Electronic and Digital Signatures
There is a lot of confusing and conflicting terminology surrounding the concept of electronic and digital signatures. The following is an attempt to clarify some issues. However, remember that while the use of electronic signatures may initially seem to be a technical issue, it is also a legal issue, involving concerns such as but not limited to: for what purpose is the electronic signature being used; is there an agreement between the parties as to the use and form of the electronic signature; is there guidance or approval needed from relevant oversight authorities such as granting agencies for Federal funds; and ultimately what is acceptable in a court of law as evidence that the parties intended to sign a document.
Digitized Signature
A written signature that has been read by a computer device, which has converted the signature into digital data, examples include:
• A scanner used to copy a signature from paper and store the signature as a digital image. The image can then be printed on a document. This is basically a digital replacement for the rubber signature stamp.
• A mobile digitizing device used when signing for packages from UPS or other common carriers.
• A digitizing device used when making a credit card purchase at a retail store.
These devices can be quite simple such as a scan of the signature, or very sophisticated such as a device that measures pressure throughout the signature and the number of stokes used during the signature.
Electronic Signature
For several years the Federal Government has tried to support electronic commerce, but the requirement for a signature has been a problem. As a result, the National Conference of Commissioners on Uniform State Laws drafted a recommended law in 1999, the State of Indiana passed a Uniform Electronic Transactions Act in early 2000, IC 26-2-8, and the Federal Government passed the Federal Electronic Records and Signature in Commerce Act (e-Sign Law), on electronic transactions effective in late 2000. Normally, a Federal Law would override a state law, but this Federal Law specifically states that if the state law is not in conflict with the Federal Law, the state law takes precedence.
An electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record