Understanding the Law - E-SIGN Compliant Electronic Signatures

On June 30, 2000, Congress enacted the Electronic Signatures in Global and National Commerce Act ("ESIGN" or "the Act"), to facilitate the use of electronic records and signatures in interstate and foreign commerce by ensuring the validity and legal effect of contracts entered into electronically. Yet many do not understand how their business can be compliant with the E-SIGN Act.

First we need to understand that E-SIGN (additional E-SIGN analysis here) [http://privasign.com/laws-esign.asp], in section 101(b) does not require people to use electronic signatures. When electronic signatures are used then Sub-section (c), in direct support of (b), requires a “Consumer Disclosure” that the consumer also "consent electronically, in a manner that reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent".

As we can clearly see, the law outlines a two step process to signing files electronically. First, disclosure of the consumer’s right to use paper, which is followed by their consent to the electronic process. The second phase is the actual capture of the electronic signature.

Once the signature is captured the law directs its attention to the electronic record that has now been created. This aspect of the law, while often overlooked, provides the true power and cost savings of electronic signatures – the ability to STORE electronic files. Printing and storing a paper copy of the electronic record defeats the achievements of this law. It is the accessibility and cheap storage costs of electronic files that really amount to long term cost savings. Sub-section (d) details the retention of contracts and records. If a “statute, regulation, or other rule of law requires” the file to be retained then “that requirement is met by retaining an electronic record”.

Accuracy and availability are discussed in both (d.1.B) and (e). The record must be available to all parties involved; this is easily accomplished by allowing each signatory to save an electronic copy of the record on their own computer. The electronic record and signature created must be in a format that is both accurate and accessible. Meaning that the technology to read, display and transfer the record is of a generally acceptable form. This aspect of the law requires businesses to choose electronic signature services that provide them with flexibility.

PrivaSign provides a multi-step approach to “Consumer Disclosure”, by providing multiple disclosure messages to the signatory. Acknowledgement of this disclosure is captured as proof that the consumer was informed, and did accept to use an electronic process.

PrivaSign's "electronic records" are compliant with both sub-section (d) and (e). PrivaSign stores all files for a minimum of 3 months. Additional storage maybe purchased or at anytime during the 3 months both sender and recipient may download the file so that they may be in compliance with any applicable laws. This downloaded file can be saved to their computer, saved to a portable medium (CD, DVD or others) or even printed to paper. PrivaSign captures file integrity hashes so that all parties can verify the integrity of saved files.

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Advantages of Using Electronic Signatures

An electronic signature can be defined as an online process clearly indicating approval to a document or terms presented in an electronic format. Usually electronic signatures have an added advantage in that they ensure the maintenance of integrity in the signed document or contract. The person signing the contract is not able to revoke or destroy the agreement or deny that they did not sign the document. Documents signed electronically are more secure than paper documents and can't be altered during or after the signing event. Furthermore, electronically signed documents are as legal as those executed on paper.

The ESIGN Act, which came into effect in 2000, dispelled any uncertainty over electronic contracts. The law created a revolution in industries that were traditionally dependent on paper workflows. It has propelled the growth and efficiency of companies in the financial, insurance, real estate, and consumer services sectors. E-signatures, after gaining legal acceptance, have also helped B2B (business-to-business) websites grow at a faster pace. Many companies can conduct their business entirely online. Documents are exchanged within minutes and deals are closed quickly. By using electronic signatures, companies can save money and time. They can utilize their resources to generate more business, rather than manage paper logistics.

Other noteworthy benefits of e-signature technology include less dependence on printers and ink, minimizing the use of faxing which can be annoying to both parties, and closing deals in a few minutes even when parties are thousands of miles away. Also, electronic signatures facilitate tasks like e-filing and electronic file and database searches. This reduces time needed to find and verify data. Overall, these factors can reduce business costs.

Every day, companies are relying more on cutting-edge technology to produce goods and services and fulfill common business tasks. In this scenario, they can benefit immensely by integrating electronic signature services within their business processes. Companies around the world, in many sectors, have already adopted and are taking advantage of this revolutionary e-signature technology.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.

