Be it enacted by the
Senate and House of Representatives of the
Republic
of the Philippines in Congress assembled:
PART
ISHORT
TITLE
AND DECLARATION OF POLICY
Section 1. Short
Title. - This Act shall be known as the "Electronic Commerce
Act
of 2000".
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Sec. 2. Declaration
of Policy. - The State recognizes the vital role of information and
communications technology (ICT) in nation-building; the need to create
an information-friendly environment which supports and ensures the
availability,
diversity and affordability of ICT products and services; the primary
responsibility
of the private sector in contributing investments and services in
telecommunications
and information technology; the need to develop, with appropriate
training
programsand
institutional policy changes, human resources for the information
technology
age, a labor force skilled in the use of ICT and a population capable
of
operating and utilizing electronic appliances and computers; its
obligation
to facilitate the transfer and promotion of adaptation technology, to
ensure
network security, connectivity and neutrality of
technology
for
the national benefit; and the need to marshal, organize and deploy
national
information infrastructures, comprising in both telecommunications
network
and strategic information services, including their interconnection to
the global information networks, with the necessary and appropriate
legal,
financial, diplomatic and technical framework, systems and facilities.
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PART
IIELECTRONIC
COMMERCE IN GENERAL
Sec. 3. Objective. - This Act aims to facilitate domestic and international dealings,
transactions,
arrangements, agreements, contracts and exchanges and storage of
information
through the utilization ofelectronic,
optical and similar medium, mode, instrumentality and technology to
recognize
the authenticity and reliability of electronic documents related to
such
activities and to promote the universal use of electronic transaction
in
the government and general public.
Sec. 4. Sphere
of Application. - This Act shall apply to any kind of data message
and electronic document used in the context of commercial and
non-commercial
activities to include domestic and international dealings,
transactions,
arrangements, agreements, contracts and exchanges and storage of
information.
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firm
Sec. 5. Definition
of Terms. - For the purposes of this Act, the following terms are
defined,
as follows:
a. “Addressee” refers to a person who is intended by the originator to
receive
the
electronic data message or electronic document. The term does not
include
a person acting as an intermediary with respect to that electronic data
message or electronic document.
b. “Computer” refers to any device or apparatus which, by
electronic,electro-mechanical
or magnetic impulse, or by other means, is capable of receiving,
recording,
transmitting, storing, processing, retrieving, or producing
information,
data, figures, symbols or other modes of written expression according
to
mathematical and logical rules or of performing any one or more of
those
functions.
c. “Electronic
Data Message” refers to information generated, sent,received
or
stored
by electronic, optical or similar means.
d. “Information
and Communication System” refers to a systemintended
for and capable of generating, sending, receiving, storing orotherwise
processing
electronic data messages or electronic documents and includes the
computer
system or other similar device by or in which data is recorded or
stored
and any procedures related to the recording or storage of electronic
data
message or electronic document.
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e. “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 procedures employed or adopted by a
person
and executed or adopted by such person with the intention of
authenticating
or approving an electronic data message or electronic document.
f. “Electronic
Document” refers to information or the representation of
information,
data, figures, symbols or other modes of written expression, described
or however represented, by which a right is established or an
obligation
extinguished, or by which a fact may be proved and affirmed, which is
received,
recorded, transmitted, stored, processed, retrieved or produced
electronically.
g. “Electronic
Key” refers to a secret code which secures and defendssensitive
information
that crosses over public channels into a formdecipherable
only with a matching electronic key.
h. “Intermediary” refers to a person who in behalf of another personand
with
respect
to a particular electronic document sends, receivesand/or
stores or provides other services in respect of that electronicdocument.
i. “Originator” refers to a person by whom, or on whose behalf, theelectronic
document purports to have been created, generated and/or sent . The
term
does not include a person acting as an intermediary with respect to
that
electronic document.
j. “Service
Provider” refers to a provider of -
(i)
On-line
services or network access, or the operator of facilities therefor,
including
entities offering the transmission, routing, or providing of
connections
for online communications, digital or otherwise, between or among
points
specified by a user, of electronic documents of the user’s choosing; or
(ii)
The
necessary
technical means by which electronic documents of an originator may be
stored
and made accessible to a designated or undesignated third party;
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Such service providers
shall have no authority to modify or alter thecontent
of the electronic data message or electronic document receivedor to
make any
entry therein on behalf of the originator, addressee or anythird
party
unless
specifically authorized to do so, and who shall retain the electronic
document
in accordance with the specific request or asnecessary
for the purpose of performing the services it was engaged toperform.
