Summary message or electronic document or any methodology

or procedures employed or adopted by a person and

1. In General executed or adopted by such person with the intention
of authenticating or approving an electronic data
Sec. 3. Objective. This Act aims to facilitate domestic message or electronic document.
and international dealings, transactions,
arrangements, agreements, contracts and exchanges f) "Electronic document" refers to information
and storage of information through the utilization of or the representation of information, data, figures,
electronic, optical and similar medium, mode, symbols or other modes of written expression,
instrumentality and technology to recognize the described or however represented, by which a
authenticity and reliability of electronic documents right is established or an obligation extinguished,
related to such activities and to promote the universal or by which a fact may be proved and affirmed,
use of electronic transaction in the government and which is received, recorded, transmitted, stored,
general public. processed, retrieved or produced electronically.

Sec. 4. Sphere of Application. This Act shall apply g) "Electronic key" refers to a secret code
to any kind of data message and electronic document which secures and defends sensitive information
used in the context of commercial and non- that crosses over public channels into a form
commercial activities to include domestic and decipherable only with a matching electronic key.
international dealings, transactions, arrangements,
agreements, contracts and exchanges and storage of
information. h) "Intermediary" refers to a person who in
behalf of another person and with respect to a
particular electronic document sends, receives
Sec. 5. Definition of Terms. For the purposes of this and/or stores or provides other services in
Act, the following terms are defined, as follows: respect to that electronic document.

a) "Addressee" refers to a person who is intended i) "Originator" refers to a person by whom, or

by the originator to receive the electronic data on whose behalf, the electronic document
message or electronic document. The term does not purports to have been created, generated and/or
include a person acting as an intermediary with sent. The term does not include a person acting
respect to that electronic data message or electronic as an intermediary with respect to that electronic
document. document.

b) "Computer" refers to any device or apparatus j) "Service provider" refers to a provider of -

which, by electronic, electro-mechanical or magnetic
impulse, or by other means, is capable of receiving,
recording, transmitting, storing, processing, retrieving, i) On-line services or network access, or the
or producing information, data, figures, symbols or operator of facilities thereof, including entities
other modes of written expression according to offering the transmission, routing, or providing
mathematical and logical rules or of performing any of connections for online communications,
one or more of those functions. digital or otherwise, between or among points
specified by a user, of electronic documents of
the user’s choosing; or
c) "Electronic Data message" refers to information
generated, sent, received or stored by electronic,
optical or similar means. ii) The necessary technical means by which
electronic documents of an originator may be
stored and made accessible to a designated or
d) "Information and communication system" undesignated third party;
refers to a system intended for and capable of
generating, sending, receiving, storing or otherwise
processing electronic data messages or electronic iii) Such service providers shall have no
documents and includes the computer system or authority to modify or alter the content of the
other similar device by or in which data is recorded or electronic data message or electronic document
stored and any procedures related to the recording or received or to make any entry therein on behalf
storage of electronic data message or electronic of the originator, addressee or any third party
document. unless specifically authorized to do so, and who
shall retain the electronic document in
accordance with the specific request or as
e) "Electronic signature" refers to any distinctive necessary for the purpose of performing the
mark, characteristic and/or sound in electronic form, services it was engaged to perform.
representing the identity of a person and attached to
or logically associated with the electronic data
2. Legal Recognition of Documents For evidentiary purposes, an electronic document
shall be the functional equivalent of a written
Sec. 6. Legal Recognition of Data Messages - document under existing laws.
Information shall not be denied legal effect, validity or
enforceability solely on the grounds that it is in the This Act does not modify any statutory rule relating to
data message purporting to give rise to such legal the admissibility of electronic data messages or
effect, or that it is merely referred to in that electronic electronic documents, except the rules relating to
data message. authentication and best evidence.

