The
E-commerce law
Republic of the Philippines
Begun and held in Metro Manila, on Monday, the twenty-sixth day of
July, nineteen hundred and ninety-nine.
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AN ACT PROVIDING FOR THE
RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON -COMMERCIAL TRANSACTIONS
AND DOCUMENTS, PENALTIES FOR UNLAWFUL USE THEREOF AND FOR OTHER PURPOSES
Be it enacted by the Senate
and House of Representatives of the Republic of the Philippines in Congress
assembled:
PART
I
SHORT TITLE AND DECLARATION OF POLICY
Sec. 1. Short Title. - This Act shall be known as the "Electronic
Commerce Act of 2000".
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 programs and 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.
PART II
ELECTRONIC 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 of electronic,
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.
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 system intended for and capable of generating, sending,
receiving, storing or otherwise 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.
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 defends sensitive information that crosses over
public channels into a form decipherable only with a matching electronic key.
h. “Intermediary” refers to a person
who in behalf of another person and with respect to a particular electronic
document sends, receives and/or stores or provides other services in respect of
that electronic document.
i. “Originator” refers to a person
by whom, or on whose behalf, the electronic 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;
Such service providers shall have no authority
to modify or alter the content of the electronic data message or electronic
document received or to make any entry therein on behalf of the originator,
addressee or any third party unless specifically authorized to do so, and who
shall retain the electronic document in accordance with the specific request or
as necessary for the purpose of performing the services it was engaged to
perform.
CHAPTER
II
LEGAL RECOGNITION OF ELECTRONIC DATA MESSAGES AND ELECTRONIC DOCUMENTS
Sec. 6. Legal Recognition of Data
Messages. - Information shall
not be denied legal effect, validity or enforceability solely on the grounds
that it 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. –
Electronic documents shall have the legal effect, validity or enforceability as
any other 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 -
(i) The electronic document has remained
complete and unaltered, apart from the addition of any endorsement and any
authorized change, or any change which arises in the normal course of
communication, storage and display; and
(ii) The electronic document is reliable in
the light of the purpose for which it was generated and in the light of all the
relevant circumstances.
(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.
(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 -
(i) There exists a reliable assurance as to
the integrity of the document from the time when it was first generated in its
final form; and
(ii) That document is capable of being
displayed to the person to whom it is to be presented: Provided, That no
provision of this Act shall apply to vary any and all requirements of existing
laws on formalities required in the execution of documents for their validity.
For evidentiary purposes, an electronic
document shall be the functional equivalent 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 rules relating to authentication and best evidence.
Sec. 8. Legal Recognition of
Electronic Signatures. An
electronic signature on the electronic document shall be equivalent to the
signature of a person on a written document if that signature is proved by
showing that a prescribed procedure, not alterable by the parties interested in
the electronic document, existed under which -
a.) A method is used to identify the party
sought to be bound and to indicate 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 electronic signature and to make the decision to proceed
with the transaction authenticated by the same.
Sec. 9. Presumption Relating to
Electronic Signatures. - In any
proceedings involving an electronic signature, it shall be presumed that -
a.) The electronic signature is the
signature of the person to whom it correlates; 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.
SEC. 10. Original Documents. - (1) Where the law requires information to be
presented or retained in its original form, that requirement is met by an
electronic data message or electronic document if:
(a) the integrity of the information from
the time when it was first generated 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 form of an obligation or whether the law simply
provides consequences for the information 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.
SEC. 11. Authentication of Electronic
Data Messages and Electronic Documents. - Until the Supreme Court by appropriate rules shall have so provided,
electronic documents, electronic data messages and electronic signatures, shall
be authenticated by demonstrating, substantiating and validating a claimed
identity of a user, device, or another entity in an information or
communication system, among other ways, 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 be authenticated by proof that an appropriate security
procedure, when applicable was adopted and employed for the purpose of
verifying the originator of an electronic data message and/or electronic
document, or detecting 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 acknowledgement procedures, or similar security
devices.