CHAPTER
IILEGAL
RECOGNITION
OF ELECTRONIC WRITINGOR
DOCUMENT
AND DATA MESSAGES
Sec. 6. Legal
Recognition of Data Messages. - Information shall notbe denied
legal
effect, validity or enforceability solely on the grounds thatit is in
the
data
message purporting to give rise to such legal effect, or that it is
merely
referred to in that electronic data message.
Sec. 7. Legal
Recognition of Electronic Documents. – Electronicdocuments
shall
have the legal effect, validity or enforceability as anyother
document
or legal writing, and -
(a)
Where the
law requires a document to be in writing, that requirement is met by an
electronic document if the said electronic document maintains its
integrity
and reliability and can be authenticated so as to be usable for
subsequent
reference, in that -
(b)
Paragraph
(a) applies whether the requirement therein is in the form of an
obligation
or whether the law simply provides consequences for the document not
being
presented or retained in its original form.chanrobles
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(c)
Where
the
law requires that a document be presented or retained in its original
form,
that requirement is met by an electronic document if -
For evidentiary
purposes, an electronic document shall be the functionalequivalent
of a
written document under existing laws.
This Act does
not modify any statutory rule relating to the admissibility of
electronic
data messages or electronic documents, except the rulesrelating
to
authentication
and best evidence.
Sec. 8. Legal
Recognition of Electronic Signatures. - An electronicsignature
on
the
electronic document shall be equivalent to the signatureof a
person on
a written document if that signature is proved by showingthat a
prescribed
procedure, not alterable by the parties interested in theelectronic
document,
existed under which -
(a) A
method
is used to identify the party sought to be bound and toindicate said
party’s
access to the electronic document necessary for his consent or approval
through the electronic signature;
(b)
Said
method
is reliable and appropriate for the purpose for which the electronic
document
was generated or communicated, in the light of all the circumstances,
including
any relevant agreement;
(c)
It is
necessary
for the party sought to be bound, in order to proceed further with the
transaction, to have executed or provided the electronic signature; and
(d)
The
other
party is authorized and enabled to verify the electronicsignature
and
to
make the decision to proceed with the transactionauthenticated
by the same.
Sec. 9. Presumption
Relating to Electronic Signatures. - In anyproceedings
involving an electronic signature, it shall be presumed that -
(a) The
electronic
signature is the signature of the person to whom itcorrelates;
and
(b)
The
electronic
signature was affixed by that person with the intention of signing or
approving
the electronic document unless the person relying on the electronically
signed electronic document knows or has notice of defects in or
unreliability
of the signature or reliance on the electronic signature is not
reasonable
under the circumstances.
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SEC. 10. Original
Documents. - (1) Where the law requiresinformation
to be presented or retained in its original form, thatrequirement
is
met by an electronic data message or electronic documentif:
(a) the
integrity
of the information from the time when it was firstgenerated
in its final form, as an electronic data message or electronic document
is shown by evidence aliunde or otherwise; and
(b)
where
it
is required that information be presented, that the information is
capable
of being displayed to the person to whom it is to be presented.
(2) Paragraph (1)
applies whether the requirement therein is in the formof an
obligation
or whether the law simply provides consequences for theinformation
not
being presented or retained in its original form.
(3) For the
purposes of subparagraph (a) of paragraph (1):
(a) the
criteria
for assessing integrity shall be whether the information has remained
complete
and unaltered, apart from the addition of any endorsement and any
change
which arises in the normal course of communication, storage and
display;
and
(b)
the
standard
of reliability required shall be assessed in the light of the purpose
for
which the information was generated and in the light of all relevant
circumstances.
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SEC. 11. Authentication
of Electronic Data Messages andElectronic
Documents. - Until the Supreme Court by appropriate rulesshall
have so
provided,
electronic documents, electronic data messagesand
electronic signatures, shall be authenticated by demonstrating,substantiating
and validating a claimed identity of a user, device, oranother
entity
in an information or communication system, among otherways, as
follows:
(a) The
electronic
signature shall be authenticated by proof that a letter, character,
number
or other symbol in electronic form representing the persons named in
and
attached to or logically associated with an electronic data message,
electronic
document, or that the appropriate methodology or security procedures,
when
applicable, were employed or adopted by a person and executed or
adopted
by such person, with the intention of authenticating or approving an
electronic
data message or electronic document;
(b)
The
electronic
data message and electronic document shall beauthenticated
by proof that an appropriate security procedure, whenapplicable
was
adopted and employed for the purpose of verifying theoriginator
of
an
electronic data message and/or electronic document, orndetecting error
or alteration in the communication, content or storage of an electronic
document or electronic data message from a specific point, which, using
algorithm or codes, identifying words or numbers, encryptions, answers
back or acknowledgment procedures, or similar security devices.
