This document discusses copyright infringement and network security threats in cyberspace, particularly as they relate to e-commerce. It covers topics such as the nature of copyright infringement on the internet, computer software piracy, judicial approaches to dealing with infringement, encryption and digital signatures, computer viruses, and organizations working on network security issues like BSA and NASSCOM. The key point is that while digital technologies enable e-commerce, they also pose new challenges regarding copyright protection and security threats that could hamper the growth of e-commerce if not adequately addressed.

1. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
COPYRIGHT INFRINGEMENT IN CYBERSPACE
AND NETWORK SECURITY: A THREAT TO E-COMMERCE
Dr. Tabrez Ahmad
Associate Professor of Law, KIIT Law School, KIIT University,
Bhubaneswar, India
AN OVERVIEW: Information Technology is growing faster than any other
communication vehicle in the history mankind.1 Invention of digital technology was
the most important revolution in the last century. The influence of digital technology
on information technology is phenomenal. The present millennium is witnessing a
new culture that is internet culture. It is changing our life style and way of doing
business form traditional commerce to e-commerce. Originally confined to military
establishment internet 2 has due to its speed, intercreativity and flexibility,
tremendous potential to disseminated information beyond the geographical
boundaries. Today the internet is not only used for educational purposes but also for
business. The availability of radio, telephone, television and computer made it
possible to carry out most of the business activities on-line, through the information
technology and communication network. The government of India by passing IT
(Information Technology) Act 2000 and further amending it on 27th October 2009
has given fillip to cyber law. But various issues are not specifically covered by the
Act, such as copyright, payment issues, media convergence, domain name,
cybersquating and jurisdiction. While these have wide ranging ramifications for the
growth of e-commerce of India.
The continued rapid evolution of a number key technologies and convergence of
broadcasting media, communication media, home electronics, and publishing on
computers creating a lot of legal issues. Today computer has made television, fax
and telephone redundant. The threat posed by computer is well depicted in the
1
Tabrez Ahmad : Cyber law, e-commerce and m-commerce, APH Publishing Corp. New Delhi.2003.
2
The Term Internet is defined as a set of computer network –possibly dissimilar joined together by means of
gateways that handle data transfer and the conversion of messages from sending network to the protocols used
by receiving networks. See. Microsoft computer press dictionary 200. (2 nd 1994)
Authored By Dr. Tabrez Ahmad, www.site.technolexindia.com
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2. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
figure below 6. Thus important attributes like data text images and voice are
combined by the computers in the form of multimedia which raise the issue of
neighboring rights.
Fig. CONVERGENCE TREND IN THE USE OF COMPUTERS
Broadcasting Your Home Electronics
Own TV, Audio Video, Television,
Programme Audio, Oven etc
Computer
Communication: Publishing: Your Own
Telephone, Fax, e- Newspaper, Reports,
mail, Video- Journals
Conferencing
As technology creates new opportunities it also poses new challenges. Copyright is
most complicated area of cyberlaw and facing greatest challenge.
According to copyright act 1957, copyright is a negative3 monopoly right which
enables author of the work to prevent others to exercise that right which has been
conferred on him. What an author creates he is an exclusive owner of that. The
precise text to determine whether a person is entitled to copyright is to ascertain
whether “skill, judgment and experience or labour, and capital has been expended in
creating the work4.
3
Deepak Printings v/s Forward Stationary mart (1981) PTC 186 at P 189
4
Mac Milan v/s Cooper (1923) 93 LJPC 113 and 117
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3. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
Copyright law today protects works such as literary, dramatic and artistic works;
cinematography films; sound recording and computer programmes, data bases and
compilations.
Any original work would exclusively belong to the owner of the copyright and any
action with respect to the work done by any person without the owner‟s permission
or consent would amount to infringement.
NATURE OF COYRIGHT INFRINGEMENT IN INTERNET
With the mergence of the internet and increasing use of the worldwide web
possibilities of infringement of copyright have become mind boggling free and easy
access on the web together with possibilities of down loading has created new
issued in copyright infringement. Taking content from one site, modifying it or just
reproducing it on another site has been made possible by digital technology and this
has posed new challenges for the traditional interpretation of individual rights and
protection. Any person with a PC (Personal Computers) and a modem can become a
publisher. Downloading, uploading saving transforming or crating a derivative work
is just a mouse click away.