The Supreme Court may adopt such other
authentication procedures, including the use of electronic notarization systems
as necessary and advisable, as well as the certificate of authentication on
printed or hard copies of the electronic document or electronic data messages
by electronic notaries, service providers and other duly recognized or
appointed certification authorities.
The person seeking to introduce an
electronic data message and electronic document in any legal proceeding has the
burden of proving its authenticity by evidence capable of supporting a finding
that the electronic data message and electronic document is what the person
claims 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 and communication 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 electronic document 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 electronic document was recorded or stored in the usual and
ordinary course of business 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 Data Message and Electronic Documents. - In any legal proceedings, nothing in the
application of the rules on evidence shall deny the admissibility of an
electronic data message or electronic document in evidence -
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 or electronic document, the reliability of the manner
in which it was generated, 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 Electronic Document.
- Notwithstanding any provision of law, rule or regulation to the contrary -
(a) The requirement in any provision of law that certain documents 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;
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 in subparagraphs (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 be presumed
to have been established by an affidavit given to the best of the deponent's
knowledge subject to the rights of parties in interest as defined in the
following section.
SEC. 15. Cross-Examination. - (1) A deponent of an affidavit referred to in
Section 14 that has been introduced in evidence may be cross-examined as of
right by a party to the proceedings who is adverse in interest to the party who
has introduced the affidavit or has caused the affidavit to be introduced.
(2) Any party to the proceedings has the
right to cross-examine a person referred to in Section 11, paragraph 4,
sub-paragraph c.
CHAPTER III
COMMUNICATION OF ELECTRONIC DATA MESSAGES AND ELECTRONIC DOCUMENTS
SEC. 16. Formation and Validity of
Electronic Contracts. - (1)
Except as otherwise agreed by the parties, an offer, the acceptance of an offer
and such other elements required under existing laws for the formation of
contracts may be expressed in, demonstrated and proved by means of electronic
data message or electronic documents and no contract shall be denied validity
or enforceability on the sole ground that it is in the form of an electronic
data message or electronic document, or that any or all of the elements
required under existing laws for the formation of the contracts is expressed,
demonstrated and proved by means of electronic documents.
(2) Electronic transactions made through
networking among banks, or linkages thereof with other entities or networks,
and vice versa, shall be deemed consummated upon the actual dispensing of cash
or the debit of one account and the corresponding credit to another, whether
such transaction is initiated by the depositor or by an authorized collecting
party: Provided, that the obligation of one bank, entity, or person
similarly situated to another arising therefrom shall be considered absolute
and shall not be subjected to the process of preference of credits.
SEC. 17. Recognition by Parties of
Electronic Data Message or Electronic Document. - As between the originator and the addressee of a
electronic data message or electronic document, a declaration of will or other
statement shall not be denied legal effect, validity or enforceability solely
on the ground that it is in the form of a electronic data message.
SEC. 18. Attribution of Electronic
Data Message. - (1) An
electronic data message or electronic document is that of the originator if it
was sent by the originator himself.
(2) As between the originator and the
addressee, an electronic data message or electronic document is deemed to be
that of the originator if it was 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 the originator to operate automatically.
(3) As between the originator and the
addressee, an addressee is entitled to regard an electronic data message or
electronic document as being that of the originator, and to act on that
assumption, if:
(a) in order to ascertain whether the
electronic data message or electronic document was that of the originator, the
addressee properly applied a procedure previously agreed to by the originator
for that purpose; or
(b) the electronic data message or
electronic document as received by the 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 when the addressee knew or should have known,
had it exercised reasonable care 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 addressee is entitled to act on that assumption, then, as
between the originator and the addressee, the addressee is entitled to regard
the electronic data message or electronic document as received as being what
the originator intended to send, and to act on that assumption. The addressee
is not so entitled when it knew or should have known, had it exercised
reasonable care or used any agreed procedure, that the transmission resulted in
any error in the electronic data message or electronic document as received.
