CM Sign FAQ

The electronic signature is not a new concept. The EC (European Commission) already drafted the e-Signature Directive in 1999. And in The Netherlands the electronic signature law was passed in 2003.

Still this was not enough to stimulate large scale adaptation in Europe. Largely because the legislation could still differ per country. In the United States this was different thanks to the ESIGN ACT.

The new eIDAS (Electronic Identification and Trust Services) regulation brought the necessary change. Since 1 juli 2016 all EU member states are required to follow the same standards

Electronic signatures are legally valid thanks to eIDAS. But what does this mean? Just like traditional signatures, they can now be used as evidence in a courtroom.

But that does not mean they are holy. Both electronic and traditional signatures can be disputed. In that case, it is up to you to prove that the person has really signed.

It is therefore extremely important to record and secure the process of creating the electronic signature. To achieve this, eIDAS describes three tiers of electronic signatures: ‘standard’, advanced and qualified.

Technology Neutral

eIDAS describes electronic signatures without mentioning specific technologies. This was deliberately done to leave room for innovation. The flip side of this is that there may be confusion due to different interpretations. Our advice is to look carefully at the regulations yourself when in doubt.

“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“

Simply entering a check mark, your name or ‘agreed’ on a website can already be an electronic signature. This doesn’t have to resemble like your handwritten scribble in any way.

The big advantage is that this type of signature is very easy to use for the signatory.

The disadvantage is that this type of signature is easy to dispute. It is quite possible that another person has completed the form because their are no checks being done. So the risk of fraud is high.

For this tier, the identity of the signatory must be uniquely linked to the signature.

This can be done by basing the signature on data that only the signatory has at his/her disposal. For example, access to a specific device, phone number or bank account. But other methods are also possible.

Another requirement is that the signature and the associated data are protected against future changes.

In practice, proven techniques are used to achieve this, such as encryption and digital signatures. This makes an advanced electronic signature a well balanced solution that combines easy-of-use, cost and strong legal proof.

Qualified Electronic Signatures are the only exception where eIDAS requires specific technology. Documents must be provided with a certificate issued by a TSP (Trusted Service Provider).

This means that every signatory must first identify themselves with the TSP. This makes the qualified electronic signature very secure, but also too impractical and costly for most applications.

The qualified electronic signature is therefore best applied to agreements of very high value and high potential risk. For example the ownership transfer of real estate.