A web page is not much different than a book a magazine or a multimedia CD-Rom
and will be eligible for copyright protection, as it contains text graphics and even
audio and videos.
Copyright law grants the owner exclusive right to authorize reproduction of the copy
righted works preparation of derivative works, distribution etc. However application
of this concept on the internet cannot be strictly applied to copyright. Duplication of
the information is an essential step in the transmission of information on the internet
and even plain browsing information at a computer terminal (which is equivalent to
reading a book or a magazine at book store) may result in the creation of an
unauthorized copy since a temporary copy of the work is created in the RAM of the
users computer for the purpose of access. The law on the subject evolving and the
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4. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
general view is that more accessing a web page would not be an infringement as the
copy created is temporary or ephemeral. Another common issue amongst web site
owners is to create links to other sites within the design of their own web pages.
Would such linking be considered a copy right violation as these links give access to
other copy righted sites? Although strictly speaking it may be a violation of
copyright. But there is an implied doctrine of public access for linking to other web
pages. The Internet was created on the basic of being able to attach hypertext links
to any other location and it is assumed that once a page is put on the net, implied
consent is given, unless specifically prohibited by the web site owner.
COMPUTER SOFTWARE AND INTERNENT PIRACY
Software is defined as a set of instructions which when incorporated in a machine
readable form or in capable of causing a computer to perform a particular task. To
put it simply, it is a series of commands which can be understood by the machine.
There are three essential types of software which help to function the computer,
micro code it is a programme which controls the details of execution, the operating
system software which control the sources of a computer and manages routine tasks
and is a necessary requirement for a computer to function and the third is a
application software which is designed to perform a particular task.
Piracy occurs when copyrighted software is made available to users to download
without the express permission of the copyright owner. Such illegal software is
offered over online sources such as online advertisements newsgroups bulletin board
service and auction sites. Piracy hampers creativity, hinders the development of new
software and local software industry and ultimately effects e-commerce. A piracy
harms consumers and has negative impact on local and national economy.
Consumers run the risk of viruses and having corrupted and defective programs.
Authored By Dr. Tabrez Ahmad, www.site.technolexindia.com
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5. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
JUDICAL APPROACH IN DEALING WITH INFRINGEMENT OF COPYRIGHT
AND SOFTWARE PIRACY
The Indian Copyright Act is unable to protect the unauthorized distribution and use
of work over internet. Infringement over internet and piracy posing a threat to
creative works worldwide and thus the growth of the internet, the e-commerce and
the digital economy.5 Copyright owners exclusive right of distribution applies to e-
mail attached or forwarded.
6
In Play Boy Enter Inc v/s Frena Defendant‟s subscribers downloaded unauthorized
photographs of playboy enterprises to a bulletin board system. US Court held that
the plaintiffs exclusive right of distribution was infringed by customers of defendant.
This creates an obligation on the bulletin board operators to ensure that its system is
not being used to display and download copyrighted materials by its customers.
In Feist publication v/s Rural Telephone Service Co. Inc. It was held that
there must be at least some minimal degree of creativity and what should be
protected by copyright were the fruits of intellectual labour and not just sweat of the
brow.
In India databases are protected as literary works. In US if author is creative in
selecting and arranging the data and does not merely display the data as facts will
be registered. In UK a database which lacks creative input and requires only modest
skill and labour acquire the right of unfair extraction for a period of 15 years only.
While data created by full creativity copyright protection is given i.e. life of author
plus 70 years. Compilation of data are themselves not protectable can be the subject
of protection when there is the necessary selection coordination and arrangement
and combined it with the abstraction, filtration and comparison test.
Through internet the work of authors can be displayed in different jurisdictions and
which is very difficult to detect. So the display rights can be easily violated over
6
839 F. Supp. 1552 (M D Fla 1993)
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6. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
Internet. Software can be easily communicated to the public without authorisation
by downloading the software from computer and unauthorized copies made may be
retailed or rented out.