Why Should I Use Electronic Signatures

Why Should I Use Electronic Signatures?

This is a rational question with rational answers, but not everyone has the time or the tenacity to sit down and read the Electronic Signatures In Global and National Commerce Act (“ESIGN”), Uniform Electronic Transactions Act (“UETA”) or the stacks of other regulations and guidance that make this technology not only legal, but also stress the vital importance of adopting electronic signature technologies.

Today the average American office worker consumes (12,000) pieces of paper a year, with an average annual printing expense per employee ranging from $600-$2000. Storing paper and retrieving stored paper is also quite costly. The U.S. government estimates that (1 Lbs) of paper costs ($19) a year to store and manage. At that rate, assuming your business stores only 60% of the paper printed by your employees, your business is spending $1,500 annually per employee on paper storage alone.

There are obvious other costs associated with paper, for example the costs associated with faxing, shipping, receiving and time factors such as waiting for a job to finish printing or waiting on a package to arrive. In the end all businesses feel these costs, but most look at it as a fixed cost of doing business. In reality this is a variable cost of doing business based on old fashioned processes, and the United States government along with virtually every other developed country has passed legislation and regulations encouraging businesses to change the way they do business today, and take advantage of new legal and secure alternatives.

All businesses are looking for a competitive edge, and electronic signature technologies can and will play a vital role in helping businesses find and achieve this competitive edge. Look at the simple cost savings your business can achieve by eliminating some of the hard and soft costs mentioned above. (1) Gigabyte (“GB”) of hard drive space costs ($.50), and this (1) GB of storage will store (100,000) pages of single spaced text. This is the equivalent of ($19,000) of storage savings, ($11,000) of printing savings, and countless savings on time and miscellaneous expenses. Using electronic signature technologies will allow your business to send the previously printed materials securely and immediately to anyone anywhere in the world. Once they receive the file the recipient can legally electronically sign the file, which allows your business to act immediately, and never wait for a package to arrive from the client or prospect again.

This simple process will have wide ranging effects on your business, and the businesses you work with. Sales and production cycles will be shortened, employees will be more efficient, and complying with strict federal and state guidelines will become increasingly easier as your business processes move toward electronic communications and storage.

In the end the decision is not whether to move to an electronic format, but which format is right for your business. Some may feel that electronic signatures are too expensive or complex to implement into their business, but this is no longer the case. There are several pay-as-you-go services on the market today that will allow you to send files and capture secure and legal electronic signatures regardless of your budget. For larger corporations these pay-as-you-go services offer fast, affordable convenience, and in many cases these services offer better options and are easier to use than large and complex in-house solutions.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.

Get Your Terms Straight - Digital and Electronic Signatures

However, when you talk about these terms in relation to signatures, digital signatures and electronic signatures mean two very different things. In the most basic level, all digital signatures are signatures in electronic form. There are various methods by which a document can be authenticated with the use of signatures. A digital signature is a mathematical system that denotes the authenticity of a digital document. It does not necessarily have to look like a traditional signature with letters or scribbles, but it is more like a badge that is affixed onto a document. This badge certifies that the document was not altered before it was sent. These badges are very important to businesses that make transactions for software delivery, payments and documents that should not be tampered or forged.

An e signature, on the other hand, is a broad term that covers any sort of mark or badge that has the intent of authenticating a document. In many countries around the world, these signatures actually carry legal significance and have the same weight as handwritten transactions. However, electronic badges are not necessarily encrypted like digital ones.

A digital signature uses asymmetric cryptography and, just like handwritten signatures, is very difficult to forge. If a signature is cryptographically created, then it must be affixed to a document properly for it to actually matter. Both digital and electronic signatures provide the signer non-repudiation, especially if a special key is required to access the signature. That means that the signer cannot really claim that he did not sign the document because he is the only one who knows the private key. Some non-repudiation formats have a time stamp for the digital signature. If the private key is made known or leaked out, the time stamp will be able to determine if the signature was valid at the time it was created.

Electronic and digital signatures may be created as a bitstring like in email, digital contracts and other messages sent over an encrypted protocol.

