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Internet Law: Taming The Wild West

Pick up any major magazine or daily newspaper and you are sure to find someone toasting or roasting the Internet. Most of these energies are focused on the glamour of the Internet -- new technological advancements, growing business potential, impact on social behavior -- the list goes on and on. Ironically, the most neglected item in the popular media (and the new and intriguing "Net" media) is Internet law, legislation designed to protect Netizens.

Industry Canada and Justice Canada are determined to have (Internet) privacy protection legislation on the books by 2000. The United States federal government and the State of California are much further ahead.

Below, we identify the four major issues over which U.S. Internet law is currently being drawn, as well as some of the legislation being considered.

In upcoming columns, we will examine the laws (proposed and pending), explore their features, potential impacts, and the challenges of enforcing them.

As the Internet knows no boundaries, Canada will model much of its Internet legislation on U.S. models.

Privacy of information

Key concern:

- What information can be and/or should be considered to be owned, and therefore controlled, by an individual?

Proposed/pending legislation:

1. Consumer Internet Privacy Protection Act prohibits computer services from disclosing to third parties any personally identifiable information provided by a subscriber, without first obtaining the subscriber's informed written consent.

2. Federal Internet Privacy Protection Act prohibits federal agencies from making any record containing information about an individual's education, financial, medical or employment history available through the Internet.

Taxation

Key concern

- How can taxes be fairly and consistently assigned across jurisdictions while encouraging the Internet as a means of productive commerce?

Proposed/pending legislation:

Internet Tax Freedom Act preserves state and local taxing authority to tax sales and transactions, if the tax is the same as that imposed on mail or telephone orders. This same legislation prohibits state or local governments from imposing, assessing or attempting to collect any tax or fee, directly or indirectly, on the Internet or interactive computer services and their use.

Copyright

Key concern:

How can the reproduction and distribution of information (data or knowledge) without the explicit permission of the creator or owner of that information be prevented or discouraged?

Proposed/pending legislation:

1. Digital Millennium Copyright Act prohibits the tools that avoid technological copyright protections, as well as protecting recordings, graphics and other creative works.

2. No Electronic Theft Act provides criminal liability and penalties for those who infringe copyright.

Pornography

Key concern:

- How can access to pornographic material on the Internet by minors be restricted?

Proposed/pending legislation:

- Communications Decency Act II restricts sending certain sexually explicit or violent materials over the Web to minors by focusing on commercial Web sites and allowing adults access by credit card number.

Underlying all of these issues and potential laws is a question that remains unanswered: who owns the Internet? With ownership comes tremendous income-generating potential but also the responsibility to regulate behavior and enforce penalties.

While the United States has been viewed as the Internet's owners, no one is certain who will, or should, be the bearer(s) of this global Pandora's box. In recognition of this dilemma, the U.S. has recently proposed a White Paper defining a systematic approach to establishing a private-sector Internet governing body that has international representation. But, until ownership is clearly agreed upon, any legislation or resulting law will likely be a temporary solution that will need re-examining in the future. For additional information on the latest developments in U.S., European and International Internet legislation, visit the sites of the following organizations:

- The Center for Public Integrity
- The Department of the Treasury
- The Digital Media Association
- The Electronic Frontier Foundation
- The Internet Alliance
- The Online Privacy Alliance
- The Law Journal Extra

Bennett Gold LLP invites your questions, comments and feedback: E-Mail: action@BennettGold.ca Telephone: 416-449-2249. Read Bennett Gold LLP's Privacy Policies and Practices.

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