In Michael v/s Internet - Group Inc.7 Court held that it is violation of copyright
owners exclusive statutory right of display by making available videotape over the
internet without authorisation and posting unauthorsied copies of electronic clipart
on web pages
If a web designer creates a website by combining some special features of various
web sites. This may amount to unauthorized adaptation of the plaintiff software and
violation of plaintiff's copyright. In digital media one can make about infinite number
of copies without loss of quality. So the transferring data from one computer to
another violate the reproduction rights of authors. Unauthorsied reproduction or
"scanning" a copy righted printed document into a digital file, and uploading,
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downloading copyrighted file to a bulletin board system is copyright infringement
In MAl System Corp, v. Is Peak Computers Inc, it was held that the temporary
copies made into a computer RAM are copies. But in year 1995 in Religious
Technology v/a Netcom9 US District court held that temporary copying involved
in browsing is the functional equivalent of reading and does not implicate the copy
right laws. So as regards browsing one must come to the conclusion that it does not
amount to violation and can deceived to be a fair dealing
ENCRYPTION TECHNOLOGY AND NETWORK SECURITY
Through the use of sophisticated cryptography, digital signature is created. The
International Standards Organisation defines the concepts of a digital signature as
data appended to or a cryptographic transformation of a data unit that allows a
recipient of the data unit to prove the source and integrity of the data unit and
7
F. Supp. 2d C.D. Lal 1988
8
Tabrez Ahmad: Cybcrlaw e-commerce & m-commerce, APH Publishing Corp. New Delhi, 2003.
9
907 F. Supp. 1361 (N.D Cal 1995)
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7. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
protect against forgery. Encryption may provide a guarantee that the message has
not been altered subsequent to its transmission but can not of itself provide
conclusive evidence that it did originate from the alleged senders. One method of
overcoming this difficulty is to invoke a third party. This notion of third party
intervention has become an important element in governmental attempts to regulate
the use of cryptography. One of the major areas identified for the use of
cryptography is in the field of e-commerce.
Complex issues of security, privacy, authentication and anonymity have been thrust
to the forefront as confidential information increasingly traverses modem networks.
Confidence, reliability and protection of this information against security threats are
a crucial prerequisite for the functioning of e-commerce. A security threat is defined
as a. crucial condition or event with the potential to cause economic hardship to data
or network resources in the form of destruction, disclosure modification of data,
software piracy, and denial of service, fraud, and abuse.
As per the amendment made by IT Act 2000 in sec 65B of the Indian Evidence Act
1872, the electronic records can be produced as documentary evidence before the
court of law. Access to computer databases and an analysis of "image copy" provide
reliable evidence.
UNAUTIORISED MODIFICATION OF DATA & COMPUTER VIRUS
Perhaps the most notorious form of conduct in the computer field consists of
dissemination of computer viruses. In many instances, the effect of a virus will be
distinguishable from that of a logic bomb. The difference between the two concepts
is that whilst a logic bomb is normally created is applied to a particular computer
system, a virus will typically transferred from one system to another. This may occur
through the transfer of disks of other storage devices.
Computer viruses can take a wide variety of forms. One of the less harmful
examples of the species is the „Cookie Monster‟. Inspired by an American television
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8. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
character, this causes message „I want a cookie‟ to appear on the computer screen.
If the user types the word „cookie‟, the message disappears, otherwise it returns
with increasing frequency. In similar vein, the ping pong‟ virus causes the image of
bouncing ball to cross and record the screen. In neither instance are any data or
programs affected.
Other viruses are considerably more malign. One which is reported to have infected
computers in a Maltese Bank had the effect of corrupting data. Evidencing a
somewhat sense of humour or the part of its creator, the virus gave the user the
opportunity to play what was effectively a game of chance. If the user won, the data
would be restored otherwise it would be permanently erased.
In other cases, not even this degree of opportunity is given to the user to avoid
permanent loss of his data. One of the most notorious examples of a computer virus
was the so called „AIDS‟ virus. This was contained on a disk, which was mailed to
subscribers of a popular computing magazine. Purporting to be an information
program on the AIDS virus, the programme would corrupt and render useless the
data on any computer on which it was loaded.10
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TROJAN HORSE: - A deceptive program that steals passwords.
TRAPDOORS12: - Gains entry through access points for system maintenance.
SPOOFING13: - Tie up network computers by sending them tons of bogus enquiries.
DATA DIDDING14 :- A fraud that input involves input manipulation.
SALAMI TECHNIQUE15- Thin slices of information are removed and send to other
accounts.
10
Business Today March 21, 2001 p.35
11
Ibid
12
Ibid
13
Ibid
14
Ibid
15
Ibid
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9. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
BSA, NASSCOM, NITSC & SECURITY POLICY
BSA (Business Software Alliance) recommended to put under US 301 list to those
countries which lack rules to preserve and protect intellectual property right and who
failed to follow vigorous enforcement action against software theft.
