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Misappropriation Of Trade Secrets- Legal Consequences

E-commerce; legal steps taken against the misuse of this online media The problem of jurisdiction in cyberspace is extremely complex especially with the expansion of trade and commerce in the new media. One has to examine section key models and concepts that are necessary constituents of the issue and perhaps contrast them against an overview […]

E-commerce; legal steps taken against the misuse of this online media

The problem of jurisdiction in cyberspace is extremely complex especially with the expansion of trade and commerce in the new media. One has to examine section key models and concepts that are necessary constituents of the issue and perhaps contrast them against an overview of methods and solutions.  The Information Technology Act has provided a legal framework for smooth conduct of e-commerce facilitating and regulating electronic commerce.  It has tackled the following legal issues associated with e-commerce:

(a) Requirement of writing, as an obligation

(b) Prerequisite of a document;

(c) Requirement of a signature; and

(d) Requirement of legal acceptance of electronic messages, data, records and documents to be admitted as evidence in a court of law.

The main purpose of the Act is provision of legal identification for transactions carried out by means of electronic data interchange and trade carried out in the electronic media, commonly referred to as e-commerce, which involve usage of alternatives to paper-based methods of communication and records information to assist electronic filing of documents with the Government bureaus. Under the Act, the Central Government has the power to prescribe the security procedure in relation to electronic records and Digital Signatures, the ‘Apex Authority’ is to manage the Digital Signature system which aims at promoting the growth of E- Commerce and E- Governance. The Central Government may employ a Controller of Certifying Authority [CCA] who shall exercise supervision over the activities of Certifying Authorities.  Certifying Authority refers to a person who has been provided with a license to issue a Digital Signature Certificate all of which as mentioned above is done to regulate E-commerce.

Offences made compoundable to secure E- commerce include:

Section 72: If an individual is found in possession of some confidential information like electronic record, book, register, correspondence and he is found broadcasting and disclosing it to any third party without the permission and consent of the individual so concerned, then he shall be punished with imprisonment for a term which may be up to two years, or a fine which may extend to One Lakh rupees, or with both.

Section 72A: If any person while given that, he/she is providing services under the terms of the contract, has secured access to any material containing personal information about another person, with the intention to cause wrongful loss or wrongful gain released the information, without the person’s consent or in breach of a lawful contract, shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to five lakh rupees or with both.

 

Under the Act, Section 43(A) is concerned with handling of sensitive personal data or information with reasonable security practices and procedures. This section has been so inserted to protect sensitive personal data or information possessed, dealt or handled by a body corporate in a computer resource which such body corporate [Company] owns, controls or operates. If such body corporate is negligent in implementing and maintaining reasonable security practices and procedures and thereby causes wrongful loss or wrongful gain to any person, it shall be liable to pay damages by way of compensation to the individual so affected.

Computer related offences under Section 66 has been amended as mentioned above, now if an offence is committed fraudulently with malicious intent then punishment is for a term which may extend to two years or a fine which may extend to Rs 5 lakhs or with both.

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