The Mediterranean Sea And Cyberspace.
                   Standing On The Threshold!


Early  Greeks,  Phoenicians  and  Egyptians  conducted  extensive
commerce  in  the  Mediterranean Sea.   Initially  undertaken  by
adventuresome  risk  takers, the activity expanded  to  become  a
dominant economic force in the region.

As  maritime activity expanded, various tribunals were set up  in
Mediterranean port towns to determine disputes arising among  the
seafarers.   After  some time had passed, the  tribunal  activity
eventually led to a codification of the customary rules by  which
various  courts  became  bound.   This  body  of  law,  known  as
admiralty law, governed the legal relationships arising from  the
transportation of cargo and passengers on the high seas and other
navigable waters.

At this point, "So what!" is probably an expression which crosses
your  mind.   But reflect for a moment.  Just as early  travelers
stood at the edge of the Mediterranean Sea and pondered the rules
and  principles which might govern their travel on that  body  of
water, so we now stand at the edge of cyberspace and wonder  what
rules and principles will guide our travels through the Internet.

Legislation   has  been  introduced  in  Congress   recently   to
permanently  ban new Internet sales taxes.  The Chairman  of  the
National Governors' Association, however, argues against the ban.
He  observes  "it's  fundamentally bad tax policy  to  treat  one
method  of selling different from another.  The Internet  doesn't
need  any  special privileges."  It is said that state and  local
governmental officials fear that a growing Internet economy  will
erode  the  tax  revenues  that has  sustained  basic  government
services, such as schools, roads and highways.

According to Washington Technology, a business newspaper directed
toward governmental concerns, state and local governments lost an
estimated  $170,000,000 in potential sales taxes in  1998.   This
amount,  however, is equivalent to only one-tenth of one  percent
of  total  sales  in use taxes collected by all state  and  local
governments.   As  consumers flock to  tax-free  online  business
activity, this amount will undoubtedly increase exponentially.

The  issue  of  sales  tax  is not the only  problem  confronting
consumers  and  governments as we began our early  sojourn   into
cyberspace.  The St. Louis Galleria, according to the Wall Street
Journal, recently informed its 170 retail tenants of a new policy
prohibiting  any  in  store "signs, insignias,  decals  or  other
advertising  or display devices which promote and  encourage  the
purchase of merchandise via e-commerce."

Since  mall tenants pay percentage rental in addition to  a  base
amount  of  rent, the Galleria landlord expressed a concern  that
"if  a sale is rung up on the Internet, then it's not rung up  in
the  store . . . and conceivably the retailer could charge online
returns against store sales."  Although it is reported that  some
retailers have complied with the policy, most tenants continue to
promote their website.

Internet  related  disputes  are on  the  rise.   Lawyers  gather
together  to  discuss  problems such as  security  and  potential
liability  of  conducting business over  the  Internet,  laws  on
privacy  and  cyberspace,  and  whether  a  website  subjects  an
individual  or  company  to  jurisdiction  in  other  states   or
countries.

Just  as  sailors  in ancient times struggled to reach  consensus
regarding the rules of travel on the high seas, we too now  stand
at  the  edge of cyberspace and find ourselves challenged by  the
multitude of issues presented by cyberspace commerce.

[This column is intended to provide general information only  and
is  not intended to provide specific legal advice; if you have  a
specific  question  regarding the  law,  you  should  contact  an
attorney  of your choice.  Suggestions for topics to be discussed
in this column are welcome.]


Reprinted from New Era Magazine
Myles M. Mattenson © 2000-2002