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1. CYBER CRIME:1.

1 Abstract:Cybercrime, also called e-crime, costs publicly traded companies billions of dollars annually in stolen assets and lost business. Cybercrime can totally disrupt a companys marketing activities. Further, when a company falls prey to cyber criminals, this may cause customers to worry about the security of their business transactions with the company. As a result, a company can lose future business if it is perceived to be vulnerable to cybercrime. Such vulnerability can lead to a decrease in the market value of the company, due to legitimate concerns of financial analysts, investors, and creditors. This study examines 10 case studies of publicly traded companies affected by cybercrime, and its impact on marketing activity and shareholder value. The study also describes some of the major types of cybercrime. Results indicate that costs of cybercrime go beyond stolen assets, lost business, and company reputation; cybercrime has a significant negative effect on shareholder value.

1.2 Introduction
According to Oxford Advance Learners dictionary (2001), crime is the activities that involve breaking the law or illegal act or activities that can be punished by law. Computer crime has been defined as the act of stealing or misusing the computer hardware or software. The larger the organization, the more they make use of computers for their day-to-day activities and more likely it is that someone is out there to commit a crime. Computer crimes were committed for many reasons, some which are rational, others of which may make no sense to the observer. There are those who will steal under the best of employment circumstances. Other would not steal even if they were the worst treated employees in the world. This is dependent on individual character. Olawepo (1999) observed that it is against the backdrop that management of computerized organizations should address all the energy at disposal, the issue of detection and preventing computer related crimes. According to a Symantec report at the end of 2006, Beijing is now home to the world's largest collection of malware-infected computers, nearly 5 percent of the world's total. Research by the security
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company Sophos in April showed that China has overtaken the U.S. in hosting Web pages that secretly install malicious programs on computers to steal private information or send spam e-mails. And another report from Sophos earlier that month showed that Europe produces more spam than any other continent; one Polish Internet service provider alone produces fully 5 percent of the world's spam. Finally, the growing danger from crimes committed against computers, or against information store on computers, is beginning to claim attention in national capitals. The existing laws are likely to be unenforceable against such crimes in most countries around the world, especially Nigeria. This lack of legal protection means that businesses and governments must rely solely on technical measures to protect themselves from those who would steal, deny access to, or destroy valuable information.
1.3 Why should learn about cyber crime:-

We should learn about cyber crime because Everybody is using COMPUTERS. From white collar criminals to terrorist organizations and from teenagers to adults. Conventional crimes like Forgery, extortion, kidnapping etc. are being committed with the help of computers. New generation is growing up with computers.
MOST IMPORTANT- Monetary transactions are moving on to the

IINTERNET.

1.4 Cybercrime Crimes


Perhaps the most prominent form of cybercrime is identity theft, in which criminals use the Internet to steal personal information from other users. Two of the most common ways this is done is through phishing and pharming. Both of these methods lure users to fake websites (that appear to be legitimate), where they are asked to enter personal information. This includes login information,
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such as usernames and passwords, phone numbers, addresses, credit card numbers, bank account numbers, and other information criminals can use to "steal" another person's identity. For this reason, it is smart to always check the URL or Web address of a site to make sure it is legitimate before entering your personal information. Because cybercrime covers such a broad scope of criminal activity, the examples above are only a few of the thousands of crimes that are considered cybercrimes. While computers and the Internet have made our lives easier in many ways, it is unfortunate that people also use these technologies to take advantage of others. Therefore, it is smart to protect yourself by using antivirus and spyware blocking software and being careful where you enter your personal information. 1.5 Cyber Security:Cyber security standards have been created recently because sensitive information is now frequently stored on computers that are attached to the internet. Also many tasks that were once done by hand are carried out by computer; therefore there is a need for Information Assurance and security. Cyber security is important to individuals because they need to guard against identity theft. Businesses also have a need for this security because they need to protect their trade secrets, proprietary information, and customers personal information. The government also has the need to secure their information. This is particularly critical since some terrorism acts are organ ized and facilitated by using the internet. One of the most widely used security standards today is ISO/IEC 27002 which started in 1995. This standard consists of two basic parts. BS 7799 part 1 and BS 7799 part 2 both of which were created by (British Standards Institute) BSI. Recently this standard has become ISO 27001. The National Institute of Standards and Technology (NIST) have released several special papers addressing cyber security. Three of these special papers are very relevant to cyber security: the 800-12 titled Computer Security Handbook; 80014 titled Accepted.

