signing legally binding on tablets and smartphones

Signing legally Binding

on Tablets and Smartphones

Trustworthy Business Processes with Strong Evidential Weight

Istanbul - 10.4.14

IFINTEC Turkey

introduced by Irina Kulakova – SOFTPRO

Use Cases & Legal Framework

What to expect when signing on iPad and other tablets

Trends: Windows 8.1 & More and more devices with pens

Mistakes you can avoid when choosing a tablet or smartphone for E-Signing

In the next 25 minutes we intent to cover the following aspects:

BYOD – Security – Acceptance – ROI

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Familiarize with ….

In this presentation we cover key topics such as:

IT Security

Cloud Computing

Mobile Computing

Bring Your Own Device (BYOD*)

Enterprise Content Management (ECM)

Hightech Topics in 2014

3

Topic Ranging “Hightech Trends 2014” by German IT Industry Organization BITKOM

based on industry interviews, published Feb 21, 2014 http://goo.gl/pBOvc

* Side Note: Some legal and IT departments interpret „BYOD“ also as „Bring Your Own

Disaster“ …

iPads sold 2010 - Feb 2014

worldwide: > 200 Mio., [DE] ~ 8-9 Mio.1)

Tablets sold in total

worldwide in Q4/2013: More Tablets sold

than PCs2)

Tablet Facts 2014

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Sources:

1) Quarterly Reports Apple & Extrapolation of SOFTPRO R&D

2) Market Research of IDC 11.09.13, http://goo.gl/v0QOAE

3) BITKOM Media Release 07.10.13, http://goo.gl/e39Eph

4) BITKOM Media Release 24.02.14, http://goo.gl/Mklm2f

2010 2011 2012 2013

0,8

2,1

4,4

8,0

More and more new tablets are designed to meet the

requirements of „professionals“, not only consumers (like the

“media-tablets”.

+163%

+122%

2014: 18 Mio. Germans older than 14

are using a tablet

Devices sold in Mio. in Germany

Faster processors, larger displays with

higher resolutions, better cameras…

Smartphones and Tablets are

increasingly used for tasks which were

executed with PCs in the past

Many devices suitable for E-Signing with

robust evidence

Smartphone Facts 2014

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Source:

1) BITKOM Media Release 14.02.14, http://goo.gl/on0A4w

2010 2011 2012 2013*

10,4

15,9

21,6

26,4

29,6

2014**

* 97% of all mobile phones sold were Smartphones

** estimation as of February 2014

1) Devices sold in Mio. in Germany

Initially designed as media tablet

Recognized as Gadget in the first stage – today

a frequently seen tool of mobile warriors, often

used as PC replacement

„3rd device “ beside notebook & smartphone, often

intensively used as preferred favorite device,

incentive for employees (status symbol)

Supports Mega-Trends Cloud Computing, BYOD

und Prosumerization*

(*„Professional“ meets „Consumer“ = concrescence of work &

private life)

4 Years „iPad Effect“

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Business Usage: Primarily Reading &

Presenting, Rapidly growing demand to

edit & sign documents

Status Symbol „Manager Tablet“: many

users among company leaders, often

bought privately („BYOD“)

Tablet Integration in Business

Applications: Top Management triggers

many projects („want to have“)

Tablets in Business

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... Which you intent to achieve using Electronic Signatures?

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What‘s your major Project Goal…

Accelerate Workflow (e.g. from application to contract police)

Cut Costs (thanks to reduced paper usage)

Secure Documents (e.g. for archiving)

Regulations: Requirements about Security and Evidential Weight based on laws in

countries of doing business, industry regulations and self-defined standards?

Security: Risk Comparison to today‘s paper procedure? Realistic / likely scenarios

of attacks for electronic signing processes? Damage potential

Acceptance: How “complicated” can a method be while still being accepted?

Costs: What could it cost to be profitable? Who benefits if I apply electronic

signatures in what form? Who has to pay for it, why and how? (Often, the receiver

of digital documents has much more benefits than a sender)

Criteria to select suitable Signature Methods

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Signature Terminology

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Laws for electronic signatures vary around the globe. In most cases they are part of

superordinate laws and/or regulations on electronic transactions. Only in some cases there

are separate bills/acts for e-signatures.

