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Have to say I had the same idea couple month ago (wanted to call it RapidSignature) and was researching. Because this is so simple to program and there are plenty of competitors - some like HelloFax give you this feature for free, others like SignNow (really awesome), I gave up. Further, I think they are misleading customers saying its legally binded signature. It can't be. If you sign someones document and they copy and paste it to some other document, you can't prove you haven't signed it. OR they may not prove you signed it. Anyhow, without your hand written "blue pen" signature, anything else is a photocopy that can be cut and paste and xeroxed.

If they are compliant with ESIGN then there is no reason it's not legally binding.

http://www.echosign.com/public/static/faq.jsp#five

http://en.wikipedia.org/wiki/Esign

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