Technology-Property - Back to the Future of Digital Ink

The use of electronic signatures has become increasingly common in today's digital age, with many transactions now occurring virtually rather than in person. This shift was accelerated by the COVID-19 pandemic, which made in-person meetings challenging and led to the widespread adoption of e-signatures for legal and commercial transactions. The Uniform Electronic Transaction Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-SIGN) played significant roles in legitimizing electronic records and signatures, ensuring they cannot be denied legal effect simply because they are in electronic form. New York implemented its own Electronic Signatures and Records Act (ESRA), which allows for electronic records with specific exceptions, particularly in estate planning and health care directives.

As digital transactions became the norm, the distinction between electronic records and digital signatures became crucial. Electronic records are simply documents saved in digital formats like PDF or Word, but for them to be legally binding, there must be verification, similar to how ink signatures require witnessing. Digital signatures, however, go a step further by embedding specific signer information within the document, making it more secure and difficult to alter. These signatures capture details such as the time and place of signing, device used, and, in some cases, even use blockchain technology for enhanced security and traceability.

The adoption of eSignature platforms offers numerous benefits, including saving time and money by eliminating the need for in-person signings, reducing the risk of fraud, and ensuring that documents cannot be altered after signing. These platforms provide a full audit trail, allowing for the verification of the signer’s identity and authority. As a result, they have become a reliable and efficient way to manage legal documents and transactions, even across international borders.

When choosing an eSignature platform, several factors should be considered, including cost, ease of use, functionality, integration with existing systems, security, and compliance. It is also essential to assess the platform’s ability to handle identity verification, provide audit trails, and offer scalable management features. The ongoing evolution of eSignature technology, including the potential for blockchain integration, suggests that digital signatures will continue to play a vital role in the future of global commerce, replacing traditional ink signatures in many areas.

For more information see Seth Rowland "Technology-Property - Back to the Future of Digital Ink" ABA Probate & Property July/August 2024 Edition, July 1, 2024.