At the time when the first versions of these laws were created (e.g. 1997: Germany,

Malaysia; 1998: Singapore) there was no such option as a “trustworthy capturing and

verification of handwritten signatures – including static images and dynamic (biometric)

characteristics” that allowed to create a reliable e-signature on basis of a digitized

handwritten signature (“biometric signatures”).

As a consequence laws usually primarily or reflect on “digital signatures” (e-signatures

created in a public key infrastructure, PKI). Digital signatures are properly a subset of

electronic signatures. Today law makers are gradually reflecting “biometric signatures”.

E-Signature Laws and Regulations

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Model Law on Electronic Signatures, adopted by UNCITRAL in 2001, with a technology

neutral approach.

Directive 1999/93/EG about framework for electronic signatures

Country Laws and Regulations on Electronic Signatures + Form Regulations

… for example in Germany

„Signaturgesetz“ (SigG) and Signaturverordnung (SigV) of 2001 plus changes of 1.

SigÄndG of 2005

Civil Code (Buergerliches Gesetzbuch, BGB): Definition about written form (esp. § 126) Civil

Process Code (Zivilprozessordnung, ZPO) Quality of legal proof (e.g. § 371a / 445)

Qualified Electronic Signature

with Operator Accreditation

(§ 15 Abs. 1 Satz 4 SigG)

Qualified Electronic Signature

[QES] (§ 2 Nr. 3 SigG)

Advanced Electronic Signature

[AES]

(§ 2 Nr. 2 SigG)

Electronic Signature

(§ 2 Nr. 1 SigG)

Types of Electronic Signatures - Example Germany

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Required

Written Form

Form Free

Agreements

„Arbitrarily*

Written Form“

!

* Signing on paper is a de facto procedure but not de jure; It‘s done to

have some proof , however you are f ree to choose any kind of proof

What to do if written form is still required?

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! Written Form

Hybrid Solution:

Combination of Paper &

Special Pen with Tablet

Signature Capturing with special „Tablet

Inking Pen“ in parallel: wet ink on paper and

digital ink on tablet.

Suitable in particular if written form is

mandatory only for some of document types

which should be signed on the device.

Video http://sp-l.de/9vmi

Form Purposes of Written Form

Features of a written form which should be fulfilled by an electronic method:

Identity

Integrity

Proof

Conclusiveness

Warning Protection

against

Haste

Resistance

against

Manipulation

Non-Repudiation

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Advanced Electronic Signature in EU - Definition

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Article 2 Definitions:

1. ‘electronic signature’ means data in electronic form which are attached to or logically

associated with other electronic data and which serve as a method of authentication;

2. ‘advanced electronic signature’ means an electronic signature which meets the following

requirements:

(a) it is uniquely linked to the signatory;

(b) it is capable of identifying the signatory;

(c) it is created using means that the signatory can maintain under his sole control; and

(d) it is linked to the data to which it relates in such a manner that any subsequent change

of the data is detectable;

Purpose:

Provision of

Authenticity

&

Integrity

Banking: account opening, modification, and deletion, cash deposits and withdrawals,

standing orders, exemption orders for capital gains, loans, mortgage origination and

closing, …

Insurance: Applications, agreements, damage reports …

Telco: Contracts (mobile, DSL, cable etc.), service reports, …

Utilities: Contracts (Power Supply), Applications for Customer Reward Schemes

Retail: Receipts at the point of sale or point of delivery, merchandise return, service

documentation, …

E-Signing: Sample Use Cases

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Replacement for „Arbitrarily Written Form“ on Paper in Form Free Agreements

More examples http://sp-l.de/ev3h

Pen Computing: Evolution from Stationary to Mobile

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Tablets &

Smartphones

Windows

Tablet PCs

Tablets in connection with

PC / Notebook

Stationary Mobile primary area of use

Display Size & Content to be signed

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12.2“ 10.1“ 8.0“ 5.7“

Receipts

~ A6

Complex Contracts

A4 / letter size

Choose Purpose-Oriented Screen Size

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iOS – One vendor (Apple), 3 Device Types: iPad, iPod touch, iPhone