Fig :Extent of laws on updating cybercrime laws 1.6 Types of Cyber Crime:Cyber crime can be done in many ways. Some of them are following:1.6.1. Hacking: Hacking in simple terms means illegal intrusion into a computer system without the permission of the computer owner/user. There is an equivalent term to hacking i.e. cracking, but from Indian Laws perspective there is no difference between the term hacking and cracking. Every act committed towards breaking into a computer and/or network is hacking. Hackers write or use ready-made computer programs to attack the target computer. They possess the desire to destruct and they get the kick out of such destruction. Some hackers hack for personal monetary gains, such as to stealing the credit card information, transferring money from various bank accounts to their own account followed by withdrawal of money. They extort money from some corporate giant threatening him to publish the stolen information which is critical in nature.

Fig :Hacking Purposes of hacking


Greed Power Publicity Revenge Adventure Desire to access forbidden information

Every act committed towards breaking into a computer and/or network is hacking. Hackers write or use ready-made computer programs to attack the target computer. They possess the desire to destruct and they get the kick out of such destruction. Some hackers hack for personal monetary gains, such as to stealing the credit card information, transferring money from various bank accounts to their own account followed by withdrawal of money. They extort money from some corporate giant threatening him to publish the stolen information, which is critical in nature. Government websites are the hot targets of the hackers due to the press coverage they receive.

About Hackers, Crackers and Phreaks:-

The original meaning of the word "hack" was born at MIT, and originally meant an elegant, witty or inspired way of doing almost anything. Now the meaning has changed to become something associated with the breaking into or harming of any kind of computer or telecommunications system. Purists claim that those who break into computer systems should be properly called "crackers" and those targeting phones should be known as "phreaks". 1.6.2. Denial of Service Attack:This is an act by a criminal, who floods the bandwidth of the victims network or fills his e-mail box with spam mail depriving him of the services he is entitled to access or provide.

This act is committed by a technique called spoofing and buffer overflow. The criminal spoofs the IP address and flood the network of the victim with repeated requests. Since the IP address is fake, the victim machine keeps waiting for response from the criminals machine for each request. This consumes the bandwidth of the network which then fails to serve the legitimate requests and ultimately breaks down. Short for denial-of-service attack, a type of attack on a network that is designed to bring the network to its knees by flooding it with useless traffic. Many DoS attacks, such as the Ping of Death and Teardrop attacks, exploit limitations in the TCP/IP protocols. For all known DoS attacks, there are software fixes that system administrators can install to limit the damage caused by the attacks. But, like Virus, new DoS attacks are constantly being dreamed up by Hacker. The diagram below will give you an idea of how the attack happens:-