The Supreme Court
may adopt such other authentication procedures,including
the use of electronic notarization systems as necessary andadvisable,
as
well
as the certificate of authentication on printed or hardcopies of
the
electronic
document or electronic data messages byelectronic
notaries, service providers and other duly recognized orappointed
certification
authorities.
The person seeking
to introduce an electronic data message andelectronic
document in any legal proceeding has the burden of proving
itsauthenticity
by evidence capable of supporting a finding that theelectronic
data
message and electronic document is what the personclaims
it to be.
In the absence
of evidence to the contrary, the integrity of the information and
communication
system in which an electronic data message or electronic document is
recorded
or stored may be established in any legal proceeding -
(a) By
evidence
that at all material times the information andcommunication
system or other similar device was operating in a manner that did not
affect
the integrity of the electronic data message and/or electronic
document,
and there are no other reasonable grounds to doubt the integrity of the
information and communication system;
(b)
By
showing
that the electronic data message and/or electronicdocument
was recorded or stored by a party to the proceedings who is adverse in
interest to the party using it; or
(c)
By
showing
that the electronic data message and/or electronicdocument
was recorded or stored in the usual and ordinary course ofbusiness
by a
person
who is not a party to the proceedings and who did not act under the
control
of the party using the record.
SEC. 12. Admissibility
and Evidential Weight of Electronic DataMessage
and Electronic Documents. - In any legal proceedings,nothing
in the
application of the rules on evidence shall deny theadmissibility
of an electronic data message or electronic document inevidence -
a. On
the
sole
ground that it is in electronic form; or
b.
On the
ground
that it is not in the standard written form and electronic data message
or electronic document meeting, and complying with the requirements
under
Sections 6 or 7 hereof shall be the best evidence of the agreement and
transaction contained therein.
In assessing the
evidential weight of an electronic data message orelectronic
document, the reliability of the manner in which it wasgenerated,
stored
or communicated, the reliability of the manner in which its originator
was identified, and other relevant factors shall be given due regard.
SEC. 13. Retention
of Electronic Data Message and ElectronicDocument. - Notwithstanding any provision of law, rule or regulation tothe
contrary -
(a) The
requirement
in any provision of law that certaindocuments
be retained in their original form is satisfied by retaining them in
the
form of an electronic data message or electronic document which -
i.
Remains
accessible so as to be usable for subsequent reference;
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ii.
Is
retained
in the format in which it was generated, sent or received, or in a
format
which can be demonstrated to accurately represent the electronic data
message
or electronic document generated, sent or received;
iii.
Enables
the identification of its originator and addressee, as well as the
determination
of the date and the time it was sent or received.
(b) The
requirement
referred to in paragraph (a) is satisfied by using the services of a
third
party, provided that the conditions set forth insubparagraphs
(i), (ii) and (iii) of paragraph (a) are met.
SEC. 14. Proof
By Affidavit. - The matters referred to in Section 12,on
admissibility
and Section 9, on the presumption of integrity, may bepresumed
to
have
been established by an affidavit given to the best of thedeponent's
knowledge
subject to the rights of parties in interest asdefined
in
the following section.
SEC. 15. Cross-Examination. - (1) A deponent of an affidavitreferred
to in Section 14 that has been introduced in evidence may becross-examined
as of right by a party to the proceedings who is adversein
interest to
the party who has introduced the affidavit or has caused theaffidavit
to
be introduced.
(2) Any party
to the proceedings has the right to cross-examine a personreferred
to in
Section 11, paragraph 4, sub-paragraph c.
CHAPTER
IIICOMMUNICATION
OF ELECTRONIC DATAMESSAGES
AND ELECTRONIC DOCUMENTS
SEC. 16. Formation
and Validity of Electronic Contracts. - (1)Except
as otherwise agreed by the parties, an offer, the acceptance of anoffer and
such
other elements required under existing laws for theformation
of contracts may be expressed in, demonstrated and provedby means
of
electronic
data message or electronic documents and nocontract
shall be denied validity or enforceability on the sole ground thatit is in
the
form
of an electronic data message or electronic document, orthat any
or all
of the elements required under existing laws for theformation
of
the
contracts is expressed, demonstrated and proved bymeans
of electronic documents.