Android – many vendors (dominating: Samsung), many device types

Windows 8 – many vendors, many device types (incl. Benchmark tablet

Surface Pro by Microsoft); potential of current Windows users

Ubuntu – Linux on Tablets, developer version available since February 2013

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Tablets & Smartphones – Operating Systems

Unique Aspects of a Signature

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There is more in a handwritten signature than

meets the eye: In addition to the visible static

signature image characteristics include

invisible dynamic (biometric) signals of the

writing movement such as location, speed

and acceleration.

Special characteristics are the points of start

and end of each stroke.

Several Tablets also allow to capture different

levels of the writing pressure

Forensic Eyperts examin doubtful Signatures

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Signature Comparison is based on

quantitative characteristics. It is a discipline

for forensic experts in handwriting. Softpro is

offering for them SignAlyze, a tool for

visualization of biometric signature signals

with may reveal forgery attempts.

(Graphologist intent to find information about

the personality of a signer by analyzing

qualitative characteristics.)

Lesson learned: It‘s better to sign with a Stylus

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[2007] Steve Jobs: Styluses are redundant

for iPhones (2010: … and for iPads)

[2014] Styluses are best-selling

accessories for iPads

„Sausage Finger Effect“: 22 % of all clicks on advertising areas are incorrect

operations 1) – Precision of input via finger (and „finger replacement styluses“)

on touchscreen is technically and naturally limited

Alternative for precise data input and signing on screen: Special styluses for

electromagnetic resonance like in signature pads

1) Source InternetWorld 19/12 (German IT Magazine): Der Wurstf inger-Ef fekt - http://goo.gl/0KjD8

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Special Styluses for Precise Input

Additional Data at Touchscreen Input

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Stylus Type 1:

up to 2.000 levels of writing pressure

Stylus Type 2 (Intuos Creative Pen):

2.048 levels of writing pressure

Some find it hard to getting used to it: Stylus Tip with transparent plastic plate

Closer to the natural way of writing, tip

similar to thick felt-tip pen

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First impression counts – also when Signing

Stylus

Digital Ink

Display Surface

The feeling of signing on the screen of a smartphone or tablet should be as

close a possible to the feeling of writing on paper:

Stylus: similar to a conventional ball pen (size, weight, … )

Surface: natural „paper feel“, not „slippery“

Digital Ink: immediate and exact display

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What really matters for Signing with Confidence

The more precise and differentiated signals of the writing procedure may be

captured, the higher the evidential weight of a particular signature data set

Capturing of as many signals per second as possible – also required for accurate

display of arcs and loops, ideally also capturing of different levels of writing pressure

Crucial for the reliability of a comparison with a reference signature no matter if verified

- automatically using software and/or by a forensic expert

- per default always immediately after signing or later, only if necessary

Validity of Signature Data

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Classification of legal experts for E-Signing with Apps like SignDoc which are fulfilling

criteria like :

Precise capturing of meaningful biometric signature data -> Option to verify

Authenticity

Encryption with Algorithms recommended as secure by German Federal Network

Agency -> Resistance against Manipulation

Creation of an Integrity Vale (Hash) and Storage in PDF (according to ISO 32000)

-> Option to verify Integrity if under suspect of manipulation with standard PDF file

viewer software (e.g. Adobe Reader)

Fulfillment of above criteria certified by TÜV Saarland by seal „Approved App“

Functional Equivalent Surrogate to a Paper Signature

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Increasing Evidence Weight

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Images of Persons

Cameras in most tablets are offering high res

to capture good quality images of customers

and/or employees at signing ceremony

Optional: Capturing according to grid for

biometric passport images

Embedded in document as additional


Increasing Evidence Weight

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Images of Documents

Cameras in most tablets are offering high res

(5 MP) - suitable as substitute for scanners to

capture images of documents

Capturing of IDs, e.g. passport, driving

license and/or corresponding documents for

the particular process

Embedded in document as additional


Video Demo http://sp-l.de/40au

Smartphone – Alternative to Signature Pads

… applicable for ‚Bring Your Own Device‘ concepts

until December 2013: worldwide > 50 mio. sold devices

GALAXY Note since Nov 2011

GALAXY Note II since Nov 2012

GALAXY Note 3 since Sept 2013


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Connect Smartphone and PC in same network