Fig 2.2 normal synchronization


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Fig: denial of service attack 1.6.3. Software piracy Theft of software through the illegal copying of genuine programs or the counterfeiting and distribution of products intended to pass for the original is termed as termed as software piracy. Beware! That pirated software CD which you bought for a couple of hundred bucks may have saved you some moneybut in the long run, it can do a lot more harm to you than good. Do you know that by buying such pirated software, you maybe aiding and abetting crime? With the growing popularity of computer-sharing programs such as Bear-Share, torrents and LimeWire, piracy is becoming a growing problem. People can download or "share" programs instead of purchasing them or getting a license for them. Any time a friend copies software, downloads software from a sharing website or program, or a business doesn't report the numbers of computers using software, it is a form of software piracy. Being convicted of software piracy often involves jail time and large fines. The software industry plays a leading role in creating products that have vastly improved our lives and work environment. Unfortunately, software theft, or piracy, has had a negative impact on the global marketplace and the ability to create new products. Copying in the workplace, counterfeiting and various forms of illegal distribution cost the Asia Pacific region US$11.6 billion in 2006 (Fourth Annual BSA and IDC Global Software Piracy Study. This study covers all packaged software that runs on personal computers, including desktops, laptops, and ultra-portables, including operating systems, systems software such as databases and security packages, business applications, and consumer
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applications such as PC games, personal finance, and reference software. The study does not include other types of software such as that which runs on servers or mainframes or software sold as a service).

Furthermore, the unauthorized electronic distribution and sale of copyrighted works over the Internet threatens to make these problems seem almost quaint by comparison. Legal and cultural frameworks to protect creative works online, including computer software, must be identified and built to encourage creativity and growth. Example of software piracy are as follows: End user copying - Friends loaning disks to each other, or organizations underreporting the number of software installations they have made. Hard disk loading Hard disk vendors loads pirated software Counterfeiting - large-scale duplication and distribution of illegally copied software. Illegal downloads from the Internet - By intrusion, cracking serial numbers etc.

1.6.4. Virus dissemination:A computer virus is a program that can infect other legitimate programs by modifying them to include a possibly evolved copy of itself. Viruses can spread themselves, without the knowledge or permission of the users, to potentially large numbers of programs on many machines. A computer virus passes from computer to computer like a biological virus passes from person to person. Malicious software that attaches itself to other software. (virus, worms, Trojan Horse, Time bomb, Logic Bomb, Rabbit and Bacterium are the malicious. Viruses can also contain instructions that cause damage or annoyance; the combination of possibly damaging code with the ability to spread is what makes viruses a considerable concern. Viruses can often spread without any readily visible symptoms. A virus can start on event-driven effects (for example, triggered after a specific number of executions), time-driven effects (triggered on a specific date, such as Friday the 13th) or can occur at random. Typical action of virus are as follows:-

Display a message to prompt an action which may set of the virus Erase files Scramble data on a hard disk Cause erratic screen behavior Halt the PC

Fig: virus dissimination

1.6.5. Spoofing:

Spoofing means a hacker logs-in to a computer illegally using a different

identity than his own.


He is able to do this by having previously obtained actual password. He creates a new identity by fooling the computer into thinking he is the

genuine system operator.

Hacker then takes control of the system.

1.6.6. Cyber stalking Cyber Stalking can be defined as the repeated acts harassment or threatening behavior of the cyber criminal towards the victim by using Internet services. Cyber Stalking can be defined as the repeated acts harassment or threatening behavior of the cyber criminal towards the victim by using internet services. Stalking in General terms can be referred to as the repeated acts of harassment targeting the victim such as following the victim, making harassing phone calls,
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killing the victims pet, vandalizing victims property, leaving written messages or objects. Stalking may be followed by serious violent acts such as physical harm to the victim and the same has to be treated and viewed seriously. It all depends on the course of conduct of the stalker. Stalking in General terms can be referred to as the repeated acts of harassment targeting the victim such as Following the victim Making harassing phone calls Killing the victims pet Vandalizing victims property Leaving written messages or objects Stalking may be followed by serious violent acts such as physical harm to the victim and the same has to be treated and viewed seriously. It all depends on the course of conduct of the stalker. Cyber-stalking refers to the use of the Internet, e-mail, or other electronic communications device to stalk another person. It is a relatively new form of harassment, unfortunately, rising to alarming levels especially in big cities like Mumbai 1.6.7 Online fraud:The net is a boon for people to conduct business effectively, very quickly. It saves businesses a lot of time, money and resources. Unfortunately, the net is also an open invitation to scamsters and fraudsters and online frauds are becoming increasingly rampant. Fraudsters create authentic looking websites that are actually nothing but a spoof. The purpose of these websites is to make the user enter personal information. This information is then used to access business and bank accounts. Fraudsters are increasingly turning to email to generate traffic to these websites. A lot of customers of financial institutions recently received such emails. Such emails usually contain a link to a spoof website and mislead users to enter User ids and passwords on the pretence that security details can be updated, or passwords changed. If you ever get an email containing an embedded link, and a request for you to enter secret details, treat it as suspicious. Do not input any sensitive information
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that might help provide access to your accounts, even if the page appears legitimate. No reputable company ever sends emails of this type.

