a. Electronic Documents, Data Messages, and Signatures

1. Legal Recognition of Electronic Data Messages, Documents, andSignatures

SECTION 8. Legal Recognition of Electronic Signatures.¹ — An electronic signature on the electronic document shall be equivalent to the signature of a person on a written document if the signature is an electronic signature and proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document, existed under which —

a.) A method is used to identify the party sought to be bound and to indicate said party’s access to the electronic document necessary for his consent or approval through the electronic signature;

b.) Said method is reliable and appropriate for the purpose for which the electronic document was generated or communicated, in the light of all circumstances, including any relevant agreement;

c.) It is necessary for the party sought to be bound, in order to proceed further with the transaction, to have executed or provided the electronic signature; and

d.) The other party is authorized and enabled to verify the electronic signature and to make the decision to proceed with the transaction authenticated by the same.

SECTION 9. Presumption Relating to Electronic Signatures.² — In any proceedings involving an electronic signature, it shall be presumed that,

a.) The electronic signature is the signature of the person to whom it correlates; and

b.) The electronic signature was affixed by that person with the intention of signing or approving the electronic document unless the person relying on the electronically signed electronic document knows or has notice of defects in or unreliability of the signature or reliance on the electronic signature is not reasonable under the circumstances.

SECTION 10. Original Documents.³ — (1) Where the law requires information to be presented or retained in its original form, that requirement is met by an electronic data message or electronic document if:

(a) the integrity of the information from the time when it was first generated in its final form, as an electronic data message or electronic document is shown by evidence aliunde or otherwise; and

(b) where it is required that information be presented, that the information is capable of being displayed to the person to whom it is to be presented.

(2) Paragraph (1) applies whether the requirement therein is in the form of an obligation or whether the law simply provides consequences for the information not being presented or retained in its original form.

(3) For the purposes of subparagraph (a) of paragraph (1):

(a) the criteria for assessing integrity shall be whether the information has remained complete and unaltered, apart from the addition of any endorsement and any change which arises in the normal course of communication, storage and display; and

(b) the standard of reliability required shall be assessed in the light of the purpose for which the information was generated and in the light of all the relevant circumstances.

SECTION 11. Authentication of Electronic Data Messages and Electronic Documents.⁴ — RA 8792’s interim authentication provision stated that, until the Supreme Court provided otherwise by appropriate rules, electronic documents, electronic data messages and electronic signatures shall be authenticated by demonstrating, substantiating and validating a claimed identity of a user, device, or another entity in an information or communication system, among other ways, as follows:

(a) The electronic signature shall be authenticated by proof that a letter, character, number or other symbol in electronic form representing the persons named in and attached to or logically associated with an electronic data message, electronic document, or that the appropriate methodology or security procedures, when applicable, were employed or adopted by a person and executed or adopted by such person, with the intention of authenticating or approving an electronic data message or electronic document;

(b) The electronic data message or electronic document shall be authenticated by proof that an appropriate security procedure, when applicable was adopted and employed for the purpose of verifying the originator of an electronic data message or electronic document, or detecting error or alteration in the communication, content or storage of an electronic document or electronic data message from a specific point, which, using algorithm or codes, identifying words or numbers, encryptions, answers back or acknowledgment procedures, or similar security devices.

The Supreme Court may adopt such other authentication procedures, including the use of electronic notarization systems as necessary and advisable, as well as the certificate of authentication on printed or hard copies of the electronic documents or electronic data messages by electronic notaries, service providers and other duly recognized or appointed certification authorities.

The person seeking to introduce an electronic data message or electronic document in any legal proceeding has the burden of proving its authenticity by evidence capable of supporting a finding that the electronic data message or electronic document is what the person claims it to be.

In the absence of evidence to the contrary, the integrity of the information and communication system in which an electronic data message or electronic document is recorded or stored may be established in any legal proceeding —

(a) By evidence that at all material times the information and communication system or other similar device was operating in a manner that did not affect the integrity of the electronic data message or electronic document, and there are no other reasonable grounds to doubt the integrity of the information and communication system;

(b) By showing that the electronic data message or electronic document was recorded or stored by a party to the proceedings who is adverse in interest to the party using it; or

(c) By showing that the electronic data message or electronic document was recorded or stored in the usual and ordinary course of business by a person who is not a party to the proceedings and who did not act under the control of the party using the record.

Authentication in court is now governed by the Rules on Electronic Evidence (A.M. No. 01-7-01-SC), particularly Rules 5 and 6.

Electronic Data Messages

It refers to information generated, sent, received or stored by electronic, optical or similar means [Sec. 5]⁵.

