Published in Arellano Law and Policy Review, May 2002, Vol. 2, No.

AN OVERVIEW OF LEGAL ISSUES ON INTERNET TECHNOLOGY

(Atty. Jaime N. Soriano, CPA, MNSA1)
Introduction
The matrimony between computer and telecommunications has given birth to
the rapid growth and development of the Internet technology. Access to information
became faster and almost limitless. Transactions can take place in a matter of
seconds without regard to geographical borders, political and religious differences, or
socio-cultural origin. The Internet is undoubtedly the culmination of the information
technology revolution of this millennium that has changed, and will continue to
change, the way we live in this planet.
Through telecommunication facilities, Internet is carried out through computer
and computer networks. By formal definition, Internet stands for international
computer network. The core of this network consists of computers permanently linked
through high-speed connections. To join the Internet, all you have to do is connect
your computer to any of these computers. Once you are online or connected, your
computer can talk to every other computer on the Internet.2
Through the Internet, people can share information or transfer anything that
can be stored as a file: either in the form of text, picture, graphics, audio, video, or
software application format. In the process, the people in the network can
communicate interactively, retrieve or exchange information at the speed of light, or
remotely transact business.
What started by the US Department of Defense in 1969 as a mechanism to repel
a nuclear attack during the Cold War, the Internet has facilitated the growth of online transactions, more popularly denominated as e-commerce.
It has also
encouraged the widespread use of electronic mail (e-mail) and internet relay chat
(IRC) as a medium for communication. Thousands, if not millions, of websites are
being added everyday in the world wide web (www) to ensure virtual presence in
the Internet community. With the rapid dependency of people all over the world in
1

The author is a professor of law at the Arellano School of Law; Founding Partner of Soriano, Torresyap
and Belmonte Law Offices; Chairman and President of various corporations some of them are in the field
of information technology; a Lieutenant Colonel in the Philippine Army of the AFP reserved force.
2
Kennedy, Angus J., The Internet & World Wide Web, The Rough Guide, 1995, p. 1

Internet technology, a wide array of new legal issues, which did not exist before, has
emerged.
Denise Caruso, digital commerce columnist of the New York Times said3:
It shouldn't be too much of a surprise that the Internet has evolved
into a force strong enough to reflect the greatest hopes and fears of
those who use it. After all, it was designed to withstand nuclear war,
not just the puny huffs and puffs of politicians and religious fanatics."
The E-Commerce Law
Undoubtedly, the Internet has changed the way people transact business. The
brisk increase in online commerce is very notable in recent years. In the United States
alone, it is estimated that about $3.4 trillion shall be spent online for goods and
services by 2004.4 With the Internet, the era of the borderless economy was born.
A more recent report by The Star (IN-TECH 18 April 2000) has demonstrated
that the worldwide Internet economy has surpassed predictions. Reported world wide
statistics show that5:
Internet users in 1998
Internet users in 1999
Internet users in 2003
Internet users growth rate
E-commerce spending in 1998
E-commerce spending in 2001
E-commerce spending in 2003
Internet shoppers in 1998
Internet shoppers in 2003

:
:
:
:
:
:

:
42 Million
:
196 Million
:
600 Million
70 000 users per day
US $ 50 Billion
US $ 1 Trillion
US $ 3 Trillion
31 Million
183 Million

Fully cognizant of this technological development, Republic Act No. 8792 was
enacted by the Philippine Congress on 14 June 2000. Also known as the Electronic
Commerce Act of 2000 (E-Commerce Law), the law was hailed by observers as a
landmark piece of legislation that finally placed the Philippines on the map of
electronic commerce6. Essentially, the law provides that:
1.

It shall apply to any kind of data message or document generated, sent,

received or stored by electronic, optical or similar means regardless
whether the activity or transaction is commercial or non-commercial,
private or public, or domestic or international.

2.

Electronically generated documents have the legal effect, validity and

enforceability as any other legal document. Electronic documents are even

http://quotations.about.com/library/weekly/aa011399.htm
By Forrester Research Inc. as cited in http://www.detnews.com/2000/technews
5
Facts and figures were adapted from Excellence Success Network
(http://members.infomak.com/stepbiz/forum.htm)
6
Bagares, Romel, New Rules (of Court) for the New Economy, The Philippine Star, 27 July 2001, p. B-1.
4

recognized as the functional equivalent of a written document for

evidentiary purposes.
3.