Sec. 7. Legal Recognition of Electronic Sec. 8. Legal Recognition of Electronic Signatures -

Documents - Electronic documents shall have the An electronic signature on the electronic document
legal effect, validity or enforceability as any other shall be equivalent to the signature of a person on a
document or legal writing, and - written document if that signature is proved by
showing that a prescribed procedure, not alterable by
a) Where the law requires a document to be in the parties interested in the electronic document,
writing, that requirement is met by an electronic existed under which -
document if the said electronic document
maintains its integrity and reliability and can be a) A method is used to identify the party sought
authenticated so as to be usable for subsequent to be bound and to indicate said party’s access to
reference, in that - the electronic document necessary for his
consent or approval through the electronic
i) The electronic document has signature;
remained complete and unaltered, apart
from the addition of any endorsement b) Said method is reliable and appropriate for the
and any authorized change, or any purpose for which the electronic document was
change which arises in the normal generated or communicated, in the light of all the
course of communication, storage and circumstances, including any relevant agreement;
display; and
c) It is necessary for the party sought to be
ii) The electronic document is reliable in bound, in order to proceed further with the
the light of the purpose for which it was transaction, to have executed or provided the
generated and in the light of all the electronic signature; and
relevant circumstances.
d) The other party is authorized and enabled to
b) Paragraph (a) applies whether the verify the electronic signature and to make the
requirement therein is in the form of an obligation decision to proceed with the transaction
or whether the law simply provides authenticated by the same.
consequences for the document not being
presented or retained in its original form.
a. Presumption
c) Where the law requires that a document be
presented or retained in its original form, that
requirement is met by an electronic document if - Sec. 9. Presumption Relating to Electronic Signatures
- In any proceeding involving an electronic signature,
it shall be presumed that -
i) There exists a reliable assurance as
to the integrity of the document from the
time when it was first generated in its a) The electronic signature is the signature of the
final form; and person to whom it correlates; and

ii) That document is capable of being b) The electronic signature was affixed by that
displayed to the person to whom it is to person with the intention of signing or approving
be presented: the electronic document unless the person relying
on the electronically signed electronic document
knows or has notice of defects in or unreliability
Provided, That no provision of this Act of the signature or reliance on the electronic
shall apply to vary any and all signature is not reasonable under the
requirements of existing laws on circumstances.
formalities required in the execution of
documents for their validity.
b. Confidentiality (32)
Sec. 32. Obligation of Confidentiality - Except for the Sec. 17. Recognition by Parties of Electronic Data
purposes authorized under this Act, any person who Message or Electronic Document - As between the
obtained access to any electronic key, electronic data originator and the addressee of an electronic data
message, or electronic document, book, register, message or electronic document, a declaration of will
correspondence, information, or other material or other statement shall not be denied legal effect,
pursuant to any powers conferred under this Act, shall validity or enforceability solely on the ground that it is
not convey to or share the same with any other in the form of an electronic data message.
person.
Sec. 18. Attribution of Electronic Data Message -

c. Lawful access (31) (1) An electronic data message or electronic

document is that of the originator if it was sent by
the originator himself.
Sec. 31. Lawful Access - Access to an electronic file,
or an electronic signature of an electronic data
message or electronic document shall only be (2) As between the originator and the addressee,
authorized and enforced in favor of the individual or an electronic data message or electronic
entity having a legal right to the possession or the use document is deemed to be that of the originator if
of the plaintext, electronic signature or file and solely it was sent:
for the authorized purposes. The electronic key for
identity or integrity shall not be made available to any (a) by a person who had the authority to act
person or party without the consent of the individual or on behalf of the originator with respect to that
entity in lawful possession of that electronic key. electronic data message or electronic
document; or