(2) Electronic
transactions made through networking among banks, orlinkages
thereof
with other entities or networks, and vice versa, shall bedeemed
consummated
upon the actual dispensing of cash or the debit ofone
account and the corresponding credit to another, whether suchtransaction
is
initiated by the depositor or by an authorized collectingparty: Provided, that the obligation of one bank, entity, or personsimilarly
situated
to another arising therefrom shall be considered absoluteand shall not
be subjected to the process of preference of credits.
SEC. 17. Recognition
by Parties of Electronic Data Message orElectronic
Document. - As between the originator and the addresseeof a
electronic
data message or electronic document, a declaration of willor other
statement
shall not be denied legal effect, validity orenforceability
solely on the ground that it is in the form of a electronicdata
message.
SEC. 18. Attribution
of Electronic Data Message. - (1) Anelectronic
data message or electronic document is that of the originator ifit was
sent by the originator himself.
(2) As between
the originator and the addressee, an electronic datamessage
or
electronic
document is deemed to be that of the originator if itwas sent:
(a) by
a
person
who had the authority to act on behalf of the originator with respect to that electronic data message or electronic document; or
(b)
by an
information
system programmed by, or on behalf of theoriginator
to operate automatically.
(3) As between
the originator and the addressee, an addressee is entitledto regard
an
electronic
data message or electronic document as beingthat
of the originator, and to act on that assumption, if:
(a) in
order
to ascertain whether the electronic data message orelectronic
document was that of the originator, the addressee properlyapplied a
procedure
previously agreed to by the originator for thatpurpose;
or
(b)
the
electronic
data message or electronic document as received bythe
addressee resulted from the actions of a person whose relationship with
the originator or with any agent of the originator enabled that person
to gain access to a method used by the originator to identify electronic data messages as his own.
(4) Paragraph (3)
does not apply:
(a) as
of the
time when the addressee has both received notice from the originator that the electronic data message or electronic document is
not
that of the originator, and has reasonable time to act accordingly; or
(b)
in a
case
within paragraph (3) sub-paragraph (b), at any time whenthe addressee
knew
or should have known, had it exercised reasonablecare
or used any agreed procedure, that the electronic data message or
electronic
document was not that of the originator.
(5) Where an electronic
data message or electronic document is that of
the
originator
or is deemed to be that of the originator, or the addresseeis
entitled to
act on that assumption, then, as between the originator andthe
addressee,
the addressee is entitled to regard the electronic datamessage
or
electronic
document as received as being what the originatorintended
to send, and to act on that assumption. The addressee is not soentitled
when
it
knew or should have known, had it exercised reasonablecare or
used
any
agreed procedure, that the transmission resulted in anyerror in
the
electronic
data message or electronic document as received.
(6) The addressee
is entitled to regard each electronic data message orelectronic
document
received as a separate electronic data message orelectronic
document and to act on that assumption, except to the extentthat it
duplicates
another electronic data message or electronic documentand the addressee
knew or should have known, had it exercisedreasonable
care or used any agreed procedure, that the electronic datamessage
or
electronic
document was a duplicate.
SEC. 19. Error
on Electronic Data Message or ElectronicDocument. - The addressee is entitled to regard the electronic datamessage
or
electronic
document received as that which the originatorintended
to
send, and to act on that assumption, unless the addresseeknew or
should
have known, had the addressee exercised reasonablecare
or used the appropriate procedure -
(a)
That the
transmission resulted in any error therein or in the electronicdocument
when the electronic data message or electronic documententers the
designated
information system, or
(b)
That
electronic
data message or electronic document is sent to aninformation
system which is not so designated by the addressee for thepurpose.
SEC. 20. Agreement
on Acknowledgment of Receipt of ElectronicData
Messages or Electronic Documents. - The following rules shallapply
where, on
or before sending an electronic data message orelectronic
document, the originator and the addressee have agreed, or inthat
electronic
document or electronic data message, the originator hasrequested,
that
receipt of the electronic document or electronic datamessage
be
acknowledged:
a)
Where the
originator has not agreed with the addressee that theacknowledgment
be given in a particular form or by a particular method,an
acknowledgment
may be given by or through any communication bythe
addressee, automated or otherwise, or any conduct of the
addressee,sufficient
to indicate to the originator that the electronic data message
orelectronic
document has been received.
(b)
Where
the
originator has stated that the effect or significance of theelectronic
data message or electronic document is conditional on receiptof the
acknowledgment
thereof, the electronic data message or electronicdocument
is treated as though it has never been sent, until the acknowledgment
is
received.
