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An eLEGAL Approach: Exploiting XML for Markup and Signing of Electronic Contracts

An eLEGAL Approach: Exploiting XML for Markup and Signing of Electronic Contracts. Michael Merz – Ponton Consulting Merz@ponton-consulting.de London, May 6 th , 2003. eContracting. Content. About e-Contracting The Art of Signing The Tool Examples. What is e-Contracting?.

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An eLEGAL Approach: Exploiting XML for Markup and Signing of Electronic Contracts

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  1. An eLEGAL Approach: Exploiting XML for Markup and Signing of Electronic Contracts Michael Merz – Ponton Consulting Merz@ponton-consulting.de London, May 6th, 2003 eContracting

  2. Content • About e-Contracting • The Art of Signing • The Tool • Examples

  3. What is e-Contracting? Why e-Contracting? • B2C: Security • Consumer Protection • Retailers Protection • Current Example: Payment transactions via Modem-dialer without any contract or payment authorisation • Characteristic: Many similar transactions – low volume • B2B: Reduction of Process Costs • Reduction of Time-to-Contract • Document management • Automatically re-use contract content • Legal requirements (authentication, archiving, etc.) • Few, individual transactions – high volume

  4. What is e-Contracting? Benefits from e-Contracting • Avoid media breaks • Although contracts are highly formalised, they are still managed by WinWord, eMail – and on paper • Avoid errors • Media breaks lead to re-typing, cross-checking and consistency issues • Reduce time-to-contract • Most time is wasted in wait states during contracting processes • Content re-use after closing • Alongside the supply chain contracts bare data that is re-used by ERP systems and ordering applications – why not importing them directly from the XML document • EDI framework agreements may be used to directly parameterise Message Services ( ebXML CPPA)

  5. What is e-Contracting? The eLEGAL Project: ICT-Contracts in the construction industry

  6. What is e-Contracting? Example: European Research Consortia / Periodical Reporting European Commission signs Co-ordinator Reports to Consolidates, Counter-signs Verify Signatures Transformation for print/archive Reports to Project Mgmt. Software Project Partners

  7. Content • About e-Contracting • The Art of Signing • The Tool • Examples

  8. The Art of Signing To Sign and to be signed... • Different contract patterns regarding signing • „Signature Context“: A combination of • N SignedParts, • M Parties, and • K Signatures. • Examples: • Multi-party contract (consortium agreement, company statutes, ...) • Counter-signing (vacation application, e-procurement, invoice checking, electronic cheques, ...) • Consolidation of sub-documents (project reports for consortia, consortia approvals, ...)

  9. Signature Context Signature Context Signature Context The Art of Signing Contract Signing Patterns MCR Party1 MCR Party2 MCR Party3 MCR Party4 Signed Part MCR Coordinator Part Signature Container Signature Container Consolidated Countersigning Multi-party Contract

  10. The Art of Signing What does XML Signature offer? Signature Signed Part Unrelevant • Embedded Signature • Embedding Signature • Detached Signature Embedded Signature Embedding Signature Detached Signature

  11. The Art of Signing How to implement a Signature Context? • Define a positive / negative list of references to the SignedPart • Apply an XML Signature implementation, e.g., from the Apache Group • Store the result somewhere in the document Question: How to make it usable for mortals??? <Signature> <SignedInfo> <Reference URI=„#1“>... <Reference> <Reference URI=„#2“>... <Reference> </SignedInfo> <SignatureValue>jsr0tf7he... </SignatureValue> <KeyInfo>... <KeyInfo> ... </Signature> Ref. #2 Ref. #1 Signed Part Signature

  12. The Art of Signing Current Implementation: An eAgreement

  13. The Art of Signing Current Implementation . . .

  14. The Art of Signing Current Implementation (cont.) . . .

  15. The Art of Signing Future Implementation: Any Combination of Signature Contexts <Important ec:SignedPart=„Context1“> bla bla bla bla bla bla bla bla bla bla <Parties ec:SigningParties=„Context1“ ec:PartyRef=„Party/@Name“> <Party Name=„Ponton“> <More party=„stuff“/> </Party> <Party Name=„FooBar“> <More party=„stuff“/> </Party> </Parties> bla bla bla bla bla </Important> <Container ec:SignatureContainer=„Context1“> <ds:Signature ...> ... </ds:Signature ...> </Container>

  16. Content • About e-Contracting • The Art of Signing • The Tool • Examples

  17. Select Clauses Contract Wizard validate Clause & Contract Repository validate 4 5 XSLT-Stylesheets Contract Schema 1 Contract Rules 3 2 Contract Layout HTML 6 Model Contract The Software Tool Technology Viewpoint: The Contract Editor Edit, Negotiate, Sign Contract Editor

  18. Content • About e-Contracting • The Art of Signing • The Tool • Examples

  19. Demo of Ponton X/E

  20. Over 80 installations world-wide The Ponton X Series User Business Application Partner Ponton X/E ERP System XML Document Ponton Ponton X/P X/D DB Ponton X Series

  21. Conclusions • E-Contracting reduces process cost and complexity of work • No document management system needed (peer-to-peer model) • Platform independent • Expect more in the next months... Download from: www.ponton-consulting.de, go to Download / Ponton X/E  AND: Visit us on the XML2003 Expo next room!

  22. $ # ? @ Any Questions?

  23. Law Texts Court Decisions Directives Terms & Conditions Standard Clause DB Contract Templates Contracts Court Filing Online Dispute Resolution

  24. Right Time for eContracting? • A lot of know-how has been gained over the past years. • Maturity of regulation, technology, and communication infrastructure has increased • An ideal combination of legal / technology / business expertiserepresented within the subcluster Standard for eContracting? Business Marketplaces E-Procurement Legal Framework Sig.-Directive Sig.-Laws Technology XML XML Dsig 1999 2000 2001 2002 2003

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