Objective ofthe le: ‘To fatitate domestic and international dealings, transactions, arrangements, agreements contracts and exchanges and storage of information Shrough the uttzation of electronic, ote an siniar medium, mode, instrumentality and teshndogy To recogni the ahem and relay of eeetrone data mesageso electonte documents reat tosuch activites $:To promote the universal use of electronic transitions inthe government and by the general publ Scope: applies to any kind of eleetroni data message and electronic document used in the context of commercial and non-commercial activities to include dlomestie and international dealing, transactions, arrangements, agreements, contracts ad exchanges sd storage of information PRINCIPLES FOR ELECTRONIC COMMERCE PROMOTION (@) Roe ofthe Government. - Government intervention, when required, shall promote a stable legal environment, llow’a fair allocation of sarceresourees fd protec public interes. Such intervention aball be no tore than i essential and should be clear, transparent, cbjective,on-dacrininatory, proportional, Nene, and technoloieally neta. Meshanisms for private sector Input and involvement in pole making sal be promoted and widely () Role ofthe Private Sector. - The developmcut of electronic commerce shall e led primarily bythe private sector in tesponse to make forces Partieiation in eletroni commerce shall be pursed theongh an open and air compeiive market (6 International Coordination and Harmonization. Hectonic commerce is global by nature. Government policies that affect electronic commerce will be Imermitionally coordinated and compatible and Wil feiltate imeroperabty within an international, vluntary and consensus-based environment for Nondardesetting (4 Neatral Tax Treatment. Transactions conducted using cletronie commerce should receive neutral tas treatment in comparison to ‘non-electronic cans an taxation of electronic commerce shal be adzinustesc in the last rdensoane manner ssactions wing (e) Protection of Users. - The protection of users, in particular with regurd to privacy, confidentiality, anonymity and content contol shall be pursued {ough plies driven by choi, val empowerment, and industr-led solutions it shal be in aceordanice with sppleae hs. Subject to sued a, Tnsinessshotld make available to consumers and, where spproprat, business users the means to exercise choice wih respect to privacy, confidentiality, content control and, under appropriate circumstances, anonymity (9 Blectrone Commerce Awareness. - Government and the private sestor will Inform society, both individual consumers and businesses, about the potentials af electronic commerce adits pat on scala eeonomie sence, (@ Saull and Medium-Sized Enterprises - Government will prove small and medium-sized enterprises (SMEs) with information and edueaton eevant {6 opportunities prosded by globel clecionie commerce, Coverment will eeate an envionment that i condcve to private sector investment in information teciologies and encourage eapital acess for SMES. (2) Skills Development. - Government shall enable workers to share inthe new and diferent employment generated by cletonie commerce Ia this egard, the Government shall continue ty promote both foal and non-formal shills-development progeans () Government ss a Model Use. - Government shal tilze new electronic means to deliver coe public serves in onler to demonstrate the benefits devivet therettom and to promote the use of sich means. In this regard, the Goverment will be a ploneet in using new technologies. In partic the Government Information System Plan (GISP), which Is expected to include, but ot be ited to, online public information ad ealtural resources, databases for health services, we ste at local, regional and national levels and puble Ubrares and databases, where appropriate wil be implemented in accordance withthe provsios ofthe Act and RPWEB, Convergenee.- Convergence of technologie is crucial to electronic commerce and wil he supported by appropriate government polis, Goverament wll work closely with business in preparing fo and reacting to changes cause by convergence. (00 Domain Name System. - The Government supports inittives to ensure that Internet users wil havea sufficient voice inthe govemance ofthe domain () Access to Public Records, - Government shal provide equal and transparent acess to pubic domain inform (im) Dispute Mechanisms. - Government encourages the use of selé-regulatory extra judi dispute settlement mechanisms such as aybitation and ‘diation as an effective way of reali electron commerce disptes, DEFINITIONS, 2) "Addressee" refers to a person wo i intended by the originator to receive the electronic data message or electronic document, but doesnot ineude a person aetng as an intermediary with respect to that electronic data message or electronic document() *Compater” refers to any device or apparatus singly or interconnected which, by electronic, eleeto-mechanica, optical and/or magnetic impulse, oF ‘other means with the same function, can receive, reeor, transmit store, process, correlate, analyze, project, retrieve and/or produce information, data, text graphs, figures, voiee, vdeo, symbols or other modes af expression or perfortn any one or more of these functions (€)"Beetrone data message refers to infomation generated, sent rev or tore by eeeonis otal or iar means (4 “Information and Commancation Sten” rfers toa stem for generating, sen, resvng, storing oF otherwise processing eerie data snesagen or tons daement sn nies the smpute yn ober sine dence by ona wich ats rood or tone and sy process ‘ented the recording or storage of electronic data mesg of leon ecunet (© “Electronic signature” refers to any distinctive mark. characteristic and/or sound in