The past 2 years have seen a rise in the number of companies' embracing e-commerce technologies and the Internet

in India. Most e-commerce sites have been targeted towards the NRI's with Gift delivery services, books, Audio and videocassettes e.t.c.. Major Indian portal sites have also shifted towards ecommerce instead of depending on advertising revenue. The web communities built around these portal sites with content have been effectively targeted to sell everything from event and moues tickets the grocery and computers. The major in this services being Rediff on the net (Welcome to rediff.com) and India plaza with started a shopping section after their highly successful content site generated WEB visitors . Inspite of RBI regulation, low Internet usage e-commerce sites have popped up everywhere hawking things like groceries, bakery items, gifts, books, audio & videocassettes, computer e.t.c. None the major players have been deterred by the low PC penetration and credit card usage in India and have tried to close the success worldwide of online commerce. BPB publication went online selling its complete range of computer books about 2 years ago, it might not have the success of either Amazon.com of Barnes and noble. but they definitely have promised the cause of e-commerce in India with atleast 1 to 5 web sites like Indiabookshop coming online. This is not to say that the e-commerce scenario has been bad in India as highly successful e-business like baba bazaar and India mart have proved. Indian Banks too have been very successful in adapting EC and EDI Technologies to provide customers with real time account status, transfer of funds between current and checking accounts, stop payment facilities. ICICI Bank, Global TRUST BANK AND UTI-Bank also have put their electronic banking over the internet facilities in place for the up coming e-commerce market speed post also plain to clone the federal express story with online package status at any moment in time . The future does look very bright for e-commerce in India with even the stock exchanges coming online providing a online stock portfolio and status with a fifteen minute delay in prices. The day cannot be far when with RBI regulations we will able to see stock transfer and sale over the Net with specialized services like schwab and e*trade. Though with security and encryption being proven Technologies for transfer of funds over the Internet, the Indian Government still has problems with 'Digital signatures' and verification processes over the Internet. This combined with RBI norms and regulations has proved to a major handle for e-commerce even though VSNL India's monopolistic ISP does want to jump on to the electronic transaction bandwagon with the advent of private ISP's and India new and positive attitude towards IT and the prime ministers new 'IT policy " the future is very positive in India for doing commerce with a-e. The Future of E-Commerce What does the future hold for e-commerce? Many would say it is difficult to predict. The forces that determine the web's winners and losers are just taking shape and technological advances could add even more uncertainty. On the downside, some experts predict that it will be increasingly difficult for smaller companies to establish their presence. Public companies and traditional brand name retailers have deep pockets and a name recognition that will make it difficult for smaller sites and mom-and-pop shops to attract customers, thereby forcing them to compete with the big boys. On the Net, it's one big

neighborhood. On the upside, nearly all experts believe that overall e-commerce will increase exponentially in coming years. Business to business transactions will represent the largest revenue. Online retailing will also enjoy a drastic growth. Areas expected to go include financial services, travel, entertainment and groceries. And for those considering opening a virtual storefront, forthcoming technology and standards agreements will make it easier to create a site, to protect it against payment fraud, and to share information with suppliers and business partners.

E-business Today. E-business is potentially worldwide in scope. There are no national or territorial boundaries on the internet. The jurisdictional exposure to uncertain and possibly conflicting laws is great. The ease of access to e-business businesses through the internet coupled with their 24x7 availability presents a strong likelihood that customers from around the world will visit sites. This global exposure and related legal risks associated with the absence of territorial boundaries as well as business hour limitations need to be kept in mind. E-business websites are private property. They may be thought of as a piece of virtual real estate in cyberspace. Because they are positioned in cyberspace there is an implied invitation to visit them. They are intended to be visited. Visitation is encouraged further by advertising. This is one reason why websites need to implement applicable Terms of Use so that customers and visitors are on notice as to the house rules applicable to the websites, their content, services and use. Website Terms of Use have become the principal legal strategy for managing the legal risks associated with e-business or virtual business websites. Another major characteristic of e-commerce business applications is to recognize their dependence on information technology. The risks of computer errors, hackers, computer viruses, denial of service attacks, power outages, computer malfunctions and unplanned downtime need to be appreciated. Security, reliability and scalability are thus very important to e-commerce businesses and promise to become increasingly more important in the years ahead. Cyber security has become increasingly more important as the risks become increasingly more threatening. Another factor is the anonymous nature of the relationship between e-buyers and esellers.

Fraud is much more of a risk in e-business transactions because of the anonymous character of the relationship. There are concerns over possible export control violations, customers being children or other persons who are not competent to enter into a contract with the seller, or being someone using another partys identity or account number. Identity theft has become a major concern. These concerns are more problematic because of the anonymous, virtual relationship that exists in e-business transactions. It is also important to recognize that brand names and branding strategies are much more important in e-business. E-business companies need to recognize the importance of a trust relationship with their customers. Trust has emerged as a critical success factor. It is important to recognize that most e-business applications involve intellectual property considerations. Linking, framing, caching and downloading, for example, all implicate the copyright laws. Access to and use of most of website content also may require copyright analysis. Patent, trademark, domain name and trade secret issues may also need to be considered. The intellectual property analysis should be an integral part of the early planning and design for new e-business applications. E-commerce business models are usually based on the network effect. Network effects arise when the value of the e-business application increases with the addition of each participant. Supply and demand do not have the traditional economic relationship. E-business agreements tend to be short in duration with due regard to rapidly changing market conditions and advancesin technology. Exponential improvements in technology keep occurring year after year. These differences need to be appreciated. E-business transaction data and site usage data are becoming increasingly more valuable. Click-histories and customer data are considered to be very valuable commercially. Likewise, privacy policies and procedures are given more heightened concern in e-business transactions compared to other brick and mortar transactions. The internet is a communications medium. First Amendment issues may arise. Much of e-business is carried out through electronic agreements and electronic communications which implicate some specific legal issues and requirements. Electronic communication and transactions are being carried out at internet speed. The speed of these communications and transactions also needs to be appreciated. There is less time for reflection and more potential for mistakes. Computer software errors and data input errors, for example, may cause serious problems. Finally, the internet affords dramatic possibilities for opening up societies that are relatively insular and closed to the outside world, although that promise remains unfulfilled particularly in countries that block unfettered access to the internet or that control ISPs.32 However, there are many countries that block access to the internet, or regulate the content that may be seen by citizens in their country.33 Efforts to obstruct content stand starkly in the way of the free flow of information and technology that has led new markets to emerge, in part, as new technologies have matured. These are some of the principal characteristics of e-business that make it different. These differences are useful to keep in mind when developing legal risk management strategies for todays e-business applications and tomorrows potential problems.

In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communications technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs. With developments in the Internet and Web-based technologies, distinctions between traditional markets and the global electronic marketplace-such as business capital size, among others-are gradually being narrowed down. The name of the game is strategic positioning, the ability of a company to determine emerging opportunities and utilize the necessary human capital skills (such as intellectual resources) to make the most of these opportunities through an e-business strategy that is simple, workable and practicable within the context of a global information milieu and new economic environment. With its effect of leveling the playing field, e-commerce coupled with the appropriate strategy and policy approach enables small and medium scale enterprises to compete with large and capital-rich businesses.