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The State Of Digital Signatures Today
By Mark Merkow, CCP, CISSP
September 1, 1999

Over the last year, we''ve taken several looks at digital signatures from a number of points of view, including the technologies needed, how they''re used, and how they''re managed. Links to these articles can be found at the end of this one.

As digital signing of documents and messages become pervasive across the Internet, this is a valuable time to examine digital signatures in terms of where they stand today in the eyes of the US Federal and state governments. In this week''s column, we''ll take a look at some recent activities that are helping to legitimize digital signatures and ease their reluctance in deployment.

Digital Signatures Are A Critical Technology Component
The legal stature of digital signatures in lieu of other credentials remains unresolved. Before electronic commerce can achieve its full potential, changes in current law are needed to enable, enhance, and protect electronic contractual arrangements. Businesses wishing to enter into online contracts need assurances that their agreements are valid when they cross state lines and that they''ll maintain a degree of legal standing in the courts.

In an August 1999 issue, Computerworld magazine reported on the current state of digital signature law. According to their reports, efforts are now under way in the states and in the US Congress to legalize electronic signatures.

Here''s one example of the types of problems that remain while the off-line world adjusts the frenzied pace of growth in the on-line world. Ford Motor Credit Co. in Dearborn, Mich., uses a new credit approval process that permits customers to complete a credit application and send it securely via the Internet. Ford''s customers however, must still go to a Ford dealership to sign the credit application and contract. If Ford had the ability to issue digital certificates, electronic signatures could be used to complete the entire transaction online.

In March 1999, the Millennium Digital Commerce Act of 1999 (H.R. 1320), a congressional bill to regulate electronic interstate commerce, permits and encourages continued expansion of e-commerce by relying on the operation of free market forces. HR 1320 provides nationwide legal status to agreements made using electronic forms, such as contracts. The Millennium Digital Commerce Act of 1999 also features a technology-neutral standard for electronic authentication.

Also in 1999, The National Conference of Commissioners on Uniform State Laws (NCCUSL), approved the Uniform Electronic Transactions Act (UETA), to set consistent rules governing digital signatures under state laws. Before it can take root, UETA must be first adopted by state legislatures in all 50 states -- a process that could take three years or longer. Unwilling to wait that long, the US Congress is pushing hard to get the Millennium Digital Commerce Act of 1999 (HR 1320) through as a set of consistent national legal standards.


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