1.6.8 Usenet newsgroup

Possible Criminal Uses of Usenet


Distribution/Sale of pornographic material. Distribution/Sale of pirated softwares Distribution of Hacking Software Sale of Stolen credit card numbers Sale of Stolen Data/Stolen property

1.7. Preventive measures:The Internet can be secure. Keep in mind, virtually every business and government agency uses the Internet, often to view highly confidential and valuable information. None of these actions could take place without Internet security. But it is up to every individual and every organization to take the proper steps, and utilize the advanced technologies available, to make their personal experience with the Internet as secure as possible. The question about how to police these crimes has already been constructed, but this task is turning out to be an uphill battle. Since the first computer crime law, the Counterfeit Access Device and Computer Fraud and Abuse Act of 1984, the government has been trying to track down and stop online criminals. The FBI has tried many programs and investigations in order to deter Internet crime, like creating an online crime registry for employers (Metchik 29). The reality is that Internet criminals are rarely caught. One reason is that hackers will use one computer in one country to hack another computer in another country. Another eluding technique used is the changing of the emails, which are involved in virus attacks and phishing emails so that a pattern cannot be recognized. An individual can do their best to protect themselves simply by being cautious and careful. Internet users need to watch

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suspicious emails, use unique passwords, and run anti-virus and anti-spyware software. Do not open any email or run programs from unknown sources. The most important way to protect your personal information from being compromised by cybercrime is to protect your computer. Always use a firewall. Also, always use one or two anti-spyware programs in addition to your anti-virus software, and keep them up to date. Beyond protection of your computer, you can take action to protect yourself, too. First, don't reply to an email or pop-up message that asks for personal or financial information, and don't click on links in the message. If you want to go to a bank or business's Web site, type the Web address into your browser yourself, and if you want to reach organization with which you do business, call the number on your financial statement. A final protection mechanism to consider -- some kind of personal security device separate from your PC that is part of your login process to the Web sites you use. This might be a card or USB token that uses smart card technology to safely identify you and make sure you are logging in to the real site.

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2. INTELLECTUAL PROPERTY:2.1 Introduction:Intellectual property (IP) is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized under the corresponding fields of law. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyrights, trademarks, patents, industrial design rights and trade secrets in some jurisdictions. Although many of the legal principles governing intellectual property have evolved over centuries, it was not until the 19th century that the term intellectual property began to be used, and not until the late 20th century that it became commonplace in the majority of the world. The British Statute of Anne 1710 and the Statute of Monopolies 1623 are now seen as the origins of copyright and patent law respectively.