Electronic or digital signature affixed in an electronic document is deemed

to be the equivalent signature of a person on a written document under
certain conditions.

4.

Electronic documents, signatures and data messages are admissible in

evidence in a legal proceeding depending upon their reliability, integrity,
nature and quality. For this purpose, the Supreme Court promulgated A.
M. No. 02-7-02-SC or the Rules on Electronic Evidence that took effect on 1
August 2001. The rules, however, shall apply only to civil, quasi-judicial
and administrative cases. It may be worth stating here that The Rules of
Procedure on Corporate Rehabilitation adopted by the Supreme Court now
recognize the use of e-mail in the filing and service of pleadings.7

5.

Offer, acceptance, and other legal requisites for the formation and
consummation of contracts may be expressed or executed by means of
electronic data message or electronic documents. These contracts shall not
be denied validity or enforceability.

6.

Government offices, including government-owned and controlled

corporations, shall conduct their transactions electronically within two (2)
years from the effectivity of the law.

7.

Internet service providers merely providing access to electronic data

message or electronic documents in the ordinary course of its business are
generally not subject to any civil or criminal liability. Only persons having
legal right to the possession of electronic files can have access, and make,
or authorize, alterations thereof. Unless consent is given to another person
or party, electronic key for identity and integrity is only available to the
person or entity in lawful possession of the electronic key. Any person who
has authority to access an electronic file or information is bound by the
rules on confidentiality of such file or information.

8.

Penalties of fine and/or imprisonment are imposed for violations as

defined under the law.

A perusal of the E-Commerce Law, patterned after the United Nations

Commission on International Trade Law (UNCITRAL) Model Law for Electronic
Commerce8, will indicate that it is primarily intended to govern and give legal
recognition to contracts and transactions in the form of electronic data message or
electronic documents carrying electronic or digital signatures.
Electronic signature can be any distinctive mark, characteristic, and/or sound
in electronic form that represents the identity of a person and logically associated
with the electronic document9.
7

Sec. 3, Rule 3, A.M. NO. 00-8-10-SC effective 15 December 2000

Adopted by the UN General Assembly in 1996
9
Sec. 5 (e), Republic Act No. 8792
8

Digital signatures, on the other hand, are provided through a secret code
known as electronic key which secures and defends sensitive information that
crosses over public channel into a form decipherable only with a matching electronic
key10 normally obtained from an Internet security company.
Obviously, both electronic and digital signatures are necessary to ensure the
integrity, reliability and authenticity of the electronic document.
Notwithstanding however the enactment of the E-Commerce Law, certain legal
issues exist when a written contract or a transaction is done through the Internet.
These include the following situations:

1.

The Supreme Court has yet to adopt a system for the electronic
notarization of electronic documents under the E-Commerce Law11. In the
absence of an electronic notarization system, written contracts required by
law to be in the form of a public instrument for their enforceability,
validity or to affect third persons cannot acquire their requisite public
nature if executed in electronic format. These electronic documents
however still partake the nature of a private instrument from legal
contemplation because they are deemed as the functional equivalent of a
written document under existing laws.12

2.

Corollary to the above issue, certain documents legally required to be in

writing but not necessarily in the form of public instrument, like marriage
settlements13 under the Family Code of the Philippines, cannot affect third
persons unless registered in a local registry. While these documents can be
legally executed electronically, there is no clear regulations whether they
can also be registered online once the Philippine civil registries and
registries of properties are fully automated. In the meantime, these
electronic documents may be retained in the original form and be
presented to the appropriate registry for registration provided that the
requirements of the E-Commerce Law on integrity and standard of
reliability of the instrument are met14. This may prove to be inconvenient
though because it will obviously be more expedient to prepare these
instruments the customary way for purposes of complying with the
registration requirements.

3.