electronic form, representing the identity of a persou 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. (9 "cronie eames o information rte representation of infomation, daa, fires, sym or ater modes of wtten 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, ‘ecrded trait, sired proesed rete or pol elestonel [Note “Bron dta message" an “lectroni document” do not ne a fcsini ansson Fase transmission ar ot papers but verily are papers Ii at est an exact ap preserving al the mak fa orga st Sales Cp. Sama) (@ "Bectonic key” rees toa secret cre whch secures and defends sensi infermaton that crises ver public channel int form dipherable only witha mathing ketones (i) “Tntermedary” refers to person who in bel of another person and with espt to a pris estrone dats message o etoni dacument sends, reser anor stores orprvies ter serie in respet of ht cleric datamesage of lectroni came refers toa peron by whom, a on whose behalf the lctronic document ppt to ave been ret, generated d/o et. The tr ono incuden person ang as an ner with reopecttothatlectone document () "Service provider refers toa preven of — 1 Online services or network aces or the opertr of facts therefor, ineadng entities offering the transmission, rotting or providing of fomectons for online communtatons, digi o there tween ot smong pots specie by wer, lecrone documents ofthe mrs ‘choosit 7 7 - li) The necessary technical means by which electronic document ofan eriginator may be stored and made acesible toa designated or undesignated ‘thi party. Such service providers shall have no authority to modify or alter the content of the electronic document received or to make any entry therein on behalf of the originator, addressee or any third party unless special authorized to do so, and who shall retain Ue electronic document in accordance with the specific requestor as necessary forthe purpose of performing the services i was engaged to perform. LEGAL, RECOGNITION OF ELECTRONIC DATA MESSAGES AND ELECTRONIC DOCUMENTS Legal Recognition of Electronic Data Message/Prinipe of No-Diserimination Information shall not be denied validity or enforeabiity soley the ground that itis in the form of an electronic data message purporting to give tse 10 ‘suet egal eect, or that itis merely inconporatd by reference in tht electronic data message. Legal recognition of electronic documents/Parity Rae lectronie documents shall have the legal effect, validity or enforeeaility as any other document or legal writing and — (a) Where the law requires a document tobe in writing that requirement is met by an electronic document if the sad electronic document maintains is {ntegity and reliability and caa be authenticated soas tobe usable fr subsequent reference, in that (0) The electronic docurnent has remained complete and unaltered, apart from the addition of any endorsement and any authorized change, oF any ‘change we arises inthe normal enurseof communication, storage and display; and (6) The eletronie document i reliable in the light af the pmrpse for which twas generated and inthe light ofall relevant creumstances NOTE: The following are required by law tobe in writing 1 Statute of rauds(Art1409(2), Civil Code) + Negotiable Insiruments{ Section ,Aet No. 2032) Donation of movable propety(Ar. 748, Civil Code) 4 Stipolatcn of interes(Art.1935, Civil Cade){Sie of land ar an interest herein through an agent (Ar. 1874, Cl Code) ‘The requirement that the foregoing must bein writing i satisfied by means of electronic dats message or eletroni document. () 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 is orginal frm, (o) Where the aw requires that a document be presented or retained in ts orginal frm, tht requirement is met by an eleetronfe document — 1) There exist a reliable assurance a othe integrity ofthe document from the time when twas fist generated init final form; and ii) That document is capable of beng displayed tothe person to whom itis to be presented: Provided That no provision of this Act shall apply to vary any ad all requirements of existing ws on formalities required in the execution of documents for thet valid For evidentiary purposes, an electronic document shall be the funetional equivalent of a written doeuent unr existing laws “Functional equivalent” means that t maybe submited for any document thats eal requied tobe made“in wtng” Retention of Hectronic Data Message or Hlectronic Document. (4) The requirement in any provision of law that certain documents be retained inthe original form is satisfied by netaning them in the form of an ‘slotronedata messapeor electronic document ‘whieh = (@) Remains accessible soas to be usble for subsequent reference; (GIs retained in the format in which it was generated, sent or received, or in a format which can be demonstrated to accurately represent the leetronic data message cr electtonicdociment generated, sent cr received; (ii) Enables te identification fits originator and addressee, as well as the determination ofthe date and he time it was sent or receive. et by using the services of ath party, provided thatthe conditions set fourth in subparagraph (0) The requirement refered to in paragraph (a) (0 Gi and Gi of paragraph (a are met. Formation and validity of Electronic Contracts “The offer, the acceptance of an offer and such other elements requied under existing lavs for the formation of contracts may be expressed in, ‘demonstrated and proved by means of electronic data messages or electronic documents anno contrac shall be denied valtyor enforeeailty onthe $e ground that isin the frm ofan elettone data message or eleetente document, or that any oral ofthe elements required under essing Is or {he formation of enteactss expressed, demonsrated and proved by means of