(c)
Where
the
originator has not stated that the effect or significance ofthe
electronic
data message or electronic document is conditional onreceipt of the
acknowledgment,
and the acknowledgment has not been received by the originator within the time specified or agreed or, if
notime
has been specified or agreed, within a reasonable time, the originatormay
give
notice
to the addressee stating that no acknowledgment hasbeen received and
specifying
a reasonable time by which theacknowledgment
must be received; and if the acknowledgment is notreceived
within the time specified in subparagraph (c), the originator may,upon
notice to the addressee, treat the electronic document or
electronicdata
message as though it had never been sent, or exercise any other rights
it may have.
SEC. 21. Time
of Dispatch of Electronic Data Messages orElectronic
Documents. - Unless otherwise agreed between theoriginator
and
the addressee, the dispatch of an electronic data messageor
electronic
document
occurs when it enters an information systemoutside
the control of the originator or of the person who sent theelectronic
data
message or electronic document on behalf of theoriginator.
SEC. 22. Time
of Receipt of Electronic Data Messages orElectronic
Documents. - Unless otherwise agreed between theoriginator
and
the addressee, the time of receipt of an electronic datamessage
or
electronic
document is as follows:
(a) If
the
addressee has designated an information system for thepurpose of
receiving
electronic data message or electronic document,receipt occurs at the
time
when the electronic data message or electronicdocument enters the
designated
information system: Provided, however,that if the originator and the
addressee
are both participants in thedesignated
information system, receipt occurs at the time when theelectronic data
message or electronic document is retrieved by theaddressee.
(b)
If the
electronic
data message or electronic document is sent to aninformation system of
the addressee that is not the designated information system, receipt occurs at the time when the electronic data message
orelectronic
document is retrieved by the addressee;
(c)
If the
addressee
has not designated an information system, receiptoccurs when the
electronic
data message or electronic document entersan information system of the
addressee.
These rules apply
notwithstanding that the place where the informationsystem is
located
may be different from the place where the electronicdata
message or
electronic document is deemed to be received.
SEC. 23. Place
of Dispatch and Receipt of Electronic DataMessages
or Electronic Documents. - Unless otherwise agreedbetween
the
originator
and the addressee, an electronic data message orelectronic
document is deemed to be dispatched at the place where theoriginator
has
its place of business and received at the place where theaddressee
has
its
place of business. This rule shall apply even if theoriginator
or
addressee
had used a laptop or other portable device totransmit
or receive his electronic data message or electronic document.This rule
shall
also apply to determine the tax situs of such transaction.
For the purpose
hereof -
a. If
the
originator
or the addressee has more than one place of business,the place of
business
is that which has the closest relationship to the underlying
transaction
or, where there is no underlying transaction, theprincipal
place of business.
b.
If the
originator
of the addressee does not have a place of business, reference is to be made to its habitual residence; or
c.
The “usual
place of residence” in relation to a body corporate, means the place where it is incorporated or otherwise legally constituted.
SEC. 24. Choice
of Security Methods. - Subject to applicable lawsand/or
rules
and
guidelines promulgated by the Department of Trade andIndustry
with
other
appropriate government agencies, parties to anyelectronic
transaction shall be free to determine the type and level ofelectronic
data message and electronic document security needed, and toselect
and use
or implement appropriate technological methods that suittheir
needs.
PART
IIIELECTRONIC
COMMERCE IN SPECIFIC AREASCHAPTER
I.CARRIAGE
OF GOODS
SEC. 25. Actions
Related to Contracts of Carriage of Goods. -Without
derogating from the provisions of part two of this law, thischapter
applies
to any action in connection with, or in pursuance of, acontract
of
carriage
of goods, including but not limited to:
(a) (i)
furnishing
the marks, number, quantity or weight of goods;
(ii)
stating
or declaring the nature or value of goods;
(iii)
issuing
a receipt for goods;
(iv)
confirming
that goods have been loaded;
(b)
(i)
notifying
a person of terms and conditions of the contract;
(ii)
giving
instructions to a carrier;chanrobles
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(c)
(i)
claiming
delivery of goods;
(ii)
authorizing
release of goods;
(iii)
giving
notice of loss of, or damage to, goods;
(d)
giving
any
other notice or statement in connection with theperformance
of the contract;
(e)
undertaking
to deliver goods to a named person or a person
(f)
granting,
acquiring, renouncing, surrendering, transferring ornegotiating
rights in goods;
(g)
acquiring
or transferring rights and obligations under the contract.
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SEC. 26. Transport
Documents. - (1) Where the law requires that anyaction
referred
to contract of carriage of goods be carried out in writingor by
using a
paper
document, that requirement is met if the action iscarried
out by using one or more data messages or electronic documents.
(2) Paragraph
(1) applies whether the requirement therein is in the formof an
obligation
or whether the law simply provides consequences forfailing
either to carry out the action in writing or to use a paper document.
