e-marketing ch 5

8/10/2019 E-Marketing Ch 5

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E-Marketing

Dr. Karim Kobeissi


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Dr. Karim Kobeissi

Chapter 5Ethical

&

LegalIssues


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Keywords: We site & Wepage

! wepage is what you see through your

rowser y scrolling the window up and down"

A Web site is a collection of Web pages

which #ay link to other pages that are not

part o$ that site" %or ea#ple' !#a(on"co# is

a We site' ut there are #illions o$ We

pages that #ake up the !#a(on"co# site"

d ll d i* l


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Keywords: )ersonally Identi*aleIn$or#ation

)ersonally identi*ale in$or#ation

+)II,: ata that can e used to

identi$y' locate' or contact an

indi.idual"


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/ o $ t w a re I n $ r i n g e # e n t

Copyright infringementis the use o$ works protected

y copyright law without per#ission' .iolating certain

eclusi.e rights granted to the copyright holder' such

as the right to reproduce' distriute' display or per$or#

the protected work' or to #ake deri.ati.e works"

Counter$eiting occurs when illegally copied so$tware is

duplicated and distriuted on a large scale" Countries with weak so$tware copyright en$orce#ent

cost so$tware owners illions o$ dollars in lost re.enue"


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!lthough ethics and law are closely related' they di1er in

that ethics are social guidelines based on moral

principles and values while laws are rules and

regulations that have specic penalties and

consequences when violated.Ethics do not ha.e

punish#ents' *nes or associated penalties when people

$ail to aide y the# while laws do" 2oth set standards o$

epected societal eha.iours' ut ethics epress social

guidelines while laws i#pose actions"

In so#e instances' laws are estalished ased on ethics'

principles or #orals"

3.er.iew o$ Ethics and Legal Issues


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Modern technology presents challenges to

#arketing ethics and laws" Critical issues include:

I" 4he role o$ pri.acy in a .irtual world

II" 3wnership o$ intellectual propertyIII" %reedo# o$ epression

I" 6se o$ data and its collection

" )ulic /a$ety and Wel$are

I" 0o.ernance

II" 4aation

3.er.iew o$ Ethics and Legal Issues +con,


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I- 4he 7ole o$ )ri.acy in a irtual World

)ri.acy: 4he #oral right o$ indi.iduals to e le$t

alone' $ree $ro# sur.eillance or inter$erence

$ro# other indi.iduals or organi(ations"

In$or#ation pri.acy: Includes oth the clai#

that certain in$or#ation should not e

collected at all' as well as the clai# o$indi.iduals to control the use o$ whate.er

in$or#ation is collected aout the#"


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With widely usage o$ the Internet ' the

right to indi.idual pri.acy #o.ed eyond

pri.ate property" 4he Internet industry

essentially go.erns itsel$" 4his condition

enales the Internet to grow without the

constraints o$ legislation' ut it also

creates prole#s ecause there are $ew

speci*c guidelines to $ollow"

4he 7ole o$ )ri.acy in a irtual World +con,


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!l#ost all e-co##erce co#panies collect )ersonally identi*ale

in$or#ation and use cookies to track clickstrea# eha.ior" While online #arketers and ad.ertisers suggest that' y

recording the likes and dislikes o$ online consu#ers' online

co#panies can etter ser.e their users' pri.acy ad.ocates argue

that these e1orts .iolate indi.iduals8 pri.acy rights " %or

ea#ple' online ad.ertising *r#s such as ouleClick ha.e

traditionally recorded users9 clickstrea#s to $or# user pro*les $or

#arketing purposes" Contro.ersy arose in ;;; when

ouleClick ac


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4he 7ole o$ )ri.acy in a irtual World +con,

4he !#erican Marketing !ssociation +!M!,

Code o$ Ethics $or Marketing on the internet:>in$or#ation collected $ro# custo#ers shoulde con*dential and used only $or epressedpurposes?"


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Cookies and 3nline ata Collection4echnologies such as cookies' @a.a applets' and intelligent

agents are e.erywhere applications that can $unction without

the user9s knowledge or control"

Cookies ser.e #any purposes:

A, Create shopping askets to hold purchases

, 7ecall stored sales in$or#ation

B, Collect user data

4hey allow #arketers to pinpoint an indi.idual9s

online eha.ior"


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7egulatory )rotections o$ 3nline )ri.acy +con,

B, Access$&articipation!ccess includes not only aconsu#er8s aility to .iew the data collected' utalso to .eri$y and contest its accuracy" 4his access#ust e inepensi.e and ti#ely in order to euse$ul to the consu#er"

, 'ntegrity$(ecurityIn$or#ation collectors shouldensure that the data they collect is accurate andsecure" 4hey can i#pro.e the integrity o$ data ycross-re$erencing it with only reputale dataasesand y pro.iding access $or the consu#er to .eri$yit"

5, )nforcement$*edressIn order to ensure thatco#panies $ollow the %I))' the %4C identi*ed so#een$orce#ent #easures that include ci.il andcri#inal penalties"


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%4C 7eco##endations $or 3nline )ro*ling

I I 3 w n e r s h i p o $ I n t e l l e c t u a l


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Intellectual property: Enco#passes all tangile and intangile

products o$ hu#an #ind"

