Category: Blog

By:Amogh Dabholkar

To elaborate upon the development of the “flag state” — a term made up of two words of rich and deep heritage and history, it was first used in 1000 B.C. by the Egyptians for the purpose of identity. The flag, ultimately gained recognition as the legal regime of a ship. It was used as a tool of understanding where and how a right relating to a ship can be enforced and who, precisely, would be accountable for actions arising therefrom. It also found formal codification in the High Seas Convention (‘HSC’) in 1958 and ultimately UNCLOS in 1982. The concept of Statehood also, arguably created by Vitoria in De Indis de Iure Belli Relectiones found place in the Treaty of Westphalia (1958) which ended the Thirty Years’ War.[1] The Portugese, in the mid-twentieth century had a monopoly over the Indian Ocean which was attempted to be broken by the Dutch by professing the theory of independent, sovereign states having undisputed, sovereign power and control. The doctrine of Mare Liberum also was seen as a milestone in the progress of freedom of global trade and navigation.[2] Gradually, these concepts came to be recognized as principles of customary international law and like developments led to the foundation of the International Law Commission (ILC). The First Conference of the United Nations on Law of the Sea in 1958 led to the drafting of the High Seas Convention in 1958, the precursor to UNCLOS (1982).

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Flag State, fundamentally, is the state/nation in which the ship is registered, that state exercising jurisdiction over ships. In other words, the domestic laws of the flag state will apply to the vessel carrying its flag in high seas and in other areas covered exceptionally in international treaties.

The flag state obligations are mentioned under Article 94 of UNCLOS. Article 94(1) extends the duty of flag states to “administrative, technical and social matters”. It also has to maintain a register containing the names and particulars of all ships and ship owners which, consequently, strengthens the genuine link between States and their flags, a concept that I will explain ahead. Article 94(3) says that every ship must maintain and carry out certain measures to ensure safety of life at sea. What these measures precisely are is enumerated under Article 94(4).

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Moving from flag state obligations to marine pollution, the already-increased concerns over pollution at sea shot up drastically after 1960 owing to 3 incidents — Torrey Canyon in 1967, Amoco Cadiz in 1978 and Exxon Valdez in 1989. Safety of life and the marine environment as a whole came under the radar and the need to protect the marine environment under Article 217 of UNCLOS is a sufficient measure to protect and safeguard the marine environment from pollution caused by vessels. These incidents and the dire need to have a separate law for protecting the oceans and developments in the field of international law led to the creation of the International Convention for Prevention of Marine Pollution from Ships, 1973 which later came to be modified by the Protocol of 1978. (These enactments have been mentioned by the author as they form a jurisdictional and regulatory mechanism extending to all ocean-going vessels and their activities.)

Some of the more relevant and prevailing issues — absence of recognition of fishing operations and fishing vessels under Article 94 or any other provision in the UNCLOS, lack of ownership identification in ship registration, lack of ownership identification and a mere name-sake encapsulation of the genuine link concept under Article 91 — make it even more difficult to come up with a concrete mechanism of ensuring and enforcing genuine links, which is the dire need in the maritime world today.

It has been observed that certain member states, being reluctant to the idea of defining concretely the criteria for establishing a ‘genuine link’ between the ship and its flag, (as it would obliterate the open registries of that nation thereby precluding foreign influx of finances and lead to lesser and lesser registrations) prefer to keep the issue of ship registration ambiguous and at the discretion of member states (which is why these states are known as ‘flags of convenience’). However, the International Tribunal of Law of the Sea (ITLOS) in 1999 in M/V Saiga No. 2 Case (St Vincent and the Grenadines v Guinea)[3] reiterated this view that the ‘genuine link’ concept is to be viewed in the context of effective implementation of the flag State obligations and not for determining the criteria of when it would be apt for States to allow ships to fly its flag. After considering Article 5 of the 1958 HSC, the deliberations of the ILC and UNCLOS I on the subject, and Article 94 of UNCLOS 1982, ITLOS stated:

“The purpose of the provisions of the Convention on the need for a genuine link between a ship and its flag State is to secure more effective implementation of the duties of the flag State, and not to establish criteria by reference to which the validity of the registration of ships in a flag State may be challenged by other States.”[4]

 THE ENRICA LEXIE CASE: THE JUSTNESS IN THE AWARD

Dr Kate Lewins, a specialist in international maritime law at Murdoch University, submitted:

“The result, more often than not, is that there might be multiple [countries] entitled to claim jurisdiction over a particular criminal act, based on the flag and location of the ship and the nationalities of the people involved. [Which country will take the lead] may well end up being one negotiated through diplomatic channels, largely based on pragmatism.”[5]

Eight years after two Italian marines shot down two innocent fishermen on their fishing vessel ‘St. Antony’, several enquiries arose. One of the prominent issues that came up was the one with respect to jurisdiction. Who would have the rightful jurisdiction to try the two Italian marines who, guising the two fishermen as pirates, had killed them? After a flood of newspaper articles and other media reports, a few side issues that were up for consideration were — where did the incident take place? Was it the high seas as claimed by Italy or was it the exclusive economic zone of India as contended by India? Did the International Tribunal of Law of the Sea have jurisdiction to entertain the dispute between the two countries? Did Italy breach India’s rights and particularly, its right to navigate on its own EEZ? All these questions have been put to rest by the Award passed by the five-member tribunal referred to by ITLOS. In this sub-space, we shall have a look at the contentions put forth by both the countries at loggerheads before the arbitral tribunal and the decision of the esteemed tribunal.

After the dispute was referred to by the esteemed five-member tribunal referred to by ITLOS, it decided the matter with all competence and justness. Before the tribunal some of the key contentions of Italy were as follows:

• By acting in consonance with certain provisions of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 and with the Ministry of Home Affairs Notification No. S.O. 671(E) dated 27 August 1981, India had acted in breach of Articles 33(1), 56(1), 56(2), 58(2), 87(1)(a) and 89 of UNCLOS;
• By forcefully directing Enrica Lexia to Kerela coast, it had acted in violation of Italy’s freedom of navigation viz. Article 87(1)(a) and Italy’s exclusive jurisdiction over the commercial vessel in breach of Article 92 of UNCLOS and Article 300 read with Article 100 of UNCLOS as it had abused its right to seek Italy’s cooperation in the repression of piracy;
• By instituting penal proceedings against the marines of Italian nationality, India was in breach of Article 97(1) of UNCLOS;
• By ordering arrest and detention of Enrica Lexie, India was in breach of Article 97(3) of UNCLOS.

India, on the other hand contested all these submissions and said that by throwing open fire at its non-commercial vessel ‘St. Antony’ and killing two Indian fishermen on board, Italy violated:

• India’s sovereign rights under Article 56 of UNCLOS;
• India’s rights to explore and navigate in its EEZ under Article 58(3);
• India’s right and freedom of navigation under Articles 87 and 90;
• India’s right to have its EEZ maintained for peaceful reasons and conditions under Article 88 of UNCLOS.

After considering the submissions of both the countries, the arbitral tribunal passed its award. The award, primarily, by a 4:1 vote ratio, said that it has the appropriate jurisdiction to entertain the dispute and that it found India’s counter-claims admissible, that India has not violated Articles 87(1)(a) and 92 para 1, 97 paras 1 & 3, 100 and consequently 300. It, in a somewhat blow to India’s teeth, held that the Italian marines were entitled to immunity. But this was the only point against India’s interests as it went further on to hold that Italy, having committed to initiate criminal proceedings against the marines, India should cease all criminal proceedings initiated against them, that Italy, by breaching Articles 87 and 90, has wrongfully interfered with the navigation of ‘St. Antony’ and finally, that India is entitled to payment of compensation for loss of life, physical harm, material damage to property and moral harm suffered by captain and other crew members of ‘St. Antony’ which, by the nature of the offence, cannot be repaired through compensation.[6]

If not anything, the compensation awarded to the families may counter the grief they have borne by the sudden and sad demise of our two countrymen.

CONCLUSION: THE WAY AHEAD

Coming to the more recent issues and their solutions, while a lot can be done to curb marine pollution, polar issues and piracy a lot is being done for its eradication and prevention which deserves attention and elaboration. Talking about marine pollution, the jurisdictional authority with regards to marine environmental pollution is the International Maritime Organization (IMO) — a UN specialized body/agency. Some of the programmes initiated by the United Nations are: Regional Seas Programme, Global Programme of Action for Protection of the Marine Environment from Land-based Activities. The United Nations Economic, Social and Cultural Organization (UNESCO) through Intergovernance Oceonographic Commission co-ordinates programmes on marine research, observation systems, hazard mitigation and better managing ocean and coastal states. MARPOL, 1973 as modified by the Protocol of 1978 and 1954 International Convention for the Prevention of Pollution of the Sea by Oil. For the purpose of ensuring safety and regulation of travel and governance between the two poles, the UN has entered The International Code for Ships Operating in Polar Waters (Polar Code).[7]

While environmental pollution and polar-centric regulatory activities are significantly relevant in the list of UN activities, Piracy takes the cake. In recent years, there has been a surge in piracy off the coast of Somalia and in the Gulf of Guinea. The consequences of piracy are: loss of life, physical harm or hostage-taking of seafarers, significant disruptions to commerce and navigation, financial losses to shipowners, increased insurance premiums and security costs, increased costs to consumers and producers, and damage to the marine environment.

To curb and prevent piracy, the IMO and UN have adopted additional resolutions to complement rules in UNCLOS, the UNODC through its Global Maritime Crime Programme combats transnational organized crime of the coast of Horn of Africa and Gulf of Guinea. Some of the suggestions the author would like to add to the credible and laudable activities of the UN are: to formulate a special mechanism to carry out result-oriented, speedy and efficacious trials, imprisonment of piracy suspects as well as developing maritime enforcement capabilities through facilitation of training programmes. A range of activities can be undertaken by the State authorities — from piracy prosecution models, prisoner transfers and training of members in the judicial system of the Atlantic and Indian Ocean to full time mentoring to coast guards and police units in Somalia, Kenya and Ghana.[8]

 

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[1] Publ. 1696, ed. Simon ,James Crawford, “The Creation of States in International Law”, 2nd Edition, Clarendon Press, Oxford p.9.

[2] Law of the Sea, Oceanic Resources, Jones p.9.

 

[3] Nivedita M. Hosanee, Defining the genuine link, THE RIGHT OF THE FLAG STATE TO SAIL SHIPS AND THE GENUINE LINK CONCEPT, (23rd September, 2020, 8:20 PM),

http://www.un.org/Depts/los/Judg_E.htm.

[4] Ibid.

[5] Dr Kate Lewins, Submission 1, p. 2 (26^th September, 8:07 PM).

 

[6] Source: Award between India and Italy: https://docs.pca-cpa.org/2020/07/a6b16920-award-extracts-for-advance-publication-on-2-july-2020.pdf (25th September, 8:30 PM)

[7] United Nations, Protection of marine environment and biodiversity, Oceans and the Law of the Sea (26th September, 9:37 PM) https://www.un.org/en/sections/issues-depth/oceans-and-law-sea/.

 

[8] Ibid.

By: Siddhant Tiwari

ABSTRACT

Mankind has yearned to take to the skies since centuries[1], and this interest is visible in the fact that aviation is one of the fastest progressing field in the world, growing by leaps and bounds since the Wright Brothers first took to air. Today, as we stand at the cusp of yet another milestone, that is the onset of Unmanned Aerial Vehicles (UAVs) or drones as they are more popularly referred to, it is quite clear to ascertain where the future of aviation is headed. Drones are not just a flash in the pan, rather they are the ‘new normal’. Drones are everywhere- be it delivering parcels, launching an attack on the adversary, or even spraying fertilizers on large swathes of land[2]. This article compares the various regulations centered around safe and controlled operation of drones in the USA, UAE, and Germany, and strives to understand where the difference in core values of the respective countries lies. Three parameters shall be used here for comparison, namely requirements for registration of user and drone, general rules for hobby/recreational flying, and rules in force for commercial UAV flying.

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EVOLUTION OF DRONE LAWS

Unlike general aviation technology (both civil and military), which evolved over almost a century post the Wright Brother’s first flight, UAV technology has been around for far less time in comparison[3]. Lawmakers and experts have found it hard to keep up with the blinding advances in this field, often lagging behind and catching up later on. With that context in mind, it would be unfair to say that drone laws are insufficient or incapable of encompassing all the facets of usage of drones. It is one of the fields where ‘trial and error’ method has proved to be more accurate than any other method, especially because no one could have foreseen that UAVs would become such an integral part of our lives in such a short span of time.