In a recent survey by the computer society of India reveals that almost one out of
every two InfoTech companies in India has had its network broken into by hackers.
And there out of every four companies acknowledge that there was some financial
loss involve in such an attack, which attract two companies claiming that they lost
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$500 000 per instruction
Robert Hollyman, chief executive of the Washington based BSA has estimated that
the loss to the software developers on account of software piracy may be upto $1
billion a year. Through monitoring BSA has detected as many as 95,000 websites
which offer pirated software called “Warez” by hackers.
In India, the National Association of software and Service Companies (NASSCOM)
has proposed the setting up of a National Cybercrop Committee to provide helping
hand to government and private agencies to combat against cyber hacking.
Hacking is an endless game. Whenever a new security device is announced, hackers
take intellectual pleasure by cracking it. Six major security technologies that are
connected to global net are: Firewalls, Anti-virus software, security scanner, internet
protocol security (IPSE), Public key infrastructure (PKI). Among all these security
technologies PKI is the principal tool to establish a trusted path for electronic
transactions. PKI protects against assaults like disclosure of sensitive information,
data alteration etc. The most protective technique is the use of “public key” and
“private key”. With the help of these security on the Net, hoping to generate
confidence in customers. So that the internet becomes a secure medium. 17
16
Ibid
17
Civil Services Chronicle April 2000 p. 67
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10. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
The ministry of information and technology has setup a National information
technology security centre (NITSC) as a part of a multi-pronged approach to control
crime.
Top sources in the IT ministry revealed that the move was initiated following
intruder attacks in many high profile organization web sites in India. For instance the
web defacement of Bhabha Atomic Research Centre, the theft of telephone numbers
related information from the system of the chief manager, department of Telecom in
Hyderabad by a hacker of Australian origin and the more recently, the web page
defacement of the department of electronics by a Pakistani hacker.
The primary objective of this centre is to create awareness among the Indian IT
community for IT security and related threats. It is also providing all relevant
information and practical advice to help corporate sector to eliminate or mitigate
security threats and make their systems secure.
Functioning under the R&D wing of CMC Ltd, the centre disseminates information
software tools and issue virus alerts through a web site. Provides newsletters,
advisories and booklets. It also offers consultancy services through security audits
and training course. One such training course for managers and technical staff is
started recently. As e-commerce takes off and transactions go online all care has to
be taken. Slipping of Microsoft's Bill Gates credit card information into the hands of
cyber criminals reveals that cyber security is a greatest challenge before us. Day by
day budget of cyber security is going high. As per the recent survey most of the
companies dealing with e-commerce are wasting more than 15% of their budget on
network security.
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11. Copyright Infringement in Cyberspace & Network Security a Threat to e-commerce 2009
CONCLUSION
With the arrival of digital technology, multimedia and internet copyright infringement
and software piracy become very easy. Due to weak network security and hacking
the problems becomes more grim and posing threat to e-commerce. US market is
growing @ 20% annually. India is growing with CAGR of 59% over the last ten
years. Mc Kinsey estimates that by 2010 the global market will expand to S200
billion and India is slated to be a major player in cyber space.
E-commerce focuses its elements on telephone computer and websites as a basis of
deciding competitiveness of a country. India performs badly on these fronts. To be a
superpower in the present century it must take lead in all relevant areas.
Indian Government has taken a remarkable step ahead in right direction by
enforcing the Information Technology Amendment Act 2008, on 27th October 2009,
but which does not mention a single word about copyright. While the copy right is
one of the most complicated areas of cyber law, .Jurisdiction, cybersquatting ,
trademark, patent, domain name, media convergence, taxation, payment issues are
also not covered by the said Amendment Act. While these are essential for the
growth of e-commerce.
Moreover internet, e-commerce and copyright related cases are only being instituted
in the western countries, to be more precise USA. But it seems that the Indian
courts might see and influx of internet related cases in the near future. Therefore we
should prepare our legal institutions for the production of information superhighway
gateway. India has to go a long way to realise the true potential of information
technology for conducting e-commerce. A lot depend upon the policy of the
government to built necessary infrastructure, but it can surely be said that e-
commerce is the way of a better future.
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