(6) The addressee is entitled to regard
each electronic data message or electronic document received as a separate
electronic data message or electronic document and to act on that assumption,
except to the extent that it duplicates another electronic data message or electronic
document and the addressee knew or should have known, had it exercised
reasonable care or used any agreed procedure, that the electronic data message
or electronic document was a duplicate.
SEC. 19. Error on Electronic Data
Message or Electronic Document.
- The addressee is entitled to regard the electronic data message or electronic
document received as that which the originator intended to send, and to act on
that assumption, unless the addressee knew or should have known, had the
addressee exercised reasonable care or used the appropriate procedure -
(a) That the transmission resulted in any
error therein or in the electronic document when the electronic data message or
electronic document enters the designated information system, or
(b) That electronic data message or
electronic document is sent to an information system which is not so designated
by the addressee for the purpose.
SEC. 20. Agreement on Acknowledgment
of Receipt of Electronic Data Messages or Electronic Documents. - The following rules shall apply where, on or
before sending an electronic data message or electronic document, the
originator and the addressee have agreed, or in that electronic document or
electronic data message, the originator has requested, that receipt of the electronic
document or electronic data message be acknowledged:
(a) Where the originator has not agreed
with the addressee that the acknowledgment be given in a particular form or by
a particular method, an acknowledgment may be given by or through any communication
by the addressee, automated or otherwise, or any conduct of the addressee,
sufficient to indicate to the originator that the electronic data message or
electronic document has been received.
(b) Where the originator has stated that
the effect or significance of the electronic data message or electronic
document is conditional on receipt of the acknowledgment thereof, the
electronic data message or electronic document 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 of the electronic data message or electronic
document is conditional on receipt of the acknowledgment, and the
acknowledgment has not been received by the originator within the time specified
or agreed or, if no time has been specified or agreed, within a reasonable
time, the originator may give notice to the addressee stating that no
acknowledgment has been received and specifying a reasonable time by which the
acknowledgment must be received; and if the acknowledgment is not received
within the time specified in subparagraph (c), the originator may, upon notice
to the addressee, treat the electronic document or electronic data 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 or Electronic Documents. - Unless otherwise agreed between the originator
and the addressee, the dispatch of an electronic data message or electronic
document occurs when it enters an information system outside the control of the
originator or of the person who sent the electronic data message or electronic
document on behalf of the originator.
SEC. 22. Time of Receipt of
Electronic Data Messages or Electronic Documents. - Unless otherwise agreed between the originator
and the addressee, the time of receipt of an electronic data message or
electronic document is as follows:
(a.) If the addressee has designated an
information system for the purpose of receiving electronic data message or
electronic document, receipt occurs at the time when the electronic data
message or electronic document enters the designated information system:
Provided, however, that if the originator and the addressee are both
participants in the designated information system, receipt occurs at the time
when the electronic data message or electronic document is retrieved by the
addressee.
(b.) If the electronic data message or
electronic document is sent to an information system of the addressee that is
not the designated information system, receipt occurs at the time when the
electronic data message or electronic document is retrieved by the addressee;
(c.) If the addressee has not designated an
information system, receipt occurs when the electronic data message or
electronic document enters an information system of the addressee.
These rules apply notwithstanding that the
place where the information system is located may be different from the place
where the electronic data message or electronic document is deemed to be
received.
SEC. 23. Place of Dispatch and
Receipt of Electronic Data Messages or Electronic Documents. - Unless otherwise agreed between the originator
and the addressee, an electronic data message or electronic document is deemed
to be dispatched at the place where the originator has its place of business
and received at the place where the addressee has its place of business. This
rule shall apply even if the originator or addressee had used a laptop or other
portable device to transmit 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, the principal 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 laws and/or rules and
guidelines promulgated by the Department of Trade and Industry with other
appropriate government agencies, parties to any electronic transaction shall be
free to determine the type and level of electronic data message and electronic
document security needed, and to select and use or implement appropriate
technological methods that suit their needs.