This has been enabled by developments in allied fields such as AI, improved computing, lighter and stronger materials for aviation purposes and last but not the least, a change in consumer mindset. Most of the developed nations have come out with their own set of drone laws after much deliberation and learning from experiences. Some of them are discussed in detail below.

 

DRONE REGULATIONS IN THE U.S.A.

The US Federal Aviation Authority (FAA)[4] is the overseeing body when it comes to drafting of rules and regulations related to aviation in US, including drone laws. Rules may differ slightly from state to state across mainland America[5] however their essence remains essentially the same. As far as requirements for obtaining a commercial drone pilot license are concerned, an aspiring user must be able to read, write and speak English (exception may be made for persons with speech/hearing disabilities) and must generally be in a sound mental and physical state to operate the UAV. The minimum age requirement for the applicant is sixteen besides which two tests/screenings need to be cleared. The first one is Aeronautical Knowledge Test (also known as Part 107 Test)[6]. A safety screening conducted by TSA (Transport Safety Administration) also needs to be cleared to obtain the license.

 

For hobby flying, no license is required, and the rules as mandated by FAA explicitly bar a hobby flyer from undertaking any kind of commercial flying. The UAV needs to be registered on the FAA portal built for this purpose. All flying is to be conducted in visual LoS (Line of Sight) and away from other air-traffic as well as scenes of emergency. Most importantly, the drone must weigh below 55 Lbs. and it can only be flown in Class G airspace. For operation in higher classes of airspace, airspace authorization must be sought from the concerned department[7].

 

Commercial drone flying can be taken only after a Remote Pilot Certificate is obtained from FAA and just like in the case of hobby flying the drone has to be registered with FAA. The weight of drone including payload can not exceed 55 Lbs and it can not be flown above 400 ft or faster than 100 Mph. All commercial flying is to be undertaken during daytime while avoiding populated areas and directly flying over people. A manned aircraft has the right of way in all cases. Class G airspace condition can be waived off upon receiving FAA Part 107 waiver. USA has been at the forefront of commercial drone development as well as for military purpose. It goes without saying that the rules will continue to get amended with newer technologies as well as changing requirements.[8]

DRONE REGULATIONS IN THE U.A.E.

The UAE General Civil Aviation Authority (GCAA) is the apex body overseeing drone rule creation and enactment in the emirate. Just like in the US, a drone pilot has to first and foremost obtain a flying license, called Operator Training Certificate from any of the approved academies and get his/her drone registered with the GCAA[9]. Post obtaining the NOC, the rules are quite simple and straightforward. There are two important rules in this regard. The first one clarifies that flying near airports is strictly prohibited in order to avoid near miss situations with civil aircrafts, as has happened in the future. The second rule is about abstaining from flying in the ‘No-Fly Zones’, which are clearly demarcated and can be seen using the UAE Drone Fly Zone Map application[10]. In short, the country has managed to simplify the registration and air space management aspect quite effectively.

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After obtaining requisite NOC using the process mentioned above, a recreational flyer may operate their drone within the ambit of certain rules. The drone must weigh 5 Kg or less and must remain in LOS and not fly beyond 400 ft. Image/video capturing is disallowed unless the operator has a valid Emirate ID registered with the GCAA. A minimum distance of 5 km has to be maintained from the outer fence of all aerodromes/heliports/locations from where any aviation activity is being undertaken. Certain rules are common between hobby and commercial flying namely avoiding creating nuisance to the common public or endangering any personal/public property. In case of re-selling of drone, owner is responsible for informing GCAA through the proper channel. Minimum age of 21 years is necessary to fly drones weighing more than 25 Kg.

 

In the case of commercial drone operations in UAE, the operator must mandatorily pass the UAS GCAA exam on top of holding the standard operators’ certificate. Most importantly, the operating individual/company has to take requisite approval for every single flight operated towards commercial purposes. The permission ceases to be valid after completion of the sortie for which it was obtained. Additionally, it is important to know that anyone desirous of operating a drone in Dubai specifically, must also follow the rules for remotely piloted aircrafts established by the Dubai Civil Aviation Authority (DCAA)[11] on top of rules prescribed by GCAA. In case of loss or accident of a drone, the operator is solely responsible to inform about the same to GCAA as early as possible.

 

DRONE REGULATIONS IN GERMANY

The apex authority on all matters pertaining to aviation in Germany is the Federal Aviation Office (FAO). In 2017, a new Drone Regulation came into force[12] in the country which clearly outlined the rules and requirements for any individual/company seeking to undertake drone operations. Interestingly, Germany has clubbed some drone rules for applicability on RC model aircraft[13] which have been in vogue since many decades and are not necessarily seen in the same light as drones. Notwithstanding, a ‘Certificate of Knowledge’ is required for operating all UAVs weighing above 2 Kg. These certificates are valid for 5 years and minimum age to apply is 14 years. No flying permit is required for drones weighing upto 5 Kg. However, for all drones above 5 kg and for all night flying operations, a flying permit is mandatory.

 

The Federal Ministry of Transport & Digital Infrastructure does not explicitly differentiate between hobby and commercial drone flying, and this is where it is most different from its sister bodies in USA and UAE[14]. The focus is more towards aerospace hygiene and safety of men and material. Some might argue that such a generalized approach in formulation of rules creates a lacuna in law enforcement while other proponents of the theory are all for its simplicity and transparency.  With the above fact in mind, the country mandates that all drones regardless of their weight and usage must be insured and all drones above 250 gm must carry a fireproof sticker for easy identification of drone in case of loss/accident. The sticker should carry the basic details of user like name, address, and contact details.

 

Additionally, all UAVs have to maintain a minimum distance 1.5 Km from an airfield/helipad. A permit is required to fly above 100 meters (50 meters in case of controlled airspace). Direct visual contact is mandatory as far as practicable. Basic courtesies like not causing disturbance to fellow citizens, avoiding damage to property and maintaining minimum distance of 100 m from large gatherings are to be followed[15]. It can be said that this is a more humane approach towards formulation of guidelines, albeit at the cost of certain ambiguity and scope of inadvertent law infringement.

 

CONCLUSION

On a case to case basis, the rules and regulations around the safe and productive use of UAVs in USA, UAE and Germany have each got their merits and de-merits. The positive thing to note here is that these nations have attempted to keep the process as simple to understand as possible. Many a times, several noble initiatives and technologies are nipped at the bud for the lack of supporting legal framework, or simply because the government demonize them before fully understanding them. It is heartening to note that these three nations have gone all out to support this upcoming technology and are continuously working to further streamline the regulations and processes.

 

Drone laws have evolved massively from their initial days. It has certainly taken a lot more time and debate to create and implement them than should have normally taken, and this delay can easily be attributed to an array of ethical and security issues that stem from drone operations. Despite all these rules, it is comparatively easier for negative elements in the society to misuse UAVs for all sorts of nefarious purposes[16]. As drones become progressively better with each passing day, it remains to be seen if rules and regulations can keep up with the pace of technical development, what with concepts like AI and IOT not coming into the fray and making the process of law formulation for drone operations even more complicated[17]. As in the case of above three states, each has something unique to offer. While USA focuses on specifying each technical aspect to the dot, UAE has made it easier for users to access the information thereby ensuring higher abidance. Germany, on the other hand, has kept the rules simple and inclusive in hope of ensuring easier adaptability to the rules.

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[1] Tim Sharp, “The First Hot-Air Balloon Flight” Space.com, Apr 09, 2019 (https://www.space.com/16595-montgolfiers-first-balloon-flight.html)

[2] CB Insights, ’38 Ways Drones Will Impact Society: From Fighting War to Forecasting Weather, UAVs Change Everything’,  Jan 9, 2020 (https://www.cbinsights.com/research/drone-impact-society-uav/)

[3] Meenal Dhande, ‘The Current Scenario of Global Drone Regulations & Laws’, Geospatial World, 19 Nov 2016, (https://www.geospatialworld.net/article/present-global-drone-regulations-laws/)

[4] Federal Aviation Authority (FAA), ‘Unmanned Aircraft Systems’, faa.gov, (https://www.faa.gov/uas/)

[5] National Congress of State Legislatures, ‘Current Unmanned Aircraft State Law Landscape’, ncsl.org, (https://www.ncsl.org/research/transportation/current-unmanned-aircraft-state-law-landscape.aspx)

[6] Federal Aviation Authority (FAA), ‘Become A Drone Pilot’, faa.gov, (https://www.faa.gov/uas/commercial_operators/become_a_drone_pilot/)

[7] Grupo One Air ‘US Drone Laws: New FAA Regulations for UAVs’ (https://www.grupooneair.com/us-drone-laws/)

[8] IV Kovalev, AA Voroshilova, MV Karaeva, Journal of Physics: Conference Series, ‘Analysis of the Current Situation & Development Trend of the International Cargo UAVs Market’, (https://iopscience.iop.org/article/10.1088/1742-6596/1399/5/055095/pdf)

[9] UAE General Civil Aviation Authority (GCAA), ‘Application for Unmanned Aircraft Registeration’, www.gcaa.gov.ae   (https://eservices.gcaa.gov.ae/Drone/UnmannedAircraftRegistration.aspx)

[10] UAE General Civil Aviation Authority (GCAA), ‘UAE Fly Zone for Unmanned Aircraft/Drone’, www.gcaa.gov.ae  (https://www.gcaa.gov.ae/en/Pages/noflyzone.aspx)

[11] Dubai Civil Aviation Authority (DCAA), ‘Application for Issuing a Permit to conduct any Aviation Related Activity’, dcaa.gov.ae, (https://www.dcaa.gov.ae/services/aviation-related-activities/issuing-permit)

[12] European Aviation Safety Agency (EASA), ‘European Plan for Aviation Safety’, lba.de (https://www.lba.de/SharedDocs/Downloads/DE/SBl/SBl1/GARoadmap/EPAS.pdf?__blob=publicationFile&v=1)

[13] Drone Rules, ‘Drone Regulations: Germany’, dronerules.eu (https://dronerules.eu/da/professional/regulations/germany)

[14] BMVI, bmvi.de, ‘Clear Rules for the Operation of Drones’, (https://www.bmvi.de/SharedDocs/EN/Articles/LF/clear-rules-for-the-operation-of-drones.html)

[15] UAV Coach, ‘Drone Laws in Germany’, uavcoach.com (https://uavcoach.com/drone-laws-in-germany/#:~:text=Drones%20may%20not%20fly%20above,328%20feet)%20without%20a%20permit.&text=Drones%20weighing%20up%20to%205,all%20drone%20operations%20in%20Germany)

[16] PK Jaiswar, ‘Misuse of Drones has Punjab Security Agencies on Toes’, The Tribune, Jan 20, 2020 (https://www.tribuneindia.com/news/punjab/misuse-of-drones-has-security-agencies-on-toes-28562)

[17] Marcus Roth, ‘AI in Military Drones & UAVs’, Emerj.com, Nov 22, 2019 (https://emerj.com/ai-sector-overviews/ai-drones-and-uavs-in-the-military-current-applications/)

By: Shubham Mathur

INTRODUCTION

For the smooth running of the company, the role and duty of a director is essentially significant. Stipulating and clarifying the roles and obligations of the company’s directors helps to enhance corporate governance and stability, contributing to increased development and prosperity in the corporate sector.

INDIA

In the Companies Act, 2013, the position of director was properly laid down. In this aspect, the former company law of India, i.e. the Companies Act, 1956, was deficient. A groundbreaking piece of legislation in this regard is considered to be the new Companies Act, 2014. The roles and obligations of the directors comprising the independent directors are properly and clearly specified and explained. This guarantees greater and flawless corporate governance and governance. It helps and empowers beneficiaries, regulators and courts to judge and control more critically and efficiently the directors’ activities and obligations.

With updated corporate governance principles, i.e. the Updated and New Clause 49 of the Listing Agreement of the Securities and Exchange Board of India[1], the new Companies Act, 2013 must be read. This will bring the corporate governance requirements of SEBI into near alignment and compliance with the provisions of the Companies Act in relation to the companies listed. The updated provisions of the Act relating to the duties of directors were made effective as of April 1, 2014, but the updated corporate governance principles of the SEBI were made effective as of October 1, 2014.

Directors are considered to be key managers in a business that is of particular interest to the companies mentioned. They may hold several senior and responsible roles in companies, such as Managing Director, Manager, Whole Time Director, or Independent Director.[2] Thus, the effective, flawless, and very progressive management of an organisation, and the desired growth and profitability of its companies, are certainly largely dependent on the competence and trustworthiness of its directors. A director means a director appointed to the board of directors of a corporation, which is the collective body of its directors.