Individuals or businesses who want to try using an electronic signature often wonder whether or not these forms of authentication are legally binding. In the United States, for example, they are legal as long as they were affixed using a process that clearly shows that the signer had the intention of signing the document. The signatures in electronic form must also be compliant to the Electronic Signatures in Global and National Commerce Act of 2000 and the Uniform Electronic Transactions Act. These two acts have been adopted by most states in the US. All signatures in electronic form are legally binding and are audited regularly.

Electronic or digital signatures, no doubt, will make your business processes more effective. It streamlines your processes and makes them run more smoothly. No more countless exchanges of documents to sign, scan and review. All these can be done automatically. Using an e signature is a good idea for offices that want to go completely paperless to help the environment and cut costs.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.

Complying With Davis-Bacon: Electronic Signatures Are More Than Just for Saving Paper

With most states now adopting the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (ESIGN), the use of electronic signatures are legal and widespread in both commercial and payroll-related records. These two acts establish the fact that electronic documents signed using software are legal and carry the same weight as traditional physical documents with handwritten signatures. It is specified that a document or signature cannot be legally denied of effect or responsibility simply because it is in electronic form.

However, an electronic signature is only legal if the signer wanted to sign the document in the first place. If there was no intent to sign or there was force in acquiring the signature, it is considered null and void. For example, if a person accidentally chooses someone else's signature profile to sign his own documents, the documents will be declared void because the owner of the electronic signature profile did not want to sign the document to begin with.

This is especially important for contractors who have to process the payroll for a large number of people. Under the Davis-Bacon Act, all contractors who will work on government projects will need to pay their employees the prevailing wages for similar projects in the area. This act ensures that citizens are given fair wages and that there are no "kickbacks" in the payroll process. However, this will mean that employers will have to get their employees to sign their payroll reports every cycle. Using an e signature system will save them a lot of time and will generally make their process more organized.

Does the Davis-Bacon Act allow electronic signatures? In Section 4-4 of the deskguide released by the Department of Labor, it states that companies are required to submit a Statement of Compliance that is signed and submitted after every payroll cycle. This document must be signed by someone who has direct authority to release funds or salaries to the employees. The deskguide specifies that an electronic signature is acceptable on certified payrolls and related compliance statements as long as the owner of the signature has the actual intent to sign the document. As stated in ESIGN and UETA, electronic signatures have the same legal weight and effect as handwritten ones. Using an electronic system reduces the risk of getting the payroll report returned due to missing signatures or delays, making a company's payroll system more efficient.

Saving paper and cutting costs in the workplace is not the only reason why companies should switch to electronic systems. By going completely paperless, they are helping the environment more. However, the convenience that e signature systems provide is what gives it more value, rather than fact that it cuts cost.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.

Electronic Signatures In Cloud Services

Access to a robust API is increasingly becoming a requirement for any company offering its services on the web. So what is an API and why is it useful? An API, or application programming interface, is a set of instructions for accessing a web-based software application. APIs are created to give developers access to these instructions in order to use that specific application. Developers can then design products around that application without rewriting existing code and functionality. This is important because it eliminates redundant work and provides the framework for developers to use their creativity to build other products powered by that application.

An API can be grouped into two categories. It can either be a language dependent API or a language independent API. When an API is language dependent it means it can only be called using one specific type of programming language. However, when an API is language independent it means the API is not limited to the capabilities of a specific system or language. Language independent APIs help in communicating and interacting with other applications and have greater functionality because they can be called from several different programming languages.

So how do you know when a developer is using an API? If you are a user, the answer is you wouldn't know. An API simply allows applications to work together. It is not something you, as the user, is able to 'see' working. In fact, its purpose is to simply run in the background so that the user has the functionality of an application without seeing any changes in the way things are displayed.

The use of an API is invaluable to most cloud computing services and the customers they serve. Most of the services offered by cloud companies depend on APIs as a means of integrating various programs within their systems. This allows their customers access to more functionality, providing the ability to handle various tasks electronically and directly within the cloud. Cloud services mainly use three types of APIs; data APIs, application functionality APIs, and control APIs.