2.2 History:Modern usage of the term intellectual property goes back at least as far as 1867 with the founding of the North German Confederation whose constitution granted legislative power over the protection of intellectual property (Schutz des geistigen Eigentums) to the confederation. When the administrative secretariats established by the Paris Convention (1883) and the Berne Convention (1886) merged in 1893, they located in Berne, and also adopted the term intellectual property in their new combined title, the United International Bureaux for the Protection of Intellectual Property. The organization subsequently relocated to Geneva in 1960, and was succeeded in 1967 with the establishment of the World Intellectual Property Organization (WIPO) by treaty as an agency of the United Nations. According to Lemley, it was only at this point that the term really began to be used in the United States (which had not been a party to the Berne Convention), and it did not enter popular usage until passage of the Bayh-Dole Act in 1980.
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"The history of patents does not begin with inventions, but rather with royal grants by Queen Elizabeth I (1558-1603) for monopoly privileges... Approximately 200 years after the end of Elizabeth's reign, however, a patent represents a legal [right] obtained by an inventor providing for exclusive control over the production and sale of his mechanical or scientific invention... [demonstrating] the evolution of patents from royal prerogative to common-law doctrine." In an 1818 collection of his writings, the French liberal theorist, Benjamin Constant, argued against the recently introduced idea of "property which has been called intellectual." The term intellectual property can be found used in an October 1845 Massachusetts Circuit Court ruling in the patent case Davoll et al. v. Brown., in which Justice Charles L. Woodbury wrote that "only in this way can we protect intellectual property, the labors of the mind, productions and interests are as much a man's own...as the wheat he cultivates, or the flocks he rears." The statement that "discoveries are...property" goes back earlier. Section 1 of the French law of 1791 stated, "All new discoveries are the property of the author; to assure the inventor the property and temporary enjoyment of his discovery, there shall be delivered to him a patent for five, ten or fifteen years. "In Europe, French author A. Nion mentioned proprit intellectuelle in his Droits civils des auteurs, artistes et inventeurs, published in 1846. Until recently, the purpose of intellectual property law was to give as little protection possible in order to encourage innovation. Historically, therefore, they were granted only when they were necessary to encourage invention, limited in time and scope. The concept's origins can potentially be traced back further. Jewish law includes several considerations whose effects are similar to those of modern intellectual property laws, though the notion of intellectual creations as property does not seem to exist notably the principle of Hasagat Ge'vul (unfair encroachment) was used to justify limited-term publisher (but not author) copyright in the 16th century.

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2.3 Objectives:Currently, particularly in the United States, the objective of intellectual property legislators and those who support its implementation is "absolute protection". "If some intellectual property is desirable because it encourages innovation, they reason, more is better. The thinking is that creators will not have sufficient incentive to invent unless they are legally entitled to capture the full social value of their inventions." This absolute protection or full value view treats intellectual property as another type of 'real' property, typically adopting its law and rhetoric. 2.3.1 Financial incentive:These exclusive rights allow owners of intellectual property to benefit from the property they have created, providing a financial incentive for the creation of an investment in intellectual property, and, in case of patents, pay associated research and development costs. Some commentators, such as David Levine and Michele Boldrin dispute this justification. 2.3.2 Economic growth:The WIPO treaty and several related international agreements are premised on the notion that the protection of intellectual property rights are essential to maintaining economic growth. The WIPO Intellectual Property Handbook gives two reasons for intellectual property laws: 1. To give statutory expression to the moral and economic rights of creators in their creations and the rights of the public in access to those creations. 2. To promote, as a deliberate act of Government policy, creativity and the dissemination and application of its results and to encourage fair trading which would contribute to economic and social development. The Anti-Counterfeiting Trade Agreement (ACTA) states that "effective enforcement of intellectual property rights is critical to sustaining economic growth across all industries and globally".

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Economists estimate that two-thirds of the value of large businesses in the U.S. can be traced to intangible assets. "IP-intensive industries" are estimated to generate 72 percent more value added (price minus material cost) per employee than "non-IP-intensive industries". A joint research project of the WIPO and the United Nations University measuring the impact of IP systems on six Asian countries found "a positive correlation between the strengthening of the IP system and subsequent economic growth." Economists have also shown that IP can be a disincentive to innovation when that innovation is drastic. IP makes excludable non-rival intellectual products that were previously non-excludable. This creates economic inefficiency as long as the monopoly is held. A disincentive to direct resources toward innovation can occur when monopoly profits are less than the overall welfare improvement to society. This situation can be seen as a market failure, and an issue of appropriability. 2.3.4 Morality:According to Article 27 of the Universal Declaration of Human Rights. "everyone has the right to the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author". Although the relationship between intellectual property and human rights is a complex one, there are moral arguments for intellectual property. The arguments that justify intellectual property fall into three major categories. Personality theorists believe intellectual property is an extension of an individual. Utilitarians believe that intellectual property stimulates social progress and pushes people to further innovation. Lokeans argue that intellectual property is justified based on deservedness and hard work. Various moral justifications for private property can be used to argue in favor of the morality of intellectual property, such as:

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1. Natural Rights/Justice Argument: this argument is based on Lockes idea that a person has a natural right over the labour and/or products which is produced by his/her body. Appropriating these products is viewed as unjust. Although Locke had never explicitly stated that natural right applied to products of the mind, it is possible to apply his argument to intellectual property rights, in which it would be unjust for people to misuse another's ideas. Lokeans argument for intellectual property is based upon the idea that laborers have the right to control that which they create. They argue that we own our bodies which are the laborers, this right of ownership extends to what we create. Thus, intellectual property ensures this right when it comes to production. 2. Utilitarian-Pragmatic Argument: according to this rationale, a society that protects private property is more effective and prosperous than societies that do not. Innovation and invention in 19th century America has been said to be attributed to the development of the patent system. By providing innovators with "durable and tangible return on their investment of time, labor, and other resources", intellectual property rights seek to maximize social utility. The presumption is that they promote public welfare by encouraging the "creation, production, and distribution of intellectual works". Utilitarians argue that without intellectual property there would be a lack of incentive to produce new idea. Systems of protection such as Intellectual property optimize social utility. 3. "Personality" Argument: this argument is based on a quote from Hegel: "Every man has the right to turn his will upon a thing or make the thing an object of his will, that is to say, to set aside the mere thing and recreate it as his own". European intellectual property law is shaped by this notion that ideas are an "extension of oneself and of ones personality". Personality theorists argue that by being a creator of something one is inherently at risk and vulnerable for having their ideas and designs stolen and/or altered. Intellectual property protects these moral claims that have to do with personality. Writer Ayn Rand has argued that the protection of intellectual property is essentially a moral issue. The belief is that the human mind itself is the source of wealth and survival and that all property at its base is intellectual property. To violate intellectual property is therefore no different morally than violating other
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property rights which compromises the very processes of survival and therefore constitutes an immoral act.

