[Ecommerce] Dugie Standeford on new Hague discussions on contract jurisdiction treaty

[James Love]

Washington Internet Daily

Friday, August 29, 2003 Vol. 4, No. 168

‘Visible Airing’ of Issues Sought

E-Commerce Treaty Would Give Trade a Boost, Industry Group Says

The International Chamber of Commerce (ICC) Thurs. applauded the decision by Hague Conference Secy.-Gen. Hans van Loon to appoint a special commission to negotiate a treaty aimed at harmonizing international laws on jurisdiction and enforcement of foreign judgments in transborder disputes, including e-commerce (WID Aug 21 p7). The draft, which was narrowed by a special working group earlier this year to cover only business- to-business (B2B) contracts containing choice of forum clauses, “is on the right lines,” ICC Secy.-Gen Maria Livanos Cattaui said. If adopted, the convention would give trade a  “powerful boost,” the ICC said.

But Consumer Project on Technology (CPT) Dir. James Love called the convention “a recipe for forum-shopping and an expansion of the use of unfair contracts” such as software click-through and shrink-wrap agreements. CPT will ask the Hague Conference to hold a panel in Dec. on the “fundamental policy issue” of whether nonnegotiated contracts always should be enforced as to choice of forum, Love said. “You can’t pretend this isn’t making global policy,” he said. “It deserves a real, visible airing... with good advocates on different sides.”

Libraries have worried about the potential ramifications of the treaty on licensing agreements since the proposal began crystallizing several years ago, said Miriam Nisbet, Legislative Counsel to the American Library Assn. “We are absolutely committed to continuing to provide input” as negotiations progress and to being a part of the process, she said.

Over the summer various countries submitted comments to van Loon on how — or whether— to proceed with the slimmed-down version of the treaty. Those letters haven’t yet been made public, we’re told. However, a source close to the U.S. delegation indicated the State Dept. had told the Secy.-Gen. the U.S. was ready to move forward with the B2B-choice of forum draft so long as negotiations allowed for thorough consultations with appropriate stakeholders.

If the Dec. talks are successful, the proposed text will be set for final negotiation at a full diplomatic conferencenext June, van Loon said. — Dugie Standeford

Washington Internet Daily