Strauss5eIM05.docx
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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)
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