DUTIES OF DIRECTORS UNDER THE COMPANIES ACT, 2013

The roles and duties of directors set out in the Indian Companies Act of 2013 can be broadly divided into the following two categories:

1. The functions and obligations that promote and encourage the sincere investment of managers’ best efforts in effective and prudent corporate management, the elegant and rapid resolution of various business-related concerns, including those raised by red flags, and the complete sophistication and wisdom of decisions to avoid unnecessary organisational risks.
2. Trust duties that ensure and ensure that company directors always maintain, over and above their own personal interests, the interests of the company and its stakeholders.

The following duties and obligations have been levied on the directors of companies under Section 166 of the Indian Companies Act of 2013-[3]

• In accordance with its Articles of Association (AOA), a director of the organisation has to act.
• A director must always behave in good faith to support the company’s objects, which will support the company’s objects. This will support the business as a whole and protect the best interests of the company’s stakeholders.
• With proper and fair consideration, ability and diligence, a director must exercise his duties and exercise independent judgement.
• A director of a corporation shall not be involved in a situation in which he may have a direct or indirect interest that contradicts the interests of the company or may conflict with them.
• A company director shall not receive or attempt to obtain any undue benefit or profit either for himself or his family, partners or associates and shall be responsible for paying the company an amount equal to that benefit if such director is found guilty of making any undue gain.A business director shall not allocate his office and any appointment so rendered shall be invalid.
• If the company director violates the provisions of this section, a fine of not less than one Lakh Rupee may be levied on the company director, which may be extended to five Lac Rupees.

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INDEPENDENT DIRECTORS

The CA-2013 liability regime not only imposes on the directors of Indian companies the above-mentioned duties and responsibilities, but also encourages the independence and equity of a company’s board of directors. Therefore, the new Indian Companies Act of 2013 also lays down the roles, duties and responsibilities of independent directors. An Independent Director is a member of the board of directors of a company that does not have a financial agreement (with the exception of sitting fees) with the company or is entitled to own shares in the company. In the earlier Indian Companies Act of 1956, there were no clear provisions for independent directors and only the old clause 49 of the SEBI listing agreement contained requirements for the induction of independent directors to the listed companies.

The new Indian Companies Act of 2013 specifies that, as independent directors, all listed companies must constitute at least one third of the total size of their directors, and also empowers the Government of India to include other categories of companies within the scope of that provision or requirement (Section 149 of the CA-2013).[4] To strictly comply with this mandatory provision, public limited companies composed in compliance with the former CA-1956 shall be granted a grace period of one year. Again, for more than two consecutive terms, independent directors are not eligible to hold office for a period of five years.

Under the current structure, the roles and duties of independent directors have been significantly expanded, and several new areas have been addressed prudently. Broadly, the highly responsible role of arbitrators within the business among various constituencies is intelligently assigned to them. Therefore, the latest rules for independent directors of limited companies are certainly very positive for transparent and sound corporate governance and are highly favourable for the company and all its shareholders. Some of the most relevant functions, duties and liabilities of independent directors are the following (as per Schedule IV of the CA-2013)-

• An independent director must assist in providing the board with equitable and independent judgement.
• An independent director needs to protect the interests of all stakeholders and support them. In that direction, all his / her acts should be.
• An independent director needs to conciliate and reconcile the shareholders’ competing interests.
• An independent director must attend and participate regularly in the meetings of the committee board.
• In an objective and unbiased manner, an independent director must report. He should be ethical and not break the code of ethics in the business or commit any fraud.

UNITED ARAB EMIRATES

Directors’ duties and responsibilities in the United Arab Emirates (UAE) come from various legislative sources and there is no consolidated legislative structure addressing the duties and responsibilities of directors under the law of the UAE. The terms’ manager ‘and’ director ‘are used interchangeably in UAE law. The rules and regulations affecting directors are taken from different sources in the UAE, including-

• UAE Federal Law No. 2 of 2015 concerning Commercial Companies (“Company Law“).
• Federal Law No. 5 of 1985 on Civil Transactions (“Civil Code“).
• Federal Law No. 3 of 1987 Promulgating the Penal Code (“Penal Code“).
• UAE Federal Law No. 18 of 1993 on Commercial Transactions (“Commercial Transactions Law“).

DUTIES OF DIRECTORS UNDER UAE COMPANY LAW

In the performance of a prudent person in the performance of his duties, a director must always act. The acts performed by a director must always be in order to promote the mission and powers of the company given to him by the shareholders. There are situations where the director is expected to behave in compliance with the internal regulations and supervision of the company, including the application of particular authorities provided in the sense of the company’s memorandum of association or by internal resolution or by the power of attorney. Accordingly, it is important for the director to understand and operate only within the jurisdiction of the powers bestowed by the organisation.[5] It is important, in view of the above, that managers ensure that the necessary internal approvals have been obtained before any contractual arrangement is reached for the company.

In addition, the Companies Law provides that any scheme seeking to relieve the director of personal responsibility resulting from the mismanagement or unauthorised use by the company of the powers vested on the director by the company shall be void.[6] When read together, the above clauses may be interpreted as meaning that the director will not be relieved of personal liability on the part of the director as a result of any misuse of the powers conferred by the company or of actions performed by the director in violation of the law in force.[7] There is no restriction against a company receiving directors’ liability insurance for a director or compensating a director for actions validly taken by a director in the normal course.

Other duties of the directors’ are-

• The Director is responsible for the planning and authenticity of the Annual Reports.
• Conflict of Interest-Unless accepted by the shareholders of the company, a director has to fulfil his duties with the business line of the company.
• Confidentiality- A director should not disclose the secret of the company or damage the business of the company.
• Resignation Timing- A director may only resign at a time that does not cause harm to the company, according to the Civil Code.
• Liability to others- If the director is found to have committed fraudulent actions, a liability claims against him or her can be brought by the corporation and/or the shareholders; the director is therefore liable to third parties.

In the Commercial Transactions Law and Penal Code, there are several provisions as to how courts should treat insolvent companies and their directors. In this regard, Article 882 of the Commercial Transactions Law, which states that directors may be liable to a custodial sentence in the event that they are imprisoned, is of particular importance.

• They also failed to provide adequate details in the financial books and records of the company to reflect the true financial condition of the company.
• They do not have information requested by the court or trustee in bankruptcy or whether they are providing false information knowingly.
• Where the assets of the company have been sold at less than their value in an effort to prolong the suspension of payment of debts or the company’s declaration of bankruptcy, or where any illegal action has been taken by the directors to acquire credit or funds in order to achieve the above.
• If, at a time when the company is no longer in a position to cover its debts, the director’s bargain with all of the assets of the company in order to retain those assets outside the creditors’ control.

The roles and duties of a director in the UAE were these. The study of the company’s risks requires due consideration.

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UNITED STATES OF AMERICA

In essence, US public corporations have a unitary board structure, which implies a framework of one tier. This is governed by Section 141 of the DGCL.[8] Section 141(b) of the DGCL specifies that there be one or more members on the board. The number of directors is determined by the certificate of incorporation of the company or by other bylaws. The optimal size of a board is between 9 and 12 directors, and a corporation must have no less than 6 and no more than 15 directors.

DIRECTORS DUTIES AND LIABILITIES

Directors owe the company and its shareholders a fiduciary duty of care and allegiance.

• Duty of care-The duty of care requires directors to act in a similar role with the degree of care that an ordinarily conscientious person would use in similar circumstances. The duty of care allows directors to act on an informed basis, after fair inquiry and deliberation. Directors are expected to rely on management and experts, where it is reasonable to do so.
• The duty to act in good faith is a secondary function of the duty of allegiance. Generally speaking, the obligation requires administrators to act fairly and truthfully, in the best interests of the organisation, and in a way that is not knowingly unethical or contrary to public policy. The following are the liabilities of the directors under the US Law-
• Directors are subject to liability for their acts and inactions, but stringent provisions of liability generally apply. In general, the rule of business judgement may be enforced by the courts, which demands that directors and officers act informedly, in good faith and in the best interest of the corporation. The court would not discuss the merits of the judgement of the underlying board if the presumption is not settled by the complainant.[9]
• In certain situations (such as the sale of a company), a different standard of judicial review can apply. Document provisions governing protection from liability, compensation and creation of expenses, as well as insurance for directors and officers, are usually covered by directors.

CONCLUSION

Taking into account the people and the world in which they reside, the laws of the three listed countries are created. There are some loopholes in the legislation which can be amended. Given the Indian angle, it is very clear that CA-2013 genuinely seeks to make corporate management and governance in India very successful, fully accountable, transparent and maximally beneficial to all stakeholders and related professionals through this intelligent legislation on the duties and responsibilities of managers in Indian companies.

[1] Clause 49 of the Listing Agreement of the Securities and Exchange Board of India

[2]Ministry of Corporate Affairs, Management And Board Governance http://www.mca.gov.in/MinistryV2/management+and+board+governance.html

[3] Section 166 of Companies Act, 2013

[4] Section 149 of Companies Act, 2013

[5] Douglas G. Smith, Mark Gilligan,Duties and Liabilities of Directors in the United Arab Emirate, Squire Patton, https://www.esquireglobalcrossings.com/wp-content/uploads/sites/21/2016/02/duties-of-directors-in-the-uae-alert.pdf

[6] Ibid

[7] Mojaged Al Sebae, Nadim Al Jisr, Managers’ and directors’ duties and liabilities under the UAE law, https://mena.thomsonreuters.com/content/dam/openweb/documents/pdf/mena/white-paper/managers-and-directors-duties-and%20liabilities-under-the-uae-law.PDF

[8] Section 141 of Delaware General Corporation Law

[9]  Robert Treuhold, Corporate governance and directors’ duties in the United States: overview Stephen Giove, https://uk.practicallaw.thomsonreuters.com/9-502-3346?transitionType=Default&contextData=(sc.Default)

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By: Yadav Rohit

MEDIATION can be defined as one of the alternatives for the Dispute Resolution process, which consist of a precise set of procedures. Where a Neutral Third acts as Mediator and assists the parties to discuss the dispute in much appropriate manner in order to reach a satisfactory conclusion and acceptable by both parties. The whole meeting is held in much confidential manners and also provides the opportunity two both parties to put forth their version of disputes and demands in order to resolve their disputes.

Mediation is also known as extended hand of the law because this process provides various ways in order to reach the solution without being constrained by laws and its long procedures. This process is much more effective if this has been chosen by the both parties to resolve their disputes. Mediation, particularly are not that much into trend throughout the globe not because of being ineffective but due to lack of awareness in the masses and they rely more on the lengthy and expensive court proceedings as the only reliable source for justice.

This process is much into consideration in the modern world and throughout the globe in order to resolve the dispute in various different parameters unless its in public interest. Apart from this effective alternative, there are various significant aspects of this process in order to deal with the number of disputes and the following are:

1. Number of parties can engage over one issue or more.
2. This can be totally by parties or the courts order.
3. Unbiased third parties do assist the parties in disputes.
4. Mediators’ suggestions are not mandatory to bind by the parties in dispute.
5. Meeting in the process is totally confidential in nature.
6. Mediation cannot be accessed in case of Penal and other heinous crimes.

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GLOBAL OUTLOOK OF MEDIATION: Mediation is still not the first priority of the people or country in order to resolve their dispute, and International scenario Mediation faces many problems regarding the jurisdiction of Legislation and statutory provisions and rules pertaining to mediation is much constraint due to the bound law of different countries. In order to overcome this obstacle various International Firms took the initiative to collab with various other International forums and make bridge to provide legal assistance to the international clients according to there norms and condition and laws abiding in the respective country. This gave the great break through to the International Trade mediation and authorised forums used to appoint various mediator lushed with skills in order to assist there disputes and provide vital solution to the parties and charge there fees by the parties in disputes to the firms. In order to make mediation as power full alternative in order to resolve various disputes among the parties are achieved by various International Firms are as follows:

• The International Chamber of Commerce.
• The Singapore International Arbitration Centre.
• International Mediation Institute.
• Indian Institute of Arbitration and Mediation.

It have been noticed that there is tremendous growth of  Mediation  as alternative dispute resolution  in the WIPO (WORLD INTELLACTUAL PROPERTY) according to the recent survey by the authority.

EFFECTIVE MEDIATION STRATEGIES:

There are various strategies used by the mediator in order to provide much efficient advices and suggestions to the Parties in dispute to reach their specific solutions of their issues and the following are some Strategies:

• Procedural Strategies – The mediator controls the agenda, timings, release of press and other essential arrangements and also control the formality and flexibility of the meet ups and this strategy helps to reduce the stress and anxiety of the parties in dispute and provide better space to resolve the conflicts.

