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IP: more more on European Law Seen As Grave Threat To E-Commerce


From: David Farber <farber () cis upenn edu>
Date: Sat, 11 Sep 1999 08:58:07 -0400



To: farber () cis upenn edu
Subject: Re: IP: more on European Law Seen As Grave Threat To E-Commerce
From: "Perry E. Metzger" <perry () piermont com>
Date: 11 Sep 1999 08:47:15 -0400
Lines: 48


Of course, how to make a company operating "virtually" actually
accountable is not clear. But to say that this direction is a threat
to E Commerce is not correct. It is simply a prejudice for a company
based in US whose main market is the US and other markets are
marginals. It probably repreents an opportunityfor the others, as
long as their business respect proper behaviour, and the law of the
countries are sound.

The problem with this statement is that even if the law of the
countries in question is sound it would still be just plain impossible
to comply with the laws of ALL of the countries in question.

In the U.S., where we have fifty different sets of (similar)
commercial law, one for each state, it was realized long ago that you
could not have commerce function if the laws of all the states in
which the participants of a multi-state transaction lived involved in
a case. Typically, contracts specify the laws of ONE of the states
involved, in order to create some assurance that everyone knows what
set of laws will be invoked in a dispute and can attempt to comply
with them even before a dispute occurs.

If this is needed in a situation where the conflicting laws are very
similar, imagine a situation in which one is vending to multiple
countries with totally different commercial law traditions at the same
time.

I hate to make a near-prejudiced statement, but the nations of Europe
and the EU have managed to produce an amazingly business-unfriendly
environment with a thicket of irrational laws that conflict with
virtually all reasonable legal and business practice. As a result,
Europe has an unemployment rate that which the U.S. experienced in the
1970s -- indeed, in many countries, it is within a stone's throw of
that which the U.S. experienced during the Great Depression. Only the
state social welfare apparatus has kept these nations from
experiencing intolerable pain under these circumstances.

Even if our current economic prosperity here in the U.S. were to
utterly disintegrate and our unemployment rate triple, we couldn't
even match the rates in much of Europe. Before claiming any new idea
from the European Commission might be a good idea, one must question
whether or not the entire set of "good ideas" they've had for the last
fifteen years have been, on balance, of benefit to the people of
Europe. Sure, all these lovely laws about "consumer protection" and
such sound lovely on paper, but in the end, all they seem to do is
assure that people decide not to do business in Europe at all.

Perry


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