2.4 Criticism:"Copying is not theft!" badge with a character resembling Mickey Mouse is a visual pun on Mickey as a symbol of the whole intellectual property industry and its attitude towards copying. 2.4.1 The term itself:Further information: Criticism of Intellectual Property # The term "intellectual property" Free Software Foundation founder Richard Stallman argues that, although the term intellectual property is in wide use, it should be rejected altogether, because it "systematically distorts and confuses these issues, and its use was and is promoted by those who gain from this confusion." He claims that the term "operates as a catch-all to lump together disparate laws [which] originated separately, evolved differently, cover different activities, have different rules, and raise different public policy issues" and that it creates a "bias" by confusing these monopolies with ownership of limited physical things, likening them to "property rights". Stallman advocates referring to copyrights, patents and trademarks in the singular and warns against abstracting disparate laws into a collective term. Lawrence Lessig along with many other copy left and free software activists, have criticized the implied analogy with physical property (like land or an automobile). They argue such an analogy fails because physical property is generally rivalrous while intellectual works are non-rivalrous (that is, if one makes a copy of a work, the enjoyment of the copy does not prevent enjoyment of the original). 2.4.2 Limitations:Some critics of intellectual property, such as those in the free culture movement, point at intellectual monopolies as harming health, preventing progress, and benefiting concentrated interests to the detriment of the masses, and argue that the
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public interest is harmed by ever expansive monopolies in the form of copyright extensions, software patents and business method patents. The Committee on Economic, Social and Cultural Rights recognizes that "conflicts may exist between the respect for and implementation of current intellectual property systems and other human rights". It argues that intellectual property tends to be governed by economic goals when it should be viewed primarily as a social product; in order to serve human well-being, intellectual property systems must respect and conform to human rights laws. According to the Committee, when systems fail to do so they risk infringing upon the human right to food and health, and to cultural participation and scientific benefits. Some libertarian critics of intellectual property have argued that allowing property rights in ideas and information creates artificial scarcity and infringes on the right to own tangible property. Stephan Kinsella uses the following scenario to argue this point: [I]magine the time when men lived in caves. One bright guylet's call him GaltMagnondecides to build a log cabin on an open field, near his crops. To be sure, this is a good idea, and others notice it. They naturally imitate Galt-Magnon, and they start building their own cabins. But the first man to invent a house, according to IP advocates, would have a right to prevent others from building houses on their own land, with their own logs, or to charge them a fee if they do build houses. It is plain that the innovator in these examples becomes a partial owner of the tangible property (e.g., land and logs) of others, due not to first occupation and use of that property (for it is already owned), but due to his coming up with an idea. Clearly, this rule flies in the face of the first-user homesteading rule, arbitrarily and groundlessly overriding the very homesteading rule that is at the foundation of all property rights. Other criticism of intellectual property law concerns the tendency of the protections of intellectual property to expand, both in duration and in scope. The trend has been toward longer copyright protection (raising fears that it may some day be eternal). In addition, the developers and controllers of items of intellectual property have sought to bring more items under the protection. Patents have been
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granted for living organisms, (and in the US, certain living organisms have been patentable for over a century) and colors have been trademarked. Because they are systems of government-granted monopolies copyrights, patents, and trademarks are called intellectual monopoly privileges; (IMP) a topic on which several academics, including Brigitte Andersen and Thomas Allured Faunae have written. Thomas Jefferson once said in a letter to Isaac McPherson on August 13, 1813: "If nature has made any one thing less susceptible than all others of exclusive property, it is the action of the thinking power called an idea, which an individual may exclusively possess as long as he keeps it to himself; but the moment it is divulged, it forces itself into the possession of every one, and the receiver cannot dispossess himself of it. Its peculiar character, too, is that no one possesses the less, because every other possesses the whole of it. He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me." In 2005 the RSA launched the Adelphi Charter, aimed at creating an international policy statement to frame how governments should make balanced intellectual property law. Another limitation of current U.S. Intellectual Property legislation is its focus on individual and joint works; thus, copyright protection can only be obtained in 'original' works of authorship.This definition excludes any works that are the result of community creativity, for example Native American songs and stories; current legislation does not recognize the uniqueness of indigenous cultural 'property' and its ever-changing nature. Simply asking native cultures to 'write down' their cultural artifacts on tangible mediums ignores their necessary orality and enforces a Western bias of the written form as more authoritative. 2.4.3 Ethics:The ethical problems brought up by intellectual property rights are most pertinent when it is socially valuable goods like life-saving medicines and genetically modified seeds that are given intellectual property protection. For example,
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pharmaceutical companies that produce, apply intellectual property rights in order to prevent other companies from manufacturing their product without the additional cost of research and development. The application of intellectual property rights allow companies to charge higher than the marginal cost of production in order to recoup the costs of research and development. However, this immediately excludes from the market anyone who cannot afford the cost of the product, in this case a life saving drug.

The availability problem is a consequence of the fact that the incentivizing mechanism for innovation constituted by IPRs establishes a direct link between the incentive to innovate and the price of the innovative product. Under an IPR driven regime, profits are generated exclusively from sales. This means that the higher a price a product can command on the market, the higher is the incentive to invest resources into the R&D process of it. An IPR driven regime is therefore not a regime that is conductive to the investment of R&D of products that are socially valuable to predominately poor populations..

