with other government
and private entities;
H. Reciprocity provision, which means all benefits, privileges, advantages or
statutory rules established under the Act, including practice of ones profession,
shall be enjoyed only by parties whose country of origin grants the same benefits
and privileges or advantages to Filipino citizens;
I. Obligations of confidently wherein any person who obtain access to any

electronic key, electronic data messages or electronic document or other
materials protected under the Act shall not, unless authorized, convey to
or share the same with any person under pain of sanctions.
J. Penalizing hacking or cracking which is the unauthorized access to, or
intrusion or interference in a computer or a computer network and/or
gadgets and through the use of information technology, including the
introduction of viruses and the like.
K. Penalizing piracy of copyrighted works including other legally protected sound
recordings or informations materials through the use of telecommunication
networks in the manner that infringes intellectual property rights.
E-COMMERCE BASIC LEGAL PRINCIPLES:

A. The foremost principles is that electronic communications shall be the functional equivalent of
paper documents.
B. Second is the principle of the autonomy of contracts.
C. The third principle is the voluntariness of the use of electronic communication.
D. The fourth principle is the solemnity of contracts and the primacy of statutory requirements and
judicial pronouncements respecting formalities of contracts.
E. The fifth principles is that being merely a law applicable to the form, rather than the substantive
terms of contracts, an offer, the acceptable of an offer and other elements required for the
formation of contract, shall continue to be governed by existing laws.
F. The sixth principle is that primacy of consumer protection.
R.A. 4200, ANTI-WIRE TAPPING LAW:

A. Not being authorized by all the parties to the private communication or spoken word.
B. Or to:
B.1. To tap any wire or cable, or by causing any other device or arrangement to
secretly overhear, intercept, or record such communication by suing any device.
B.2. Whether a participation or not, to knowing posses any tape record, wire record,
disc record, or any other such record or copies thereof.
B.3. To replay the same to any person or persons.
B.4. To communicate the continent thereof either verbally or in writing.
B.5. To furnish transcription thereof either verbally or in writing.
B.6. Willfully, aiding, abetting or causing the above acts to be done.(sec. 2)
OTHER CYBERCRIME RELATED LAWS:

The cybercrime-related laws in the country are:
1. RA 10175-Cybercrime Prevention Act of 2012, which is currently suspended due to a
TRO issued by the Supreme Court;
2. RA 9995 Anti-Photo and Voyeurism Act of 2009;
3. RA 9725 Anti-Child Pornography Act of 2009.
The investigation of these Computer Crimes must adhere to the provisions of these;
RULES ON ELECTRIC EVIDENCE (A.M. No. 01-7-01-SC) dated July 17, 2001
The Rules will take effect on August 1, 2001
RULE 1-COVERAGE
Section 1. Scope Unless otherwise provided herein, these Rules shall apply whenever
an electronic document or electronic data message, as defined in Rule 2 hereof, is offered
or used in evidence.
Section 2. Cases covered These Rules shall apply to all civil actions and proceedings,
as well as quasi-judicial and administrative cases.
Section 3. Application of other on evidence In all matters not specifically covered by
these Rules, the Rules of Court and pertinent provisions of statutes containing rules on
evidence shall apply.
RULE 2 DEFINITION OF TERMS AND CONSTRUCTION
Section 1. Definition of Terms For purposes of these Rules, the following
terms are defined, as follows:
A. Asymmetric or public cryptosystem means as system capable of generating a secure key pair,
consisting of a private key creating a digital signature, and a public key for verifying the digital
signature.
B. Business records include records of any business, institution, association, profession,
occupation, and calling of every kind, whether or not conducted for profit, or for legitimate or
illegitimate purposes.
C. Certificate means an electronic document issued to support a digital signature which purports to
confirm the identity or other significant characteristics of the person who holds a particular key pair.
D. Computer refer to any single or interconnected device or apparatus, which, by electronic,
electronic-mechanical or magnetic impulse, or by other means with the same function, can receive,
record, transmit, store, process, correlate, analyze, project, retrieve and/or produce information data,
text, graphics, figures, voice, video, symbols or other modes of expression.
E. Digital Signature refers to an electronic signature consisting of a transformation of an
electronic document or an electronic data message using an asymmetric or public
cryptosystem such that a person having the initial untransformed electronic document and
the signers public key can accurately determine:
E.1. Whether the transformation was created using the private key that corresponds to the
signer public key; and,
E.2. Whether the initial electronic document had been altered after the transformation has made.
F. Digitally signed refers to an electronic document or electronic data message bearing a
digital signature verified by the public key listed in a certificate.
G. Electronic data message refers to information generated, sent, received or stored by
electronic, optical or similar means.
H. Electronic document refers or the representation of information, data, figures, symbols
or other modes of written expression, describe or however represented, by which a right is
established or an obligation distinguished, or by which a fact may be proved and affirmed,
which is received, recorded, transmitted, stored, processed, retrieved or produced
electronically . It includes digitally signed documents and any print out or output, readable by
sight or other means, which accurately reflects the electronic data message or electronic
document. For purposes of these rules, the term electronic document may be used
interchangeably with electronic data message.
I. Electronic key refers to a secret code which secures and defends sensitive information that
crosses over public channels into a form decipherable only with a matching electronic key.
J. Electronic signature refers to any distinctive mark, characteristic and/or sound in
electronic form, representing the identity of a person and attached to or logically
associated with the electronic data message or electronic document or any methodology
or procedure employed or adapted by a person and executed or adapted by such a
person with the intention of authenticating, signing or approving an electronic data
message or electronic document.
K. Ephemeral electronic communication refers to telephone conversations, text
message, chatroom sessions, streaming audio, streaming video, and other electronic of
communication the evidence of which is not recorded or retained.
L. Information and Communication System refers to a system for generating, sending,
receiving, storing or otherwise processing electronic data messages or electronic documents
and includes the computer system or other similar devices by or in which data are recorded or
stored and any procedure related to the recording or storage of electronic data messages or
electronic documents.
M. Key Pair in an asymmetric cryptosystem refers to the private key and its mathematically
related public key such that the latter can verify the digital signature that the former creates.
N. Private Key refers to the key of a key pair used to create a digital signature.
O. Public Key refers to the key of a key pair used to verify a digital signature.
SECTION 2. CONSTRUCTION These Rules shall be liberally construed to assist the parties in
obtaining a just, expeditious, and inexpensive determination of cases.
The interpretation of these Rules shall also take into consideration the international origin of
Republic Act No. 8792, otherwise known as Electronic Commerce Act.
RULE 3 ELECTRONIC DOCUMENTS
Section 1. Electronic Documents as functional equivalent of paper-base documents Whenever a rule of evidence refers to the term writing,
document, recorded, instrument, memorandum or any other from of writing, such term shall be deemed to include an electronic document as
define in these Rules.
Section 2. Admissibility - An electronic document is admissible in evidence if it complies with

