Electronic Signatures Overview
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1 White Paper Electrnic Signatures Overview Versin 1.0 Last Updated:
2 Histry f Electrnic Signatures Over 100 years ag, peple were using Mrse cde and the telegraph t electrnically accept dcuments. In the 1980 s cmpanies and even sme prgressive individuals began using fax machines fr high pririty r time sensitive delivery f paper based dcuments. When the first dcument was signed and faxed it created the basis fr the discussin f electrnic signature validity. After all, it was the first time smene culd sign smething, place it in a machine, send it frm ne phne line t anther, and deliver a digitally reprduced signature. The path this signature tk was nt cntrllable r traceable, and in mst cases, it traversed miles f wire befre reaching its destinatin, s hw culd it be cnsidered a valid signature? The intentins f the signature were clear t everyne, but businesses wanted t knw they culd cunt n the validity f the signature, and if n ne actually witnessed the actin f ne individual r f a crpratin hw culd a business put any faith in it? This f curse caused quite a stir and in rapid fashin, the curts ruled this signature carried the same validity as if the parties were standing in the rm tgether. With this, the fax became standard perating prcedure wrldwide. The curts fund validity in this methd f signature capturing and businesses felt secure in this methd. Many peple did nt realize that the riginal fax paper s ink wuld vanish after a perid and they wuld have t make anther cpy f the fax using a cpier if they wanted t stre it permanently. In additin, many times the quality f the image was pr r barely legible, but understanding the intentin businesses wuld cnsider it signed even if there was nly a partially legible signature. The New Revlutin By using his electrnic signature ID fr signing the "Electrnic Signatures in Glbal and Natinal Cmmerce Act" (ESIGN) n June 30, 2000, President Clintn established the validity f electrnic signatures fr interstate and internatinal cmmerce. The bill prvides Electrnic Signatures the same legal status as handwritten signatures and gives legal validity t electrnic recrds and 2010, SutiSft Inc, All Rights Reserved. Page 1
3 It authrizes businesses t replace paper recrds, such as warranties, cntracts, and ntices, with electrnic recrds regardless f whether the transactin is cnducted nline r ffline and regardless f whether the cnsumer has the equipment and ability t access infrmatin electrnically. Understanding Electrnic Signatures Mst businesses these days use electrnic signatures fr btaining users cnsent r apprval f dcuments nline. Sme f them still have questins like, are these signatures legally binding, secure, acceptable by curt as evidence. Let us first understand what an electrnic signature is. Accrding t ESIGN, an electrnic signature is "an electrnic sund, symbl, r prcess, attached t r lgically assciated with a cntract r ther recrd and executed r adpted by a persn with the intent t sign the recrd. Alng with electrnic signature, authenticatin is als imprtant. Accrding t ESIGN, authenticatin can be defined as evidence that a given recrd, cntract, r frm is a genuine unaltered written representatin f an agreement apprved by tw r mre parties, whether in paper r electrnic frm. The general requirements f electrnic signatures are described belw: The signer must intend the signature t have the same frce and effect as a signature affixed by hand. The signature must be unique t the persn using it. The signature must be verifiable as belnging t the user. The signature must be under the sle cntrl f the persn using it. The signature must be attached r linked t the dcument in a way that authenticates the integrity f the electrnic signature and dcument cntents. Scanned cpies f manually signed signature / initials r dynamically generated using an electrnic signature slutin are the mst suitable and can be used t sign any dcuments 2010, SutiSft Inc, All Rights Reserved. Page 2
4 Signatures created using an electrnic signature apprval slutin ensures that the signature is accessible nly after users lgin t their accunt. All the transactins in the slutin are secured with 128-bit encryptin. The signature cannt be mdified by any anther user f the slutin. Whenever signers electrnic signature is required, ntificatins are sent infrming them that they t electrnically sign the dcument and give their cnsent / apprval. N cmpany can frce its custmers t participate in any electrnic transactin against their will. Custmer has the ptin t withdraw at any pint f time. After the signing and apprval prcess is cmplete, anther ntificatin is als sent t the signers that they have just signed a dcument electrnically. After signing a dcument using an electrnic signature slutin, the signer / sender d nt have t keep track f the signed dcuments manually. The signed dcument is autmatically stred in the signers and senders accunt fr any future reference. This imprves cmpliance t ESIGN. Electrnically signed dcuments are encrypted befre sending t next signer r string in the users accunt / internal repsitry r an external transactin pint s ensure there is n tampering f the signature and the dcument. Multi-factr authenticatin can be enfrced when user requests t view the dcument. As per the law - a signature, cntract, r ther recrd relating t such transactin may nt be denied legal effect, validity, r enfrceability slely because it is in electrnic frm. This means electrnic signatures have the same the same legal effect as wet-signatures. Whenever any transactin is carried ut n a dcument, the transactin details are embedded in the dcument. These transactin details are reprducible and act as audit trails. These audit trails can be presented in the curt f law as evidence in case f any fraud r 2010, SutiSft Inc, All Rights Reserved. Page 3
5 Abut SutiSign SutiSign is an easy t use web based slutin (SaaS)/Enterprise that autmates the dcument apprval prcess. Users can prepare dcuments, add custm data fields, define the apprval rder, add signers, and submit fr apprval. Ntificatins are sent t signers infrming them abut new / pending dcuments fr apprval. Dcuments are signed based n the apprval rder defined. Cmpleted dcuments can be stred in the users & signers accunt fr further reference. Unique Features SutiSign prvides unique features such as: Wizards that enable faster creatin f templates and requests, a Step dcument creatin prcess, multiple dcuments, bimetric authenticatin, LDAP/AD integratin, a built-in library f custm data fields, acceptance mdes, transactin pint integratin, seamless integratin with ther slutins, smartphne cmpatibility, and custmizable reprts that make the dcument apprval prcess simpler and mre efficient. It cmpletely caters t the needs f cmpanies lking fr a slutin t autmate their dcument apprval prcess. 1. Understanding Electrnic Signature, a CIC White Paper 2. E-Sign Legislatin, an article n 2010, SutiSft Inc, All Rights Reserved. Page 4
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