(b) by an information system programmed

by, or on behalf of the originator to operate
3. Communication of electronic automatically.
documents (16-24)
(3) As between the originator and the addressee,
Sec. 16. Formation and Validity of Electronic an addressee is entitled to regard an electronic
Contracts - data message or electronic document as being
that of the originator, and to act on that
assumption, if:
(1) Except as otherwise agreed by the parties,
an offer, the acceptance of an offer and such
other elements required under existing laws for (a) in order to ascertain whether the
the formation of contracts may be expressed in, electronic data message or electronic
demonstrated and proved by means of electronic document was that of the originator, the
data message or electronic documents and no addressee properly applied a procedure
contract shall be denied validity or enforceability previously agreed to by the originator for that
on the sole ground that it is in the form of an purpose; or
electronic data message or electronic document,
or that any or all of the elements required under (b) the electronic data message or electronic
existing laws for the formation of the contracts is document as received by the addressee
expressed, demonstrated and proved by means resulted from the actions of a person whose
of electronic documents. relationship with the originator or with any
agent of the originator enabled that person to
(2) Electronic transactions made through gain access to a method used by the
networking among banks, or linkages thereof with originator to identify electronic data
other entities or networks, and vice versa, shall messages as his own.
be deemed consummated upon the actual
dispensing of cash or the debit of one account (4) Paragraph (3) does not apply:
and the corresponding credit to another, whether
such transaction is initiated by the depositor or by (a) as of the time when the addressee
an authorized collecting party: Provided, that the has both received notice from the
obligation of one bank, entity, or person similarly originator that the electronic data
situated to another arising therefrom shall be message or electronic document is not
considered absolute and shall not be subjected to that of the originator, and has
the process of preference of credits. reasonable time to act accordingly; or
 (b) in a case within paragraph (3) sub- data message or electronic document, the
paragraph (b), at any time when the originator and the addressee have agreed, or in
addressee knew or should have known, that electronic document or electronic data
had it exercised reasonable care or message, the originator has requested, that
used any agreed procedure, that the receipt of the electronic document or electronic
electronic data message or electronic data message be acknowledged:
document was not that of the originator.
Where the originator has not agreed with the
(5) Where an electronic data message or addressee that the acknowledgment be given in a
electronic document is that of the originator or is particular form or by a particular method, an
deemed to be that of the originator, or the acknowledgment may be given by or through any
addressee is entitled to act on that assumption, communication by the addressee, automated or
then, as between the originator and the otherwise, or any conduct of the addressee, sufficient
addressee, the addressee is entitled to regard the to indicate to the originator that the electronic data
electronic data message or electronic document message or electronic document has been received.
as received as being what the originator intended
to send, and to act on that assumption. The (b) Where the originator has stated that the
addressee is not so entitled when it knew or effect or significance of the electronic data
should have known, had it exercised reasonable message or electronic document is conditional on
care or used any agreed procedure, that the receipt of the acknowledgment thereof, the
transmission resulted in any error in the electronic data message or electronic document
electronic data message or electronic document is treated as though it has never been sent, until
as received. the acknowledgment is received.

