August 2009

Master of Science in Information Technology (MScIT-NEW) –

Semester 3

MT0044 –: IT LAW AND PRACTICE– 2 Credits

(Book ID: B0056)
Assignment Set – 1 (30 Marks)

Each question carries six marks:

1. What are the benefits of e- commerce
ANS:

Electronic commerce, commonly known as (electronic marketing) e-commerce or

eCommerce, consists of the buying and selling of products or services over electronic systems
such as the Internet and other computer networks. The amount of trade conducted electronically
has grown extraordinarily with widespread Internet usage. The use of commerce is conducted
in this way, spurring and drawing on innovations in electronic funds transfer, supply chain
management, Internet marketing, online transaction processing, electronic data interchange
(EDI), inventory management systems, and automated data collection systems. Modern
electronic commerce typically uses the World Wide Web at least at some point in the
transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail
as well.

Benefits of eCommerce
 Expanded Geographical Reach
 Expanded Customer Base
 Increase Visibility through Search Engine Marketing
 Provide Customers valuable information about your business
 Available 24/7/365 - Never Close
 Build Customer Loyalty
 Reduction of Marketing and Advertising Costs
 Collection of Customer Data
In addition to terms and conditions addressing the specific website content at issue, most Terms
of Use contain clauses addressing one or more of the following issues:

• Choice of Forum. Choice of Forum provisions permit the parties to a contract to select,
with certain limitations, the jurisdiction in which any disputes pertaining to their
relationship are resolved. In many instances, a website’s Terms of Use purports to
require any legal action pertaining to the website to be brought in the jurisdiction in
which the publisher is located, which may be quite inconvenient for a distant user of the
site.

• Choice of Law. Choices of Law provisions permit the parties to a contract to select,
with certain limitations, which jurisdiction’s laws will be applicable to their
relationship. Generally, a website’s Terms of Use will apply the law of: (1) the
jurisdiction whose laws are most favorable to the publisher; (2) the jurisdiction in which
the publisher is physically located; or (3) the jurisdiction whose laws are most familiar
to the attorney who drafted the contract.

• Limitation of Liability. These provisions permit one or both parties to place certain
limitations on their liability for breaching the agreement of the parties. Properly written,
Limitation of Liability provisions can cap a party’s legal exposure for certain conduct.

• Indemnification. Indemnification provisions permit a party to shift the burden

associated with an anticipated loss to the other party. In many instances, a website’s
Terms of Use require the user of a website to indemnify the website’s publisher against
any losses associated with the use of the website’s content.

• Attorneys’ Fees and Costs. In the American judicial system, a party is generally
required to pay his or her own legal fees and expenses, win or lose. However, parties to
a contract may, with certain limitations, require that a party who loses in a legal action
brought pursuant to the agreement pay the attorneys’ fees and costs incurred by the
prevailing party.

As in the drafting of any other written contract, businesses should seek competent advice from
a properly licensed attorney. The failure to do so may result in Terms of Use that provide no
protection to the e-commerce business or, worst yet, may create legal exposure where none
previously existed.

2. What are the legal implications of cyberspace? Explain

Legal implication of cyberspace:

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From the legal perspective, the term and the concept to fquasi-physical territory is helpful in
attempting to analyse the involved with computer communications. The geographical location
where conduct occurs is one of the major factors determining which country’s laws apply to
activities. Usually, the operation of global networks pay little heed to national boundaries, and
one of the arguments frequently mooted is that there is need for a new legal regime in
cyberspace. In the context of e-commerce, comparison is sometime made with the
development of the Law Merchant in the middle Ages-a body of Law and Court developed and
administered by those responsible for commercial transactions, and which provided a
consistent legal basis for commercial transactions, and which provided a consistent legal basis
for international trade, avoiding the vagaries and discrepancies of national legal systems.
Although there is a clear role for some forms of industry self-regulations, this technique leaves
unrepresented the vast number of individuals who deals with internet service providers (ISPs)
and the increasing number of organizations offering goods or services over the internet.

