The world of contracting has evolved significantly over time. Gone are the days of paper contracts signed with wet ink. Businesses and individuals have now come to expect and rely on digital contracts and electronic signatures.
Regulation follows in the wake of innovation. In recent decades, regulations like ESIGN, UETA, and eIDAS have been enacted around the globe. These regulations can be difficult to pronounce, let alone understand, so we’ve done the leg work for you. Read on and we’ll cut through the confusion.
A counterpart to US-based regulations like ESIGN and UETA, eIDAS regulates electronic signatures and transactions for safe business conduct online in the European Union.
What is eIDAS?
Regulation (EU) N°910/2014, or eIDAS, came into effect in 2016 and replaced a previous eSignature directive. It ensures that digital transactions are legally valid and secure, and that they can be used across borders within the EU with the same level of trust as traditional paper-based transactions.
What are the types of electronic signatures defined by eIDAS?
eIDAS defines three types of electronic signatures - Simple Electronic signature, Advanced Electronic Signature, and Qualified Electronic signature. eIDAS ensures that each form of electronic signature is admissible as evidence in EU courts and shall not be denied legal effect solely because it is in electronic form.
- Simple electronic signature covers all electronic signatures, “including any data in electronic form which is attached to or logically associated with other data in electronic form and which is used by the signatory to sign”.
- Advanced electronic signature is a type of electronic signature that is also
- Uniquely linked to and capable of identifying the signatory
- Created in a way that allows the signatory to retain control
- Linked to the document in a way that any subsequent change of the data is detectable
- Qualified electronic signature is an advanced electronic signature that is also
- Based on a qualified certificate for electronic signatures. The certificate must be issued by a trust service provider on the EU Trusted List.
- Created by a qualified signature creation device (QSCD) that complies with the requirements outlined in the eIDAS regulation.
Qualified electronic signatures include the verification of the signer’s identity, which could include authenticating each signer’s identity via a mobile app, a username/password combo, a video call where the signer must present a driver’s license or other government ID.
LinkSquares Sign Functionality and eIDAS
LinkSquares Sign is designed to meet eIDAS requirements for both Simple Electronic Signatures and Advanced Electronic Signatures, as defined under eIDAS, with the following functionality.
To meet requirements for Simple Electronic Signature in LinkSquares Sign:
- All signatories must click through to agree to the use of electronic signatures prior to applying their electronic signatures
- The agreement to accept digital signatures is recorded in the LinkSquares Finalize Activity log and the Signature History PDF
- All signers must add an electronic signature to the document by drawing, typing, or uploading a file. They receive an error message if they have not signed.
The most commonly used technology to meet the requirements for an Advanced Electronic Signature is use of a Public Key Infrastructure (PKI), which involves the use of certificates and cryptographic keys. LinkSquares Sign uses Public Key Infrastructure. With this process
- The digital signature contains a unique Signature Request ID that can be mapped back to the Agreement ID and individual signers
- Once a PDF is digitally signed, the digital signature is embedded within the PDF. The digital certificate contains a unique Signature request ID that can be mapped back to the Document ID and each unique signatory.
- Once an agreement is Fully Signed:
- The PDF is encrypted and LinkSquares Sign applies a digital signature to the PDF. Should the document be altered, the activity is recorded in the metadata of the PDF and the digital signature is invalidated.
- The audit log documenting the signing process is also digitally signed. If a document were to be altered, the activity is recorded in the metadata of the PDF and the digital signature is invalidated.
- All recipients receive a fully signed copy of the agreement, as well as the Signature History PDF
LinkSquares Sign does not, at this time, support Qualified electronic signatures.
While no specific type of electronic signature is legally required for the majority of business and consumer transactions in the EU, some transactions may require specific types of electronic signatures, and you should always refer to laws in your jurisdiction regarding your specific eSignature use case.
LinkSquares Sign — natively integrated into the LinkSquares platform — is built with security, compliance, and enforceability in mind. When you use LinkSquares Sign, you can rest assured knowing that you're complying with best practices for electronic signatures and records. Contact us today to learn more.
The information on this page is not legal advice, and you should consult an attorney to obtain legal advice with respect to the laws referenced in this article, or any other eSignature laws.
