Republic Act No. 8792
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 there for, 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 WRITING OR
DOCUMENT AND DATA MESSAGES
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
acknowledgment 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 there from 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
(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 ofthat 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 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, 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.