Under the E-Commerce Law, an electronic signature is considered as being

equivalent to the signature of a person on a written document under
certain conditions15. This provision notwithstanding, holographic wills
obviously cannot be executed through electronic means. Article 810 of the
Civil Code requires that holographic wills must be entirely written, dated,
and signed by the hand of the testator himself. Electronic signature is

10

Sec. 5 (f), ibid.

Sec. 11, Republic Act No. 8792
12
Sec. 7, ibid.
13
Art. 77, Executive Order No. 209, as amended
14
Sec. 10, Republic Act No. 8792
15
Sec. 8, Republic Act No. 8792
11

deemed as the functional equivalent of a persons signature, not his

handwriting.

4.

With the legal recognition of electronic documents and electronic

signatures, it is clear that a negotiable instrument can be executed in
electronic format in compliance with the requisites prescribed by Section 1
of the Negotiable Instruments Law16. A negotiable instrument could be
legally negotiated through indorsement coupled with delivery17. It is
apparent that electronic indorsement of the instrument is legally
acceptable. However, whether or not the instrument can be negotiated
through electronic medium so as to constitute the transferee the holder
thereof is uncertain because, traditionally, delivery of a negotiable
instrument is done in the physical sense. This ambiguity holds true also to
other negotiable documents of title like warehouse receipts, stock
certificates, or letters of credit.

Internet Providers
Under existing laws, local Internet providers and operators are considered as a
value-added service (VAS) provider defined as any entity which, relying on the
transmission, switching and local distribution facilities of the local exchange and interexchange operators, and overseas carriers, offers enhanced services beyond those
ordinarily provided for by such carriers.18
As long as it does not put up its own network, a VAS provider is not required to
secure a congressional franchise.19 It needs to register only with the National
Telecommunications Commission. A VAS provider can utilize its own equipment
capable only of routing, storing and forwarding messages in whatever format for the
purpose of providing enhanced or augmented telecommunications using the facilities
of a franchised public telecommunications entity.20
Considering the public nature of an Internet service, entities in this business
based in the Philippines falls within the ambit of a public utility operation which call
for legislative franchise and subject to the 60% Filipino ownership requirement of the
Constitution21. A congressional act or a judicial declaration, in an appropriate
justiciable controversy, may be needed to settle this issue in due time.
Much of the integrity of electronic documents, for legal purposes under the ECommerce Law, is anchored on the reliability of the providers or operators of the
Internet service and other medium of on-line communications including certification
authorities that are engaged in issuing cryptographic keys used for the generation of

16

Act 2031
Sec. 30, ibid.
18
Sec.3 (h), Republic Act No. 7925
19
Sec. 11, ibid.; par. 420 (a) Memorandum Circular No. 8-9-95 of the National Telecommunications
Commission.
20
par. 420 (b) (e), ibid.
21
Sec. 11, Article XII, Constitution
17

electronic or digital signatures. The infrastructure of providers, operators or

authorities may not necessarily exist within our territorial jurisdiction.
Under the E-Commerce Law parties to any electronic transaction are free to
determine, select, use or implement the type and level of security appropriate to suit
their technological needs22, thereby creating no distinction where the transaction
originated, consummated or took place, which precisely is the essence of Internet
technology.
Admittedly, it is very difficult to regulate the Internet on the domestic front.
Issues on cross-border recognition, state reciprocity, enforcement, international
standards will always surface every now and then. It is practical however for the
government to adopt a well-defined and clear-cut policy, at least on the operational
level, to govern Internet services emanating from within the country in order to
effectively regulate the process of authenticating, certifying and establishing the
reliability of electronic documents and electronic signatures. Resultantly, Filipino
consumers need not rely, patronize or shop for foreign-based Internet providers and
operators to answer the need for the integrity of electronic documents.
Domain Names
The preferential right over the use of domain names has been the subject of
numerous legal disputes worldwide with the development of Internet. Take for
instance the on-going suit between telephone company Philippine Long Distance and
Telephone Co. and the Philippine League for Democratic Telecommunications, Inc.
over the use the domain name www.pldt.com.
A domain name is the address intended to identify a web site in the
information superhighway. There are no similar domain names that can co-exist
within the Internet backbone.
Domain names are regulated by bodies like InterNIC Internet Registry through a
license granted by the US National Science Foundation.23 Domain names can be very
valuable either because of the heavy patronage of the website carrying the name or
due to the reputation of the person, entity, product or services to which they are
associated.
As a matter of international practice, the person who first registered a domain
name is deemed to be its lawful owner. This leads to the practice of many businessminded individuals to register with the InterNic and other registries to gain prior use
of the domain names of well-known company name or popular product brands or even
names of famous personalities in the hope of realizing lucrative income when the
preferential owners buy this Internet address back from them. In the Internet jargon,
this is known as cybersquatting.

