Strauss5eIM05.docx

Strauss5eIM05.docx

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Strauss5eIM05

Chapter5:

EthicalandLegalIssues

LearningObjectives（PPT5-2）

OverviewofEthicsandLegalIssues

Ethicsisageneralendeavorthattakesintoaccounttheconcernsandvaluesofasocietyasawhole.Lawsarenormallycreatedforbroaderpurposes,withthegoalofaddressingnationalorsometimesinternationalpopulations.Althoughthereisarelationshipbetweenethicsandlegality,theyareseparateentitiesthatshouldbetreatedassuch.

EthicsandEthicalCodes

Ethicshavebeenstudiedforover2500years.TheAmericanMarketingAssociation’s（AMA）CodeofEthicsreflectsthecommitmenttohonesty,integrity,andfairness.Someissuesthattechnologyhasspawnedare:

ownershipofintangibledataorintellectualproperty,privacy,freedomofexpression,methodsofcollectingdata,andstatusofchildrenwhologintodigitalnetworks.

TheProblemofSelf-Regulation

Agreattopicofdebateinvolvestheroleofformallawintheregulationofonlineconduct.Recently,thegovernmenthasimplementedactivitiestothwartfraudandconcerningchildren’sprivacy,buttheresolutionofthisdebateisfarfromover.

Privacy

Thereismuchdebateconcerningwhatprivacyentails.Consumersareapttogivepersonalinformationforbenefitsthattheyperceivetobeworthwhile–creditcards,frequentflyermileage,securityprecautions,etc.Inthesecases,ethicsandlawattempttoprovideguidelinesinthefinaldecisionbycriticallyexaminingdefinitions,priorities,andimplications.

PrivacyWithinDigitalContexts

TheInternetsuesseveraldifferentwaystogatherinformation,someofwhichmaybeconsideredunethical.TheAMAdeterminedthe“informationcollectedfromcustomersshouldbeconfidentialandusedonlyforexpressedpurposes.”Cookiesarethemostcommonwayforonlinemarketerstoobtaincustomerdata.SpywareandAdwarehaverecentlybeenrecognizedasapossibleviolationofprivacyaswell.

InternationalPrivacyIssues

TheEU（EuropeanUnion）createdadirectivein1998thatgavefundamentalrightstopersonsinrespecttotheprocessingofpersonaldata,requiringthatindividualsbeinformedhowtheirpersonaldataistobeused.In2000,theU.S.DepartmentofCommerceandtheFTCjoinedforcedwiththeEUtoprovidesafeharborprovisionstoprotectcitizendata.

DigitalProperty

Thelawdefinitionofownershipisbeingchallengedbydigitaltechnology.Intellectualpropertyhastraditionallybeenprotectedthroughcopyrights,trademarks,andpatents.

Patents

Patentswereoriginallytailoredtowardindustrialormechanicalconcerns.AnareaofcurrentInternetfocuscentersontheuseofbusinesspatentsthatdescribesuchactivitiesasmarketingapproachesandmethodsforconductingcommerce.

Copyright

CopyrighthasbeenestablishedastheprimarymeansofprotectingmostexpressionontheInternet.In1997,theNoElectronicTheftAct（NETAct）wassignedtoprotectagainstreproductionordistributionofcomputercontent.In1998,theDigitalMillenniumCopyrightAct（DMPCA）wasenactedto,amongotherthings,protectISPs.Criticsfearthattheseandothercopyrightactswillunfairlyfavorcopyrightowners.

Trademark

Trademarklawinconcernedwiththeownershipofintellectualpropertythatidentifiesgoodsorservices.TrademarklawhasrecentlybeenappliestotheInternetnamingsystemofdomainsandemailaddresses.Usingsimilarwebpagenamesandcybersquattinghavealsobeendeterminedasbeinginviolationoftrademarklaws.Metatags,keywords,hyperlinks,andframinghavealsobeenincludedundertheprotectionumbrellaofInternettrademarklaws.

Licenses

Alicenseisacontractualagreementmadebetweenconsumersandsoftwarevendors,whichallowthebuyertousetheproductbutrestrictduplicationordistribution.Somevariationofsoftwarelicensesaretheshrinkwrapandclickwraplicense.

TradeSecrets

TheEconomicEspionageActof1996makesitacriminaloffensetodivulgetradesecretssuchascommercial,scientificandtechnicalendeavors:

formulas,marketdata,algorithms,programs,codes,andmodels.

DataOwnership

Accessandownershipquestionsrelatingtodataanddatabasesarecurrentlegalandethicaldebates.SeveralconcernshaverecentlybeenraisedconcerningthecollectionandownershipofInternetdata,including:

clickdata,spideringandrobots,anddatarelatingtofacts.

OnlineExpression

Asthespamdebaterageson,e-marketersaretornbetweentheinappropriatenessofthepracticeandthetopicoffreedomofexpressionprotectedbytheFirstAmendmenttotheConstitution.Oneofthelargestdisagreementpointscurrentlyremainsbetweenthosewhobelievethatparticipationinmasse-mailsshouldberestrictedtothosewhovoluntarilyagreetoreceivemailingsandthosewhoadvocateanopt-out-onlyapproach.Severallegalrulingshaverecentlylimitedtheactivitiesofspammers,butthepracticeisstillrampantontheInternet.