This is not, however, to suggest that suggest that cyberspace is presently unregulated. Indeed,
one of the problems involved in assessing the topic is that there is a surfeit of regulation. Laws
relating to broadcasting, the medial data protection, evidence, contract, tort, deformation and
intellectual property all have a role to play, as do provisions of criminal law. Indeed, the
inhabitants of cyberspace may be, at least in theory, the most massively regulated individuals
in the world in that, depending upon the nature of there activities, they may theoretically be
subject to the jurisdiction of virtually all of the world’s legal systems. Theory and practice are
greatly divergent , and the change of developing effective mechanisms for law enforcing is
substantially greater than of identifying relevant legal provision.

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 3. Explain the following:
a) Web Browser

A Web browser is a software application for retrieving, presenting, and traversing information
resources on the World Wide Web. An information resource is identified by a Uniform
Resource Identifier (URI) and may be a web page, image, video, or other piece of content.[1]
Hyperlinks present in resources enable users to easily navigate their browsers to related
resources.

Although browsers are primarily intended to access the World Wide Web, they can also be
used to access information provided by Web servers in private networks or files in file systems.

The major web browsers are Internet Explorer, Mozilla Firefox, Apple Safari, and Opera for
Windows and Mozilla Firefox, Apple Safari, and Opera for Macintosh systems. Google
Chrome, originally released for Windows and in the Fall of 2009 for Macintosh, is touted as an
alternative browser the major players listed above.

User interface

Most major web browsers have these user interface elements in common:[14]

• Back and forward buttons to go back to the previous resource and forward again.
• A refresh or reload button to reload the current resource.
• A stop button to cancel loading the resource. In some browsers, the stop button is often
merged with the reload button.
• A home button to return to the user's home page
• An address bar to input the Uniform Resource Identifier (URI) of the desired resource
and display it.
• A search bar to input terms into a search engine
• A status bar to display progress in loading the resource and also the URI of links when
the cursor hovers over them, and page zooming capability.

Major browsers also possess incremental find features to search within a web page

b) Security on Internet

When a computer connects to a network and begins communicating with others, it is taking a
risk. Internet security involves the protection of a computer's internet account and files from
intrusion of an unknown user.[1] Basic security measures involve protection by well selected
passwords, change of file permissions and back up of computer's data.

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Security concerns are in some ways peripheral to normal business working, but serve to
highlight just how important it is that business users feel confident when using IT systems.
Security will probably always be high on the IT agenda simply because cyber criminals know
that a successful attack is very profitable. This means they will always strive to find new ways
to circumvent IT security, and users will consequently need to be continually vigilant.
Whenever decisions need to be made about how to enhance a system, security will need to be
held uppermost among its requirements.

Internet security professionals should be fluent in the four major aspects:

• Penetration testing
• Intrusion Detection
• Incidence Response
• Legal / Audit Compliance

4. Explain the following

a. Internet contracts
Internet Contracts

We have a range of templates for contracts used online, for internet and e-
commerce businesses. If you don't see what you're looking for, please let
us know - we are expanding our internet catalogue and would welcome
your suggestions.
Related contract collections:

Intellectual Property Contracts

Licences

Intellectual Property Contracts

Intellectual property includes copyrighted artwork, designs, photographs,

and creative works in other media, as well as text copy, and inventions. We
have a range of contracts to help you protect your intellectual property in
business transactions. A key document for a new business idea, for
example, would be the Confidentiality Agreement or Non-Disclosure
Agreement

Licences

If you are supplying software or media products, or are manufacturing

goods, you can expand your business by licensing your product to another
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company. These documents are sutiable for forming the terms of the
licence agreement between the parties.

Before entering into a licencing agreement, it is also a good idea to sign a

Confidentiality Agreement or a Non-Disclosure Agreement. This is
particularly the case if you are entering into negotiations with a company to
manufacture a product you have developed.

b. Jurisdiction over the internet

Personal jurisdiction in Internet cases refers to a growing set of judicial precedents in

American courts where personal jurisdiction has been asserted upon defendants based solely on
their Internet activities. Personal Jurisdiction in American Civil Procedure is premised on the
notion that a defendant should not be subject to the decisions of a foreign or out of state court,
without having “purposely availed” himself of the benefits that the forum state has to offer.[1]
Generally, the doctrine is grounded on two main principles: courts should protect defendants
from the undue burden of facing litigation in an unlimited number of possibly remote
jurisdictions (in line with the Due Process requirements of the U.S. Constitution, and courts
should prevent states from infringing on the sovereignty of other states by limiting the
circumstances under which defendants can be "haled" into court.

