What is an Electronic Seal?

An electronic seal, or “eSeal,” is the digital counterpart of a traditional seal or stamp. It is used to verify and secure electronic data. The eIDAS regulation defines an eSeal as “data in electronic form, which is attached to or logically associated with other data in electronic form to ensure the latter’s origin and integrity.”

Types of electronic seals

There are two types of eSeals:

Advanced electronic seal

An advanced eSeal, although offers a lower level of security, can detect any changes to an electronic document after sealing. It is generated in a Hardware Security Module (HSM) using the creator’s private key. The seal is uniquely linked to the creator and the data, ensuring a substantial level of integrity.

Qualified electronic seal

A qualified eSeal holds the highest level of recognition and security. It is created using a Qualified Seal Creation Device (QSCD) which complies with advanced security protocols and regulations to ensure authenticity and integrity. The seal also requires a certificate issued by a qualified trust service provider to verify its authenticity.

How electronic seals work

The following processes are involved in the creation and verification of eSeals:

• Preparing the document: The electronic document or data that requires sealing is finalised. It can be in any form, such as a Word document or PDF file.
• Creating the seal: Hashing algorithms are applied to generate a unique string of the content. A certified HSM and a digital certificate are used to create a seal that uniquely identifies the issuer. A private and public key pair is generated.
• Applying the seal: The legal entity or individual responsible for sealing the data uses specialised software to embed the seal. The seal can be represented by an image or a logo, for example.
• Authenticating the seal: The private key generated links the data with the creator of the document. It is created according to the document’s content, ensuring its authenticity.
• Adding a timestamp: The timestamp records the time and date of sealing for legal purposes and to prevent backdating.                
• Distributing the document: The sealed document is then sent to the intended party.
• Verifying the seal: The recipient uses the public key to verify the seal. If the document has not been modified and derives from a genuine source it can be seen as valid.

Electronic seal vs electronic signature

The primary differentiating factors between eSeals and eSignatures are:

Users

An electronic seal can only be used by a legal person or entity, while an electronic signature can be used by a natural individual or entity.

Intent

An eSeal guarantees the document’s origin and the validity of its content, while an eSignature verifies the identity of the signatory and shows their commitment to the content.

Creation

Electronic seal application can be manual or automated, streamlining company operations. An electronic signature, however, requires direct action and verification.

Uses

Electronic seals can be used in the following scenarios:

Sealing documents

Electronic seals validate contracts and other legal documents, such as court orders, wills and power of attorney forms. These sealed documents are considered legally binding and secure.

Authenticating products

An eSeal can validate the origin and legitimacy of digital or tangible products. It is also used in digital transactions to certify the integrity and validity of the associated data.

Notary services

Electronic notaries use eSeals to offer digital notary services and authenticate documents, saving time and costs.

Corporate identity

Electronic seals are commonly used to establish the brand of a corporation and represent its identity in online transactions. These seals often include the company logo or emblem.

Bulk signing

A major reason to use eSeals in place of eSignatures is that the signing process is scalable, suitable for verifying large volumes of documents at a time.

Legal status of an electronic seal

The legal status of electronic seals depends on the jurisdiction. According to the UK and EU eIDAS regulations, electronic seals can be used as evidence that the issuer of a digital document is a legal person and its origin and integrity are secured. The ESIGN Act establishes the legal structure for using electronic signatures and seals in the US.

It is important to note that the recognition and approval of electronic seals relies on several factors. They must meet the standard regulatory requirements and offer a high level of security to hold legal precedence.

*Disclaimer: This content does not constitute legal advice. The suitability, enforceability or admissibility of electronic documents will likely depend on many factors such as the country or state where you operate, the country or state where the electronic document will be distributed as well as the type of electronic document involved. Appropriate legal counsel should be consulted to analyze any potential legal implications and questions related to the use of electronic documents.