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December 9-10, 1999

The Needs of The Business Community: Towards a Global Framework for Authentication and Security December 9-10, 1999 Naoshi Shima Vice President, NEC Corporation E-mail : shima@mesh.ad.jp ( Authentication and Security Issue Group Home Page: http://www.nec.co.jp/gbde-auth/ )

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December 9-10, 1999

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  1. The Needs of The Business Community: Towards a Global Framework for Authentication and Security December 9-10, 1999 Naoshi Shima Vice President, NEC Corporation E-mail : shima@mesh.ad.jp ( Authentication and Security Issue Group Home Page: http://www.nec.co.jp/gbde-auth/ )

  2. Technological Issues are Just Visible Peaks No MoreTitanic! Technological Issues E-Commerce Other Issues

  3. Four Ways to Make it Happen! Under The Gun Convenient ( I ) ( III ) Cult or Boom ( II ) ( IV ) MoneyMaking

  4. Force Comes From the Balance Convenience/ Money Making E-Commerce BasicFunctions Trust inUsage

  5. Principle of Private Sector Leadership 1. Private Sector Leadership in Development E-Commerce 3. International Coordination Asia, Oceania Europe, Africa Americas 2. Stable Legal Environment given by Government (OECD: October, 1998)

  6. Global Policy Discussions Japan Meeting between Japanese Government and the European Commission (Apr. ‘98) Japan-U.S. Summit Joint-Statement (May. ‘98) J.-EU Industrialist RT (Oct.. ‘98) Japan-U.S. Business Conference (Jul. ‘98, Jul. ‘99) GBDe Plenary (Sept. ’99) GIICAnnual meeting (Dec. ‘99) USA EU US-EU Summit (Dec. ‘97) TABD (Jan. ‘98)

  7. Steering Committee Members Asia, Oceania Americas Europe, Africa Fujitsu Time Warner Bertelsmann Mitsui AOL ABN AMRO Bank NEC BCE SIC Toshiba Cisneros Group Vivendi Bank of Tokyo-Mitsubishi Hewlett Packard France Telecom NTT IBM Nokia Korea Telecom MCI Worldcom Marks & Spencer Malaysia Telecom Nortel Networks MIH EDS Daimler Chrysler The Walt Disney Company Deutsche Bank Telefonica

  8. Nine Issue Groups Issue Asia, Oceania Americas Europe, Africa IPR Microsoft Reed Elsevier Fujitsu Protection ofPersonal Data Telus Corp. Siemens Toshiba Authentication and Security CCIA Brokat NEC Consumer Confidence Benesse AOL Daimler Chrysler Daimler Chrysler Liability Nifty ITAA Telefonica Telefonica Taxation and Tariffs Burrell USCIB Deutsch Bank Deutsch Bank Information Infrastructure NTT Nortel Deutsch Telekom Nortel Jurisdiction Mitsui EDS Vivendi EDS Contents and CommercialCommunications NTT Data Walt Disney MIH Walt Disney

  9. Major Points of Discussion in Each Issue Group Issue Group Major Discussion Points IPR • Enforcement of Copyright Laws • Prompt and Faithful Ratification of WIPO Treaties • Promotion of Technological Innovation • Workable Liability Rules • Respect of WIPO TRIPS Agreement • Fair Allocation of Domain Names • Global Harmonization Protection of Personal Data • Establishment of Minimum Principles • Self-Regulatory Enforcement - Promotion of Development and Use of Self-Regulatory Mechanisms • Cooperation of Governmental and Private Sectors Authentication and Security • Giving Legal Effect to Electronic Authentication • Private Sector Development of Authentication Services • Free Development and Trade of Cryptography • Global Harmonization

  10. (Continued) Major Points of Discussion in Each Issue Group Issue Group Major Discussion Points Consumer Confidence • Transparency, Information and Education tocreate Consumer Confidence • Protection of Personal Data, Secureness inE-Commerce Services and Avoidance ofUnsolicited Commercial Communication toassure User Security and Privacy. • Clearness in Applicable Law and Choice ofForum, and introduction of ADR to get ConsumerConfidence • Other Conveniences for Users Liability • Balance of Responsibility among ContentProviders, Service Providers and End Users • Freedom of Contract to avoid the Risk of IllegalOnline Activities • The Principle of "Immediate Offender Pays" • "Notice and Takedown "Procedure to removeAllegedly Unlawful Materials including The Concept of Safe Harbour Provision

  11. (Continued) Major Points of Discussion in Each Issue Group Issue Group Major Discussion Points Taxation and Tariffs • Same Taxation in Traditional Commerce andE-Commerce • Continuation of WTO's current practice of notimposing Custom Duties Information Infrastructure • Establishment of Competitive Environment todrive Infrastructure Development • Respect of WTO Agreements • Necessity of Minimum Regulation • Fostering of Interoperability and, Open andMarket-driven Standards Jurisdiction • Effective Development of ADR (Alternate Dispute Resolution Arrangement) Mechanism • Self-Regulation, Codes of Conduct, Trust Markand Seal Programs • Principle of Freedom of Law/Forum Choice and Freedom of Contract • Principle of Country of Origin in case of No Choice in Contract

