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A Borderless World: Realizing the Potential for Global Electronic Commerce

The Free Market

The market plays an important role in almost every regulatory model. While there are few who advocate exclusive regulation by the free market, almost everyone integrates the ideas of competition, innovation, and the pulls of market forces into their models. Perhaps the most common examples are the technological solutions to regulatory problems, such as PICS or digital signature software, that are born of market demand.

I.   Private Property
II.  Let the Market Create Technical Standards and Solutions
    A.  Filtering Technology
        1. International Industry Efforts
            a.  UK
        2. PICS
        3. RSACi
        4. Safesurf
        5. Cybersitter
        6. NetNanny
        7. NetShepherd
    B. Digital Signatures
    C. Free Market in Rule Sets


Michael A. Geist, The Reality of Bytes: Regulating Economic Activity in the Age of the Inernet, FORTHCOMING 73 WASH. L. REV. (July 1998)  Can be fond at http://www.columbia.edu/~mag76/reality.html

Peter P. Swire, Markets, Self-Regulation, and Government Enforcement in the Protection of Personal Information http://www.osu.edu/units/law/swire.htm (visited 3/5/98). 

John K. Halvey, The Virtual Marketplace, 45 Emory L.J. 959 (1996). 

Benjamin R. Barber, The Market as Censor: Freedom of Expression in a World of Consumer Totalism, 29 Ariz. St. L.J. 501 (1997). 

I.  Ad-Hocracies of the Software Industry 

Gary Chapman, Cyberculture Digital Nation Ad-Hocracies Fill Void Left by Government, 3/9/98 L.A. Times D3 
1998 WL 2406275, 

II. Private Property 

Harold Smith Reeves,  Property in Cyberspace, 63 U. Chi. L. Rev. 761 (1996). 

John O. McGinnis, The Once and Future Property-Based Vision of the First Amendment, 63 U. Chi. L. Rev. 49 (1996). 

Henry H. Perritt, Jr., Property and Innovation in the Global Information Infrastructure, 996 U. Chi. Legal F. 261 (1996). 

Trotter Hardy,  Property (and Copyright) in Cyberspace, 1996 U. Chi. Legal F. 217 (1996). 
III. Let the Market Create Technical Standards and Solutions 

James Nahikian, Learning To Love "The Ultimate Peripheral"—Virtual Vices Like "Cyberprostitution" Suggest A New Paradigm To Regulate Online Expression, 14 J. Marshall J. Computer & Info. L. 779, 782-83 (1996) 

Joel R. Reidenberg, Lex Informatica: The Formulation of Information Policy Rules Through Technology,  76 Tex. L. Rev. 553  (1998) (showing specific technical solutions and responses to the information policy problems inherent in the legal regulation of content, personal information, and intellectual property on global networks. .  

A. Technology as a Regulating Force 

Larry Lessig, Reading the Constitution in Cyberspace, 45 Emory L.J. 869, 896-97 (1996) (arguing that software codes are societal constraints) 

M. Ethan Katsh, Software Worlds and the First Amendment: Virtual Doorkeepers in Cyberspace, 1996 U. Chi. Legal F. 335 (exploring the role of software in structuring speech in the on-line environment) 

Joel R. Reidenberg, Governing Networks and Rule-Making in Cyberspace, 45 Emory L.J. 911, 927-28(1996) (arguing that technical standards set boundary rules and embed policy choices) 

Joel R. Reidenberg, Rules of the Road for Global Electronic Highways: Merging the Trade and Technical Paradigms, 6 Harv. J.L. & Tech. 287, 301-04 (1993) (arguing that technical considerations establish normative standards which, in turn, impact system practice) 

Joel R. Reidenberg, Setting Standards for Fair Information Practice in the U.S. Private Sector, 80 Iowa L. Rev. 497, 508-09 (1995) arguing that legal rules may be supplemented by technical considerations as well as business practices). . 

B. Filtering Technology 

Dawn L. Johnson, It’s 1996: Do You Know Where Your Cyberkids Are? Captive Audiences And Content Regulation On The Internet, 15 J. Marshall J. Computer & Info. L. 51, 86 (1996). 

