Act puts Ireland ahead of posse in e-law

The President Mrs McAleese this week signed into law the Electronic Commerce Act 2000. Despite the fact that the legislation is not as all-encompassing as its title would have you believe, there is widespread recognition that the new Act puts Ireland ahead of the posse when it comes to attracting new technology operations.

Importantly, while giving legal recognition to electronically generated documents, contracts and signatures, and for encryption to improve online security, it does not allow for the Government to have automatic access to such encrypted documents. In this, the Government has set a benchmark compared to both the US and Britain, which have sought to retain the right to pry into online communications.

Privacy and security are the keys to success for e-commerce. Unless and until the mass of people believe they can use the system with at least the same security, privacy and protection for their legal rights as other payment methods, it will not take off, whatever the hype.

The new Act is a step in the right direction. No-one doubts that many if not most governments can access the information they need in exceptional circumstances. Most recently, this week, their has been talk of a "carnivore" program that allows the FBI access data online through ISPs in the US. But the correct framework must be there for the ordinary occasion. For Ireland, the legislation is critical to maintaining the momentum in attracting inward investment and the jobs that come with it.