(6) The addressee is entitled to regard each (c) Where the originator has not stated that the
electronic data message or electronic document effect or significance of the electronic data
received as a separate electronic data message message or electronic document is conditional on
or electronic document and to act on that receipt of the acknowledgment, and the
assumption, except to the extent that it duplicates acknowledgment has not been received by the
another electronic data message or electronic originator within the time specified or agreed or, if
document and the addressee knew or should no time has been specified or agreed, within a
have known, had it exercised reasonable care or reasonable time, the originator may give notice to
used any agreed procedure, that the electronic the addressee stating that no acknowledgment
data message or electronic document was a has been received and specifying a reasonable
duplicate. time by which the acknowledgment must be
received; and if the acknowledgment is not
Sec. 19. Error on Electronic Data Message or received within the time specified in
Electronic Document - The addressee is entitled subparagraph (c), the originator may, upon notice
to regard the electronic data message or to the addressee, treat the electronic document
electronic document received as that which the or electronic data message as though it had
originator intended to send, and to act on that never been sent, or exercise other rights it may
assumption, unless the addressee knew or have.
should have known, had the addressee exercised
reasonable care or used the appropriate Sec. 21. Time of Dispatch of Electronic Data
procedure - Messages or Electronic Documents - Unless
otherwise agreed between the originator and the
(a) That the transmission resulted in any error addressee, the dispatch of an electronic data
therein or in the electronic document when the message or electronic document occurs when it
electronic data message or electronic document enters an information system outside the control
enters the designated information system, or of the originator or of the person who sent the
electronic data message or electronic document
(b) That electronic data message or electronic on behalf of the originator.
document is sent to an information system which
is not so designated by the addressee for the Sec. 22. Time of Receipt of Electronic Data
purpose. Messages or Electronic Documents - Unless
otherwise agreed between the originator and the
Sec. 20. Agreement on Acknowledgment of addressee, the time of receipt of an electronic
Receipt of Electronic Data Messages or data message or electronic document is as
Electronic Documents - The following rules shall follows:
apply where, on or before sending an electronic
(a) If the addressee has designated an c. The "usual place of residence" in relation to a
information system for the purpose of receiving body corporate, means the place where it is
electronic data message or electronic document, incorporated or otherwise legally constituted.
receipt occurs at the time when the electronic
data message or electronic document enters the Sec.24.ChoiceofSecurityMethods -Subject to
designated information system: Provided, applicable laws and/or rules and guidelines
however, that if the originator and the addressee promulgated by the Department of Trade and
are both participants in the designated Industry with other appropriate government
information system, receipt occurs at the time agencies, parties to any electronic transaction
when the electronic data message or electronic shall be free to determine the type and level of
document is retrieved by the addressee. electronic data message and electronic document
security needed, and to select and use or
(b) If the electronic data message or electronic implement appropriate technological methods
document is sent to an information system of the that suit their needs.
addressee that is not the designated information
system, receipt occurs at the time when the
electronic data message or electronic document
is retrieved by the addressee; 4. Application

(c) If the addressee has not designated an a. In carriage of goods (25-26)

information system, receipt occurs when the
electronic data message or electronic document
enters an information system of the addressee. Sec. 25. Actions Related to Contracts of Carriage
of Goods - Without derogating from the
provisions of part two of this law, this chapter
These rules apply notwithstanding that the place applies to any action in connection with, or in
where the information system is located may be pursuance of, a contract of carriage of goods,
different from the place where the electronic data including but not limited to:
message or electronic document is deemed to be
received.
(a)
(i) furnishing the marks, number, quantity or
Sec. 23. Place of Dispatch and Receipt of weight of goods;
Electronic Data Messages or Electronic (ii) stating or declaring the nature or value of
Documents - Unless otherwise agreed between goods;
the originator and the addressee, an electronic (iii) issuing a receipt for goods;
data message or electronic document is deemed (iv) confirming that goods have been loaded;
to be dispatched at the place where the originator
has its place of business and received at the
place where the addressee has its place of (b)
business. This rule shall apply even if the (i) notifying a person of terms and conditions of
originator or addressee had used a laptop or the contract;
other portable device to transmit or receive his (ii) giving instructions to a carrier;
electronic data message or electronic document.
Th is rule shall also apply to determine the tax (c)
situs of such transaction. (i) claiming delivery of goods;
(ii) authorizing release of goods;
For the purpose hereof - (iii) giving notice of loss of, or damage to, goods;