App Sign2Phone

Rich Client SignDoc Desktop

Browser Client SignDoc Web

or


Establish encrypted connection via Bluetooth with a Pairing Code


Data Transfer secured via Transport Layer Security (TLS)

High Speed Contracting with QR-Codes & Sign2Phone

Method registered at Patent Office

Start Session via QR-Code.

No entry of Pairing Codes required

Feature under Preparation


Android-Tablets and Smartphones

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Galaxy Note 3 Galaxy Note 10.1 Tablet

Tablets: open operating system, more

interfaces than iPads (e.g. USB), broad

options for professional users from 5.7“

(„Phablet“) to 13.3“; Precise on-screen

capturing via electromagnetic resonance

standard in Samsung Galaxy Note series.

Apps: broad selection of business apps for

„productivity“ in Google Play & Samsung

Apps incl. TÜV-certified Signature Apps

Tablets with Wacom Pen & Digitizer Technology:

Samsung „S-Pen“

(1.024 levels of pressure - 133 Signals / Second)

Windows 8 Tablets

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(Finally) A Windows OS optimized for

operation on screen with finger or pen

„Professional“: True mobile Office, also

running full Microsoft Office and existing

Windows applications, coming with

powerful Intel processors

„RT“: almost not suitable for professional

user, designed for consumers as media

tablet, using ARM processors, no devices

supporting precise input on screen via

electromagnetic resonance

Lenovo ThinkPad Tablet 2

Example of a Windows 8 Tablet

with Wacom Pen & Digitizer Technology

in iPad weight class - around 600g

– with option to attach a keyboard

Many tablets for

professional

users. Weak spots of

previous Windows Tablet

PCs widely eliminated:

lighter, more powerful

(processor & battery life)

Windows 8-Tablets

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Good design of some tablets: Stylus Storage in tablet

Service: Frequently updated comparison of Windows8-Tablets suitable for Signature Capturing incl. – screen resolution, weight, etc. check: http://sp-l.de/CNlO

Switch into Tablet Mode of Hybrid Devices: Fold down keyboard or detach

special hinge

Integrate E-Signing in existing Workflows

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Apps for

Signature Platform

Consumer Credit Specialist of BNP Paribas Personal Finance Group is saving 1.6

mil paper sheets per year

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E-Signing on Tablets – Reference Banking

Retailers and their customers sign on

tablets, like the Samsung Galaxy Note

10.1, for installment sales in retail.

The solution eSign Cetelem is a

solution provided by Anasoft with E-

Signing components powered by

SOFTPRO.

http://sp-l.de/fTwX

Many Insurance Companies in Europe and Asia have their own apps for working with

documents on tablets. 2 examples of insurance companies which have integrated

SOFTPRO E-Signing Technology in their apps are described in detailed case studies

AIA Group, Hong Kong http://sp-l.de/SMm0

INTER Insurance Group, Germany http://sp-l.de/IgKW

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E-Signing on Tablets – References Insurance

Document displayed similar to A4 on paper when selecting a

screen from 9.7“ (=iPad) upwards

E-Signing with handwritten signatures on the tablets is the

most personal form of electronic signatures

The signing process is familiar, self-explaining and happens

actively („active proof of intent“, „signature ceremony “)

SignDoc combines Biometrics & Cryptography - dynamic

signals of handwritten signatures and digital signatures

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Quick Summmary

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Additional Information

www.softpro.de

[email protected]

Phone +49 7031 66 06 0

SOFTPRO GmbH

Wilhelmstrasse 34

71034 Boeblingen

Germany