PART III
ELECTRONIC COMMERCE IN SPECIFIC AREAS
CHAPTER 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, this chapter applies to
any action in connection with, or in pursuance of, a contract 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;
(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 the performance of the contract;
(e) undertaking to deliver goods to a named
person or a person authorized to claim delivery;
(f) granting, acquiring, renouncing,
surrendering, transferring or negotiating rights in goods;
(g) acquiring or transferring rights and
obligations under the contract.
SEC. 26. Transport Documents. - (1) Where the law requires that any action
referred to contract of carriage of goods be carried out in writing or by using
a paper document, that requirement is met if the action is carried out by using
one or more data messages or electronic documents.
(2) Paragraph (1) applies whether the
requirement therein is in the form of an obligation or whether the law simply
provides consequences for failing 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, one person and no other person, and if the law
requires that, in order to effect this, the right or obligation must be
conveyed to that person by the transfer, or use of, a paper document, that
requirement is met if the right or obligation is conveyed by using one or more
electronic data messages or electronic documents unique;
(4) For the purposes of paragraph (3), the
standard of reliability required shall be assessed in the light of the purpose
for which the right or obligation 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 in subparagraphs (f) and (g) of Section 25, no paper
document used to effect any such action is valid unless the use of electronic
data message or electronic document has been terminated and replaced by the use
of paper documents. A paper document issued in these circumstances shall
contain a statement of such termination. The replacement of electronic data
messages or electronic documents by paper documents shall not affect the rights
or obligations of the parties involved.
(6) If a rule of law is compulsorily
applicable to a contract of carriage of goods which is in, or is evidenced by,
a paper document, that rule shall not be inapplicable to such a contract of
carriage of goods which is evidenced by one or more electronic data messages or
electronic documents by reason of the fact that the contract is evidenced by
such electronic data messages or electronic documents instead of by a paper
document.
PART IV
ELECTRONIC 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 the date of the effectivity of this Act, all departments,
bureaus, offices and agencies of the government, as well as all
government-owned and-controlled corporations, that pursuant to law require or
accept the filing of documents, require that documents be created, or retained
and/or submitted, issue permits, licenses or certificates of registration or
approval, or provide for the method and manner of payment or settlement of fees
and other obligations to the government, shall -
(a) accept the creation, filing or
retention of such documents in the form of electronic data messages or
electronic documents;
(b) issue permits, licenses, or approval in
the form of electronic data messages or electronic documents;
(c) require and/or accept payments, and
issue receipts acknowledging such payments, through systems using electronic
data messages or electronic documents; or
(d) transact the government business and/or
perform governmental functions using electronic data messages or electronic
documents, and for the purpose, are authorized to adopt and promulgate, after
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
electronic data messages or electronic documents shall be filed, created,
retained or issued;
(2) where and when such electronic data
messages or electronic documents have to be signed, the use of a electronic
signature, the type of 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 data messages 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 electronic data 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 Documents and Electronic Data Messages In Government and to the
General Public. - Within two
(2) years from the effectivity of this Act, there shall be installed an
electronic online network in accordance with Administrative Order 332 and House
of Representatives Resolution 890, otherwise known as RPWEB, to implement Part
IV of this Act to facilitate the open, speedy and efficient electronic online
transmission, conveyance and use of electronic data messages or electronic documents
amongst all government departments, agencies, bureaus, offices down to the
division level and to the regional and provincial offices as practicable as
possible, government owned and controlled corporations, local government units,
other public instrumentalities, universities, colleges and other schools, and
universal access to the general public.