If the originator or the addressee has more than (d) giving any other notice or statement in
one place of business, the place of business is connection with the performance of the contract;
that which has the closest relationship to the
underlying transaction or, where there is no (e) undertaking to deliver goods to a named
underlying transaction, the principal place of person or a person authorized to claim delivery;
business.
(f) granting, acquiring, renouncing, surrendering,
If the originator or the addressee does not have a transferring or negotiating rights in goods;
place of business, reference is to be made to its
habitual residence; or (g) acquiring or transferring rights and
obligations under the contract.
 Sec. 26. Transport Documents - Signatures - Notwithstanding any law to the
contrary, within two (2) years from the date of the
(1) Where the law requires that any action effectivity of this Act, all departments, bureaus,
referred to contract of carriage of goods be offices and agencies of the government, as well
carried out in writing or by using a paper as all government- owned and-controlled
document, that requirement is met if the action is corporations, that pursuant to law require or
carried out by using one or more data messages accept the filing of documents, require that
or electronic documents. documents be created, or retained and/or
submitted, issue permits, licenses or certificates
of registration or approval, or provide for the
(2) Paragraph (1) applies whether the method and manner of payment or settlement of
requirement therein is in the form of an obligation fees and other obligations to the government,
or whether the law simply provides shall -
consequences for failing either to carry out the
action in writing or to use a paper document.
(a) accept the creation, filing or retention of such
documents in the form of electronic data
(3) If a right is to be granted to, or an obligation messages or electronic documents;
is to be acquired by, one person and no other
person, and if the law requires that, in order to
effect this, the right or obligation must be (b) issue permits, licenses, or approval in the
conveyed to that person by the transfer, or use form of electronic data messages or electronic
of, a paper document, that requirement is met if documents;
the right or obligation is conveyed by using one or
more electronic data messages or electronic (c) require and/or accept payments, and issue
documents unique; receipts acknowledging such payments, through
systems using electronic data messages or
(4) For the purposes of paragraph (3), the electronic documents; or
standard of reliability required shall be assessed
in the light of the purpose for which the right or (d) transact the government business and/or
obligation was conveyed and in the light of all the perform governmental functions using electronic
circumstances, including any relevant agreement. data messages or electronic documents, and for
the purpose, are authorized to adopt and
(5) Where one or more data messages are used promulgate, after appropriate public hearing and
to effect any action in subparagraphs (f) and (g) with due publication in newspapers of general
of Section 25, no paper document used to effect circulation, the appropriate rules, regulations, or
any such action is valid unless the use of guidelines, to, among others, specify-
electronic data message or electronic document
has been terminated and replaced by the use of (1) the manner and format in which such electronic
paper documents. A paper document issued in data messages or electronic documents shall be filed,
these circumstances shall contain a statement of created, retained or issued;
such termination. The replacement of electronic
data messages or electronic documents by paper (2) where and when such electronic data messages
documents shall not affect the rights or or electronic documents have to be signed, the use of
obligations of the parties involved. a electronic signature, the type of electronic signature
required;
(6) If a rule of law is compulsorily applicable to a
contract of carriage of goods which is in, or is (3) the format of an electronic data message or
evidenced by, a paper document, that rule shall electronic document and the manner the electronic
not be inapplicable to such a contract of carriage signature shall be affixed to the electronic data
of goods which is evidenced by one or more message or electronic document;
electronic data messages or electronic
documents by reason of the fact that the contract
is evidenced by such electronic data messages (4) the control processes and procedures as
or electronic documents instead of by a paper appropriate to ensure adequate integrity, security and
document. confidentiality of electronic data messages or
electronic documents or records or payments;