To illustrate an example, lets say a cloud services company helps its customers with billing. The developers of this cloud services billing company want to allow their clients to get contracts for billing signed online. The first option would be to build an e-signature tool themselves. This is both time-consuming and costly. Instead of building this application themselves, they could integrate with an existing e-signature vendor's API, contracting out the work. This saves time, money, and most likely ensures quality by recruiting a vendor that specializes in that functionality.

In fact, electronic signature vendors are among the most prominent third party applications to be used within cloud services. As businesses continue to migrate their records and daily workflows online, e-signatures are an increasing necessity to streamline this move to go 'paperless.' Electronic signatures also make the processes of verification and authentication a lot easier with the use of biometric recording and even optional picture taking. By integrating with open APIs, a lot of web-based companies have been able to provide even more value to their clients.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.

Do Your Electronic Signatures Hold Water?

When you use an esign, it performs significant legal functions. E-signatures form a huge part of your electronic records and procedures. They are not marks or badges that make your documents look formal. They are legally accepted badges that are enforceable and carry the same sort of responsibility that handwritten signatures do. When an electronic signature is attached to a document, it makes the document legal and binding. It shows that the parties involved in the transaction are responsible for the changes done in the document.

This technology is very important for businesses that have online payment systems. E-commerce sites get so many benefits if they use an e-signature system. However, as either a business owner or a consumer, how do you know that your signature is legitimate and legally binding?

There are laws governing the use and the regulation of e-signature systems. These regulations have been laid down by the Uniform Electronic Transactions Act or the UETA and the Electronic Signatures in Global and National Commerce Act or ESIGN. Most states have adopted these laws. They have changed the way electronic transactions are completed by making them more secure but still very convenient.

Both laws were created so that electronic signatures would have a specific legal structure to follow. It allows signatures in electronic form to have the same value as traditional, handwritten ones. The UETA and the ESIGN acts give the use of electronic signature software a procedural approach. Both of these regulations state that documents signed with an electronic signature cannot be voided exclusively because it is in electronic form. A document that used an electronic record in its creation also cannot be voided under the law. This means that if a document is signed with an electronic signature, it cannot be denied legality because it was electronically generated. If a contract was drawn with the use of both electronic documents and traditional paper documents, it is still considered legally binding.

Note that an esign does not only have to consist of letters or scribbles. Under the UETA and ESIGN acts, a document is considered electronically signed if it comes with an electronic sound or symbol. This is also the case if it went through an electronic process that expresses the signer's intent to indicate his agreement with the document. That means that an electronic signature can be a badge or a cryptographically embedded symbol or an electronically printed name that was authorized by the party involved in the document.

The signature used in the document must be attached or associated to the document being signed. It has to be captured with electronic signature software that keeps an associated record of the process used to capture the signature. The software has to make a statement or report of the signature added to the record. The program used to generate the signature acts as its guarantor and should have a system (using serial numbers, timestamps, etc.) that can track down where the signature was captured and whose account it is associated with. Your electronic signature may be invalidated if the software you use does not follow these standards.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.

Go Green With Electronic Signatures

Electronic signatures can transform businesses, streamlining processes, cutting costs, and improving customer service. Recently a leading financial services company deployed e-signatures as part of an enterprise paperless initiative. This innovative project helped the company to reduce its paper expenses and slash cycle times to below the industry average. This deployment helped the business deliver meaningful financial results without significant capital investment and also increased the competitiveness of the company.

By minimizing your organization's dependence on ink and paper, you can reduce the environmental impact of doing business. In today's world, people look upon environmentally conscious companies with respect, and implementing methods to protect the environment enhances the reputation of a company. Over the years, there has been a marked increase in the number of people who prefer buying products or services from companies that use environmentally safe business practices. According to a recent study, over 80% of American consumers are concerned about environmental issues and consider global warming as a serious threat to our planet, and the number of concerned consumers is on the rise. A study by Yale University has shown that people want corporations to solve environmental problems and step up efforts to address climate change and other environment-related concerns.

Paper and paper boards are the largest contributors of landfill, and only about half of paper waste is recycled. The Environmental Protection Agency's WasteWise Program has identified organizations that strive to reduce the use of virgin paper and overall consumption of paper in their business processes. Bank of America has curtailed its paper consumption by more than 25% over the last three years by introducing online forms and continues to expand its environmental leadership role. Verizon and Bell Atlantic are some of the other large corporations that have implemented online business processes, thereby contributing towards environmental safety.