The RPWEB network shall serve as initial
platform of the government information infrastructure (GII) to facilitate the
electronic online transmission and conveyance of government services to evolve
and improve by better technologies or kinds of electronic online wide area
networks utilizing, but not limited to, fiber optic, satellite, wireless and
other broadband telecommunication mediums or modes. To facilitate the rapid
development of the GII, the Department of Transportation and Communications,
National Telecommunications Commission and the National Computer Center are
hereby directed to aggressively promote and implement a policy environment and
regulatory or non-regulatory framework that shall lead to the substantial
reduction of costs of including, but not limited to, lease lines, land,
satellite and dial-up telephone access, cheap broadband and wireless
accessibility by government departments, agencies, bureaus, offices, government
owned and controlled corporations, local government units, other public
instrumentalities and the general public, to include the establishment of a
government website portal and a domestic internet exchange system to facilitate
strategic access to government and amongst agencies thereof and the general
public and for the speedier flow of locally generated internet traffic within
the Philippines.
The physical infrastructure of cable and
wireless systems for cable TV and broadcast excluding programming and content
and the management thereof shall be considered as within the activity of
telecommunications for the purpose of electronic commerce and to maximize the
convergence of ICT in the installation of the GII.
SEC. 29. Authority of the Department
of Trade and Industry and Participating Entities. - The Department of Trade and Industry (DTI) shall
direct and supervise the promotion and development of electronic commerce in
the country with relevant government agencies, without prejudice to the
provisions of Republic Act. 7653 (Charter of Bangko Sentral ng Pilipinas) and
Republic Act No. 337 (General Banking Act), as amended.
Among others, the DTI is empowered to
promulgate rules and regulations, as well as provide quality standards or issue
certifications, as the case may be, and perform such other functions as may be
necessary for the implementation of this Act in the area of electronic commerce
to include, but shall not be limited to, the installation of an online public
information and quality and price monitoring system for goods and services
aimed in protecting the interests of the consuming public availing of the
advantages of this Act. PART V FINAL PROVISIONS
SEC. 30. Extent of Liability of a
Service Provider. – Except as
otherwise provided in this Section, no person or party shall be subject to any
civil or criminal liability in respect of the electronic data message or
electronic document for which the person or party acting as a service provider
as defined in Section 5 merely provides access if such liability is founded 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 material or any statement made in such material,
including possible infringement of any right subsisting in or in relation to
such material: Provided, That
i. The service provider does not have
actual knowledge, or is not aware of the facts or circumstances from which it
is apparent, that the making, publication, dissemination or distribution of
such material is unlawful or infringes any rights subsisting in or in relation
to such material;
ii. The service provider does not knowingly
receive a financial benefit directly 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 party to commit any infringement or other unlawful act and/or
does not benefit financially from the infringing activity or unlawful act of
another person or party: 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 the basis for injunctive relief issued by a
court under any law requiring that the service provider take or refrain from
actions necessary to remove, block or deny access to any material, or to
preserve evidence of a violation of law.
SEC. 31. Lawful Access. - Access to an electronic file, or an electronic
signature of an electronic data message or electronic document shall only be
authorized and enforced in favor of the individual or entity having a legal
right to the possession or the use of the plaintext, electronic signature or
file and solely for the authorized purposes. The electronic key for identity or
integrity shall not be made available to any person or party without the
consent of the individual or entity in lawful possession of that electronic key.
SEC. 32. Obligation of
Confidentiality. - Except for
the purposes authorized under this Act, any person who obtained access to any
electronic key, electronic data message, or electronic document, book,
register, correspondence, information, or other material pursuant to any powers
conferred under this Act, shall not convey to or share the same with any other
person.