22
23

Sec. 24, R. A. 8792

Bick, Jonathan. 101 Things You Need to Know About Internet Law, Three Rivers Press, New York,
New York, 2000,p. 38,

To address the foregoing problem, Network Solutions Inc. (NSI), the entity that
manages the InterNIC registry, adopted the practice of requiring applicants for domain
name registration to warrant that their application will not interfere nor infringe upon
the rights of another and in case of suit, the applicant will defend, indemnify and hold
harmless the NSI and the InterNIC. Moreover, when a trademark dispute over a
domain name emerges, NSI suspends the use of the name until the controversy is
resolved in court or by arbitration.24
Legal controversies result when a registered trademark is adopted and used by
another person or entity as his domain name. It only takes a few minutes to register a
domain name while it takes sometime before registration of a trademark could be
effected. A law similar to the US Anti-Cybersquatting Consumer Protection Act should
complement our present consumer protection law25 and the Intellectual Property Code
of the Philippines26 governing the trademark and service mark registration and
ownership.
Electronic Contracts
Contracts are easily enforceable if evidence can be shown that a written
agreement was actually signed that contains the terms to be enforced. Internet
contracts can be consummated either through an exchange of electronic mail (e-mail)
communications, or when one completes and signs an electronic contract by clicking
the Send button on a web site, or through an electronic data interchange (EDI)
where two computers automatically exchange Internet messages to effect a
transaction.
While it may be easier to legally prove the existence of an electronic contract
expressed through e-mail communications because of the facility to produce a selfgenerated printed copy of the electronic communication, it may be difficult, and even
expensive, to do so in case of the Send button or the EDI medium because the data
or information is pretty much under the control of the provider of goods or services.
Hence, it is always advisable that all Internet contracts must have some form of
electronic acknowledgement to prove the terms thereof. In proving contracts or
agreements done on-line, it still becomes necessary to keep a printed file of the
written record to conveniently show proof of the transaction.
A website doing business through e-commerce is strictly speaking doing
business globally because transactions can originate and be consummated in different
parts of the world. This gives rise to the issue as to which law shall apply in case of a
legal action arising from a breach of an electronic contract. Normally, electronic
contracts are governed by the jurisdiction expressly stipulated and agreed upon by the
parties prior to the consummation of the transaction. In the absence of such
specification, there are various schools of thought on the matter and the rule may vary
from country to country. Legal jurisdiction may be based on either:27

24

Bick, Jonathan. ibid.

Republic Act No. 7394
26
Republic Act No. 8293
27
Bick, Jonathan. 101 Things You Need to Know About Internet Law, Three Rivers Press, New York, New
York, 2000, p. 150.
25

