The digitization of previously paper contracts and documents brings with it a number of advantages – our entire application is based on this basic fact. At the same time, however, it is necessary to take into account the new systematic and security measures, without which the whole endeavor would not be possible. Today we will introduce you to the platform known as a “durable medium”.
A durable medium is a tool that allows data to be stored in such a way that it can be made available in the shortest possible time and can be restored and reproduced at any time.
So how must companies and individuals today access their documents that are (no longer) in paper form?
Problems with the durable medium
Various regulatory provisions of the European Union require the company to provide the client with a certain amount of information in writing – either on paper or on another (durable) medium. By definition, however, EU provisions also allow the use of web applications…
Specifically, the term “durable medium” is officially defined in the glossary of the handbook on the implementation of the requirements of EU legislation. The UK Financial Conduct Authority (FCA), which operates independently of the UK Government and is funded through fees from members of the financial services industry, has also been heavily involved in the current regulation of this environment. The FCA regulates financial service firms and maintains the integrity of financial markets in the United Kingdom.
This body presented a document aimed at smarter communication directly connected with consumer communications – and it stimulated feedback from businesses on what could meet the definition of a durable medium. At the same time, of course, it generated a heated debate over whether companies should use new innovative media to manage their entire contractual documentation. In addition, a fact came to the surface, the presence of which had long hung in the air. The EU rules in question are now obsolete and do not reflect the current online environment.
However, it is essential that companies understand their responsibilities when using non-paper methods of communication… So what do we do?
What conditions must be met for a medium to be classified as “durable”?
Information and data can be delivered directly to their recipient, allowing the recipient to store the information in a way that allows its future use, even in the long term.
Allows the reproduction of stored information in an unaltered form.
Can output from a desktop or mobile application be a durable medium?
The format of mobile, tablet, and desktop applications definitely allows direct addressing, data storage management, and reproduction in unaltered form. The output of such an application itself can certainly be regarded as a valid document by law, and the application itself thus actually becomes a durable medium.
Of course, these criteria can also be met through an interactive website. For example; clients can log in to their workspace using a secure platform that gives them access to their documents. Therefore, even a web application can be regarded as a durable medium. The login is unique, the data is stored there (and of course properly encrypted and secured) and their further reproduction is obviously possible.
Of course, we can also consider a PDF document as a durable medium. It is an electronic format that can be clearly addressed, stored, and permits unchanged reproduction.
From this point of view, Signi is thus a completely equivalent medium to classic paper contracts and documents. Honestly though, putting our hands to our hearts, tools that permit the preparation and conclusion of contracts on a single device or the complete overview and ability to update your entire contractual documentation anytime and from anywhere give us quite the edge, don’t you agree?