(3) If a right
is to be granted to, or an obligation is to be acquired by, oneperson
and no
other
person, and if the law requires that, in order to effectthis, the
right
or obligation must be conveyed to that person by thetransfer,
or
use
of, a paper document, that requirement is met if the rightor
obligation
is
conveyed by using one or more electronic data messagesor
electronic
documents
unique;
(4) For the
purposes of paragraph (3), the standard of reliability requiredshall be
assessed
in the light of the purpose for which the right orobligation
was conveyed and in the light of all the circumstances,including
any
relevant
agreement.
(5) Where one
or more data messages are used to effect any action insubparagraphs
(f)
and (g) of Section 25, no paper document used toeffect
any such action is valid unless the use of electronic data message
orelectronic
document has been terminated and replaced by the use ofpaper
documents.
A paper document issued in these circumstances shallcontain a
statement
of such termination. The replacement of electronicdata
messages or electronic documents by paper documents shall notaffect
the
rights
or obligations of the parties involved.chanrobles
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(6) If a rule
of law is compulsorily applicable to a contract of carriage ofgoods
which is
in, or is evidenced by, a paper document, that rule shallnot be
inapplicable
to such a contract of carriage of goods which isevidenced
by one or more electronic data messages or electronicdocuments
by
reason
of the fact that the contract is evidenced by suchelectronic
data messages or electronic documents instead of by a paperdocument.
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PART
IVELECTRONIC
TRANSACTIONS IN GOVERNMENT
SEC. 27. Government
Use of Electronic Data Messages,Electronic
Documents and Electronic Signatures. -Notwithstanding
any law to the contrary, within two (2) years from thedate of the
effectivity
of this Act, all departments, bureaus, offices and agencies of the
government,
as well as all government-ownedand-controlled
corporations, that pursuant to law require or accept the filing of
documents,
require that documents be created, or retainedand/or
submitted, issue permits, licenses or certificates of registration orapproval,
or
provide
for the method and manner of payment orsettlement
of fees and other obligations to the government, shall -
(a)
accept
the creation, filing or retention of such documents in the formof
electronic
data messages or electronic documents;
(b)
issue
permits,
licenses, or approval in the form of electronic datamessages or
electronic
documents;
(c)
require
and/or accept payments, and issue receipts acknowledging such payments, through systems using electronic data messages
orelectronic
documents; or
(d)
transact
the government business and/or perform governmentalfunctions
using electronic data messages or electronic documents, and forthe
purpose,
are authorized to adopt and promulgate, after appropriatepublic hearing
and with due publication in newspapers of general circulation, the
appropriate
rules, regulations, or guidelines, to, among others, specify -
(1)
the
manner
and format in which such electronic data messages orelectronic
documents
shall be filed, created, retained or issued;chanrobles
law firm
(2)
where and
when such electronic data messages or electronicdocuments
have to be signed, the use of a electronic signature, the typeof
electronic
signature required;
(3)
the
format
of an electronic data message or electronic document and the manner the
electronic signature shall be affixed to the electronic data message or electronic document;
(4)
the
control
processes and procedures as appropriate to ensure adequate integrity, security and confidentiality of electronic
datamessages
or electronic documents or records or payments;
(5)
other attributes
required of electronic data messages or electronic documents or
payments;
and
(6)
the
full
or limited use of the documents and papers for compliance with the
government
requirements: Provided, That this Act shall by itself mandate any department of the government, organ of state or statutory
corporation
to accept or issue any document in the form of electronicdata messages
or electronic documents upon the adoption, promulgation and publication of the appropriate rules, regulations, or guidelines.
SEC. 28. RPWEB
To Promote the Use Of Electronic Documentsand
Electronic Data Messages In Government and to the GeneralPublic.
- Within two (2) years from the effectivity of this Act, there shallbe
installed an
electronic online network in accordance withAdministrative
Order 332 and House of Representatives Resolution 890,otherwise
known
as RPWEB, to implement Part IV of this Act tofacilitate
the open, speedy and efficient electronic online transmission,conveyance
and
use of electronic data messages or electronic documentsamongst
all
government
departments, agencies, bureaus, offices down tothe
division level and to the regional and provincial offices as practicableas
possible,
government
owned and controlled corporations, localgovernment
units, other public instrumentalities, universities, colleges andother
schools, and universal access to the general public.