1. The law where the transaction originated or the rule-of-origin principle;

2. The law where the physical location of the business is situated;
3. The law of the country in which harm to social and economic order is
inflicted following the concept of objective territoriality;
4. The law which the parties may subsequently negotiate and agree to be
applicable to their transaction or the so-called freedom-of-contract
approach;
From the standpoint of international practice, e-commerce appears to rely on
the rule-of-origin approach consistent with the old legal maxim caveat emptor or
let the buyer beware.28
Privacy Protection
The Internet has also resuscitated the issue of privacy protection. The amount
of data circulating in, and through, the Internet is enormous and could be the subject
of manipulation not only by devious individuals and entities but also by states and
governments.
The Internet could breach what is otherwise a privileged
communication. Intrusion of privacy rights in the Internet is a continuing international
concern.
Our Constitution provides that (T)he privacy of communication and
correspondence shall be inviolable except upon lawful order of the court, or when
public safety or order requires otherwise as prescribed by law29 Consistent with this
dictum, the E-Commerce Law provides for obligations of confidentiality in
electronically generated transactions, documents or information. A perusal of the law
indicates a penalty for its violations.30
Privacy advocates opposing a national identification system anchor their
objections on privacy intrusions without realizing that on a day-to-day basis, millions
of personal information are collected and exchanged through the Internet, not to
mention those obtained by various entities and institutions in the course of a
transaction, an application, licensing, registration and similar human activities.
As a total response to the issue, it may be high time for Congress to enact a
Personal Data Protection Law to protect, and regulate the use of, any or all kind of
information obtained from individuals both by the public and the private sector.
Privacy laws exist in other countries line Argentina, Germany, Greece, South Korea,
Mexico, Thailand and Spain. In some countries, a privacy ombudsman is designated,
and a writ of habeas data is made available, to enforce compliance of the privacy
protection law.31

28

Ibid., p. 151.
Sec. 3 (1), Article III, 1987 Constitution
30
Sec. 33 (a) (d), Republic Act No. 8792
31
Soriano, Jaime N., The RP National ID System: Constitutional Issues and Challeges, National Defense
College of the Philippines (Camp Aguinaldo, Quezon City), July 2000, pp. 55-68
29

Taxation of Electronic Transactions

The World Wide Web that has become backbone of e-commerce in the Internet
also generated some legal repercussions particularly on the ability of states to
exercise their power of taxation. In his article entitled: Hands Off On Internet Tax
Laws. (Government Activity) published in the Internet32, author Brian O'Connell wrote
how even the United States, the hub of Internet activity in the world, finds difficulty
taxing e-commerce transactions. He said:
In recent months much has been made of the ease and affordability of
buying consumer goods over the Internet, including such items as books,
compact discs, and cars. Tapping into Amazon.com and buying the
latest Steven King or John Grisham tome saves a trip downtown to the
mall, and maybe even saves a few bucks off the cover price.
But what makes electronic commerce transactions even more appealing
to some cyber-consumers is that the government, in any form, doesn't
get a penny of the purchase. Unlike a purchase at a physical bookstore,
consumers aren't taxed for goods bought over the Internet.
Industry observers say the government hasn't figured how to regulate
cyberspace yet, let alone streamline a tax process for online consumers.
To buy some time, Congress passed the Internet Tax Freedom Act in
October that placed a three-year moratorium on new taxes until the
Internal Revenue Service can hash things out.
Not only does the bill place tax limits on goods purchased over the Net consumers are still liable for paying some local taxes - it also bars taxes
from being levied on online service contracts, like the fee millions of
Americans pay each month to use their ISP. Almost every state in the
country is unable to press for such taxes. In Ohio, for example, officials
say the state has no authority to collect taxes from companies that do
not have a presence in Ohio. As a result, the state doesn't even track
Internet purchases.
xxxxxxxxxxxx
In some cases, Internet consumers are saving up to 6 or 7 percent from
not paying taxes. On a $3,000 personal computer, that amounts to
about $200. That's a big, built-in advantage over a store-bought
computer, experts say. "There's no question that no taxes are a boon for
Internet companies - it's a classic example of the Internet being ahead
of the regulators and catching them by surprise," says Kim Eirman,
president of Cyber Solutions Group, an Internet consulting firm located
in New York. "It just never occurred to anyone in government what the
ramifications would be from Internet commerce. Now they're forced to
call a timeout until they can figure out what to do."
32