In the Internet context, personal jurisdiction cases often involve proprietors of websites or
Internet-based services that either advertise or actively promote their businesses nationally, but
argue that they do not have sufficient contacts within a particular state to subject them to
litigation in that state. With the growth of the Internet, courts have faced the challenge of
applying long-standing principles of personal jurisdiction to a borderless communication
medium that enables businesses and individuals all over the world to instantaneously interact
across state boundaries. This is a rapidly changing area of law without a U.S. Supreme Court
precedent. There is however, a growing consensus among Federal District Courts as to how to
determine when personal jurisdiction may be asserted in an Internet context

5. Explain the following cyber crimes

• Cyber crimes against persons

Cybercrimes committed against persons include various crimes like transmission of

child-pornography, harassment of any one with the use of a computer such as e-mail.
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The trafficking, distribution, posting, and dissemination of obscene material including
pornography and indecent exposure, constitutes one of the most important
Cybercrimes known today. The potential harm of such a crime to humanity can hardly
be amplified. This is one Cybercrime which threatens to undermine the growth of the
younger generation as also leave irreparable scars and injury on the younger
generation, if not controlled.

A minor girl in Ahmedabad was lured to a private place through cyberchat by a man,
who, along with his friends, attempted to gangrape her. As some passersby heard her
cry, she was rescued.

Another example wherein the damage was not done to a person but to the masses is
the case of the Melissa virus. The Melissa virus first appeared on the internet in March
of 1999. It spread rapidly throughout computer systems in the United States and
Europe. It is estimated that the virus caused 80 million dollars in damages to
computers worldwide.

In the United States alone, the virus made its way through 1.2 million computers in
one-fifth of the country's largest businesses. David Smith pleaded guilty on Dec. 9,
1999 to state and federal charges associated with his creation of the Melissa virus.
There are numerous examples of such computer viruses few of them being "Melissa"
and "love bug".

Cyberharassment is a distinct Cybercrime. Various kinds of harassment can and do

occur in cyberspace, or through the use of cyberspace. Harassment can be sexual,
racial, religious, or other. Persons perpetuating such harassment are also guilty of
cybercrimes.

Cyberharassment as a crime also brings us to another related area of violation of

privacy of citizens. Violation of privacy of online citizens is a Cybercrime of a grave
nature. No one likes any other person invading the invaluable and extremely touchy
area of his or her own privacy which the medium of internet grants to the citizen.

With the day to day evolution of human mind , the modes of committing
crime are also drastically changing . Criminals are getting smarter day by
day and are applying there minds in this context to commit crime and
escape without getting caught. With the advent of computers no one
thought that it will become a mode or source of committing crime . Charles
Babbage who is well known as the father of computer would not have
dreamt that the machine he is giving the world may become a source of
crime and would ever influence the society in a negative way.

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• Cyber crimes against property
The second category of Cyber-crimes is that of Cybercrimes against all forms of
property. These crimes include computer vandalism (destruction of others' property),
transmission of harmful programmes.

A Mumbai-based upstart engineering company lost a say and much money in the
business when the rival company, an industry major, stole the technical database from
their computers with the help of a corporate cyberspy.
The internet in India is growing rapidly. It has given rise to new opportunities in every
field we can think of – be it entertainment, business, sports or education. There are
two sides to a coin. Internet also has its own disadvantages. One of the major
disadvantages is Cybercrime – illegal activitiy committed on the internet. The internet,
along with its advantages, has also exposed us to security risks that come with
connecting to a large network. Computers today are being misused for illegal activities
like e-mail espionage, credit card fraud, spams, software piracy and so on, which
invade our privacy and offend our senses. Criminal activities in the cyberspace are on
the rise. Here we publish an article by Nandini Ramprasad in series for the benefit of
our netizens. –Ed.

"The modern thief can steal more with a computer than with a gun. Tomorrow's
terrorist may be able to do more damage with a keyboard than with a bomb".