The RPWEB network
shall serve as initial platform of the governmentinformation
infrastructure (GII) to facilitate the electronic onlinetransmission
and
conveyance of government services to evolve andimprove
by better technologies or kinds of electronic online wide areanetworks
utilizing,
but not limited to, fiber optic, satellite, wireless andother
broadband
telecommunication mediums or modes. To facilitate therapid
development
of the GII, the Department of Transportation andCommunications,
National Telecommunications Commission and theNational
Computer Center are hereby directed to aggressively promoteand
implement a
policy environment and regulatory or non-regulatoryframework
that shall lead to the substantial reduction of costs ofincluding,
but
not limited to, lease lines, land, satellite and dial-uptelephone
access,
cheap broadband and wireless accessibility bygovernment
departments, agencies, bureaus, offices, government ownedand
controlled
corporations, local government units, other publicinstrumentalities
and the general public, to include the establishment of agovernment
website
portal and a domestic internet exchange system tofacilitate
strategic access to government and amongst agencies thereofand the
general
public and for the speedier flow of locally generatedinternet
traffic
within the Philippines.
The physical
infrastructure of cable and wireless systems for cable TVand
broadcast
excluding
programming and content and the managementthereof
shall be considered as within the activity of telecommunicationsfor the
purpose
of electronic commerce and to maximize the convergenceof ICT in
the
installation of the GII.
SEC. 29. Authority
of the Department of Trade and Industry andParticipating
Entities. - The Department of Trade and Industry (DTI)shall
direct
and
supervise the promotion and development of electroniccommerce
in the
country with relevant government agencies, withoutprejudice
to
the provisions of Republic Act. 7653 (Charter of BangkoSentral
ng
Pilipinas)
and Republic Act No. 337 (General Banking Act),as
amended.
Among others,
the DTI is empowered to promulgate rules andregulations,
as well as provide quality standards or issue certifications, asthe case
may
be,
and perform such other functions as may be necessaryfor the
implementation
of this Act in the area of electronic commerce toinclude,
but
shall not be limited to, the installation of an online publicinformation
and
quality and price monitoring system for goods andservices
aimed in protecting the interests of the consuming public availingof
the
advantages of this Act.
PART
VFINAL
PROVISIONS
SEC. 30. Extent
of Liability of a Service Provider. – Except asotherwise
provided in this Section, no person or party shall be subject toany civil
or
criminal
liability in respect of the electronic data message orelectronic
document
for which the person or party acting as a serviceprovider
as
defined in Section 5 merely provides access if such liability isfounded
on -
(a) The
obligations
and liabilities of the parties under the electronic data message or
electronic
document;
(b)
The
making,
publication, dissemination or distribution of such materialor any
statement
made in such material, including possible infringement ofany right
subsisting
in or in relation to such material: Provided, That:
i.
The
service
provider does not have actual knowledge, or is not awareof the facts or
circumstances from which it is apparent, that the making,publication,
dissemination
or distribution of such material is unlawful orinfringes
any rights subsisting in or in relation to such material;
ii.
The
service
provider does not knowingly receive a financial benefitdirectly
attributable
to the unlawful or infringing activity; and
iii.
The
service
provider does not directly commit any infringement or other unlawful
act
and does not induce or cause another person or partyto commit any
infringement
or other unlawful act and/or does not benefitfinancially
from the infringing activity or unlawful act of another person orparty: Provided, further, That nothing in this Section shall affect -
a)
Any
obligation
founded on contract;
b)
The
obligation
of a service provider as such under a licensing or other regulatory
regime
established under written law; or
c)
Any
obligation
imposed under any written law;
d)
The
civil
liability of any party to the extent that such liability forms thebasis
for injunctive relief issued by a court under any law requiring thatthe
service provider take or refrain from actions necessary to remove,block
or
deny access
to any material, or to preserve evidence of aviolation of law.
SEC. 31. Lawful
Access. - Access to an electronic file, or an electronicsignature
of an
electronic data message or electronic document shall onlybe
authorized
and
enforced in favor of the individual or entity having alegal
right to
the possession or the use of the plaintext, electronicsignature
or
file and solely for the authorized purposes. The electronickey for
identity
or integrity shall not be made available to any person orparty
without
the
consent of the individual or entity in lawful possession ofthat
electronic
key.
SEC. 32. Obligation of Confidentiality. - Except for the purposesauthorized
under
this Act, any person who obtained access to anyelectronic
key, electronic data message, or electronic document, book,register,
correspondence,
information, or other material pursuant to anypowers
conferred
under this Act, shall not convey to or share the samewith any
other
person.
SEC. 33. Penalties.