http://www.findarticles.com/cf_dls/m0FOX/1999_March_24/54270328/p1/article.jhtml

Eirman says that federal and state government authorities have to

tackle the Internet tax issue on two levels: the first on how to tax ISPs
and Web portals, and second on how to handle the Amazon.com's and
Dell Computer Corp.'s of the world. "It is a very complex issue," she
adds. "Where is an Internet company based? Where is its corporate
headquarters? Where does it keep its inventory? If you can't answer
those questions - and right now the government can't - it's hard to pin
down how and where to tax somebody."
When the three-year moratorium is lifted, Eirman thinks the U.S.
government is going to have to adopt an "all or none" approach to
Internet taxes. "Either we'll have all 50 states taxing e-commerce at
roughly the same rates or there won't be any taxes at all. If it gets too
diverse, with too many states differing on tax rates, you'll see a host of
ISPs and e-commerce companies moving to states with lower or no
taxes."
E-commerce providers are taking a harsher stance. "The states have no
legal right to charge taxes on e-commerce," warns Robert Olsen,
president of Virtual Vineyards, a Palo Alto, Calif.-based winery that sells
over the Internet. "Most mail order merchants aren't taxed, so why
should we? Ultimately, I think, it's going to be an issue of jurisdiction.
The states want to tax us and don't like the fact that they can't. So I
think Congress is taking the correct approach for now."
Following the American experience, perhaps it will also take a longer time for
the Philippines to adopt appropriate rules and policies on taxing e-commerce
transactions. As a first step to keep abreast with Internet technology, the Bureau of
Internal Revenue issued on 28 May 2001 Revenue Memorandum Circular No. 24-2001
providing for Electronic Filing and Payment System (EFPS) of internal revenue taxes.
Regulation of Profession
Another concern posed by the Internet is on the practice of regulated
professions like law, accountancy, engineering, medicine and similar occupation.
From the legal standpoint, only Filipino citizens are admitted and allowed to practice
these professions in the Philippines.
With Internet technology, aliens to a certain extent can now render
professional services otherwise reserved by law to Filipino nationals. Section 14,
Article XII of the Constitution states that (T)he practice of all professions in the
Philippines shall be limited to Filipino citizens, save in cases prescribed by law.
Rather than tolerate the continued contempt for existing laws on regulated
professions, it may be appropriate to amend existing laws now to conform to the
advancement in technology and define the extent and limitations in the practice of
certain professions.

10

Internet Crimes
The Internet is also a haven for fraud and illegal acts also known as
cybercrimes.
It is difficult to approximate the figures on the cost of Internetrelated crimes worldwide but no one would disagree that the amount could be
staggering.
In 1997, the US Federal Trade Commission reported that in nearly 100 federal
district cases brought by the agency between October 1995 and December 1996,
fraudulent sales in these actions cost consumers more than US$250 million and more
than US$700 million over the life of the schemes.33
In a survey conducted by the Computer Security Institute, a San Francisco
based association of information security professionals, some 75% of the respondents
reported losses due to security breaches ranging from financial fraud, theft of
proprietary information, sabotage of data or network, to computer viruses, system
penetration from the outside, and laptop theft.34
Some of the pernicious acts committed in cyberspace may include:

1. Cyberstalking. This is carried out through the use of threatening, obscene

or hateful emails, spreading vicious rumors about a person online, and

electronic sabotage like e-mail bombs where a system is flooded with
voluminous e-mails.35

2. Identity Theft. This occurs when an unscrupulous person steals the personal
data of another and makes unauthorized online purchases or transactions.
This act could damage the reputation and financial health of the real owner
of the personal information.

3. Impersonation. This takes place by making it appear that a person is the

person he claims to be for the purpose maligning another, entering into

feigned electronic contract for financial gain, dissemination of false
information, or enticing another person to cooperate in his commission of
illegal or immoral acts.

4. Online Fraud. This perpetrated by con artists for financial gain like stealing
money on-line, using stolen credit cards and computer passwords, phone
dialing scams coursed through e-mail. Online gambling, online stock
trading, online insurance, online credit can be a vehicle for manipulation
schemes.

5. Money Laundering Online. This is traditionally carried through the banking

and financial system. Unfortunately, the Internet has been the venue of
money laundering schemes in recent years. US authorities are convinced
that the Internet particularly online gambling sites cater to money

33

Janal, Daniel S., Risky Business. John Wiley & Sons Inc., US, 1998, p. 5
ibid.
35
ibid, p. 9
34

11

launderers. Aside from gambling sites, there are other kinds of websites
that engage in harmless electronic commerce using own currency called
cybercash or e-money. Anyone who goes through these sites is made to
convert traditional money to cybercash to engage in business. 36 Following
the admonition of the Paris based Financial Action Task Force, Congress
enacted the Anti-Money Laundering Act of 200137.

