6624677 information technology act 2000

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    BYBY

    SumitSumit sachdevasachdeva

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    BackgroundBackground

    y Drew inspiration from Model Law on Electronic

    Commerce adopted by the United Nations Commission

    of International Trade Law (UNCITRAL).

    y The said resolution recommends that all states give

    favorable consideration to to the said Model Law when

    they enact or revise their laws.

    y This is in view of need of uniformity

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    ObjectiveObjective

    y Seeks to address two different aspects of technologicalrevolution.

    y Providing legal recognition to electronic transactions and

    use of alternatives to paper-based methods ofcommunications and storage etc.

    y Regulation and control of Cyber Crime and other offences.

    y Seeks to define various offences arising out of use ofDigital Signatures

    y Lays guidelines for regulating these offences.

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    Structure of the ActStructure of the Act

    y Consists of 13 Chapters.

    y Chapter 1: Describes the scope and applicability of the act andthe definitions clause.

    y Chapter 2: Authentication using digital signatures and

    asymmetric cryptosystemy Chapter 3: Legal recognition of electronic records and digital

    signatures.

    y Chapter 4: Contractual aspects of use of electronic recordssuch as attribution, acknowledgement, time and place ofdispatch and receipt.

    y Chapter 5: presumptions available to secure electronic records

    y Chapter 6,7,& 8: legal frame work within which DS can beissued and used.

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    Structure Of The Act (Structure Of The Act (contdcontd))

    y Chapter 9,10 & 11: contraventions offences and penalties

    y Chapter 12: single provision directed towards issue of

    network service provider liabilityy Chapter 13: miscellaneous provisions

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    TransactionsTransactions

    y Transaction: An action or a set of actions occurring between two

    or more persons relating to the conduct of the business,

    commercial or governmental affairs.

    y Automated Transactions: A transaction conducted or performed,

    in whole or in part, by electronic means or electronic records in

    which the acts of one or both the parties are not reviewed by an

    individual in the ordinary course of forming a contract, performing

    under existing contract or fulfilling an obligation required by the

    transaction.

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    Paperless ContractPaperless Contract

    y IT Act read in conjunction with the Contract Act.

    y There has to be an offer.

    y There has to be an acceptance of the said offer.

    y There has to be some consideration for the contract.

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    Legal issues in eLegal issues in e--commercecommerce

    Though the Internet is a goldmine, without adequate legal protection it could

    become a landmine

    E-commerce is the mode of conducting business through electronic means.

    All business activity conducted using a combination of electronic

    communications and information processing technology.

    Total transaction volume of e-commerce in India is expected to grow rapidly to

    Rs. 1,950 crore by 2008

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    CORELEGAL ISSUESCORELEGAL ISSUES

    A. Offer and Acceptance

    B. Online Identity

    C.S

    ecurity :S

    ecurity over the Internet is of immense importance to promote e-commerce.

    D. Authentication :Though the Internet eliminates the need for physical

    contact, it does not do away with the fact that any form of contract or

    transaction would have to be authenticated

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    .

    ISSUES IN EISSUES IN E--COMMERCE TRANSACTIONSCOMMERCE TRANSACTIONS

    Preventing unauthorised hyper linking and meta tagging

    Protection against unfair competition

    1. I

    nteractive marketing practices

    2. Spamming

    3. Immersive marketing

    Domain Names :If the company chooses a domain name that is similar to some

    domain name or some existing trademark of a third party, the company could be

    held liable forcybersquatting.

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    Electronic payment issuesElectronic payment issues

    Secure Credit Card Transactions

    Recognition of digital currencies

    Determining the relevant jurisdiction

    Risk of Regulatory Change

    Transaction risks

    Consumer-oriented risks

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    For example, XYZ, a company in London, having its server in USA, may sell its products tocustomers in India or other countries.

    If you receive defective goods or if you regret having made the purchase, the questionwould arise as to which jurisdiction can you sue the company or claim damages or withdrawal respectively.

    The company, onthe other hand, might find itself confronted with foreign laws

    JURISDICTIONJURISDICTION

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    REGULATIONOF CERTIFYINGAUTHORITIES

    Controller

    Deputy

    Controllers

    Assistant

    Controllers

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    FUNCTIONSOF CONTROLLERFUNCTIONSOF CONTROLLER

    Exercising supervision over the activities of the Certifying Authorities

    Certifying public keys

    Laying down the standards

    Facilitating the establishment of any electronic system by a CertifyingAuthority / Certifying Authorities

    Resolving any conflict of interests between the Certifying Authorities

    and the subscribers

    Laying down the duties of the Certifying Authorities

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    FUNCTIONSOF CONTROLLERFUNCTIONSOF CONTROLLER

    Maintaining a data base containing the disclosure record of every Certifying

    Authority containing such particulars as may be specified by regulations, which

    shall be accessible to public.

    Act as repository

    Recognition of foreign Certifying Authorities.

    Recognition of foreign Certifying Authorities.

    Power to delegate

    Power to investigate contraventions.

    Access to data and computer systems

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    CERTIFYING AUTHORITYFUNCTIONS

    Make use of hardware, software and procedures that aresecure from intrusion and misuse

    Provide a reasonable level of reliability in its services

    To ensure compliance of the Act

    Disclosure

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    Cyber CrimeCyber Crime

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    Offences Under IT Act 2000Offences Under IT Act 2000

    Tampering with the source code