Electronic Document

It refers to information or the representation of information, data, figures, symbols or other modes of written expression, described or however represented, by which a right is established or an obligation extinguished, or by which a fact may be proved and affirmed, which is received, recorded, transmitted, stored, processed, retrieved or produced electronically [Sec. 5]⁶.

Electronic Signature

It refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document [Sec. 5]⁷.

Legal Recognition of Electronic Data Messages

Information shall not be denied legal effect, validity or enforceability solely on the grounds that it is in the data message purporting to give rise to such legal effect, or that it is merely referred to in that electronic data message [Sec. 6]⁸.

Legal Recognition of Electronic Documents

Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing [Sec. 7]⁹.

Where the law requires a document to be in writing, that requirement is met if the electronic document maintains its integrity and reliability and can be authenticated so as to be usable for subsequent reference. This applies whether the writing requirement is imposed as an obligation or the law provides consequences for the document not being presented or retained in its original form [Sec. 7(a)–(b)], in that:

• The electronic document has remained complete and unaltered
• Apart from: Any endorsement and any authorized change, or any change which arises in the normal course of communication, storage and display.
• The electronic document is reliable in the light of the purpose for which it was generated and in the light of all relevant circumstances [Sec. 7].

Where the law requires that a document be presented or retained in its original form, that requirement is met by an electronic document if:

• There exists a reliable assurance as to the integrity of the document from the time when it was first generated in its final form; and
• That document is capable of being displayed to the person to whom it is to be presented: Provided, that no provision of this Act shall apply to vary any and all requirements of existing laws on formalities required in the execution of documents for their validity.

For evidentiary purposes, an electronic document shall be the functional equivalent of a written document under existing laws.

This Act does not modify any statutory rule relating to the admissibility of electronic data messages or electronic documents, except the rules relating to authentication and best evidence.

Legal Recognition of Electronic Signatures

An electronic signature on the electronic document shall be equivalent to the signature of a person on a written document if that signature is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document, existed under which [Sec. 8]¹⁰:

• A method is used to identify the party sought to be bound and to indicate said party's access to the electronic document necessary for his consent or approval through the electronic signature;
• Said method is reliable and appropriate for the purpose for which the electronic document was generated or communicated, in the light of all circumstances, including any relevant agreement;
• It is necessary for the party sought to be bound, in or order to proceed further with the transaction, to have executed or provided the electronic signature; and
• The other party is authorized and enabled to verify the electronic signature and to make the decision to proceed with the transaction authenticated by the same.

A digital signature is an electronic signature using an asymmetric or public-key cryptosystem for authentication [Bagumbayan-Vnp Movement, Inc. v. COMELEC, G.R. No. 206719, 10 April 2019]¹¹.

Original Documents

Under Sec. 10, where the law requires information to be presented or retained in its original form, that requirement is met by an electronic data message or electronic document if the conditions below are satisfied. This applies whether the requirement is an obligation or the law provides consequences for noncompliance. The writing requirement is addressed separately under Sec. 7.¹²

• The integrity of the information from the time when it was first generated in its final form, as an electronic data message or electronic document is shown by evidence aliunde or otherwise; and
• Criteria for assessing integrity - whether the information has remained complete and unaltered, apart from the addition of any endorsement and any change which arises in the normal course of communication, storage and display
• Standard of reliability - assessed in the light of purposes for which the information was generated and in the light of all the relevant circumstances.
• Where it is required that information be presented, that the information is capable of being displayed to the person to whom it is to be presented.

Authentication of Electronic Data Messages and Electronic Documents

Now governed by: A.M. No. 01-7-10-SC¹³ – RULES ON ELECTRONIC EVIDENCE

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 [Sec. 2, Rules on Electronic Evidence¹⁴].

Note: The terms electronic data message and electronic document, as defined under the Electronic Commerce Act of 2000¹⁵, do not include ordinary fax-machine-to-fax-machine transmissions.

Accordingly, an ordinary fax-machine-to-fax-machine transmission cannot be considered as electronic evidence. Its admissibility, including any issue concerning the original, is assessed under the ordinary Rules on Evidence and the Original Document Rule (Rule 130, Secs. 3–4). Since an ordinary fax-machine-to-fax-machine transmission is not an electronic data message or an electronic document and cannot be considered as electronic evidence by the Court, with greater reason is a photocopy of such a fax transmission not electronic evidence. In the present case, therefore, Pro Forma Invoice Nos. ST2-POSTS0401-1 and ST2-POSTS0401-2, which are mere photocopies of the original fax transmittals, are not electronic evidence [MCC Industrial Sales Corporation v. Ssangyong Corporation, G.R. No. 170633, 17 October 2007]¹⁶.