- The following Acts shall be penalized by fineand/or
imprisonment, as follows:
(a)
Hacking
or cracking which refers to unauthorized access into orinterference
in
a computer system/server or information andcommunication
system; or any access in order to corrupt, alter, steal, or destroy
using
a computer or other similar information and communication devices,
without
the knowledge and consent of the owner of thecomputer
or information and communications system, including theintroduction of
computer viruses and the like, resulting in the corruption,destruction,
alteration, theft or loss of electronic data messages orelectronic
document
shall be punished by a minimum fine of one hundredthousand pesos
(P100,000.00)
and a maximum commensurate to thedamage
incurred and a mandatory imprisonment of six (6) months tothree (3)
years;
(b)
Piracy
or
the unauthorized copying, reproduction, dissemination,distribution,
importation,
use, removal, alteration, substitution,modification,
storage, uploading, downloading, communication, making available to the public, or broadcasting of protected material,
electronicsignature
or copyrighted works including legally protected soundrecordings
or
phonograms
or information material on protected works,through the use of
telecommunication
networks, such as, but not limitedto, the internet, in a manner that
infringes
intellectual property rights shallbe punished by a minimum fine of one
hundred thousand pesos(P100,000.00)
and a maximum commensurate to the damage incurredand
a mandatory imprisonment of six (6) months to three (3) years;
(c)
Violations
of the Consumer
Act or Republic Act No. 7394 and otherrelevant
or pertinent laws through transactions covered by or usingelectronic
data
messages or electronic documents, shall be penalized withthe same
penalties
as provided in those laws;
(d)
Other
violations
of theprovisions
of this Act, shall be penalized with a maximum penalty of onemillion
pesos
(P1,000,000.00) or six (6) years imprisonment.chanrobles
law firm
SEC. 34. Implementing
Rules and Regulations. - The DTI,Department
of Budget and Management and the Bangko Sentral ngPilipinas
are hereby empowered to enforce the provisions of this Act andissue
implementing
rules and regulations necessary, in coordination withthe Department of
Transportation and Communications, NationalTelecommunications
Commission, National Computer Center, NationalInformation
Technology Council, Commission on Audit, other concernedagencies and
the
private sector, to implement this Act within sixty (60)days after its
approval.
Failure to issue
rules and regulations shall not in any manner affect theexecutory
nature
of the provisions of this Act.
SEC. 35. Oversight
Committee. – There shall be a CongressionalOversight
Committee composed of the Committees on Trade andIndustry/Commerce,
Science and Technology, Finance andAppropriations
of both the Senate and House of Representatives, whichshall
meet at
least
every quarter of the first two years and every semesterfor the
third
year
after the approval of this Act to oversee itsimplementation.
The DTI, DBM, Bangko Sentral ng Pilipinas, and othergovernment
agencies as may be determined by the CongressionalCommittee
shall provide a quarterly performance report of their actionstaken in
the
implementation
of this Act for the first three (3) years.
SEC. 36. Appropriations.
- The amount necessary to carry out theprovisions
of Secs. 27 and 28 of this Act shall be charged against anyavailable
funds
and/or savings under the General Appropriations Act of2000 in
the
first
year of effectivity of this Act. Thereafter, the fundsneeded
for
the continued implementation shall be included in the annualGeneral
Appropriations
Act.
SEC. 37. Statutory
Interpretation. - Unless otherwise expresslyprovided
for, the interpretation of this Act shall give due regard to itsinternational
origin
and the need to promote uniformity in its applicationand the observance
of good faith in international trade relations. The generally accepted
principles of international law and convention onelectronic
commerce shall likewise be considered.
SEC. 38. Variation
by Agreement. - As between parties involved ingenerating,
sending, receiving, storing or otherwise processing electronicdata
message or
electronic document, any provision of this Act may bevaried by
agreement
between and among them.
SEC. 39. Reciprocity.
- All benefits, privileges, advantages or statutoryrules
established under this Act, including those involving practice ofprofession,
shall
be enjoyed only by parties whose country of origingrants
the same benefits and privileges or advantages to Filipino citizens.
Sec. 40. Separability Clause. - The provisions of this Act are herebydeclared
separable
and in the event of any such provision is declaredunconstitutional,
the other provisions, which are not affected, shall remainin force and
effect.
Sec. 41. Repealing
Clause. - All other laws, decrees, rules andregulations
or parts thereof which are inconsistent with the provisions ofthis Act
are
hereby
repealed, amended or modified accordingly.
Sec. 42. Effectivity.
- This Act shall take effect immediately after itspublication
in
the Official Gazette or in at least two (2) nationalnewspapers
of
general
circulation.
Approved:
(Sgd.)
PRESIDENT
JOSEPH
E. ESTRADA
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