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 August 2009
Master of Science in Information Technology (MScIT-NEW) –
Semester 3

MT0044 –: IT LAW AND PRACTICE– 2 Credits

(Book ID: B0056)
Assignment Set – 2 (30 Marks)

Each question carries six marks:

1. Suggest different adoption of security standards incorporated by the industry
Computers today have become a significant part of our lives. As more and more people begin
to live their lives online by shopping, working and storing vital information it becomes
extremely important to find a solution against attacks on this information. Information
technology security is very important to keep personal and business information safe from
these malicious attacks.

Many organizations and companies are dedicated to providing secure solutions to these
problems.

Information technology security plays a very important role in creating the atmosphere that is
needed for e-commerce and even e-government activities. Projects involving education, health
or finances simply need a secure solution to the problems that many internet users are facing.

Information technology security is a topic that encompasses many areas. The IT field changes
nearly every day and new developments are constantly being introduced and implemented.
Security is not only business related however.

Many homes in the world now have computers installed and users shop and even work online.
Homes and businesses need to understand how to keep their computers and data secure as well
as their operating systems and application software.

They need to understand how to spot and avoid malicious software and secure their services
over networks, which tools are best for security enhancement and the role of encoding and
encryption.
Organizations have responsibilities to protect their information as well.

Governments use information technology and Key Tracking Software and locking plan to
protect their systems and provide better security in the private sector. Educational facilities also

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need information technology to protect not only the computers used by the facility but also
those used by students who may have vital information stored in them.

Helping system and network administrators to perform their duties efficiently, learning
effectively how to handle physical security, information security, identification and
authentication issues, server security, network security and how to spot and defend against
attacks is highly important in any business, organization or home.

Learning to defend your computer against malicious attacks can help to alleviate worries of
identity theft in your home and in your organization. Hospitals and other medical facilities use
information technology security to ensure patients’ files and personal information are kept
organized and safe.

Learning about new developments in the field of information technology security is crucial in
protecting your business, clients, employees or patients from the loss of personal information in
your system.

Since virtually every business and every home in the world now has a computer in place, it is
even more important to protect this information. E-commerce sites use information technology
security to protect their consumers from hackers and attacks on their identity.

Without the implementation of this security, consumers would be too afraid to use the site for
fear of losing their identity. Personal information would no longer be a private concept.
Information security is one of the most highly concentrated focuses in the internet world.

Many organizations strive to improve upon the innovations that are already in place. Knowing
that you can safely and securely conduct business whether personal or professional is
important. Knowing that your information is completely safe is also important.

2. Write a note on position under the code of civil procedures

Civil procedure is the body of law that sets out the rules and standards that courts
follow when adjudicating civil lawsuits (as opposed to procedures in criminal law
matters). These rules govern how a lawsuit or case may be commenced, what kind
of service of process (if any) is required, the types of pleadings or statements of
case, motions or applications, and orders allowed in civil cases, the timing and
manner of depositions and discovery or disclosure, the conduct of trials, the process
for judgment, various available remedies, and how the courts and clerks must
function.
3. Discuss the impact of information technology on patent.

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Information technology (especially digitization) has made the process of copying, publishing
and distributing digital copies very inexpensive. New forms of media have been created,
raising new questions of law: does a user of a computer have additional inherent rights to make
copies of software or other files during computer operations?

On the electronic side of IT, microscopic integrated circuit technology became extremely
valuable and so-called "mask works" (for creating the functional layers of semiconductors)
were found to be not subject to copyright because of their functional nature. A new type of
statutory protection was created, outside of copyright, to protect these expensive artworks from
illegal copying.

Digital audio tapes (and later media) spawned an entirely new way of making and distributing
copies of sound recordings, including copyrighted music. New methods were created for
collecting and sharing the royalty revenue, and for protection against bootleg copies. New laws
were created to cover digital piracy, copy protection, and the information related to copies (the
author, date, owner, license terms, etc).

The rapid spread of the internet, particularly the www protocols in the early 1990s, made
nearly everyone with a computer a potential publisher. On the flip side, every "web browser"
automatically downloads a copy of a "web page", as part of its normal operation to display the
information the author has published, under a newly "implied license" to make copies, at least
for personal use. New questions arose regarding the distinctions between having authorized an
infinite number of copies and having no protection for what recipients can do with those
copies.