EmergingIssues

Alongwithmoreconventionalproblemsofonlinedynamics,anumberofissueshavearisenthatareparticularlyuniquetotheInternetatitscurrentstageofdevelopment.

OnlineGovernanceandICANN

In1998theInternetCorporationforAssignedNamesandNumbers（ICANN）wascreatedasaprivate,non-profitregulatorybodyresponsiblefortheadministrationofInternetnamesandaddresses.Thisorganizationwascreatedtodealwithconflictsarisingfromassignmentandpossessionofdomains,buthasfailedtosatisfymanyonlineuserswhowouldprefertobypassICANNandresolvedisputesthroughthelegalsystem.

Jurisdiction

Jurisdictionisthelegaltermthatdescribestheabilityofacourtorotherauthoritytogaincontroloveraparty.Jurisdictionistraditionallybasedonphysicalpresence,butwithintheonlineworldcommonalityofphysicallocationisneverassured.Thirdparty,mediation-orientedprogramshavebeendevelopedtoresolveonlinedisputes.Althoughthismayencourageresultswithouttheexpenseofthelegalsystem,somesuggestthatarbitrationcannotadequatelyensureenforcement.

Fraud

Becausetheaveragepersonisnotinapositiontounderstandexactlyhowinformationisdisplayed,transferred,orstored,theymaybeinapositionfornoveldeceptionsonline.SpoofingiswhenindividualsimpersonatecorporationsorWebsitestogainaccesstosensitiveandpersonalinformationforthepurposeoffraud.FederalagenciessuchastheFTCandtheFBIhaveincreasedtheireffortstotrackandprosecutefraudulentconduct.

ChapterSummary

Ethicsisconcernedwiththevaluesandpracticesofprofessionalsandexpertsaswellastheconcernsandvaluesofsociety.Lawisalsoanexpressionofvaluesbutcreatedforthebroadergoalofaddressingnationalorevenglobalpopulations.Groupsofindividualswithspecialskillsorknowledgehaveestablishedethicalcodesovertheyears.Differingviewsexistoftheroleoflawandself-regulationinethicalonlinebehavior.

Thenotionofprivacyemergedduringthetwentiethcenturyasakeyethicalandlegalconcern.Keyaspectsincludeseclusion,accesscontrol,andautonomy.OnlineprivacyissuesintheUnitedStatesandothercountriesrelatetohowdatashouldbecollectedandused.U.S.firmscanparticipateinasafeharborplantoprotectdatafromEuropeanUnionInternetusers.TheFTCsetforthfivenormsforethicaluseofconsumerinformation,includingprovisionsforusernotice,consent,access,security,andenforcement.

Intangibleorintellectualpropertyisprotectedthroughthreebasiclegalmechanisms:

copyright（coveringideas）,patentlaw（coveringinventions）,andtrademark（coveringimages,symbols,words,orotherindicatorsassociatedwithaproduct’smarketidentity）.CompaniesareconcernedaboutlegalprotectionfortradesecretsandabouttheownershipofinformationsuchasWebsitecontent,usagedata,andfacts.Onlineexpressionissuesincludeconcernsaboutspam,criticismsofproductsorindustries,andexpressiondirectedtochildren.Threeemerginglegalandethicalissuesareonlinegovernance,jurisdiction,andfraud

ChapterOutline

OpeningVignette:

SoftwareInfringement（PPT5-3,5-4）

HavetheclassreadtheopeningvignetteonSoftwareInfringement.Discusswiththeclassthepiracyissueandifitdiffersfromsimplystealing.Hasanyoneintheclassloadedsoftwareontheircomputerthattheydidnotpurchase?

Theimpactofsoftwarepiracyisastounding,accountingforover$12billioninlossesin2006.Severalcompanies,likeMicrosoft,havewrittencodeintotheirsoftwarethatonlyallowstheprogramtobeinstalledacertainnumberoftimes.Isthislegal?

Isitethical?

Vietnampiratesover97%ofthesoftwareusedinthatcountry.ReadwhatMicrosofthastosayaboutpiracy.

I.OverviewofEthicsandLegalIssues（PPT5-5）

Ethicsisageneralendeavorthattakesintoaccounttheconcernsandvaluesofasocietyasawhole.Lawsarenormallycreatedforbroaderpurposes,withthegoalofaddressingnationalorsometimesinternationalpopulations.Althoughthereisarelationshipbetweenethicsandlegality,theyareseparateentitiesthatshouldbetreatedassuch.

A.EthicsandEthicalCodes

1.Thecentralfocusofethicsistheanalysisanddescriptionofsimplywhatisrightandwrongandhowwejudgethedifference.

2.AmericanMarketingAssociation（AMA）CodeofEthicsstatesacommitmentto:

a.Honesty

b.Integrity

c.Fairness

3.Criticalissueswithintheelectronicenvironment

a.Intellectualproperty（ownershipofintangibledata）

b.Privacyinavirtualworld

c.Theextenttowhichfreedomofexpressionshouldbeallowed

d.Theuseofdata（includingmethodsofcollection）