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On June 30, 2000, Congress adopted the Electronic Signatures in Global and National Commerce Act (" ESIGN "or" the Act ") to the use of electronic records and signatures in interstate and foreign trade of ensure the validity and legal effect of contracts entered into electronically. But many do not understand how their company can use the E-SIGN Act.

First we need to understand that E-SIGN (E-SIGN additional analysis here), in section 101 (b) does not require the use of electronic signatures. For electronic signatures are used, then sub-section (c), in direct support of (b) that a "Consumer Disclosure" that the consumer also electronically in a manner that reasonably demonstrates that consumers have access to information in electronic form, used to the information covered by the agreement. "

How can we clearly see that the law is a two-step process for signature files electronically. First, the disclosure of consumers' right to use of paper, followed by their consent to the procedure. The second phase is the actual recording of the electronic signature.

After the signature covers the law directed their attention to the electronic record, which is now created. This aspect of the law that are often overlooked, is the true performance and cost savings that electronic signatures - the ability to STORE electronic files. Print and save a copy of the electronic record defeats the benefits of this Act. It is the accessibility and cost-effective storage of electronic files that are really in the long term cost savings. Sub-section (d) details of maintenance contracts and records. If a law, regulation or other law requires the file to receive, then this requirement is met by an electronic record. "

Accuracy and availability are the two (d.1.B) and (e). The record must be for all parties involved, this is simply by the individual signatory states to an electronic copy of the record on your own computer. The electronic signature is created and must be in a format that is also precise and accessible. Meaning that the technology to read, view, and the recording is a commonly acceptable form. This aspect of the Act requires companies to choose the electronic signature, with the flexibility.

PrivaSign offers a multi-step approach to the "Consumer Disclosure", by the disclosure several messages to the signatory States. Confirmation of this disclosure records as evidence that consumers are informed and have to accept, use an electronic process.

PrivaSign of "electronic records" are compatible with the two sub-section (d) and (e). PrivaSign saves all the files for a period of at least 3 months. Additional storage may be purchased or at any time during the 3 months including the sender and recipient can download the file so that they comply with all applicable laws. The downloaded file can be saved to their computer, stored on a portable medium (CD, DVD or other) or printed out on paper. PrivaSign recorded file integrity hashes, so that all parties can maintain the integrity of the stored files.

PrivaSign allows each file to be electronically signed. This increases the availability of electronic recording, as in (d.1B) and (e) and provides each company the opportunity to select the best in electronic format for their customers.

From: Isaac Bowman

Isaac Bowman is Vice President of electronic and digital signatures International Standards Commission and an IT consultant. He is a graduate of UT Dallas shape with a focus on information systems. Isaac Bowman has written over 50 articles on electronic signatures and the largest online resource for the electronic signature laws and regulations.