  12. (Continued) Major Points of Discussion in Each Issue Group Issue Group Major Discussion Points Content and Commercial Communications • Protection of Minors from Harmful Content • Principle of "Opt-out" in CommercialCommunications • Right of Protection and Promotion of National Cultural Heritage and Identity but Fear of its Growth into Trade Barriers

  13. Most Important General Proposalof the First Round GBDe Trustmark as an Selfregulated ADRA (Alternate Dispute Resolution Arrangement) Mechanism to Achieve Consumer Conference

  14. Promotion and Protection as Two Driving Wheels Governmental Procurement Expectations Hurray! Hurray! Authenticationand SecurityIssue Group Promotion Suspicion of Consumer International framework mismatch Protection Just an Inch Remained! Well Done! Illicit Conduct Over regulation Governmental andIndustrial Sectors GOAL Customers

  15. Nineteen Identified Issues inAuthentication and Security 1. Authentication 2. Security / Encryption 1. Authentication 2. Security / Encryption A. Promotion 1A1 Development of Authentication Systems/Services (Priv.) 1A2 International Cooperation in Authentication Methods (Govt.-Priv.) 1A3 Mechanisms to Evaluate and Compare Service Providers (Govt.-Priv.) 1A4 Equal Business Opportunities for Authentication Services (Govt.-Priv.) 1A5 Cooperation with Related Organizations (Govt.-Priv.) 1A6 Promotion of Government Procurement (Govt.) 2A1 Development of Security Technology (Priv.) 2A2 Promote Use of Strong Encryption (Govt.-Priv.) 2A3 International Agreement on Encryption Regulations (Govt.) 2A4 Fairness in Cryptography Technology Exportation (Govt.) 2A5 Equal Business Opportunities for Fair Competition (Govt.-Priv.) 2A6 Cooperation with Related Organizations (Govt.-Priv.) A. Promotion B. Protection 1B1 Establishment of the Legal Effect of Electronic Signatures (Govt.) 1B2 Operation Guidelines - Ensuring Reliability (Priv.) 1B3 Cooperation with Related Organizations (Govt.-Priv.) 2B1 Promotion of use of Strong Cryptography vs. Regulation- Protection Against Crime (Govt.-Priv.) 2B2 Key Management and Legal Access (Govt.-Priv.) 2B3 Support System for Emergency Situations (Govt.-Priv.) 2B4 Education (Govt.-Priv.) B. Protection Govt. : To be Handled by Governmental SectorPriv. : To be Handled by Private Sector

  16. Recommendations fromThe Authentication and Security Issue Group Rec.1 • To Governments on Electronic Authentication on • Cooperation Between Governments for an International Framework: • Harmonization of Existing Rules and Minimum Adoptionof New Rules • Freedom of Contract between Related Parties • User Choice of Appropriate Technology orAuthentication Mechanisms • Neutrality of Technology and Implementation • Non Discrimination • Evidence of Authenticity

  17. Recommendations fromThe Authentication and Security Issue Group (Continued) Rec.2 • To Governments on Electronic Authentication on Legal • Effect of Electronic Signature: • Technology Neutrality in order not to hinder the new technology development • Free Development of Authentication Services in Competitive Market without Trade Barriers • Freedom of User Choice in Selecting an Appropriate Service • Transparency in the Level of Authentication Offered • Cross-border Legal Validity of Services • Freedom of Contract between Parties regarding the Use of Authentication that they trust

  18. Recommendations fromThe Authentication and Security Issue Group (Continued) Rec.3 • To Private Sector on Electronic Authentication on • Development of Authentication Systems and Services • Voluntary Accreditation Schemes to help Ensuring User Confidence • Industry-based Operational Guidelines and Standards • Both International and Domestic Considerations

  19. Recommendations fromThe Authentication and Security Issue Group (Continued) Rec.4 • To Governments on Cryptography on it's Free • Development and Use • Removal of Cross-border Distribution Restriction • Users’ Free Choice of type and strength of Encryption • No Mandates by Governments on Key Recovery and Escrow except for Consent of Owner or Court Order • Respect of OECD Guidelines on Free User Choice, Free Development and Users-trusted International Standard

  20. Recommendations fromThe Authentication and Security Issue Group (Continued) Additional • Measures to Enhance Confidence in the Security of • E-Commerce • Use of Governmental Procurement Power to Further Growth of Authentication Services • Establishment of a Global Support System for Emergency • Educational Effort giving Highlight to Merits rather than Risks of E-Commerce

  21. Basic Considerationfor Japanese Legislation 1. Legal Effect of "Signature"in Japanese Civil Law System 2. International Implication(Cross Border recognition) 3. Freedom of choice by Users(Voluntary Accreditation, TechnologyNeutrality) (Opened on Nov. 19, '99, Copyright: Japanese Government)

  22. Proposed Activities for The Second Round WGs Asia, Oceania Americas Europe, Africa Privacy Chair Co-Chair Co-Chair Consumer Confidence/ ADR Co-Chair Co-Chair Chair Consumer Confidence / GBDe Trustmark Chair Co-Chair Co-Chair Trade / Taxation Co-Chair Chair Co-Chair IPR Co-Chair Chair Co-Chair Advocacy Co-Chair Co-Chair Chair Outreach Co-Chair Chair Co-Chair

  23. On GBDe, http://www.gbd.org/ On Authentication and Security Issue Group, http://www.nec.co.jp/gbde-auth/ Please visit the above!

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