6. Violations of Intellectual Property Rights. Software piracy is now made

convenient by copying, downloading and transferring applications through

e-mail and the File-Transfer Protocol (FTP) of the Internet. In 1996 alone,
software piracy already costs its proprietary owners US$11 billion.38
Unauthorized copying of information contained in a website can lead to
violation of copyright laws. This holds true also for protected works like
book, music or video. The illegitimate use of a brand name, a design or a
logo violates trademark laws.

7. Breach of Website and Computer Security Systems. This malpractice is the

product of hackers and crackers39. In 31 December 1996, the New York

Times reported that website of the US Air Force was changed by a hacker
with anti-government sentiments and pornographic materials. If this can
happen to the US Air Force, the CIA, and NASA, anyone can be a victim of
invasion of computer system security.40

8. Internet Terrorism, Rebellion and Sedition. These crimes are easily

propagated through the Internet because as a medium of communication it

is a convenient, fast and inexpensive mode of expressing sentiments and
rhetoric for illegal causes. It was reported in a Philippine daily 41 that in
the electronic battle against terrorism, the Web has become as porous a
landscape as the real Afghan battlefronts surrounding Kunduz or Kandahar.
Copies of dangerous and sensitive - and supposedly eradicated - reports and
documents can be found using common search engines.

After the country was placed at the center stage for being the source of the
notorious I Love You virus which bogged down on 4 May 2000 about 45 million
computers worldwide including those at the Pentagon and the British Parliament 42, the
E-Commerce law was passed imposing penalties of fine and/or imprisonment on:
1. Hacking, cracking or any unauthorized access or entry in computer and
communication systems, networks or servers;

36

Ocampo, Junep, Money Laundering On-Line, The Philippine Star, 23 October 2001, p. B-2.
Republic Act 9160
38
Janal, Daniel S., Risky Business. John Wiley & Sons Inc., US, 1998, p. 62.
39
Cracker is one who without adequate knowledge in network protocol attempts to break into a system
while a hacker is one having sufficient knowledge of TCP/IP implementations and protocols to gain
system access. see http://www.mgmua.com/hackers/inventory/definitions.html
40
Janal, Daniel S., op. cit.
41
Forever Caught in the Web, Malaya, 30 November 2001, p. 13
42
Favis-Villafuerte, Nelly, Interesting Trivia on IT, Philippine Panorama, 30 December 2001, p. 17
37

12

2. Introduction of computer virus and other means that will corrupt, destroy,
alter, or result in the theft or loss of electronic data messages or electronic
document;
3. Piracy or unauthorized copying, distribution, use, alteration, or
transmission of works and materials protected by intellectual property
laws;
4. Violations of the Consumer Act (Republic Act No. 7394) through electronic
means; and,
5. Other violations of the provisions of the E-Commerce Law.
It may be fitting for our government authorities to take a serious review of our
penal laws to determine which of the present day mode of committing cybercrimes
has not found its way in our statute books. If necessary, Congress should pass
appropriate legislations to address the need of our changing world.
Conclusion
The development of Internet technology is taking place at the speed of light
and our laws should be able to cope up with this growth. The American government in
approving its anti-terrorism law recently made sure that it can now prosecute foreign
hackers when they attack computers in their own or other countries outside of its
jurisdiction.43 Jack Welch, Chief Executive Officer of General Electric, once said:
Anytime there is change, there is opportunity. So it is paramount
that an organization get energized rather than paralyzed.44
The Executive, Legislative and Judicial Branch of our government should
therefore adopt a proactive stance to address the increasing legal ramifications of
Internet technology in our day-to-day lives. Rather than be awed and be paralyzed by
its rapid advancement, Internet technology should be enhanced as state resource for
the benefit of every Filipino.

43

Lagniton, Francis, Anti-Terror Target: Hackers, The Philippine Star, 30 November 2001, p. B-1.
Gates, Bill, Business@The Speed of Thought, Warner Books Inc., New York, 1999, p. 453.

44

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