The National People's Congress in China has passed a Law on Electronic Signatures, which grants e-signatures the same legal effect as handwritten signatures and seals in business transactions, World eBusiness Law Report stated.
The law defines an “e-signature” as electronic data in or affixed to a data message that may be used to indicate the signatory's approval of the information contained in the message. It will take effect as of April 1, 2005.
Under the law, e-signatures will be considered reliable evidence if the signature creation data is linked to, and under the sole control of, the signatory. In addition, any alterations made to the e-signature after the time of signing must be detectable. A data message, which is defined as information generated, received, sent or stored by electronic means, can also be used as evidence provided that its reliability in respect of various factors (eg, storage and transmission) is proved.
The new law provides for e-signatures and data messages to be used in civil activities, although it sets out various exceptions to this rule, including marriage, adoption and inheritance documents, and property transfers. In addition, some laws already specify that e-documents cannot be used for certain transactions.
Certain obligations are imposed on Certification Service Providers by the new law. Providers must be approved and supervised by the Ministry of Information Industry, and must:
-ensure the accuracy of all material representations made by it that are relevant to or included in the certificate;
- store any information relevant to a certificate for at least five years after the validity period of the certificate; and
- compensate the signatory or relying party for any faults it makes.
Certificates issued by foreign certification providers are valid in China if the provider has been approved by the government. The law also sets out a new criminal offence of fabricating, assuming or usurping another person's e-signature, while any damage caused in doing so involves civil liability.