Essays on legal issues and strategies in electronic transaction, security and intellectual property management

Abstract

As the development of new information technology is rapidly advancing, business and legal systems lag far behind such technological innovations. These essays aim to investigate newly arisen problems from the gap between information technologies and legal systems. In online banking, cyber theft is threatening a bank’s business model and social welfare. Against cyber thefts such as identity frauds, banks provide client security measures to protect online banking users’ personal computers. As online banking often adopts server-client architecture, the separation of ownership and responsibilities occur. Our investigation shows that under different legal regimes, such sepa-ration can create overutilization and/or underutilization of client security measures by the banks. At 2006, Cablevision launched an innovative cloud-DVR service, which is ruled as personal fair use device and therefore is free from copyright protection. Analysis shows that technologically advanced fair use personal recording devices such as cloud DVRs can clearly disrupt the copyright holder’s business model and possibly damage the social welfare. Dish launched another cloud DVR in 2012, however this service is equipped with Auto-hop feature, which can automatically remove embedded advertisements from TV contents. We set up a modified two-sided market model and derived preliminary results that derive the optimal degree of de-embedding for a third party. Through these studies, we hope to contribute in the MIS field by considering the interactions between IT and legal systems.