SEC. 33. Penalties. - The following Acts shall be penalized by fine
and/or imprisonment, as follows:
a) Hacking or cracking which refers to
unauthorized access into or interference in a computer system/server or
information and communication 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 the
computer or information and communications system, including the introduction
of computer viruses and the like, resulting in the corruption, destruction,
alteration, theft or loss of electronic data messages or electronic document
shall be punished by a minimum fine of one hundred thousand pesos (P100,000.00)
and a maximum commensurate to the damage incurred and a mandatory imprisonment
of six (6) months to three (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,
electronic signature or copyrighted works including legally protected sound
recordings or phonograms or information material on protected works, through
the use of telecommunication networks, such as, but not limited to, the
internet, in a manner that infringes intellectual property rights shall be
punished by a minimum fine of one hundred thousand pesos (P100,000.00) and a
maximum commensurate to the damage incurred and a mandatory imprisonment of six
(6) months to three (3) years; c) Violations of the Consumer Act or Republic
Act No. 7394 and other relevant or pertinent laws through transactions covered
by or using electronic data messages or electronic documents, shall be
penalized with the same penalties as provided in those laws; d) Other
violations of the provisions of this Act, shall be penalized with a maximum
penalty of one million pesos (P1,000,000.00) or six (6) years imprisonment.
SEC. 34. Implementing Rules and
Regulations. - The DTI,
Department of Budget and Management and the Bangko Sentral ng Pilipinas are
hereby empowered to enforce the provisions of this Act and issue implementing
rules and regulations necessary, in coordination with the Department of
Transportation and Communications, National Telecommunications Commission,
National Computer Center, National Information Technology Council, Commission
on Audit, other concerned agencies 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 the executory nature of the provisions of this
Act.
SEC. 35. Oversight Committee. – There shall be a Congressional Oversight
Committee composed of the Committees on Trade and Industry/Commerce, Science
and Technology, Finance and Appropriations of both the Senate and House of Representatives,
which shall meet at least every quarter of the first two years and every
semester for the third year after the approval of this Act to oversee its
implementation. The DTI, DBM, Bangko Sentral ng Pilipinas, and other government
agencies as may be determined by the Congressional Committee shall provide a
quarterly performance report of their actions taken in the implementation of
this Act for the first three (3) years.
SEC. 36. Appropriations. - The amount necessary to carry out the provisions
of Secs. 27 and 28 of this Act shall be charged against any available funds
and/or savings under the General Appropriations Act of 2000 in the first year
of effectivity of this Act. Thereafter, the funds needed for the continued
implementation shall be included in the annual General Appropriations Act.
SEC. 37. Statutory Interpretation. - Unless otherwise expressly provided for, the
interpretation of this Act shall give due regard to its international origin
and the need to promote uniformity in its application and the observance of
good faith in international trade relations. The generally accepted principles
of international law and convention on electronic commerce shall likewise be
considered.
SEC. 38. Variation by Agreement. - As between parties involved in generating,
sending, receiving, storing or otherwise processing electronic data message or
electronic document, any provision of this Act may be varied by agreement
between and among them.
SEC. 39. Reciprocity. - All benefits, privileges, advantages or statutory
rules established under this Act, including those involving practice of
profession, shall be enjoyed only by parties whose country of origin grants the
same benefits and privileges or advantages to Filipino citizens.
Sec. 40. Separability Clause. - The provisions of this Act are hereby declared
separable and in the event of any such provision is declared unconstitutional,
the other provisions, which are not affected, shall remain in force and effect.
Sec. 41. Repealing Clause. - All other laws, decrees, rules and regulations or
parts thereof which are inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.
Sec. 42. Effectivity. - This Act shall take effect immediately after its
publication in the Official Gazette or in at least two (2) national newspapers
of general circulation.
Approved,
(Signed)
MANUEL B. VILLAR, JR.
Speaker of the House of Representatives
(Signed)
FRANKLIN M. DRILON
President of the Senate
Thios Act, which is a consolidation of
Senate Bill No. 1902 and House Bill No. 9971 was finally passed by the Senate
and the House of Representatives on June 8, 2000 and June 7, 2000,
respectively.
(Signed)
ROBERTO P. NAZARENO
Secretary General
House of Representatives
(Signed)
OSCAR G. YABES
Secretary of the Senate
Approved:
June 14, 2000
(Signed)
JOSEPH EJERCITO ESTRADA
President
Republic of the Philippines