The legal landscape in the Philippines can be challenging, especially when it comes to ensuring compliance with digital tools like electronic signatures. For businesses and law firms, making sure that digital signatures meet the requirements of the law—specifically the E-Commerce Act and the Rules on Electronic Evidence—can be a time-consuming and complex process. Understanding these requirements is crucial for ensuring that digital signatures are legally valid and admissible in court.
Understanding Legal Requirements for Digital Signatures
In the Philippines, the use of digital signatures is regulated by the Electronic Commerce Act of 2000 (Republic Act No. 8792) and further supported by the Rules on Electronic Evidence. Here’s a short and simple breakdown of these requirements:
E-Commerce Act (Republic Act No. 8792): This law recognizes the validity of electronic documents and signatures. Under section 8, it allows digital signatures to have the same legal standing as handwritten signatures, as long as they meet certain conditions. The law requires that digital signatures be unique to the signer, capable of identifying the signer, and created in a way that ensures the signer’s control over the data.
Rules on Electronic Evidence: For digital signatures to be admissible as evidence in legal proceedings, they must comply with the Rules on Electronic Evidence. This means the digital signature must be proven to be linked to the person who signed it and to the document itself. Any tampering or alteration must be detectable, ensuring the integrity of the signed document.
Ensuring Compliance for Digital Signatures
To ensure that digital signatures comply with these laws and are admissible in court, businesses and law firms must follow certain steps:
- Use a Secure Digital Signature Platform - Not all digital signature tools are created equal. It is important to use a platform that meets the standards set by the E-Commerce Act and the Rules on Electronic Evidence. This includes features like encryption, secure access controls, and audit trails to prove the authenticity and integrity of the signatures.
- Ensure Proper Authentication - Digital signatures must be linked to the identity of the signer. This can be done through various methods, such as using passwords, biometrics, or digital certificates. Proper authentication helps verify that the person signing the document is indeed who they claim to be.
- Maintain Document Integrity - The platform should ensure that any signed document cannot be altered without detection. This is critical for maintaining the legal validity of the signature and the document.
- Keep a Detailed Audit Trail - An audit trail is a record of all actions taken during the signing process, including who signed, when they signed, and what changes were made. This serves as crucial evidence in case the authenticity of the digital signature is challenged.
Below is a summary of the relevant rules and how Twala-signed documents squarely address them:
Presenting Electronic Documents in Court (REE)
Requirement
1. Must be an original copy. An electronic document shall be regarded as the equivalent of an original document “if it is a printout or output readable by sight or other means, shown to reflect the data accurately.” (Rule 4, Section 1)
How Twala Addresses the Requirement
When a user signs a document in Twala, the document is first hashed using a secure cryptographic algorithm, creating a unique and irreversible fingerprint of the document. This hash is then signed using the user’s private cryptographic key, which is securely stored on Twala’s servers or the user’s device. This process creates a digital signature that is unique to the user and the document. This transaction is then recorded in multiple blockchain networks, ensuring that the original document is complete, unalterable, and tamper-proof.
Twala-signed documents are readable by sight using a PDF viewer on any computer or mobile device. It includes a statement that it has been digitally signed, and contains a document universal unique identifier (UUID), a QR code containing the signer’s digital ID, a QR code for document verification, and a comprehensive audit trail that includes:
- Name of the signer/s
- The digital ID of the signer/s
- Email of the signer/s
- ID information such as type of ID and ID number if required by the document owner
- Digital timestamp of transactions related to the document/s (e.g. when the document has been sent, viewed, and signed).
If needed, the original electronic document may also be printed out and will bear all the information above and reflect the data in the document accurately.
Requirement
1.b Duplicate originals allowed. When a document is “in two or more copies executed at or about the same time with identical contents, or is a counterpart produced by the same impression as the original, or from the same matrix, or by mechanical or electronic re-recording, or by chemical reproduction, or by other equivalent techniques which accurately reproduces the original, such copies or duplicates shall be regarded as the equivalent of the original.” (Rule 4, Section 2)
How Twala Addresses the Requirement
Once a document is signed and completed using Twala, copies of the electronic document are emailed to the owner of the document, all the signers, as well as other recipients identified by the document owner. All these copies are actually originals in themselves as these are exactly the same.
But these too fall squarely within the definition of duplicate originals under this Section, as these documents are executed at the same time with identical contents.
Either way, the legal effect is the same – that these electronic documents are all regarded as original.
Requirement
2. Document must be authenticated.
Before any private electronic document offered as authentic is received in evidence, its authenticity must be proved by any of the following means:
- by evidence that it had been digitally signed by the person purported to have signed the same;
- by evidence that other appropriate security procedures or devices as may be authorized by the Supreme Court or by law for authentication of electronic documents were applied to the document; or
- by other evidence showing its integrity and reliability to the satisfaction of the Judge. (Rule 5, Section 2)
How Twala Addresses the Requirement
For a party intending to authenticate a Twala-processed document, s/he must only present the original electronic document (the PDF or, if required, a print-out of the same). The document includes a statement that it has been digitally or securely e-signed, and an audit trail that records the data of the signers and the document -- their digital ID, e-mail, mobile number, ID submitted during the sign-up process, IP address, geolocation, and digital timestamp.