In year 2002 till 2004, the Organization of America States, the United Nations Development program and Jimmy Carter opened a Dialogue between Venezuelan President Hugo Chavez Fraiz, the Government and the opposition and the mediation was conducted in order to reconcile the divided society and preserve the democracy while preventing aggressive conflict.

• Communication – Facilitation Strategy helps the mediator to work passively and focusing on facilitating and communication between parties.
• Directive Strategies – In this form of strategies mediator act bit harsh to the parties in order to accept the discussion or the conclusion either by threatening parties with diplomatic sanctions or incentives while being in humanitarian aid.

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 MEDIATION AT INTERNATIONAL FRAMEWORK :

Mediation has played major role in various International conflicts throughout the globe and have rich history in order to resolve the Disputes of various countries like Britain, Nigeria and Peru each nation took benefits of Mediation. The Acta De Brasailia was signed in year 1998 to resolve the dispute between Ecuador and Peru. In which Brazil, Chile, Argentina and the United States played a third part role in order to assist both the parties in disputes. The main purpose of the said agreement was to create peace perks or adjacent zones of ecological protection, on both sides of the border in the said region of Cordillera del Condor. In last 10 years, very great example of the mediation with good faith in order maintain the future consequences of the countries lying in historically politically tense Levant region (Syria, Lebanon, Israel, Jordan and Palestine) have been observed by The International Institute for Sustainable Development {IISD} that there can be future security threat of climate change. This research was conducted by the neutral third party in order to conclude and help the avert and dispute may arise from climate change for example of scarcity of water in this region. The researcher analysis the future dispute and try to avail various suggestion and strategies in order to dodge the potential dispute that might arise in historically volatile region. The third party came with following findings and suggestions in order to provide the proper appropriate advices that can be used and avoid the future threat in much efficient mannered and whole process of the research was conducted in much unbiased and informative manner. Sometimes mediators also plays role in order to reduce the tension among the parties in dispute and try to maintain the situation by providing the correct information to both parties by acting as messenger, that helps the parties in dispute to take sensible steps against each other and try to resolve the said issues without taking any adverse steps that can harm to both parties. The example of Nigerian Civil War that took place in Year 1967-1970. In which various great leaders like Quakers Adam Curle, John Volkmar and Walter Martin acted as Mediators and help to maintain the situation and lower down the tension among the parties in dispute, that worked in much effective manner in order to reach down to effective solution that helped to end the war.

SOME EXAMPLARY MEDIATION IN INTERNATIONAL PLATFORM:

  IN last year, 46 Nations have signed the International Treaty on MEDAITION in which two great power of economies also participated like CHINA and UNITED STATES, alonf with three and four largest economies in  Asia where  China, India and south Korea held there meeting in Singapore and led down the foundation of the International Treaty on Mediation. This treaty will provide overall settlement of the disputes among the signatory countries of the Mediation treaty will resolve there dispute through Mediation process in order to maintain the International relation and keep harmony in the International space and this treaty is also known as SINGAPORE CONVENTION on International Settlement Agreement and has been attended by 70 countries Senior officials in order to show the trust and respect towards each other. Still it remains in doubt weather that Singapore convention will get success or not but the actual essence of the agreement will rely mostly on the enforcement of settlement agreements International framework to make mediation more power full aspect and choice in order resolve the dispute by the parties having issues.

UNCITRAL MODEL LAW ON International commercial mediation and INTERNATIONAL SETTLEMENT Agreement resulting from Mediation:

The main purpose of the this designed is to uplift the states and provide them reforming and updated laws in order to make procedure more effective in Mediation and also make provision to standardize the rules and process for reducing the area of doubt during the Mediation. This form will encourage this states in order to take part in this process and ensure to get fair and acceptable solution for the parties in dispute. This model was adopted in year 2002 and was knowing “Model Law on International Commercial Concillation”  and was further it have been interpretated that mediation and conciliation can be used interchangeable and further have been noted that the change in terminology haven’t created any and implication on the conceptions of the model. In order to be aware of the uncertainty in absence of the statutory provision, model provide proper guidelines to the mediator in order to follow the sets of rules which will maintain the process standard and relevant.

STATE TO STATE MEDIATION PERSPECTIVE FROM INDIA:

India have shown positive perspective towards the State to state mediation in order to resolve International dispute more effectively other then the rule and laws laid down by the International dispute resolution. They have adversarial system in order to resolve the system. India have shown always positive aspects in order to uses softer technique in order to solve the International dispute rather then using harsh litigation in which there will be more probability of relation get strained between the parties dispute. While being the original member of the UNITED NATION CHARTER, India have all supported and shown policies of pacific settlement of disputes. This policies are mentioned in the constitution of India and also in the International Diplomacy by possessing the principles of PANCHSHEEL and also shown the support to the alternative dispute settlement institution ASIAN-AFRICO LEAHL CONSULTATIVE ORGAINSATION (AALCO). This values and rules provide them amicable and peaceful settlement and also resembles the India’s perspective towards the trade and investment arena in the global market. This leads to door open by the India in order explore new ideas of providing India as a neutral party in the International disputes mostly in the Asia-Pacific Regional Mediation Organization.

OVER ALL ASPECTS OF MEDIATION IN DIFFERENT PARAMETRES INTERNATIONAL CONFLICTS:

 In many countries there is uniform pattern in order to mediating the Industrial Disputes. In case of labour management the conflict does not rely totally on the mentioned agreement but also on the machinery to settle  the capacity, in many instance the the government provides mediator in order to resolve the disputes. In many countries like US federal government , satte or the local government provides various mediator in order to resolve the issues and also rely on the mediation. Now a days western Europe appoint there mediator in all the Industrial Disputes and labour in order to reconcile the issues in much effective mannered. In many instance the government have made mediator agency buy the government, have been embraced with the power in order to intervene in any dispute which have public interest in it.

EXAMPLES ARE FOLLOWS:

Great Britain in 1825 between Portugal and Brazil: of the great powers in 1868-69 between Greece and Turkey were strained over the Crete and the Pope Leo XIII in 1885 between the Germany and the Spain in dispute of Caroline Island.

Further the importance of the Mediation have been realized by the all international countries in order to reach the solution. In making more further impactive steps towards the Mediation they made in the HAGUE CONVENTIONOF 1899 and 1907 and the league of Nations Covenant. This leads to further in to the Charter of United nations that disputes need to be solved in much peace full mannered and maintain the relationship.

There are many disputes which have been referred to the Mediation by discussing the Council or in the Assembly. In May 1948, The General Assembly have appointed a mediator in order to resolve the dispute in region of Palestine.

In the season of spring and winter of 1949 a mediator was chosen to conclude armistice agreements between the Israel and the other four Arabs countries. Later on The General Council have made mandatory for the Mediation for various disputes arisen from the International outlook and also made mandatory function. The following commission are like Indonesia, commission of India – Pakistan, the Palestine Conciliation commission and the commission of Korea.

The men behind the process to become mandatory was secretaries – general, especially Dag Hammaeskjold, have made great efforts in order to deal with the diplomacy that can be rigid.

CONCLUSION:

 As far as Mediation is concerned its been in to practice from several years and played and vital role in order to resolve the dispute and also to provide win -win situation to the both the parties without putting and party unheard and not given opportunity to express their views regarding the issues. The Mediation in international conflicts not only resolve the disputes but also providing of the best way to deal the conflict and global level. Mediation in international have became one of the best way to handle the International diplomacy. This have been encouraged by the all individual, state, nations and other organization to pull out the solution in much efficient mannered and also not allowed any party in strong position to overcome or possessed there dominance in the process.

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By: Yamini Daga

INTRODUCTION

Ever since now litigation has been the most used kind of system for the resolution of the disputes. Though nowadays quite many ways are available through which we can seek the resolution of the disputes like Arbitration, Mediation, Litigation, etc. Then also it is difficult for people to decide that which kind of method they want to opt in. And through time all these methods are emerging in their own fields and ways though litigation are believed to be the oldest form and most opted way. As through litigation people go to the court to seek justice and follow the same age old process.

The Arbitration is also one of a kind of dispute resolution process where the parties privately resolve their dispute as when the party faces a dispute in their agreement they seek the help of the arbitrator. Arbitrator is considered as a third party who listen to both the sides of the party and in return try to resolve their dispute by giving their decision in the form of arbitral award. This is the method where party try to resolve their disputes outside of the courtroom which seems less complex then the proper litigation process as less paperwork is required and experienced person are appointed as an Arbitrator.

Mediation is also a part of the dispute resolution process though in India there are no particular laws related to the mediation at present, but it is still opted by many parties though the decision given by a mediator is not binding in nature unlike the arbitral award which has the same binding authority like the decree passed in the court. In the process of mediation, there is a third party who helps in resolving the dispute by guiding them into the right direction through an informal meeting among the parties to the agreement.

And among all of the above mentioned few methods, arbitration has gained more preference over the age old court systems and the informal meetings with the mediator among the financial sector because of the globalization. As of nowadays people don’t have enough time to go to the court to seek remedy or justice they seek a process which is less complex and which is less time consuming. Thus the emergence of Arbitration is rising in the financial sector too.

 

 

ADVANTAGES THAT LED TO WIDENING OF ARBITRATION IN FINANCIAL SECTOR:

Firstly, the procedure of arbitration nowadays require the element of confidentiality. Like whatever is being going on the meetings are not supposed to be seen into the limelight unlike happening in the courtrooms. As there are many mergers & acquisitions cases are coming forward because of the globalization. It is a delicate situation as the sensitive information of the companies can be leaked and be used the competitors to gain an upper hand in the market and use that against the parties of arbitration. Therefore arbitration is a process where the third person who is the decision maker or the arbitrator are bound to maintain the secrecy about the case as they are part of contract to maintain the confidentiality about the parties or about the case.

Secondly, the kind of expertise which is being needed by the arbitrator generally is being lacked by the courts. The Institutional Arbitration have a well-qualified arbitrators with the specific knowledge regarding the subject matter, which in return makes it easier for the parties to seek the justice or solution to their argument.

Additionally, the proceedings of arbitration are generally custom made which provides the level of convenience to the parties by suiting the requirements laid down by the parties and applicability of the arbitral award is easier as compared to the decree or judgment of any court.

 

CUSTOM MADE SOLUTIONS[1]:

As we know, Arbitration is a process which is custom made as in the way it gives option to the parties to decide that how, when, where and in which manner they want to proceed further in the process of arbitration. It provides freedom to parties to decide their method unlike the age old court systems.

• Parties are free to decide the seat of arbitration, like parties can decide that at which place they would like to hold the meetings and where the whole procedure should take place can be completely decided by the parties. Basically the place of arbitration is decided at the convenience of the parties.
• Parties are free to determine the way of procedure or procedural rules, the procedural rules are to be decided by the parties in the agreement and if they fails to conclude at a mutual decision than the procedure is being set by the arbitrator themselves.
• Parties are free to determine the language for arbitration, the language in which they want to hold their proceedings during the process of arbitration.
• Parties are free to select their arbitrators, parties are free to choose an arbitral institution of their choice like by whom they want their case to be taken care of and the qualifications required by the arbitrator chosen by the parties can also be specified by the party.

 

 GUIDELINES THAT LED TO THE GROWTH OF ARBITRATION IN THE FINANCIAL SECTOR[2]

1. THE ISDA ARBITRATION GUIDE

The International Swaps & Derivatives Association (ISDA) in the year of 2013 September issued a guide relating to how one can use arbitration in ISDA Master Agreement. Earlier it included sample clause in the agreement, later on an expanded range of model clauses were introduced around the year 2018 for huge number of usage of institutional arbitration all over the world.

 

1. P.R.I.M.E. FINANCE RULES

When courts were not able to deal with the nexus disputes arose from the financial sector thus this resulted in the creation of international finance center which is known as P.R.I.M.E. Finance. This deals with the cases related to ADR and in return provides resolution by medium if mediation, arbitration and other disputes resolving services. They have their own rules and clauses which was released with this center on 16^th January 2012, situated at Hague. The reason behind opening this center was to fulfill the need of arbitration process required in the financial sectors. All the provisions made under this has only one aim that was to encourage the use of arbitration or law in the financial markets also and to provide justice to people who suffered or went through the wrongdoing or scam of others in this area.

 

• THE ICC COMMISSION REPORT

This report was prepared after conversing with at least more than or about 50 financial institutions around the globe and banking counsels or sectors with various policies, awards from minimum about 13 arbitral institutions were also being examined while preparing this particular report.

This report speaks about arbitration that is being performed in the regulatory method, in international finances matters, the disputes between the banking sectors, disputes relating to trade finances, etc. and quite huge growth sectors of arbitration were also recognized in this report.