A large segment of the population began to confuse or conflate the concepts that "anyone can
have one for free" and "public domain."

Trade related intellectual property rights became increasingly important in international

relations. New questions arose regarding harmonization of copyright laws, jurisdiction over
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online copying in "cyberspace", and the issues related to automatic translations and limits on
converting copies to new types of storage media.

As faster network speeds became economical and protocols more efficient, the new channels
were quickly filled with new media: online music, video, photographs. A new wave of treaties
and statutes will attempt to rationalize the royalties with modern copying and distribution
means.

4. Write a note on-

A) Internet Contracts

Every business website needs appropriate agreements to protect the business and its owners. Doing business on
the web is different than doing business in the brick and mortar world and your internet lawyer needs to
understand the potential pitfalls and various business models on the web. Unless your web lawyer has extensive
experience negotiating and drafting internet contracts, they may not know what they don't know!

We have drafted, negotiated, and closed hundreds of internet contracts, web agreements, and website deals with
almost every major Internet company out there, including AOL, Yahoo, Microsoft, Google, Netscape, Amazon.com
and many, many more.

Examples of the types of Internet and web contracts we have drafted include:

website user agreement and terms and conditions of use for a wide variety of sites, including
community forums, ecommerce websites, financial news sites, blogs, and more;

privacy policies for websites;

content licensing contracts for publishers with major portals, focused content sites, search engines, and
others;

advertising sales contracts for banner ads and text links on a cpm, cpc, or cpa payment basis;

affiliate marketing relationship contracts;

strategic partnership agreements;

employment agreements for salespeople, executives, and others;

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 hosting agreements and web developer contracts;

trademark and copyright assignment and licensing contracts;

and more!

We understand the business models, the metrics for success, and the potential pitfalls of online contracts and
relationships. We can help you evaluate your potential vendors, partners, and clients, negotiate the terms of a
relationship, and draft agreements that protect you and your valuable intellectual property

B) Intellectual property infringements

Intellectual property (IP) is a number of distinct types of legal monopolies over creations of
the mind, both artistic and commercial, and the corresponding fields of law.[1] Under
intellectual property law, owners are granted certain exclusive rights to a variety of intangible
assets, such as musical, literary, and artistic works; discoveries and inventions; and words,
phrases, symbols, and designs. Common types of intellectual property include copyrights,
trademarks, patents, industrial design rights and trade secrets in some jurisdictions.

Although many of the legal principles governing intellectual property have evolved over
centuries, it was not until the 19th century that the term intellectual property began to be used,
and not until the late 20th century that it became commonplace in the United States

An intellectual property infringement is the infringement or violation of an intellectual

property right. There are several types of intellectual property rights, such as copyrights,
patents, and trademarks. Therefore, an intellectual property infringement may for instance be a

• Copyright infringement
• Patent infringement
• Trademark infringement

Techniques to detect (or deter) intellectual property infringement include:

• Fictitious entry, such as:

o Fictitious dictionary entry. An example is Esquivalience included in the New
Oxford American Dictionary (NOAD)
o Trap street, a fictitious street included on a map for the purpose of "trapping"
potential copyright violators of the map
• Watermarking

5. What are the technical hurdles for law enforcement agencies

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Law enforcement and national security agencies must often overcome a variety of technical
hurdles before they can access the communication or information that they are legally
authorized to collect. These include:

• Wireline communications: Law enforcement and national security agencies have

conducted lawful investigations with wireline services for many years. However, more
advanced service options and calling features have created new obstacles.

• Wireless communications: The rapid expansion in the use of wireless communications

tools including cellular telephones, wireless e-mail and Internet devices and satellite
communications can pose a significant challenge for law enforcement and national security
agencies, which must now deal with a variety of companies and a diversified combination of
network infrastructures.

• The Internet: The Internet is a collection of thousands of networks around the world, that
exchange and share information but the Internet has no centralized physical location or
control. The complex technology of Internet communications, the need for sophisticated
equipment to investigate Internet communications, and the lack of provisions that would
require Internet Service Providers (ISPs) to implement procedures for lawful intercept
capabilities have created difficulties for investigators.

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