the rules on admissibility prescribed by the Rules of Court and related laws and is authenticated
in the manner prescribed by these Rules.
Section 3. Privileged communication The confidential character of a privileged
communication is not lost solely on the ground that it is in the form of an electronic document.
RULE 4 BEST EVIDENCE RULE

Section 1. Original of an Electronic Document An electronic document shall be regarded as
the equivalent of an original document under the Best Evidence Rule if it is a print out or output
readable by sight or other means, shown to reflect the data accurately.
Section 2. Copies as equivalent of the originals When a document is in two or more copies
executed at or about the same time with identical contents, or is a counterpart by the same
impression as the original, or form from the same matrix, or by mechanical or electronic
rerecording, by chemical reproduction, or by other equivalent techniques which accurately the
original, such copies or duplicates shall be regarded as the equivalent of the original.
Not with standing the foregoing, copies or duplicates shall not be admissible to the same extent
as the original if:
a. a genuine question is raised as to the authenticity of the original; or
b. in the circumstances it would be unjust or inequitable to admit the copy in lieu of the original.
RULE 5 AUTHENTICATION OF ELECTRONIC DOCUMENTS

Section 1. Burden of proving authenticity-The person seeking to introduce an electronic document
in any legal proceeding has the burden of proving its authenticity in the manner provided in this
Rule.
Section 2. Manner of authentication Before any private electronic document offered as
authentic is receive in evidence, its authenticity must be proved by any of the following means:
a. by evidence that it have been digitally signed by the person purported to have signed the
same;
b. by evidence that other appropriate security procedures or devices as may be authorize

by the Supreme Court or by law for authentication of electronic documents were applied to the
document; or
c. by other evidence showing its integrity and reliability to the satisfaction of the judge.
Section 3. Proof of electronically notarize document. A document electronically notarize in
accordance with the rules promulgated by the Supreme Court shall be considered as a public
document and proved as a notarial document under the Rules of Court.
RULE 6 ELECTRONIC SIGNATURES
Section 1. Electronic signature An electronic signature or a digital signature authenticated in

the manner prescribed here under is admissible in evidence as the functional equivalent of the
signature of a person on a written document.
Section 2. Authentication of electronic signatures An electronic signature may be

authenticated in any of the following manner:
a. By evidence that a method or process was utilized to establish a digital signature and
verify the same ;
b. By any other means provided by law; or
c. By any other means satisfactory to the judge as establishing the genuineness of the
electronic signature.
Section 3. Disputable presumptions relating to
electronic signatures. Upon the authentication of
an electronic signature, it shall be presumed that;
a. The electronic signature is that of the person to whom
it correlates;
b. The electronic signature was affixed by that person
with the intention of authenticating or approving the
electronic to which it is related to indicate such persons
consent to the transaction embodied therein; and
c. The methods of the processes utilize to the affix or
verify the electronic signature operated without or fault.
Section 4. Disputable presumptions relating to

digital signatures. Upon the authentications of a
digital signatures, it shall be presumed, in addition
to those mentioned in the immediately preceding
section, that;
a. The information contained in a certificate is correct; The
digital signature was created during the operational period of a
certificate;
b. No cause exists to render a certificate invalid

or revocable;
c. The message associated with a digital
signature has not been altered from the time it was
signed; and
d. A certificate had been issued by the
certification authority indicated therein.
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SALIENT FEATURES OF

THE E-COMMERCE ACT

MARK DEXTER M. FERNIZ

B. Recognition of electronic signatures.

I. Obligations of confidently wherein any person who obtain access to any

E-COMMERCE BASIC LEGAL PRINCIPLES:

R.A. 4200, ANTI-WIRE TAPPING LAW:

OTHER CYBERCRIME RELATED LAWS:

Section 2. Admissibility - An electronic document is admissible in evidence if it complies with

RULE 4 BEST EVIDENCE RULE

RULE 5 AUTHENTICATION OF ELECTRONIC DOCUMENTS

b. by evidence that other appropriate security procedures or devices as may be authorize

Section 1. Electronic signature An electronic signature or a digital signature authenticated in

Section 2. Authentication of electronic signatures An electronic signature may be

Section 4. Disputable presumptions relating to

b. No cause exists to render a certificate invalid

Thank you so much

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