This report turns out to be were helpful in determining the rise of financial institutional arbitrations among the world by classifying the types of disputes and by recognizing the strength of arbitration process too.

 

1. RECENT PROCEDURES

Previously the main purpose behind referring to the national courts over the process of arbitration was to assure speedy resolution of disputes via the judgment given in the format of summary elsewhere, in the process of arbitration the arbitrators are bound by their duty that they have to provide equal, fair and full opportunities to the respective parties of the agreement to set out their cases.

Nonetheless this thought process has been changed now, the institutional arbitration centers around the globe like the Singapore International Arbitration Center (SIAC), the Hong Kong International Arbitration Center (HKIAC), the International Chamber of Commerce (ICC) and many other institutions now provide the summary disposal of the disputes just like old court system which makes the process of arbitration more applicable option.

RECOGNIZED LIMITATIONS OF ARBITRATION

Though the process of arbitration is gaining its pace and being more frequently used method for resolving dispute in the financial market or sector, there are still some justifications that why sometimes this method of arbitration can be avoided. Like in few cases like the criminal cases arbitration is not possible as because these issues are not arbitrable in nature, as the third person can resolve the dispute where the parties to the agreement enter into an argument not where a person committed a crime and being guilty of murder or anything as those cases needed proper justice with the relevant punishments prescribed under the law.

 

The reason why people opt arbitration may be because of the myth that arbitration process are cost effective process. The Ad-hoc method of arbitration is precisely cheaper and affordable but it lacks experience and some required qualifications too that are being needed by the parties but the institutional arbitration is an expensive method.  As in the financial matters the parties sometimes doesn’t belong to same country which means a matter of cross border agreements are usually being held by the institutional arbitration centers, and it does cost a huge amount of money as the expenditure of procedure and transportation is expensive in nature. The arbitrator might also belong to a different country than any of the party to the agreement which make way for delay in the coordination between the parties to the agreement and the appointed arbitrator which ends up resulting in slow remedies.

 

CONCLUSION

As the P.R.I.M.E. Finance Rules, the ICC report and other initiatives are being encouraged and set as a means for resolution of disputes by the process of arbitration is being more frequently being recognized by the financial institutions or sectors.

The process of arbitration is most favorable as compared to the other methods of ADR and the age old system of litigation. Though there are many advantages and disadvantages of the process of arbitration but it will still be the most favorable option to be considered for resolving the disputes in the financial sector and the demand for arbitration will grow higher only in the near future too.

 

 

 

[1] Allen & Overy, The rise and rise of Arbitration in Banking and Finance Disputes, (2018, 9^th February), http://www.allenovery.com/en-gb/global/news-and-insights/publications/the-rise-and-rise-of-arbitration-in-banking-and-finance-disputes

 

[2] Shreya Shrivastava and Sachin Bhatnagar, The Rise of Arbitration in the Financial Sector, (April 11,2020), https://lawcorner.in/the-rise-of-arbitration-in-the-financial-sector/

 

By: Ilakkiya Kamaraj

Introduction:

Technology as rapidly developed in the following decades. The invention of smart phones and the internet has made the lives of people much easier in this fast-moving world. But as once said by the great scientist Albert Einstein, “Technological progress is like an axe in the hands of a pathological criminal”. Though technological development acts as an advantage it also gives room for the criminals to come up with different types of cybercrimes. The computer-related crime rates relating to online theft, fraud, child pornography have been increased rapidly. Digital forensics helps to identify these crimes and put these activities in control. This paper concentrates on defining about the digital forensic, the growth of cyber crime and how it is controlled by digital forensics, the role of digital forensic in law and the acts taken by the Indian Government to control cyber crimes through digital forensics.

Digital forensics:

The process of identifying, preserving, extracting and documenting the computer shreds of evidence is referred to as digital forensics or digital forensics science. In short digital forensics means recovering data and the investigation of computer-related crimes or any other digital device. Digital forensic is a very important branch and it is equivalent to performing autopsy in crime scene. Digital forensics can be used to scrutinize all those devices that can store digital data. Digital devices include server, cell phones, computer and network. Most complicated digital-related cases can be solved through the best techniques of digital forensics.

Computer-related crimes were into practice from the year 1970’s itself. This crime was dealt with the existing laws. Later in the year 1915 scientific studies was used to do criminal investigations. But as there was vast technological growth over the decades the crime rate relating to technology also increased drastically. Crimes like happy slapping, cyber bullying, online theft and online predators, child pornography as became very common. Subsequently, many acts were also passed to keep a check on these crime rates. Usually, the forensic investigator uses several techniques to investigate which includes forensic data analysis, disk forensics, network forensics, wireless forensic, email forensic, mobile device forensics, database forensics, memory forensics and malware forensics.

Branches in digital forensics:

As digital devices include not only computer and extend to a mobile device, network, flash drives etc., Retrieving data from these devices is also necessary.

• Computer forensics means retrieving data from computer and static memory like USB and embedded system.
• To study the forensic database and their metadata one of the digital forensic branch called database forensics is used.
• Analyzing and monitoring information and evidence from computer network either local or WAN is known as network forensics.
• To analyze the pattern of fraudulent activities in the financial crime and to examine the structured data the forensic data analysis can be used.
• Mobile forensics is also a branch in digital forensics. Recovering digital evidence like SMS or email from a mobile device is known as mobile forensics. The inbuilt communication system like GSM differentiates mobile forensics from computer forensics.

Digital forensics in law:

Digital forensics is applied in various sectors and private investigation. Both national and international legislation covers digital media. But it plays a dominant role in the field of law. This is because the Court of Law uses the pieces of evidence collected through investigation. This evidence is concerned with civil law or criminal law but habitually it is related to the criminal law. Digital forensics is also being used widely in the cases of intellectual property theft, employment disputes, bankruptcy investigation, fraud investigations etc., in recent years. Court of Law:

The evidence collected through investigations is used to uphold or decline a conjecture before the Court. These evidences are of different types which include real evidence, direct evidence, collaborative evidence, hearsay and circumstantial evidence. The Court prefers evidence to be more accurate, relevant and convincing. The collected evidence should be more vital so that its integrity is not questioned. In the cases involving IT secondary evidence documents are considered. Who, when and where the investigation was handled are some common elements concerned with evidence collecting.

Merits of digital forensics in law:

• Digital forensics can be used as evidence in the Court of Law. With the evidence collected the identification of the culprit becomes much easier.
• Evidence can be extracted even from the deleted files and partitions through data acquisition and duplication. It helps the investigator in recovering and preserving digital devices related materials.
• Designing procedures make sure that the corruption of digital evidence is under control.
• Identifying any malicious activity on the victim can be done very easily.
• Preserving the evidence can be done for future references.

Steps involved in investigating process:

The person who is collecting evidence is known as a forensic investigator. An investigator while collecting evidence should make sure that the collected evidence is withstanding any legal proceedings. As we discussed earlier digital forensics is all about identifying, acquiring, preserving, analyzing and documenting of digital data. The following steps are followed by the forensic investigators to collect evidence which can be accomplished by the Court.

1. Identifying:

The first and foremost step in collecting evidence is identification. The scope of the action must be identified before beginning any form of examination in the area of digital forensics. The process of searching and detecting digital evidence is done here. This process also includes what evidence is presented along with where and how it is stored. All the evidence used in the perpetration of crime must be examined by the digital evidence first responder.

In Krenar Lusha case in the year 2009 in the UK, in the investigation process, it came to know that Krenar has downloaded a manual of 4300gm to make explosives[1].

2. Acquiring:

The process of collecting evidence is known as acquisition. These evidences are collected from electronic media like personal computers, PDAs, mobile phones etc., Investigators perform acquisition of data through the following four methods, disk to disk copy, disk to image file , logical disk to a disk file, sparse data copy of a file or folder.

3. Preservation:

To prevent digital evidence from being changed or altering, the data should be isolated and should be preserved in a secured physical site. Preservation of digital evidence helps to reduce tampering of evidence. Criminal cases should be examined through the law imposed personnel for the reason for the preservation of evidence. The company officer performs this examination in civil cases.

4. Analyzing:

Numerous reiteration of analysis takes place to support a crime theory. Based on the evidence found by the investigators a conclusion will be derived by reconstructing the events.

5. Documenting:

Documenting is the key concept of digital forensics. Recreating of the crime scene is done in this process by documenting the crime scene in proper documentation. Photography, screen scene mapping and sketching can be done in documenting the crime scene for better understanding. At last, the collected documentation will be summarized and explained.

Many cases have been solved with the digital forensic process such as Matt baker case, larry Jo Thomas case, Rose Comptown case, Mikayla Munn case etc.,

Cybercrime:

Cybercrime is a computer-related criminal activity. It also includes other digital devices. Electronic evidence is defined as any information of probative value in electronic form, computer evidence, digital audio and video, cell phones, a digital fax machine that are stored or transmitted[2]. The cybercrime act is not only done by individuals, it is done through organizations too. Cybercrime includes theft of corporate data, financial data, email or internet fraud, invasion of privacy, cyber extortion, phishing, ransomware attacks, hacking, cyberespionage, spamming, cyberstalking etc., These crimes are identified with the help of digital forensics. Under the Information Technology Act, 4231 cybercrimes were recorded according to the National Crimes Record Bureau between the years 2009 to 2011.

Steps taken by the Indian Government:

To keep a check in the crime rate of digital-related crimes the Indian Government as enacted many acts which enables digital forensic to perform its duties with certain rights.

• Under section 3 of the Evidence Act, 1872 the term ‘evidence’ was amended to ‘electronic evidence’ that can be accepted as evidence in the Court of Law[3].
• In the case of Sanjay Kumar v State of Haryana[4], the appellant-accused was convicted under section 420, 426, 468, 471 of IPC and for Section 65 and 66 of Information and Technology Act, 2000 for tampering with computer sources document.
• The respondents were punishable under section 67 of the Information Technology Act, 2000 and Section 6 of Indecent Representation of Women’s Act, 1968[5].
• It was held that section 43(g) of the IT Act, 2000 is declared void which was invoked by the police[6].
• In the case of SMC Pneumatics Pvt. Ltd .v. Jogesh Kwatra[7], the Delhi Court passed an important ex- parte injunction in India’s first defamation case assuming jurisdiction over the case over the matter where there was defamation passed through e-mails affecting the Corporate company’s reputation.

Conclusion:

Thus digital forensics acts as a primary source to help in preventing cybercrimes by detecting it and acting as evidence in the Court of Law. Hence it plays a major role in the law field. It helps to identify cybercriminals and lead to punish them. It also leads other companies and organizations to protect their important information. There is no doubt that the improvement in digital technologies will increase further. Thus a well thought out strategy in digital forensics helps to prevent cybercrimes in future.

 

 

 

[1] Man Jailed Over Suicide Bomb Book, BBC NEWS, December 15, 2009, http://news.bbc.co.uk/2/hi/uk_news/england/derbyshire/8414527.stm.

[2] The Information Technology (Amendment) Act, 2008, Sec 70(a).

[3] The Indian Evidence Act, 1872, sec 3.

[4] CRR No. 65 of 2013.

[5] Fatima Riswana v State Rep., (2005) 1 S.C.C. 582.

[6] Sekar v The Principle General Manager, W.P No. 10208 of 2005.

[7] CS No. 1279 of 2001.

By: Gaurav Patankar

Introduction:

Ethical hacking in short means organization hires a certified person for hacking their own networks, systems and technologies to discover vulnerabilities and then create patches or security measures. This ensures that there will be no attack from outside which can cause data leakage, systems get compromised and so on. Hacking is ethical when the hackers are hired for particular tasks by permission of the System Owner. The ISMS (Information Security Management System) is used in companies where employees ensure that they have their information secured. They have many policies included in ISMS. The organizations take care of their Information Security by conducting ISMS audits internally or getting it done from vendors. The ISO 27001 stipulates the measures to take care of Cyber Security. Also, there is other certification named SOC. It contains two types – SOC1 and SOC2. SOC1 Certification is for finance system. SOC2 Certification is for Information Security Management System. The other requirement in today’s world is VAPT i.e. Vulnerability Assessment and Penetration Testing.

Ethical Hacking:

Hacking was not a wrongdoing when genuine hacking was connected with contemplating programming dialects and PC frameworks with the expectation of making new developments. It shouldn’t be viewed as wrongdoing if it is lawful, approved, and adequate. To start with, hacking was viewed as a type of fiddling. It was a procedure that included making changes to something to create something new. Notwithstanding individuals’ observation and inspiration about hacking have changed throughout the years, at first, programmers were individuals who sought to find alternative solutions to problems on their PCs. These arrangements and exercises realized advancement and mechanical forward leaps. Programmers were liable for pretty much every development, innovation, and mechanical achievement. They were answerable for the development of PCs and even the World Wide Web.