electron data messages or electron documents. ‘egal Recognition of Fletronic Signatures An electron signature on the eletronle document shall be equivalent to the signature of person on a witten dosument if the signature isan electric ‘siqnature and proved by showing that prescribed procedre, not alterable by the partes interested in the electronic document, existed under which — 44) A method is used to identify the party sought to be bound and to indicate seid party's access to the electronic document necessary for his consent or approval through the electons signature ty) Said methods reliable and appropriate forthe purpose for which the electronic document was geversted oF communicated, in the light of all ‘creumstances inducing any relevant agreement; ‘e)Itis necessary forthe party sought tobe bound, inorder to proced further with the transaction, to have executed or provided the electronie signature; and <4) The other party is authorized and enable to verify the eleto the same, gnature and to make the decision to proceed with the transaction authenticated by Presumption Relating to Hectronic Signatures Inany proceedings involving an eletronicsignature,it shal be presumed that, 2.) The electrone signature isthe signature ofthe person to whom it correlates; and 'b) The cletrone signature was affixed by that person with the intention of signing or approving the electronic document unles the person relying onthe letronically signed dectronie document knows o las notice of defects in oF uatelallty ofthe signature or teiance on the electronic signature Is not ‘reasonable under the eiermstances, [Note:The legal recognition given to electronic data messige, electronic documents end electronic signatures docs not make it mandatory fr @ person to use or acept information contained in electonic data messiges, electronic oeuments, or electronic signatures, but a person's consent to do so may be inferred from the person'seondut.ELECTRONIC COMMERCE IN CARRIAGE OF GOODS Actions Related to Contracts of Carriage of Goods applies to the following ‘() furishing the marks, number, quantity or weight of goods; (i stating or destaring the nature or vale of goods; {id suing reeipe for goods, (iv) conrirming tht goods have been leaded thang tems anon of contact (i giving instrctios toa earser; (i) diming deliver of gods, (i authorizing release of goods; (Git) giving notice of oss of or damage to goods: «giv any other notice or tatement connection withthe performance ofthe contract ‘underiaking to deliver goods toa named person or a person authorized to claim deliver granting, acting, renouncing, surrendering, trnaerring or negotiating rights in goods Aouiring or transferring rights and obligations under the contract. Transport Documents. (@) Where the law requires that any action referred to contract of earrageof goods be cari out in writing or by using a paper document, tua equirement ‘set ifthe action is carried ot by using one or more data messages or electronic documents, (@) Paragraph (1) applies whether the requirement there in is in the form of an obligation or whether the lw simply provides consequences for filing ‘iter to cary oat the ation in weting oto use a paper document (4) Ifa right isto be granted to, or an obligation is tobe aequired by, one person and no person, andi the law requires that, in oder effet this, the right ‘or obligation must be conveyed to that person by the taser, or use of, a paper document, that requirement Is met i the night or obligation is eoveyed by ‘sing one or more electron data messages r electronic documents unique; (4) For the purposes of paragraph (), the standard of reliability required shall be assessed in thelght ofthe purpose for which the right or obligation was ‘conveyed and inte ligt ofa the circumstances, including any relevant agreement (6) Where one or more data messages are used to effect any action in subparagraphs (0) and (g) of Section 25, no paper dacument use to effect any such action i ald unless the use of electronic data message or electronic document has been terminated and replaced by the used of paper documents. paper ‘document issued in these cireumstances shall contain a statement of such termination. The replacement ofthe eleetrnie data messages oreletronie ‘documents by paper documents shall not aft the rights or obligation ofthe parties invalved, (6) Ifa re of lavs is compulsorily applicable to contract of eariage of goods whichis in, or is evidenced by, «paper document, that rule shall not be inapplicable to such a contract of earriage of goods which i evidenced by one or more eeettonic data messages or eletronie documents by reson ofthe fact thatthe contractis evidenced by such electronic data messages or electronic documents instead of by a paper document ELECTRONIC TRANSACTIONS IN GOVERNMENT ‘Notwithstanding any law to the contrary, within two (2) years from the date of the effectivity of this Act(or before June 19,2002), all departments, bureaus, ofces and agence ofthe government, aswel all government-owned and-contolled coporations, tat pursuant ol reguieoracep th ling of ‘locument, rege tat documents be erated, or retained anon submited, ise perms, lienses or cerifcatsofreistration ot approval, or provide forthemethod and manner of payment or setement offers and ater obligations tothe government, shall - (@)acoept the creation, fling or retention of such documents in the form of electronic data messages or electron documents; (b)issue permits, licenses, or approval inthe form of electronic data messages or electronic documents; (6) require and/or accept payments, and issue receipts acknowledging such payments, through systems using electronic data messages or electronic documents; oF (4) transact the government