If your organization is considering reduce expenses by going paperless, you can take advantage of revolutionary electronic signature technology to increase efficiency, close deals quickly, and also create a positive impact on the environment.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.

Use Electronic Signatures to Save Time and Money

Business owners are always on the lookout for new tools or best practices to save time and money without sacrificing quality or customer service. If your business requires signatures on contracts, NDA's, or any other type of documents, you are in luck. Developments in new technology (and legislation to validate its use) has made it possible for your business to procure these signatures entirely online through the use of electronic signature tools. These tools allow you or your clients to sign contracts online with a mouse, track pad, or mobile device. This saves your business time and money without sacrificing quality or service.

In fact, the benefits of integrating electronic signature tools are so great that it could be the most important practice you adopt this year. Digital storage is significantly less expensive than traditional filing cabinets or filing services required to store paper documents. Your business can also save a significant amount of money on reducing paper consumption and printing costs. Companies can also focus less on managerial tasks like filing, organizing, and maintaining paper files. By going paperless, companies have found that they save valuable time and money.

Security is often a question of concern for many business owners making the transition. However, some companies are using electronic signatures to increase security by collecting information through electronic signatures that can verify and authenticate an individual signer. Through this process, businesses are actually increasing security and helping to protect themselves and their customers better.

In the end, the money spent on implementing electronic signatures within your business is minimal compared to the long-term savings in both time and money. Have you looked at how your business can benefit from adopting this technology? This year might be the year you should.

Mr. Moore is an expert in online technologies, including web applications, cloud computing, and business software. His articles on innovative products and new technology including those on electronic signature have been published on leading online sites.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.

Increasing ROI for SalesForce With Electronic Signatures

A number of companies that exist these days are constantly looking to rework and update their business operations, improving how they provide their services to their clients. Many organizations understand that every second they save in every part of their operations can positively impact their company's efforts to become successful. Due to the high demand for products and services that can potentially help speed up many different business processes, a number of providers and vendors have developed tools for these companies to achieve their needs. Most of these service providers and vendors have developed applications and software products that improve the office work flow by a tremendous amount. One of the most popular vendors found these days that provides quite a unique product is SalesForce.

The main products provided by SalesForce are their CRM applications, which are sales applications that can definitely help many business operations run more smoothly. Created with such benefits in mind, SalesForce's CRM applications also allow a company's products to become more accessible and visible. The main CRM provided makes it possible for both employees and clients to be able to interact and collaborate on a project electronically and in real time. Both the service provider and the client can also track all the events happening within the project. SalesForce applies other third party software programs into their system to provide more convenience. One of the most common software applications they integrate with their framework is electronic signatures software, which makes it possible for collaborators to verify and authenticate contracts and other documents with secure electronic signatures.

Businesses that invest in SalesForce's services can definitely make the most out of their investments when the use of electronic signatures comes into the picture. A secure electronic signature can be incredibly useful in so many ways. People will almost immediately experience the benefits they're getting out of the money they paid for services. With the integration of electronic signatures software in SalesForce's CRM application, businesses are given the ability to manage a number of different document processes electronically and save themselves from having to deal with physical paperwork. This integration between the two applications can really save companies a lot of time and money.

Once a company has a secure electronic signature, they can also close transactions a lot more easily within a cloud. Transactions are now a lot easier to handle through SalesForce's cloud services, as contracts and other important documents can now be authenticated and verified electronically with the use of electronic signatures. This eliminates the need for physical meetings just to close transactions and sign contracts, and it provides a business's clients the benefit of being able to handle their end of the transaction more conveniently. This feature can even help companies draw in more clients, further increasing the value of their investments.

Investments made in SalesForce's services and all other applications they support can quickly turn any business around for the better. The amount of money that companies spend on these services is certainly worth the investment, as the advantages become apparent as soon as they start utilizing such services.

DocuSign is more than just electronic signatures, it's a complete web-based eSign solution working to help you close more business and make more money.