These exercises don’t violate laws since genuine programmers’ line up with the code of behaviours and guidelines. The inspiration of programmers was basically about remodelling existing project codes and making them increasingly proficient. Thus, not all types of hacking are illicit. For example, you own a car, you have lost ignition key, you try to start the engine by inserting other keys or just pulling out switch wires and connecting them directly to start ignition. Here, intention is not of theft but of trying other solutions.

In simple words, when you are dealing with software and information of your own PC or with PC of other with his/her consent and approval to find new solutions or new gateways, it is ethical hacking. But if you are handling PC or website or devices without permission of the owner and trying unauthorized to extract information or to avail utilities of the system (like withdrawing money from ATM using clone card or hacking pin) it is a crime.

One could likewise compare some hacking procedures for downloading. The web has billions of clients getting to it routinely. There are billions of PCs and systems associated with the web. There is individual online access to a great many sites and a large number of programming.

Everybody online appears to be occupied with one type of downloading or the other. Some type of downloading has been considered as illicit yet that doesn’t imply that downloading ought to be viewed as a wrongdoing. Individuals everywhere throughout the world visit google.com consistently scanning for data. On the off chance that data gathering was wrongdoing, Google would not be in presence today.

Not all type of hacking is violations because not all cases are destructive.  Moral hacking should not to be viewed as wrongdoing since it isn’t hostile. It is completed by moral programmers that don’t utilize their hacking aptitudes for damaging, hostile or destructive purposes. Or maybe they utilize it for cautious purposes like precautions taken by Government or Administration for prevention of crimes or for study of modus operandi of cybercrime. Such programmers are known as white caps. They are not quite the same as dark caps, green caps, blue caps, self-destruction programmers, and content youngsters who are occupied with vindictive assaults. Instead of utilizing their hacking mastery for underhand purposes, they use it to ensure frameworks and clients. They are proficient and moral programmers.

The red cap programmers utilize their hacking aptitudes for rendering consultancy and administration, for example, infiltration tests and weakness evaluations. They are like white cap programmers. They shut down the exercises of dark caps or malignant programmers. Ethical hacking ought not to be viewed as wrongdoing. Moreover moral hacking exercises do exclude unlawful procedures, for example, illicit benefit heightening, unapproved assaulting, illicit extraction of information and unapproved covering track.

Day by day increasing attacks on networks compels organization to make their network secured. They have to remain updated with network security and keep on checking whether network is secured from the attackers. The organizations get themselves ISO certified to ensure about security measures taken from their side are absolute as per norms.

Cyber Security:

Cyber security or information technology security are the techniques of protecting computers, networks, programs and data from unauthorized access or attacks that are aimed for exploitation.

The elements required for organization to ensure the Cyber Security are: ^[1]

1. Application Security
2. Information Security
3. Disaster Recovery
4. Network Security
5. Endpoint Security
6. Data Security
7. Identity Management
8. Database and Infrastructure Security
9. Cloud Security
10. Mobile Security

To ensure that all these elements are in order, the organizations need to get the systems certified from authorised bodies. They need to do compliance of their Information Security System. There are certifications as ISO 27001:2013, SOC1, SOC2 and other. Cyber Security is about ensuring CIA (Confidentiality, Integrity and Availability) of information assets. SOC1 certification is mainly for financial domains and SOC2 certification covers security, availability, processing integrity, confidentiality of the information and privacy of personal information.

These are common types of cyber threats:

• Malware
• Ransomware
• Phishing Attacks
• Social engineering
• Advance persistent threat

The pandemic hitting all over the world has evolved chances of occurring cyber threats over the internet to many organisations and individuals as well. These cyber threats include financial losses to company or individual, loss of information by malware or ransomware attacks, etc. People need to remain alert about phishing emails. They must keep their antivirus and machines updated with patches and need to take care about the threats turning up over the internet. Organisation must also ensure that their network is secured from cyber threats.

Application Security:

The application security means to check that applications are running in secured way as required. There are multiple weaknesses in application, viz. Common Vulnerabilities and Exposures (CVEs), SQL injections, plain text authentications, etc. This is a vast subject and cannot be covered in brief.

Information Security:

Information security, sometimes abbreviated to infosec, is a set of practices intended to keep data secure from unauthorized access or alterations, both when it’s being stored and when it’s being transmitted from one machine or physical location to another. ^[2]

It works on three principles:

• Confidentiality
• Integrity
• Availability

The CIA is the main ingredient of Information Security. These are carried out in all the organisations. They have ISMS policies in role for covering the CIA. It helps organisation to be safe.

Disaster Recovery:

 It is a process in which the organisation remains ready for any disaster taking place. Disaster can be any, viz. natural calamity, fire, cyber-attacks etc. The Disaster Recovery includes analysing risk assessment, establishing priorities and planning strategies to recover in case of any disaster.

Network Security:

 The components for Network Security are:

1. Antivirus
2. Hardware and Software Firewall
3. IPS (Intrusion Prevention System)
4. VPN (Virtual Private networks)

These components keep the network secured and free from the cyber threats.

Cloud Security:

 Cloud security is a set of control-based safeguards and technology protection designed to protect resources stored online from leakage, theft, or data loss. ^[3]

The main security risks in cloud are:

• Data leakage
• Unauthorized access
• Access rights and permissions
• Malicious attacks (DOS, DDoS or malware)

The key security strategies are:

• Encryption
• Identity and access management (IAM)
• Firewall
• Security Rules
• Backups

Conclusion:–

The complexity of internet world and ever expanding cyber threats make it compulsory for every organisation to be vigilant and proactive. There are very few personnel conversant with this branch of knowledge and skills. Hence, this field also can be attractive option for the persons seeking challenging employment or freelance profession. The above discussion and information makes it clear that in the modern world scenario no organisation can do without Ethical Hacking and Cyber Security.

 

 

_______________________________________________________________________________

Resources:–

1. https://digitalguardian.com/
2. https://www.csoonline.com/
3. https://phoenixnap.com/

 

By: Vaishali Kohli

At first glance, we may find the idea of Artificial Intelligence and law very unlikely since both the fields are on the opposite sides of the poles but the actual truth is far from it; Artificial Intelligence is transforming the legal profession in many ways. On a basic level, the aim is to develop and find ways to reduce, manage and execute laborious tasks which would otherwise require human inputs.  IBM Watson powered called ROSS is the world’s first AI lawyer who solves research questions by mining data and interpreting trends and patterns.  If we talk about India, then most of the lawyers and the law firms are still little hesitant, but Cyril Amarchand Mangaldas in 2017 became the first Indian firm to deploy software that uses AI named Kira to identify, examine and separate the provisions and other data from legal documents with a high level of accuracy.

APPLICATIONS OF ARTIFICIAL INTELLIGENCE IN LEGAL SERVICES

There is no doubt that AI has started impacting the legal spheres. Some of the applications that Law firms have found with AI are as follows:

1. Document discovery and review

Computes have the ability to use the Natural Language Programming (NLP) and other AI tools which allows the understanding of thousands of documents and go through case files and legal briefs in a snap. If this is applied widely, it is quite capable of bringing a revolution in the working of legal sectors. In fact, the famous investment Banking Firm JPMorgan announced COiN for Contract Intelligence in 2017, a program which saves up to 36,000 hours of lawyers time every year by interpreting commercial- loan agreements. A technology developed by Ross Intelligence helps lawyers to find cases and second material using NLP. Some of the firms have adopted AI software that helps to analyse all the documents and then flag the ones that are deemed as relevant.

2. Predicting Legal outcomes

AI has some remarkable abilities like storing years’ worth of legal data which could actually help to tell the lawyers of their chances of winning relevant cases. It can able to handle a lot of tedious tasks because of which lawyers can spend more time on analysis, counselling and negotiations, even court visits. With the use of AI, legal counsels are able to answer questions relating to the future of the case because of the ability of AI of analysing data which helps to make predictions about the outcomes of the legal proceedings better than humans.

3. Due Diligence

Due Diligence is a hectic work; the legal professionals are required to perform background checks and uncover information regarding their clients. These facts are then evaluated for better decision making to support the case. It is a tedious task, and because of its comprehensiveness, there is a chance of human error. AI makes the process more efficient and accurate by the elimination of manual errors and providing a better experience for their clients as well.

4. Contract Review and Management

Law firms review contracts of their clients to identify the risks and issues to avoid any negative impact. AI can and is being used for this purpose which is quicker and with fewer human errors. For example – Kira Systems is a popular tool used by popular companies like Deloitte to review their contracts. iManage RAVN is another such tool, and it increases the effectiveness of an organisation which in turns increases the profitability.

5. Intellectual property

AI has such tools which can help with various tasks of IP field like search and registration of a trademark, Patents, Copyright, etc.

6. Electronic Billing

The AI software can actually help the lawyers and the law firms in preparing the invoices for their clients according to work done by them. It is an accurate billing which helps both the lawyers and the clients.

ARTIFICIAL INTELLIGENCE AND INTELLECTUAL PROPERTY RIGHTS

The use of AI will change the area of intellectual property rights like trademark and the patent law. These machines are growing creative, a result of which has resulted in a transformation in the invention process in ways not easily accommodated with the present system.

• COPYRIGHT AND ARTIFICIAL INTELLIGENCE

Copyright is a legal right which granted to the owner of an original work which in turn allows him/her, the exclusive rights for its use and distribution. Copyright protects the idea and nothing more, and generally, it includes fulfilment of two conditions, the first being that the works should be in tangible form and the second being that it should be original.  Since the creation of literary works is one of the areas where AI is applicable, the study of copyright becomes relevant. The introduction of AI and its development have resulted in some challenges in the world of copyright. Looking at the results, we can all agree that the work which is created by AI is at par with that of human beings, sometimes even better. Department of Computer at Information Science at the University of Konstanz, Germany developed a prodigy robot called E- David. It can create original artwork by autonomously taking pictures with its camera using a complex visual algorithm resulting in the creation  of original paintings from these pictures[1]. If a human being creates such an original artwork, it would be eligible for copyright protection. The Turing test is for the AI systems and Machines which determine whether the system or the machine is exhibiting intelligent behaviour equivalent or indistinguishable from that of human behaviour if the human evaluator is not able to distinguish whether the output is a machine or human-created, then the test is passed. In the recent years, there has been an increase in the number of AI systems passing the Turing test like the creation of Lamus software programmes which creates musical works that were performed at the London Symphony Orchestra[2]. Another famous instance is the poetry writing software, developed by Zackary Scholl in 2011 which produced a poem that got published in a literary journal and the editors could not distinguish that a computer programme had written it[3].

 

AI systems are evolving rapidly, blurring the lines between the original works and mere computer-generated works. AI is challenging the conventional copyright laws in India, and Internationally resulting in legal implications and ambiguities regarding ownership, authorship and accountability in AI-generated works. Section 13 of the Copyright Act, 1957 mentions that for the copyright to exist in the literary, dramatic, musical and artificial work, it should be original. Now the act does not define the word original but in Eastern book co. V D.B. Modak, the Supreme Court adopted ‘modicum of creativity’ as a standard for determining whether the work is authentic or not and therefore be eligible for copyright protection or not. The work should meet a minimum level of creativity and should not only be a mere output of skill and labour. Since the necessary level of creativity is not high, AI-generated work may meet this originality standard and be copyrightable. However, the second definition given by the act is deciding the author of the work. Section 2(d) of the act talks about the author of the literary, dramatic, musical or artistic work which is computer-generated to be a person who causes such work to be created. If we look at this definition, then we can see that AI-generated work can fall under the computer-generated work, but the author of such work will not be the AI system but rather the person who causes the work to be created. This definition implies that only natural persons can be protected as the author under the act. In fact, Practice and Procedural Manual of 2018[4] issues by the Copyright Office, states in the application for the registration of the literary works, only the details of natural persons should be provided, i.e. who has actually created the work. In Amarnath Sehgal v. Union of Delhi[5], the Delhi High Court recognised the author’s moral rights under the Section 57 of the Copyright Act,1957 which includes the right of paternity, the right to maintain purity/integrity and the right of retraction. It was held that these rights originate from the fact the author is uniquely invested in his/her work, and there is a privileged relationship that exists between both, therefore in cases of AI-generated works, such association is difficult to establish.