Reviews and discussions about filtering  software by Peacefire, a youth organization against censorship: http://www.peacefire.org/ 

Lorrie Faith Cranor and Paul Resnick, "Technical Inventory" ("an inventory of technologies that support parents' ability to choose content appropriate for their 
children, or address online personal safety issues affecting children. It presents an overview of the "empowerment tools" design space, discusses gaps where additional work may be needed, and includes as appendices a) information on the Platform for Internet Content Selection; b) a catalog of available technologies; c) a list of Internet content for children and parents; and d) a list of online tools to find and prevent missing children." Includes a short annotated bibliography) at http://www.research.att.com/~lorrie/pubs/tech4kids/ 

1. International Industry Efforts 

a. UK 

R3 Safety-Net Rating Reporting Responsibility For Child Pornography & Illegal Material on the Internet An Industry proposal Adopted and Recommended by Executive Committee of ISPA - Internet Services Providers Association, LINX - London Internet Exchange The Safety-Net Foundation 23 September 1996 http://www.dti.gov.uk/safety-net/r3.htm (visited 3/6/98). 

2. PICS 

Amy Harmon, Rules for Filtering Web Content Cause Dispute, New York Times, Cybertimes, January 19, 1998 

Ari Staiman,  Shielding Internet Users From Undesirable Content: the Advantages of a PICs Based Rating System 
20 Fordham Int'l L.J. 866 (1997). 

Jonathan Weinberg, Rating The Net, 19 Hastings Comm/Ent L.J. 453 (1997) http://www.msen.com/~weinberg/rating.htm (visited 3/5/98). 

Lawrence Lessig, Tyranny in the Infrastructure: The CDA was bad - but PICS may be worse. http://www.wired.com/wired/5.07/cyber_rights.html (visited 3/5/98) 

Paul Resnick, PICS, Censorship, & Intellectual Freedom FAQ, http://www.si.umich.edu/~presnick/pics/intfree/FAQ.htm (visited 3/5/98). 

Paul Resnick, Filtering Information on the Internet, Sci. Am., Mar. 1997, at 62 

W3C: http://www.w3.org/PICS/iacwcv2.htm 

Akdeniz Y ‘The Regulation of Pornography and Child Pornography on theInternet’ , 1997 (1) The Journal of Information, Law and Technology (JILT). http://elj.warwick.ac.uk/jilt/internet/97_1akdz/ paragraph 5.5. 

Ratings - Farenheit 451.2: Is Cyberspace Burning? http://www.aclu.org/issues/cyber/burning.html 

Robin Whittle, 'Internet censorship, access control and content regulation' at http://www.ozemail.com.au/~firstpr/contreg/ for an explanation of the PICS system and how it works. 

Critique of PICS by The Campaign for Internet Freedom, 'Frequently Asked Questions about PICS and Censorship' at http://www.netfreedom.org/uk/faq.html

3. RSACi 

RSACi's Mission 

4. SafeSurf 

SafeSurf, The Original Internet Rating System, http://www.safesurf.com 

5. Cybersitter 


6. NetNanny 

7.  Netsheperd 

C. Digital Signatures 

Digital Signature Resource Center, at http://www.perkinscoie.com/resource/ecomm/digsig/digsig.htm 

Philip S. Corwin,  The Virtual Dotted Line:  Understanding Digital Signatures, 16 NO. 4 Banking Pol'y Rep. 1 (1997). 
Angela Adasme, Regulation of Electronic Commerce: Digital Signature Laws in the US And EU, at 

Richard L. Field, Digital Signatures: Verifying Internet Business Transactions, 471 PLI/Pat 721 (1997). 

Maureen S. Dorney, Digital Signature Legislation, 491 PLI/Pat 141 (1997). 
Andrea Servida, ed., Digital Signature, Inventory of international regulatory, standardisation and commercial activities http://www.ispo.cec.be/Ecommerce/digisign.htm 

IV. Free Market in Rule Sets 

David G. Post, Anarchy, State, and the Internet: An Essay on Law-Making in Cyberspace, 1995 J. ONLINE L. art. 3, par. ___.] 

General Perspectives | Traditional, Nation-State Regulation
The Free Market | Self Regulation of the Internet


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