business an/r perform governmental funetions using electronic data messages or eletroni documents, and forthe purpose, are authorized to adopt and promulgate, afer appropriate public 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 eletronie data messages or electronic documents shall be fled, ereated, retained or issued 2) where and when such lectronie data messages or electronic documents have to signed the use ofan electronie signature, the typeof eleetronie signaturegies 5) the format ofan electronic data message or electronic document andthe manner the electron signature shal be affixed to the electron data message ‘reletroie documents 4) the contol processes and procedures as appropriate to ensure adequate integrity, security and confidentiality of eleetonie data messages or electronic ‘documents o records of payments, 5)otheratibutes required to eletronic data messages or eeetrnic doeuments or payments; and 6) the flo limited use ofthe documents and papers fr compliance with the government requirements: Provided, that his Act shal be itself mandate any Alepartent of the government onan of state o stator corporation to aoe or se ary doctment in the form of electron dala messages or electronic ‘documents upon the adoption, promulgation and publication of the eppropriste rues, regulation or guelines tent of Lisbilty ofa Service Provider Noperson or party hal he subject to any iil or criminal ibility in respoct ofthe clectonic data message or electronic document for which the person or panty acting a a service provider as defined in Section 5 metely provides access if such Habit is founded on ~ (@)Theoblgatons and lables ofthe parties under the electronic data message or eletronie document; (0) The making, publication, dissemination or disibution of such material or any statement made in such matetal, including possible infingement of any Fight subsstingin orn relation to such material, Provided, That The service provider does not have actual knowledge, or i not aware of the facts or crcumstances from which itis apparent, that the making, shlction, dissemination or dierbntion of sch material fe unlawl ox infinges any rights subsisting in or in relation t sich materi 1 Me service provider docs not knowingly receive ananeal benefit drcty aebutabe tothe unl or ineinging acts ti The service prover doesnot dretiy conmnit any infringement or aherunlawflact al doesnot Induce or case nother person oF party to commit ‘any ineingement or other unlawful act andor does rot benefit financially fom the infnging ativity or unlawful act oF another person oF party: Provider, farther, That nothing i this Setion shall affect (@) Any obligation founded oa contract; (©) The obligation of service provider as such under alicensing or other regulatory regime established under written law; or (6 Any obligation impose mer any writen law: (4) The civil abit of any party tothe extent that such Hability forms the basis fo injunctive elie issued by cou under any Iw requitng that the Servic provider take ot retain fom ations neces to remove, bloek oF deny acces ost aera, ot preserve evidence of Volatin o a, Laval Acces. Acces to an electronic le, oan electronic signature of an electronic data message or electronic document shall only be authorized and enforced in favor ofthe indivi! or entity having leg right to the possesion cr the ase of plaimten, electronic signatre or file or soley for the athorized purposes. The electronic key for entity or integrity shall not be made avalableto an person or pasty without the consent ofthe individual or ent in lawful possesion ‘ofthat electrons key Obligation of Confidentiality. Except forthe purposes authorized under ths At, any person who obtained access to any electronic key, electron data message or electronic document, book, register enrfespondence, information, or other material pursuant to any powers conferred under tis Act shall not convey to oF share the same With any other person, Punishable Acts 1 Hlacking or eracling with refers to unathoried acces into or interference in # computer system server or information and communication system; ‘or any acces inorder to corrupt, ater, steal, or destroy using a computer or other similar information and communieation devices, without the ‘koowedeand consent of te ner of te comypuler ot nfarmation and communications system. meluding the introduction of computer vises and the ike Testing in the compton. desiuching leratioyiel a oss a elesiouie diy nestor o-elestonic dasumens- punishable by a ‘minimtm fine of One Hundred Thousund pesos (P 100,000.00) and a maximum commensurate to the damage incurred and a mandatory Iryprsonment of i (6) month to three (3) Sears ss Plrsey or the unauthorized coping, xpicduction. dissemination or disbutio, importation use. removal alteration substitution. modification, tara uloadie, downloadin. communication making available to_the-publicor broadcasting of protected material, eletronie signature oF fopyigited works including legally protected sound recordings of phonograms of information material on protected works, through the use of {elecoramnieation network, sich se, bat not limited to, the internet. n'a manner that iniages intelectal property rights punishable By 2 Trinimim fine of one funded thanand pesos (P 100,000.00) aml a makin commensurate to the damage Incarted and mandatory Iinprsonment of sb (6) months to thee (3) years «Violations ofthe Consumer Act or Republic Act No. 7394 and other relevant o pertinent laws throvgh transaction covers by of using eestronie data messages or eloctonedocuments-penalized wth the ste penalties as provided in those las + Other lations ath pronsions af is Ac: paized withs maim petal of neni pesos ,000,000.00) ri (6) yeas imprisonment