Originally Published EMDM October 2001
European Commission Approves Network for E-Signature Authentication
In a move that should help reduce regulatory hurdles facing e-commerce transactions, the European Commission on 1 August cleared agreements between a number of major European and non-European banks. The clearance paves the way for a global network called "Identrus" that will authenticate electronic signatures and take other actions related to e-commerce transactions.
In its 1999 directive on electronic signatures, the EU noted that "global certification authority services over open networks are fundamental to the success of e-commerce in Europe." The agreements approved on 1 August lay the groundwork for the establishment of such services by enabling participating financial institutions to operate as individual and competing certification authorities for the purposes of secure e-commerce transactions. The Commission had been considering the agreements in question since 1999, but wanted to ensure that their implementation would not lead to any appreciable restriction of competition. The Commission's decision on the matter was adopted under Regulation 17/62, which applies Articles 81 and 82 of the EC Treaty.
Services offered by Identrus will include the authentication of the identity of transaction partners and electronic messages, as well as a contractual remedy against signature repudiation. Participation in the Identrus system will be open to qualified financial institutions around the world, and users are free to contract with individual group members.
Identrus is a company incorporated under US law and set up as a joint venture between eight original members: ABN-AMRO, Bankers Trust, Bank of America, Barclays Bank, Bayerische Hypo- und Vereinsbank, Chase Manhattan Bank, Citibank, and Deutsche Bank. The group has since grown to include 21 equity owners.
For more information, contact Identrus LLC, 78 Cannon St. (510), London EC4N 6NQ, UK; phone: +44 207 6188406; fax: +44 207 6188247; email: info@identrus.com; Internet: www.identrus. com.
B.L.
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