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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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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/ )


Technological Issues are Just Visible Peaks

No MoreTitanic!

Technological

Issues

E-Commerce

Other

Issues


Four Ways to Make it Happen!

Under The Gun

Convenient

( I )

( III )

Cult or Boom

( II )

( IV )

MoneyMaking


Force Comes From the Balance

Convenience/

Money Making

E-Commerce

BasicFunctions

Trust inUsage


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)


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)


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


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


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


(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


(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


(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


Most Important General Proposalof the First Round

GBDe Trustmark as an Selfregulated ADRA (Alternate Dispute Resolution Arrangement) Mechanism to Achieve Consumer Conference


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


Nineteen Identified Issues inAuthentication and Security

1. Authentication

2. Security / Encryption

1. Authentication

2. Security / Encryption

A. Promotion

1A1Development of Authentication

Systems/Services (Priv.)

1A2International Cooperation in

Authentication Methods

(Govt.-Priv.)

1A3Mechanisms to Evaluate and Compare Service Providers (Govt.-Priv.)

1A4Equal Business Opportunities for

Authentication Services (Govt.-Priv.)

1A5Cooperation with Related

Organizations (Govt.-Priv.)

1A6Promotion of Government

Procurement (Govt.)

2A1Development of Security

Technology (Priv.)

2A2Promote Use of Strong

Encryption (Govt.-Priv.)

2A3International Agreement on

Encryption Regulations (Govt.)

2A4Fairness in Cryptography Technology Exportation (Govt.)

2A5Equal Business Opportunities for

Fair Competition (Govt.-Priv.)

2A6Cooperation with Related

Organizations (Govt.-Priv.)

A. Promotion

B. Protection

1B1Establishment of the Legal Effect of Electronic Signatures (Govt.)

1B2Operation Guidelines - Ensuring

Reliability (Priv.)

1B3Cooperation with Related

Organizations

(Govt.-Priv.)

2B1Promotion of use of Strong

Cryptography vs. Regulation- Protection Against Crime (Govt.-Priv.)

2B2Key Management and Legal

Access (Govt.-Priv.)

2B3Support System for Emergency

Situations (Govt.-Priv.)

2B4Education (Govt.-Priv.)

B. Protection

Govt. : To be Handled by Governmental SectorPriv. : To be Handled by Private Sector


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


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


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


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


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


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)


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


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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