b. In government (17-29) (5) other attributes required of electronic data

messages or electronic documents or payments;
Sec. 27. Government Use of Electronic Data
Messages, Electronic Documents and Electronic and
(6) the full or limited use of the documents and telecommunications for the purpose of electronic
papers for compliance with the government commerce and to maximize the convergence of ICT in
requirements: Provided, That this Act shall by itself the installation of the GII.
mandate any department of the government, organ of
state or statutory corporation to accept or issue any Sec. 29. Authority of the Department of Trade and
document in the form of electronic data messages or Industry and Participating Entities - The Department
electronic documents upon the adoption, of Trade and Industry (DTI) shall direct and supervise
promulgation and publication of the appropriate rules, the promotion and development of electronic
regulations, or guidelines. commerce in the country with relevant government
agencies, without prejudice to the provisions of
Sec. 28. RPWEB To Promote the Use Of Electronic Republic Act. 7653 (Charter of Bangko Sentral ng
Documents and Electronic Data Messages In Pilipinas) and Republic Act No. 337 (General Banking
Government and to the General Public -Within two(2) Act), as amended.
years from the effectivity of this Act, there shall be
installed an electronic online network in accordance Among others, the DTI is empowered to promulgate
with Administrative Order 332 and House of rules and regulations, as well as provide quality
Representatives Resolution 890, otherwise known as standards or issue certifications, as the case may be,
RPWEB, to implement Part IV of this Act to facilitate and perform such other functions as may be
the open, speedy and efficient electronic online necessary for the implementation of this Act in the
transmission, conveyance and use of electronic data area of electronic commerce to include, but shall not
messages or electronic documents amongst all be limited to, the installation of an online public
government departments, agencies, bureaus, offices information and quality and price monitoring system
down to the division level and to the regional and for goods and services aimed at protecting the
provincial offices as practicable as possible, interests of the consuming public availing of the
government owned and controlled corporations, local advantages of this Act.
government units, other public instrumentalities,
universities, colleges and other schools, and universal
access to the general public. 5. Penalties for violation (33)

The RPWEB network shall serve as initial platform of Sec. 33. Penalties - The following Acts shall be
the government information infrastructure (GII) to penalized by fine and/or imprisonment, as
facilitate the electronic online transmission and follows:
conveyance of government services to evolve and
improve by better technologies or kinds of electronic a) Hacking or cracking which refers to
online wide area networks utilizing, but not limited to, unauthorized access into or interference in a
fiber optic, satellite, wireless and other broadband computer system/server or information and
telecommunication mediums or modes. To facilitate communication system; or any access in order to
the rapid development of the GII, the Department of corrupt, alter, steal, or destroy using a computer
Transportation and Communications, National or other similar information and communication
Telecommunications Commission and the National devices, without the knowledge and consent of
Computer Center are hereby directed to aggressively the owner of the computer or information and
promote and implement a policy environment and communications system, including the
regulatory or non-regulatory framework that shall lead introduction of computer viruses and the like,
to the substantial reduction of costs of including, but resulting in the corruption, destruction, alteration,
not limited to, lease lines, land, satellite and dial-up theft or loss of electronic data messages or
telephone access, cheap broadband and wireless electronic document shall be punished by a
accessibility by government departments, agencies, minimum fine of one hundred thousand pesos
bureaus, offices, government owned and controlled (P100,000.00) and a maximum commensurate to
corporations, local government units, other public the damage incurred and a mandatory
instrumentalities and the general public, to include the imprisonment of six (6) months to three (3) years;
establishment of a government website portal and a
domestic internet exchange system to facilitate
strategic access to government and amongst b) Piracy or the unauthorized copying,
agencies thereof and the general public and for the reproduction, dissemination, distribution,
speedier flow of locally generated internet traffic within importation, use, removal, alteration, substitution,
the Philippines. modification, storage, uploading, downloading,
communication, making available to the public, or
broadcasting of protected material, electronic
The physical infrastructure of cable and wireless signature or copyrighted works including legally
systems for cable TV and broadcast excluding protected sound recordings or phonograms or
programming and content and the management information material on protected works, through
thereof shall be considered as within the activity of the use of telecommunication networks, such as,
but not limited to, the internet, in a manner that
infringes intellectual property rights shall be
punished by a minimum fine of one hundred
thousand pesos (P100,000.00) and a maximum
commensurate to the damage incurred and a
mandatory imprisonment of six (6) months to
three (3) years;

c) Violations of the Consumer Act or Republic

Act No. 7394 and other relevant or pertinent laws
through transactions covered by or using
electronic data messages or electronic
documents, shall be penalized with the same
penalties as provided in those laws;

d) Other violations of the provisions of this Act,

shall be penalized with a maximum penalty of
one million pesos