MaFor social issue: Is there continued .alue in protecting

intellectual property in the Internet ageG

MaFor political issue: I$ so' how' should Internet and e-

co##erce e regulatedHgo.erned to protect intellectual

property G

4he law protects intellectual property through *.e asic#echanis#s:

&atents

rademar+s

,icenses

Copyrights

(ui generis Database *ights

I I - 3 w n e r s h i p o $ I n t e l l e c t u a l) r o p e r t y


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)atent: the eclusi.e right granted y a

go.ern#ent to an in.entor to #anu$acture' use'

or sell an in.ention $or a certain nu#er o$ years

+usually ; years,"

Creators o$ so$tware are atte#pting to #ake use

o$ patent law protection"

!d.ocates argue that granting o$ patents $or so$tware

will encourage inno.ation"

Critics argue that patents will ha.e o.erpowering and

#onopolistic e1ects"

)atents


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Internet and E-Co##erce 2usiness Method)atents

SOURCE: Based on data from United States Patent and Trademark Office, 2005

d k


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! trade#ark is a #ark used to identi$y and distinguish

products' and indicate their sources"

4rade#arks protect pulic y ensuring it gets what it

pays $orHepects to recei.e protects trade#ark owner

against piracy and $raud"

4rade#ark law has een applied to the internet na#ing

syste# o$ do#ain na#es"

/i#ilarities in na#es #ay result in trade#ark in$ringe#entclai#s"

! trade#ark .iolation +cyer-s


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Licenses are an increasingly popular

#ethod o$ intellectual property protection"

Licenses allow the uyer to use the product

ut restrict duplication or distriution"

Licenses #ay e two asic types:

/hrink-wrap or reak-the-seal licenses Click wrap licenses where the user is re


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4he copyright law protects original $or#s o$ epression +e"g"'

e-ooks, ut not ideas $ro# eing copied y others $or an

initial period o$ ti#e at which the #aterial is sold"

4he Jo Electronic 4he$t !ct +JE4' A, presents copyright

protection $or co#puter content and i#poses penalties $or

in$ringe#ent"

4he AD igital Millenniu# Copyright !ct +MC!' AD,contains se.eral stipulations:

- )rotects Internet /er.ice )ro.ider +I/), $ro# acts o$ userin$ringe#ent"

- Cri#inali(es the circu#.ention +getting around, o$so$tware protections"

- Co#plies with international standards $or copyrighted

#aterial"

Copyr igh ts


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d $ i


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I I I- %reedo# o$ Epression

%reedo# o$ epression is protected y the %irst

!#end#ent"

Internet technology has resulted in what #any consider

inappropriate or untargeted types o$ consu#er contact"

/pa# is the #ass distriution o$ unsolicited electronic #ail"

Many internet users elie.e that spa# steals their resources +spa#

costs co#panies around illion a year in anti-spa# *lters' new

e


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4he internet pro.ides opportunities $or

$alse appearance or state#ent:

/poo*ng is the use o$ e-#ail or We sites to

#i#ic indi.iduals or corporations"

%raud is the use o$ trickery and $alse

clai#sHdata to otain pro*t"

I- 6se o$ ata & Its Collection


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6se o$ ata & Its Collection +con,

!nother issue is phishing which is the practice of

sending fraudulent that appear to come from

a trusted- legitimate source and request

personal information for the purpose of

committing identity theft. )hishing #essages

will o$ten co#e $ro# *nancial *r#s' like Citiank

and #ay direct .iewers to an authentic-looking

wesite to trick the# into gi.ing personal

in$or#ation including account nu#ers and

passwords"


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)rotection o$ children and strong senti#ents against pornography

)assing legislation that will sur.i.e court challenges has pro.ed

diNcult:

Co##unications ecency !ct struck down +unen$orceale,

Children9s 3nline )rotection !ct struck down +ut still e

considered y lower courts,

Children9s Internet )rotection !ct sustained y /upre#e Court

+re


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I - 0o.ernance

)ri#ary


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0o.ernance +con,Who 0o.erns E-co##erce and the InternetG

Currently we are in a #ied #ode policy

en.iron#ent where sel$-regulation' through a

.ariety o$ internet policy and technical odies'

co-eists with li#ited go.ern#ent regulation"

Jot true that Internet cannot e controlled" In

$act' Internet can e .ery easily controlled'

#onitored' and regulated $ro# a central location

+such as done y China' /ingapore' etc","

I I 4 a a t i o n


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I I - 4 a a t i o n 4he Internet has created a world without orders" Consu#ers can

purchase goods and ser.ices $ro# around the world" !s a

consu#er' I can go online' co#parison shop $or whate.er I want P

a co#puter' a car' a ook' or whate.er P and #ake #y

purchases' all ta-$ree +unless the .endor has a physical presence

in #y state," 4rying to estalish a ta syste# that takes into

account the di1erent Furisdictions' ta rates' the di1erent product

de*nitions' and which products are suFect to taation is a great

challenge that could signi*cantly i#pair the aility o$ large and

s#all dotco#s to #ake #oney or e.en to operate"

't is unli+ely that the issue of 'nternet taation will have

been resolved by the time you read this presentation

e-marketing ch 5

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