So AI might be deemed original in the current existing laws and technological landscape, they may not be attributed authorship thereof. There exists ambiguity regarding the identification of the person who caused the work to be created of the AI system. In India, under the copyright law, under certain situations, copyright may be granted to no- natural, legal and juristic persona like companies, organisation and the Government. If in future AI systems are declared as legal or juristic persons then they could be granted the copyright ownership in certain situations however this can result in issues relating to the transfer of the copyright, the commercial aspect and it may have consequences for a party seeking to monetise the works created through AI. The Indian Courts are yet to address some intricate issues surrounding the copyright and ownership of the AI-generated work which were raised when Sophia was granted citizenship in 2017 by Saudi Arabia[6]. AI systems have capabilities which are customary to human intelligence; Thus, challenging the existing notions which are pressuring the existing legal frameworks to evolve. It would be interesting to see how the law will develop and protect the AI developers and users and also the AI systems and their powerful juristic personality.

• PATENTS AND INTELLECTUAL PROPERTY RIGHTS

Artificial Intelligence has created a wave in the entire technology eco-system and has raised some fundamental questions and debates. One needs to understand that any invention related to AI is not a single invention but a combination of several of them. It can be a mathematical method or an algorithm or maybe both. There are no fixed criteria. The question which arises is whether these

combinations can be combined in one single claim and whether doing so, would reduce the scope of their protection. The foundation of AI lies in its algorithms and mathematical models. In India, we have an absolute ban on the patentability of algorithms and computer programmes unless they produce some technical contribution which will be challenging to establish in an AI-related invention. Section 3(k) of the Indian Patents Act, 1970 categorises mathematical and business methods, computer programmes and algorithms as non-patentable matter.  European Union Intellectual Property Office (EUIPO) refused two patent applications in January this year that listed AI as its inventor on the application stating that the inventor has to be a human being and not the machine. The two applications were for the Food Container[7] and Devices and Methods for Attracting Enhanced Attention[8]. These applications were filled by ‘Artificial Inventor Project’ that also filed national phase applications under the PCT including the United Kingdom. The UK Patents Office rejected the application stating that no law allows the transfer of ownership from the invention to the owner in this case, as the inventor cannot hold the property.

Making machines and computers as inventors can be tricky and they have no rights, ethics and duties and is it possible to patent a technology which is dynamic and will change and evolve with changing times and attitude of humans? It seems tricky to patent every single change.  There is another question which remains that who will ultimately get the patent? Will it be an inventor who has put all his/her efforts or the programmer who has worked equally hard. Who will be responsible if AI commits a breach? For an invention to be applicable for patent protection, it has to pass the patentability criteria which includes that it possesses novelty, an inventive step and should be capable of industrial application[9]. AI can process a higher level of intelligence and productivity, so there is a likelihood that all innovative steps could be evident to Artificial Intelligence. When it comes to inventive step, it is not easy to make innovations on existing modules or concepts which is not skilled in the art. Courts in some cases have denied patents to programs simply because what they perform is mechanical rather than it being inventive since they primarily run on computer programs[10]. According to the report by the Confederation of Indian Industry (CII) and Tata   Consultancy Services[11], India will have to bring in new guidelines and policies for the enforcement of patents, intellectual property rights, and intellectual property management in an AI work. The IP and the patent laws in India are outdated in India and with the increasing AI inventions and patent application of the same, it will be interesting to see how the patent offices and regulators revise the existing patent and IP laws that fit in the new emerging technology.

ARTIFICIAL INTELLIGENCE AND IMPACT ON THE INDIAN LEGAL SYSTEM

 A computer system can perform tasks which ordinarily require human intelligence is known as Artificial Intelligence. Kerala Police in February 2019 induces a robot for police work. In the same month, Chennai opened its second robot-themed restaurants while the robots not only serve but can interact with the customers in both English and Tamil. All of these examples make us realise the arrival of AI in our daily lives. The capability of AI systems to learn from experience and perform autonomously makes it the most disruptive and self transformative technology. If the regulation of AI is not completed correctly, it can have unmanageable implications. The Indian Legal system is still relying on the methods and solutions designed years ago, and there is very little innovation in technology. If we think about it, AI can play a big part in changing the ways lawyers operate.  For instance, legal research is one such domain where AI can help in a significant way. Indian legal system is vast and dynamic, and with the use of AI, lawyers can get unparallel insight into the legal domain within seconds.

Currently, legal research requires a significant amount of person-hours, reducing the profitability and productivity of a law firm. An AI-based research platform can help in getting quality research within seconds. It can provide lawyers with highly efficient and advancements tools assisting lawyers to become better in advising clients or litigating. Some of the legal startups like CaseMine, Pensieve, SpotDraft our building Natural Language Processing (NLP) based applications resulting in the next generation legal research platforms that help law firms to go beyond simple research making it less time-consuming. AI has tremendous scope for the Indian Legal sector, and a combination of both will witness in immense growth soon.  Some of the fields where the AI  is currently in the legal industry providing to be useful is Due Diligence, prediction technology, legal analytics, Automation on documents, IP and electronic billing.

• WILL ARTIFICIAL INTELLIGENCE REPLACE LAWYERS?

A burning question among the lawyers is whether the introduction of AI in the legal sector would replace the Lawyers and the Legal Analyst. The legal industry has seen many new solutions where the technology has improved the efficiency, contract analysis, research, etc. and in the same way, IA based software programme only targets to increase the authenticity, accuracy of the results and improve the products. They do not target to take a Lawyer’s job. The legal profession includes analytical and decision making skills which can not be automated. The AI-based software and programmes can reduce the time and effort and help the firms in giving more authentic and result oriented suggestions. AI  based automated assistant tools are not going to replace the lawyers but would make them more efficient. The evidence from other industries like healthcare and even e-commerce are enough to believe that AI will only help the lawyers and not replace them. Our honourable Chief Justice of India, SA Bobde, said that the Supreme Court has proposed to introduce a system of AI (artificial intelligence) which would help in better administration of justice delivery. However, he also cleared misconception that the AI would never replace the judges.

 

LEGAL CHALLENGES

 

AI and its application are part of our everyday lives, and it has the potential to revolutionalise society in positive ways. However, with any scientific or technological advancement, there is a real risk that it can harm Human Rights, including the Right of Privacy/ Data Protection. The machines are equipped with the ability to sense, process and record the world around them with access to our personal information. We give them access to monitor use, thereby giving them full surveillance autonomy. For instance, Google Duplex with AI-driven voice was designed to help people make an appointment to business over the phone but without any interaction from the user. The Personal Data Protection Bill (Privacy Bill 2018) intends to make the organisation accountable for personal data processed, and it has even given a wider definition of the word ‘personal data’. It has even given the person, whose data is collected the right to have his information erased. In the absence of direct human mind behind any action AI system undertakes, who is supposed to be blamed for the loss of the innocent users? Complete dependency on AI system is risky, and if we go into more in-depth analysis, then the consequences are even severe. What if AI-based driverless care gets into the accident which results in damage to property and harm to human life, who will be held responsible? Can AI also become witnesses, and can they also be used as tools for committing crimes? Challenges also include the inequality wherein the AI systems might be given preference over human beings. Since there is no decision on whether robots are a legal person or not, their legal rights and duties are unjustified. In 2018, NITI Aayog, the policy think tank of the Government of India, released a discussion paper on ‘National Strategy for Artificial Intelligence’. It is the first significant step towards the regulation of AI in India. However, the innovation is so fast-paced that the regulatory system is not able to keep pace with the developments. Thus, the need of the hour is to develop a regulatory framework.

 

CONCLUSION

 

Artificial Intelligence is part of our lives which will evolve with the changing times.  The time is not far when it will become an integral part of the legal sector. Many may argue that manually reviewing documents can prove to be accurate, but one cannot compete with the speed of AI systems. They get done work in hours which would otherwise take a team of legal experts or paralegal to perform in days. There are several advantages of using AI in the legal section, and as compared to the western world, it is still a new concept in India.  A robot or AI cannot replace lawyers, and in the future, the popularity and use of AI in the legal sector will only go up

 

[1]  Shlomit Yanisky-Ravid, “Generating Rembrandt: Artificial Intelligence, Copyright, and Accountability in the 3A Era – The Human-Like Authors are Already Here – A New Model”, Michigan State Law Review, 659 (2017).

 

[2] Robert Denicola, “Ex Machina: Copyright Protection for Computer-Generated Works”, Rutgers University Law Review, 251 (2016).

[3] Brian Merchant, The Poem that Passed the Thring Test, VICE Motherboard, available at: https://www.vice.com/en_us/article/vvbxxd/the-poem-that-passed-the-turing-test  (Last visited 9^th May 2020)

[4] Practice and Procedure Manual (2018), Copyright Office, Government of India, available at: http://copyright.gov.in/Documents/Public_Notice_inviting_reviews_and_comments_of_stakeholders_on_draft_guidelines/Literary_Work.pdf ( Last visited 10^th May, 2020)

[5] 2005 (30) PTC 253 Del.

[6] In 2017 Saudi Arabia granted an AI humanoid (‘Sophia’) citizenship, which raised questions as to the copyright ownership and accountability of AI systems.

 

[7] Patent Application # EP3564144.

[8] Patent Application # EP3563896.

[9] The Patents Act, § 2(I), 1970 (India); The Patents Act, § 2(ja), 1970 (India); The Patents Act, § 2(ac), 1970 (India).

[10] Bilsk v. Kappos, 561 U.S. 593 (2010).

[11] https://www.mycii.in/KmResourceApplication/64684.CIITCSReportUnderstandingtheDynam.pdf

By: Diya Mehta

“Fashion is very important. It is life-enhancing, and, like everything that gives pleasure, it is worth doing well.” – Vivienne Westwood[i]

Indeed! But what is the fashion of the day? The task of defining it has become exhausting as ever, owing to the speed with which what’s in the trend and what’s not changes- a process called “fast fashion”. One may now be able to relate as to why the ‘culottes’ that were so trendy when you went shopping last month are now suddenly old-fashioned and why the racks in the stores are now filled with the ‘boot-cut’ jeans.

The giant industry, however, is not free from the rampant practices of ‘imitating’ and ‘counterfeiting’-the terms having larger legal and moral implications than a common man might be able to accentuate. Therefore, to combat this evil, most legal systems have intellectual property law in place. Intellectual property law helps protect the creative and inventive creations of human intellect.[ii] The technological advancements and digitalization have made it necessary to extend protection to the creative minds that have nurtured the fashion industry and made it a billion-dollar industry.

 

Trademark

Trademark is a type of intellectual property right that helps the consumer to identify the source of the goods. That interlocking GG of Gucci, YSL letters of Yves Saint Laurent’s, raises eyebrows of the masses for the twofold reasons-the instant association of the goods with their source (a well-known luxury brand) and the whooping price that a person in the possession of such goods might have paid. Trademark, therefore, acts as an effective source of protection for the designers who incorporate trademark protected symbols and logos in their designs.[iii]

The ongoing battle between Kanye West and a fragrance company for their respective “YZY” trademarks is one such trademark issue that adumbrates how two companies are forbidden from having identical marks that might confuse or deceive the consumers concerning the source of the goods.[iv]

 

Trade Dress

Trade dress is a kind of protection extended to a product when it is distinctive or acquires a secondary meaning. The robin blue color of tiffany’s packaging or the infamous red sole heels of Christian Louboutin’s, helps the consumers to directly link it to the source. What’s new is Valentino’s quest for acquiring trade dress protection for its “three-dimensional configuration of a shoe with a single ankle strap and T-strap and collar which are adorned with pyramid shaped studs”.[v]

 

Patent

Patent law protects the novel, useful and non-obvious innovations. Applicable to both design and utility patents, patent protection even though watertight, hardly comes handy to the fashion industry because of time-consuming procedure of patent applications and frequent changes in fashion trends.[vi] However, there are still some designers that hold successful patents. One such patent is Virgil Abloh’s Off White patent for paperclip jewelry. The patent is not for the paperclip shaped jewelry which has nothing novel in it but for the jewelry pieces with elements shaped like paperclips and which are studded with small jewels or rhinestones.[vii]

 

Copyright and Designs Act

There has been a lot of dilemmas and back and forth with respect to the protection granted, under the two Acts, to the designers in India. Copyright Act, 1957 protects the ‘artistic work’ and the Designs Act, 2000 on the other hand extend protection to the ‘original designs’ including the shapes, configurations, pattern, ornament, and composition of lines or colors.[viii] However, the line between permissible copying and design piracy is blurry due to the difficulty in defining the originality of the designs.[ix] Also, the mandatory provision of getting your designs registered which entails a lengthy procedure further adds to the hardships faced by the designers due to fast-changing nature of the fashion industry. Additionally, the sanctions imposed against the infringer is of minuscule amount of Rs. 25000.[x]

 

The Ripple Effect

The intellectual property available to the fashion designers, though varied, is still deficient. The claim stands because of the lack of a proper mechanism to protect the designers and their creativity, the failure to fight against the prevalent organized crime of counterfeiting, rampant copying of designs and selling it for cheap, and its domino effect on sustainability.[xi]

As asserted above, there are some legal, social, and moral impacts associated with the practices of counterfeiting and knocking-off.

