With all the current talk about electronic commerce, and the push to forge legislation fostering the development as another sector of the Bermuda economy, the obvious question must be asked: What is this electronic commerce anyway? I, like others, am struggling to keep up with the tremendous pace of change being generated as entrepreneurs come up with amazing new concepts and ways of doing business not only on the Internet, but also on private electronic networks.

For the ordinary consumer, the easy answer is electronic commerce, or e-commerce, is business done over the Internet. Some people liken shopping over the Internet to catalogue shopping. On the Internet you can search out a retailer or product, comparison shop, look at the pictures, read the descriptions, order your product, pay for it via a secure channel, and get it shipped to you.

But that's only part of the story according to those in the industry.

Electronic commerce broadly speaking refers to digital transactions between businesses and consumers and business to business, whether it's over the public Internet, or over private networks. After that point of definition it's what you make of it.

The transactions being done over the Internet reaches the level of mass consumerism.

The Internet provides a way for businesses to have the power to reach out directly to customers and for customers to transact directly with businesses, and choose from a wider variety of vendors.

Established and new companies are using the Internet as a new avenue of communication with their customers, whether it's at the retail level or business to business. The Internet, with its democratic ease of access provides a new channel for marketing, customer support, and transactions 24 hours a day. It's a method of providing customer satisfaction.

The Internet is a means of cutting out the middlemen and their cut of the business. Look at what the Internet is doing to the business of investment brokerage and selling airline tickets. But the Internet is also creating new types of brokers. Cybermall's creators are simply brokers set up on-line to help vendors sell their products internationally. There are on-line brokerages, auctioneers and a host of other companies set up to make it easy to do transactions on the Internet.

As many in the business will say, electronic commerce is not another way of doing business, it's a new way of business by structuring mass consumerism down to the individual's needs.

Lawyer Duncan Card stated in his draft "Cyberlaw Advisory Report'' that governments must introduce legislation to bring what he calls the current "industrially-based laws'' up to speed with the needs of electronic commerce business.

The legislation must deal with Internet-based supply chain management, electronic data interchange and `order fulfilment systems; customer-based website transactions, including electronic catalogues, entertainment, information and consumer-based website transactions, including electronic catalogues, entertainment, information and research services; disinermediation services such as direct `customer to business travel reservation, hotel reservation and other data link services; remote on-line services, such as telemedicine, education, and database storage and management services; financial services, including securities trading, consumer transaction financial settlements, and a broad range of insurance industry transactions; as well as the distribution from Bermuda of entertainment products, media content and electronic publishing.' The report was submitted to the Bermuda Government last year as a preliminary advice on how to set about putting in place the legislation necessary to foster the growth of the sector on the Island.

Legislation dealing with intellectual property, commercial and contract transactions, privacy, the nature of a company's assets, security, crime and punishment, location of a business and a transaction, authentication of identity, consumer protection, and customs duties and taxes are some of the areas that need to be amended and expanded to include electronic transactions, he stated.

Government will also have to consider changing policies immigration policy to include those who work in the digital economy. A business may be based in Bermuda constructing an electronic commerce site, and may need to farm out the work to someone in the US. Does the business have to apply for a work permit for the "virtual worker''? Economic incentives, such as bringing down the cost of telecommunications, will also have to be put in place to encourage the sector. And as electronic commerce is by definition cross-border transactions, Government will have to work out international agreements and fit in with acceptable practices.

The minefield, and one that is brought sharply into focus by e-commerce, will be what Government euphemistically calls Bermuda's "low tax regime'' that the European Community, and the Organisation for Economic Cooperation and Development (OECD) have placed under scrutiny.

I like Mr. Card's description of the broad changes the Internet and e-commerce are bringing about in the business world in an attached article on intellectual property law he appended to the advisory report. "Under existing law, information, ideas and ephemeral rights usually have legal protection only to the extent they are transformed into industrial commodities (e.g., a patentable invention, a literary work, or an integrated circuit),'' he stated.

"Electronic publishing and on-line services, however, are leading the way towards a new paradigm of production -- not the same item produced in mass quantities, but individualised goods and services provided to each consumer.

As business moves towards this new paradigm of production, the law of intellectual property needs to shift from rights based on reproduction to rights based on access and use of information.'' Another area that needs to be addressed is public perception and understanding of this new era of electronic commerce. Perhaps more than anything the question shows the need for Government and the private sector to begin a campaign to educate the public about electronic commerce. It's essential for electronic commerce to grow and prosper to get full public support and participation.

E-commerce is not remote from you or I. It's the way we are increasingly going to do a lot of our business.

Tech Tattle is about issues in technology. Contact Ahmed at 295-5881 ext. 248, or 238-3854, or techtattle y gazette.newsmedia.bm.