IT Landscape in Armenia
Ensure transaction security is a great concern in the development of E-Commerce. It is essential to “secure” business conducted over the Internet. The most reliable means is through cryptography.
Currently there is little legislation that regulates the Internet in Armenia and there is no laws regulating encryption. So far the Government has adopted a classified decree that is not publicly available on the use of encryption codes by government agencies. Software manufacturers willing to supply encryption software to the government agencies are required to submit the software for certification to the Ministry of National Security. There are no laws regulating the production and distribution of encryption software or use of encryption for commercial or other non-governmental purposes.
Armenia needs to establish a competitive policy on the standards of encryption permitted while importing and exporting data also encryption standards for transactions within the country. The emphasis should be placed on self- regulation by the industry as opposed to government regulation.
Electronic Signature is a generic term that refers to various methods by which one can “sign” an electronic record. Digital signature is simple a term for one technology-specific type of electronic signature. It involves the use if public key cryptography to “sign” a message.
While handwritten signatures in most cases serve merely to indicate the signer’s intent, signatures in an electronic environment typically serve three critical purposes for the parties engaged in an e-commerce transaction that is, to identify the sender, to indicate the sender’s intent (e.g. be bound by the terms of a contract), and to ensure the integrity of the document signed.
According to Article 296 of the Republic Armenia Civil Code “the use in the concluding a transaction of facsimile reproduction of a signature with the assistance of means of mechanical or other copying, electronic digital signature, or other analogue of an actual handwritten signature is allowed in cases and by the procedure provided by a statue, other legal acts, or agreement of the parties.”
Despite the fact that the Civil Code authorizes the use of electronic signatures in cases of mutual agreement of the parties, the need for statutory regulation of the use of electronic signatures is essential to facilitate e-commerce.
Guideline for Introduction of Legislation
Introduction of such legislation would require the exercise of the right of legislative, which is the right to initiate a bill in the National Assembly. The National Assembly shall either regulate or authorize the executive branch to regulate the matter, by adoption of relevant laws.
The right to propose a bill for consideration by the National Assembly in Armenia rests with the deputies of the National Assembly and the Government of Armenia. The Government yields a lot of power in reference to the introduction or the rejection of a bill under consideration by the National Assembly. If the Government recognizes a bill as “urgent”, the National Assembly is obligated to address the bill within one-month period by either adopting or rejecting it. Furthermore, the Government may, prior to voting on a bill, support it was a “vote of confidence”, which would force the National Assembly to either adopt the law or express a “vote of no confidence” in the current Government. Even though this option had rarely been used, it remains a powerful tool in the hands of the executive branch to influence the legislative policy.
Therefore, before Armenia is ready for the introduction of such legislation, it is important for the government to set up a committee of legal and technical experts, in order to assess the applicability of such law to Armenia. It is important to note that the Armenian government should support self-regulation in any electronic signature verification process, rather than the creation of state-licensed certifying centers.
The Constitution of Armenia grants right to privacy of correspondence such as mail, telephone conversation, postal, telegraph and other communications. Such right can be limited only by a court decision. The Constitution mandates “due process under the law” for any search and seizure. Furthermore, the Constitution prohibits collection, possession, use and dissemination of information related to personal and family life of an individual. Even though Armenia had no separately law protecting privacy, the Constitutional provisions have directed application and provide fairly strong protection against unauthorized intervention into the privacy of individuals.
The Criminal Procedure Code sets forth procedural policies and rules for the protection of privacy, requiring court decision for any intervention into private correspondence. The Civil Code contains provisions of protection of commercially sensitive information from unauthorized use. There are various laws, such as the bank Secretary Act, which provide protection of privacy in certain fields. The Telecommunication Act imposes obligation on the operators to maintain secrecy of communication by users of telecom services.
However, more direct and detailed legislation id required to ensure that the privacy of communications, as most of the existing laws only generally address the privacy of individuals.