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Consilience 2010 Internet intermediary liability in India “Beyond Section 79” Apar Gupta  Partner
1. Intermediary Litigation Trends
2. Safe Harbor Provision(s)
3. Courts will go ‘beyond Section 79’
1974
FOREIGN EXCHANGE REGULATION ACT
60%
1977
Exit India
Identifiable Patterns
ONElegal uncertainty risks
TWOcompliance costs exceeds market benefits
THREEcompliance conflicts with the central ethos
Exit India
Are we promoting the same legal climate ?
1. Intermediary Litigation Trends
A. Intellectual Property Litigation
Trademarks
Exit
Copyright
B. Sensitivity Litigation
Pornography
Defamation
Community and Leaders
2. Uncertainty on Section 79
a success
an arrest
an amendment
“The combined interpretation of Sections 79 and 81 of the amended IT Act has been discussed on SpicyIP in quite a few posts with the comments equally providing a lot of food for thought. Some of us argue that the proviso to Section 81 has the effect of depriving an ISP of the exemption to liability available under Section 79 and a few others are of the opinion that the proviso only clarifies that rights available to any party under the Copyright Act will not be nullified by any provision of the IT Act. It will be interesting to watch how the Court interprets these provisions.”J. Sai Deepak
I think a great many practical absurdities will result by applying legal logic strictly. Which is why I believe that we (or at least I) need to think through the issue of primary liability of intermediaries more carefully. PraneshPrakash An Amendment (substiution)
indeterminacy
legal uncertainty risks
2010 instead of 2004
no bar to suits/criminal cases
civil  cases shotgun pleadings
civil  cases ORDER 39 Rules 1 and 2
	  criminal cases more 3 years non-bailable  section 77B
	  criminal cases apply for bail  section 67 IT Act, 292 and 294  IPC
	  criminal cases passport will be impounded  conditions for grant of bail
	  criminal cases personal attendance  conditions for grant of bail
trial
evidence
	  civil cases dismissal of Suit  Order 7, Rule 11
	  criminal cases quashing of FIR / Charges  Section 482 of the Cr.Pc.
equitable relief in the interim
3. Courts will go ‘beyond Section 79’
indeterminacy
beyond section 79
1. exemptions will be strictly construed
2. inherent passivity
3. compliance alacrity
inherent passivity Section 79 (2)(a), (b) and 3(a)
compliance alacrity Section 79 (2)(c) and 3(b)
4. bad actors will be punished
I admit
It is still hazy
but some issues are clear
ONElegal uncertainty risks
uncertainty will have chilling effects
 VC funding may be hit
the dangers of litigation
TWOcompliance costs exceeds market benefits
THREEcompliance conflicts with the central ethos
exit india
thank you apar@accendolaw.com

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