 

Effect on the Environment

The thirst to be up-to-date with the latest fashion trends come at an enormous cost. The fast-fashion era though quenches this thirst of people belonging to different economic cadres, it leaves a catastrophic impact on the environment. There are only so many resources available on the earth and keeping up with the ever-increasing demand has thus become a daunting task. Cotton production requires land masses and water for irrigation which in turn leads to water, air, and land pollution.[xii] Manufacturing a piece of clothing also requires a ginormous amount of water. What further adds to the environmental concerns associated with fast-fashion is the chemicals and dyes used for the production of clothes. These harmful substances are dumped into water bodies leading to hazardous implications. Adding even further is the mountainous land-fills, overfilled due to discarded clothes that were once the ‘new thing we had our eyes on’.

 

Crushing Human Rights

How fast is too fast? The question will hold relevance when instead of turning blind eye to what goes behind the veils of the gigantic fashion industry is known to the general people. The very same designs introduced by a designer on a fashion show which might take him around 6 months to make it available for sale, takes less than 2 weeks to hit the stores of the participants and promoters of the fast-fashion race. The impossible becomes possible only because of the labor law violations involved in the process. The British fast-fashion giant ‘Boohoo’ has been accused of cramped high-density conditions, with wages falling below the standard basic wages.[xiii]. Brands like GAP, Zara, and Forever 21 have been as guilty as Boohoo for employing underaged children and paying them by the system of per-piece, forcing them to put in longer hours at work under inhumane conditions and for the payment of the size of a peanut. What’s required is to ponder whether paying cheap prices for knock-offs is even worth it when the plight of children employed in the garment factories with filthy conditions and poor wage system is on the rope. After all, Lucy Siegle (journalist and author) puts it correctly, “Fast fashion isn’t free. Someone, somewhere is paying.”[xiv]

 

Drug Trafficking and Terrorism

Better technology has made it effortless to manufacture counterfeit products that look convincingly real.[xv] With counterfeit products, the wrongdoing does not stop at trademark infringements but it also abets crimes like drug trafficking, human trafficking, and terrorism. In 1993, when law enforcement officials raided a warehouse in Manhattan full of counterfeit products they found drugs sewn in the lining of the handbags.[xvi]It is also believed that Al Qaeda and other terrorist organizations fund themselves through the sale and trafficking of counterfeit goods.[xvii] What is even scarier is obtaining the goods legally by producing knock-offs and adding labels of known brands like Prada, Chanel, Gucci, only after the goods have cleared the customs.[xviii]

 

But how is it possible that the practices of counterfeiting and piracy are still flourishing when there is law in place? The design piracy and counterfeiting are possible because of the lack of globally synced intellectual property law available for the industry and shortcomings of the existing laws. Ironically, there is an ongoing debate on whether or not the scope of intellectual property protection available to the fashion industry should be widened. The reason for debating on what should have a black and white answer is because of what people call- piracy paradox. It is believed that faster the cycle of fashion, greater will be the incentive for top tier fashion designers to innovate, only to be copied once again, giving a push to keep the wheel of fast-fashion rolling.[xix] The advocators and believers of this so-called conundrum fail to recognize the domino effect that lack of intellectual property rights sets. This onset a vicious cycle of which a common man becomes not only a part but also a major contributor. Apart from policy reasons there are moral arguments as well for granting larger protections to the creativity of the designers.

 

Prisoner’s dilemma

Application of the theory of prisoner’s dilemma to content creation, access, and copying that goes excessively in the fashion industry portrays a greater need to have intellectual protection[xx]. According to the theory, it will be prudent for an individual to copy the designs and creations belonging to others. However, its sub-optimal outcome will be demotivation for the designers to come up with new designs. Moore advocates on the premise of ‘self-interest and prudence’ and asserts that we should have a system that provides a scope for the designers to be creative and in which they can realize the investments made in the research and development.[xxi] According to him, copying ubiquitously will only lead to oppression of the will of designers to innovate.

 

Aristotelian-Randian approach

In Aristotle’s political-philosophical work The Politics, he states that “when everyone has a distinct interest, men will not complain of one another, and they will make more progress because everyone will be attending to his own business.”[xxii] He believed that property rights create a socially inducive society. Rand on the other hand believed that every man should have a right on the product of his mind. The designs and creativity of the fashion designers are the product of their mind and their property, which deserves protection by granting them legal rights. A legal system that induces greater creativity, provide an environment where society values the product of a human mind and its efforts, is the key to an ideal framework. The greater protection combined with legal sanction will only help break the chain of woes of illicit activities that go behind the smokescreen of fast-fashion and provide a safer environment to the creative minds to come forward with their creativity.

 

Conclusion

Keeping up with the fashion trends is indeed a drill of the 21^st century that is followed religiously. However, what is worrisome is the ignorance of what it takes to make the latest trend available at a cheap price. There are the efforts of designers that go uncompensated for, the sustainability of the environment and undervalued life of human beings on the line, behind that dress worth just Rs. 900 in a Forever 21 store that brought a spark in your eyes and you had your heart set on ever since you spotted its look-alike while turning over those glossy pages of the latest issue of Vogue. Ignorance in this case is, therefore, anything but bliss. Stringent and uniform intellectual property law tailored for the fashion industry, educating the public, making brands more responsible and accountable for their actions by bringing them closer to the supply chain, are some of the measures that need to be adopted for detoxing the fashion industry that is though worth billions today, is highly contaminated. The circularity and concatenation of events, whose starting point is a lack of effective intellectual property regime for the fashion industry, needs to be broken and the designers need to be rewarded for their hard work. What’s required is to give serious consideration to Andrew Morgan’s (filmmaker and director of ‘The True Cost’) words, “What if we started by slowing down and not consuming so much stuff, just because it’s there and cheap and available. It’s amazing how that process makes sense financially, it makes sense ethically, it makes sense environmentally.” [xxiii]

 

 

[i] Siegle, Lucy. To Die for: Is Fashion Wearing out the World ? Fourth Estate, 2011.

[ii] “What Is Intellectual Property (IP)?” WIPO, www.wipo.int/about-ip/en/.

[iii] Elrod, Cassandra. “The Domino Effect: How Inadequate Intellectual Property Rights in the Fashion Industry Affect Global Sustainability.” Indiana Journal of Global Legal Studies, vol. 24, no. 2, 2017, p. 575., doi:10.2979/indjglolegstu.24.2.0575.

 

[iv] “Kanye West Is Fighting with a Fragrance Company Over Their Respective ‘YZY’ Trademarks.” The Fashion Law, 22 July 2020, www.thefashionlaw.com/amid-the-impending-yeezy-gap-tie-up-kanye-west-is-fighting-with-a-fragrance-co-over-their-respective-yzy-trademarks/.

[v] “In New Trademark Filing, Valentino Says Rockstud Pump Is Just as Famous as Louboutin’s Red Sole.” The Fashion Law, 11 Aug. 2020, www.thefashionlaw.com/valentino-says-rockstud-pump-is-just-as-famous-as-louboutins-red-sole/.

[vi] Elrod, Cassandra. “The Domino Effect: How Inadequate Intellectual Property Rights in the Fashion Industry Affect Global Sustainability.” Indiana Journal of Global Legal Studies, vol. 24, no. 2, 2017, p. 575., doi:10.2979/indjglolegstu.24.2.0575.

[vii] “Virgil Abloh’s Off-White Adds New Design Patents to Its Growing Arsenal of Interesting IP: Paperclip Jewelry.” The Fashion Law, 24 July 2020, www.thefashionlaw.com/virgil-ablohs-off-white-adds-new-design-patents-to-its-growing-arsenal-of-interesting-ip-paperclip-jewelry/.

 

[viii] “Fashion in IPR Mode: Rohit Bal, Anju Modi, Anita Dongre Copyright Designs as Plagiarism Spreads – Business News , Firstpost.” Firstpost, 1 Sept. 2017, www.firstpost.com/business/fashion-in-ipr-mode-rohit-bal-anju-modi-anita-dongre-copyright-designs-as-plagiarism-spreads-3996807.html.

[ix] “Fashion in IPR Mode: Rohit Bal, Anju Modi, Anita Dongre Copyright Designs as Plagiarism Spreads – Business News , Firstpost.” Firstpost, 1 Sept. 2017, www.firstpost.com/business/fashion-in-ipr-mode-rohit-bal-anju-modi-anita-dongre-copyright-designs-as-plagiarism-spreads-3996807.html.

[x] Borkar, Shubham. “Fashion Law In India – Intellectual Property – India.” Welcome to Mondaq, Khurana and Khurana, 19 Dec. 2018, www.mondaq.com/india/copyright/765358/fashion-law-in-india.

[xi] Elrod, Cassandra. “The Domino Effect: How Inadequate Intellectual Property Rights in the Fashion Industry Affect Global Sustainability.” Indiana Journal of Global Legal Studies, vol. 24, no. 2, 2017, p. 575., doi:10.2979/indjglolegstu.24.2.0575.

 

[xii] Elrod, Cassandra. “The Domino Effect: How Inadequate Intellectual Property Rights in the Fashion Industry Affect Global Sustainability.” Indiana Journal of Global Legal Studies, vol. 24, no. 2, 2017, p. 575., doi:10.2979/indjglolegstu.24.2.0575.

[xiii] “Fashion Industry Giants Keep Failing to Fix Labor Exploitation.” The Fashion Law, 28 July 2020, www.thefashionlaw.com/why-does-the-fashion-industry-keep-failing-to-fix-labor-exploitation-its-simple/.

[xiv] Nini, Jennifer. “32 Thought-Provoking Quotes About Ethical, Sustainable and Fast Fashion.” Eco Warrior Princess, 13 June 2019, ecowarriorprincess.net/2018/10/brilliant-quotes-about-ethical-sustainable-and-fast-fashion/.

[xv] Giambarrese, Nicole. “The Look for Less: A Survey of Intellectual Property Protections in the Fashion Industry.” Touro Law Review, vol. 26, no. 1, 2010, p.243-286. HeinOnline.

[xvi] Giambarrese, Nicole. “The Look for Less: A Survey of Intellectual Property Protections in the Fashion Industry.” Touro Law Review ,vol. 26, no. 1, 2010, p.243-286. HeinOnline.

[xvii] Giambarrese, Nicole. “The Look for Less: A Survey of Intellectual Property Protections in the Fashion Industry.” Touro Law Review ,vol. 26, no. 1, 2010, p.243-286. HeinOnline.

[xviii] Felice, Katherine B. “Fashioning a Solution for Design Piracy: Considering Intellectual Property Law in the Global Context of Fast Fashion.” Syracuse Journal of International Law and Commerce, vol. 39, no. 1, Fall 2011, p. 219-[ii]. HeinOnline.

[xix] Raustiala, Kal, and Christopher Sprigman. “The Piracy and Paradox: Innovation and Intellectual Property in Fashion Design.” Virginia Law Review, vol. 92, no. 8, December 2006, p. 1687-1778. HeinOnline.

[xx]   Moore, Adam and Ken Himma, “Intellectual Property”, The Stanford Encyclopedia of Philosophy (Winter 2018 Edition), Edward N. Zalta (ed.), URL = <https://plato.stanford.edu/archives/win2018/entries/intellectual-property/>.

[xxi] Moore, Adam and Ken Himma, “Intellectual Property”, The Stanford Encyclopedia of Philosophy (Winter 2018 Edition), Edward N. Zalta (ed.), URL = <https://plato.stanford.edu/archives/win2018/entries/intellectual-property/>.

[xxii] Pytlak, Kaitlyn N. “The Devil Wears Fraud-a: An Aristotelian- Randian Approach to Intellectual Property Law in the Fashion Industry.” VIRGINIA SPORTS AND ENTERTAfNMENT LAW JOURNAL, vol. 15:2, no. Spring, 2016, pp. 273–305

[xxiii] Nini, Jennifer. “32 Thought-Provoking Quotes About Ethical, Sustainable and Fast Fashion.” Eco Warrior Princess, 13 June 2019, ecowarriorprincess.net/2018/10/brilliant-quotes-about-ethical-sustainable-and-fast-fashion/.