Twala’s electronic signature complies with the standards provided by the rules. Twala also provides an easy method for the Judge to easily check -- in real-time -- the integrity and reliability of the document, as follows:
- Its digital signature uses a public cryptosystem that ensures the transformation of the electronic document can be done only by using the signer’s private key that corresponds to his/her public key. It also provides an accessible way to verify whether the document has been altered or tampered with after the transformation was made, i.e. by uploading the signed document on Twala’s verification page, or directly through the blockchain by using Twala’s command line interface (CLI) verification system.
- Its secure electronic signature uses the same blockchain technology, identification and security procedures, and verification processes as the digital signature, except that the signer is not assigned a private key, a cryptographic digital seal is used instead. These security measures ensure the integrity and reliability of the electronic document, which can easily be verified by any person having access to the document itself.
Requirement
3. Signature must be authenticated.
An electronic signature may be authenticated in any of the following ways:
- By evidence that a method or process was utilized to establish a digital signature and verify the same;
- By any other means provided by law; or
- By any other means satisfactory to the judge as establishing the genuineness of the electronic signature. (Rule 6, Section 2)
How Twala Addresses the Requirement
For a party intending to authenticate a digital or secure electronic signature, s/he must only present the original electronic document (the PDF or, if required, a print-out of the same). This serves as evidence that the document underwent a process to establish a digital signature or electronic signature, as follows:
- A Twala-signed document includes a statement that it has been digitally or securely e-signed, and an audit trail that records the relevant data of the signers and the document -- their digital ID, e-mail, mobile number, ID submitted during the sign-up process, IP address, geolocation, and digital timestamp.
- Twala provides an accessible way to verify whether the document has been altered or tampered with after the transformation was made, i.e. by uploading the signed document on Twala’s verification page, or directly through the blockchain by using Twala’s command line interface (CLI) verification system. This provides a way to satisfactorily establish the genuineness of the electronic signature used.
- For documents securely e-signed using Twala, we refer to Section 11 of the ECA, which identifies the means to authenticate electronic documents and electronic signatures. As mentioned above, secure electronic signature uses the same blockchain technology, identification and security procedures, and verification processes as the digital signature, except that the signer is not assigned a private key. A cryptographic digital seal is used instead. This methodology ensures that the person signing had the intention of authenticating or approving the electronic document, and that a security procedure is in place to verify the originator of said document.
Requirement
4. Method of proof in court.
“All matters relating to the admissibility and evidentiary weight of an electronic document may be established by an affidavit stating facts of direct personal knowledge of the affiant or based on authentic records. The affidavit must affirmatively show the competence of the affiant to testify on the matters contained therein.”
(Rule 9, Section 1)
How Twala Addresses the Requirement
The party intending to present in evidence a document that is digitally signed or securely e-signed, in the context of a court proceeding, must:
- Produce the original electronic document (the PDF or, if required, a print-out of the same, including the audit trail), and
- Ensure that a person who has personal knowledge of the preparation, signing, transmission, and/or receipt of the document executes an affidavit showing his/her competence in testifying on the matters contained in the document. As a guide in preparing said affidavit, the affiant may simply refer to, affirm, and attest the truth of the audit trail’s contents, and declare that said affidavit is being made to comply with the requirements of the REE.
Requirement
5. When authentication is not required.
A document electronically notarized in accordance with the rules promulgated by the Supreme Court (SC) shall be considered as a public document and proved as a notarial document under the Rules of Court. (Rule 5, Section 3)
How Twala Addresses the Requirement
The SC has yet to operationalize electronic notarization.
Note that the ECA gave the SC the option to “adopt such other authentication procedures, including the use of electronic notarization systems as necessary and advisable.”
Firms and lawyers in the Philippines can leverage Twala to tackle the complexities of legal compliance for digital signatures by using its secure, tamper-proof platform designed to comply with the Electronic Commerce Act and the Rules on Electronic Evidence. Twala ensures digital signatures are legally valid and admissible by providing strong authentication, tamper detection, and comprehensive audit trails, which are crucial for proving document integrity in legal disputes. Its enhanced security features protect sensitive data, while its streamlined process saves time and builds client trust by offering a reliable and compliant digital solution for managing legal documents.
Interested in how Twala ensures compliance with legal standards for electronic documents and digital signatures? Explore all the details in our Legal White Paper.
References:
Republic Act No. 8792 (Electronic Commerce Act of 2000)
https://lawphil.net/statutes/repacts/ra2000/ra_8792_2000.html
Rules on Electronic Evidence
https://lawphil.net/courts/supreme/am/am_01-7-01_sc_2001.html
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