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3. COPYRIGHT LAW OF INDIA:3.1Introduction:The Indian Copyright Act, 1957 governs the system of copyrights in India Copyright Law in the country was governed by the Copyright Act of 1914, was

essentially the extension of the British Copyright Act, 1911 to India, and borrowed extensively from the new Copyright Act of the United Kingdom of 1956. Now Indian Copyright is governed by the Indian Copyright Act, 1957. The Indian Copyright Act today is compliant with most international conventions and treaties in the field of copyrights. India is a member of the Berne Convention of 1886 (as modified at Paris in 1971), the Universal Copyright Convention of 1951 and the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement of 1995. Though India is not a member of the Rome Convention of 1961, WIPO Copyrights Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT),the Copyright Act is compliant with it.

3.2 Copyright:
Copyright is a right given by the law to creators of literary, dramatic, musical and artistic works and producers of cinematograph films and sound recordings. In fact, it is a bundle of rights including, inter alia, rights of reproduction, communication to the public, adaptation and translation of the work. There could be slight variations in the composition of the rights depending on the work.

3.3 Indian work:"Indian work" means a literary, dramatic or musical work,


The author of which is a citizen of India; or Which is first published in India; or The author of which, in the case of an unpublished work is, at the time of the

making of the work, a citizen of India.

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3.3.1 Descriptions of work:

Government work - "Government work" means a work which is made or

published by or under the direction or control of


o o o

The government or any department of the government Any legislature in India, and Any court, tribunal or other judicial authority in India

3.3.2 Assignment of copyright:The author of a work is the first owner of the copyright (Section 17).However, for works made in the course of an author's employment under a contract of service, the employer is the first owner of the copyright. The owner of the copyright in an existing work or the prospective owner of the copyright in a future work may assign to any person the copyright either wholly or partially and either generally or subject to limitations and either for the whole term of the copyright or any part thereof: Provided that in the case of the assignment of copyright in any future work, the assignment shall take effect only when the work comes into existence. (Section 18) Section 19 lays down the modes of assignment- assignment can only be in writing and must specify the work, the period of assignment and the territory. Section 19(5) provides that if period of assignment is not specified it shall be deemed to be 5 years and section 19(6) provides that if the territorial extent of assignment is not specified it shall be presumed to extend within India. In a recent judgement, a division bench of the Delhi High Court in Pine Labs Private Limited vs Gemalto Terminals India Limited the Court has held that in case the duration of assignment is not specified, the duration shall be deemed to be five years and after five years the copyright shall revert to the author. In this case, Pine Labs had written some software for Gemalto under a Master Service Agreement(MSA).Though in the MSA Pine Labs had assigned the copyright in the works to Gemalto, the period of assignment was not specified.The Court held that though Gemalto may have paid for the software, Pine Labs, being the author was the first owner of the copyright and after five years, the copyright reverted to Pine Labs. It made no difference whetehr the MSA was treated as an assignment or an agreement to assign. Full text of the judgement can be viewed at Pine Labs Vs Gemalto and others.
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3.4 Rights of Broadcasting Organization and of Performers:3.4.1 Broadcast reproduction right:The broadcast reproduction right shall subsist until twenty-five years from the beginning of the calendar year next following the year in which the broadcast is made. 3.4.2 Performers right:The performer's right shall subsist until fifty years from the beginning of the calendar year next following the year in which the performance is made.

3.5 Fair dealing:A fair dealing with a literary, dramatic, musical or artistic work (not being a computer program) for the purposes of 1. for the purpose of research or private study, 2. for criticism or review, 3. for reporting current events, 4. in connection with judicial proceeding, 5. performance by an amateur club or society if the performance is given to a non-paying audience, and . 6. the making of sound recordings of literary, dramatic or musical works under certain condition. 3.5.1 Government works:Although Government works are copyrighted, the reproduction or publication of following works not copy protected. Act of a Legislature, Report of a committee, commission, council, board or other like body appointed by the Government. Judgment or order of a court, tribunal or other judicial authority

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3.6 Criminal liability:Copyright infringement is punishable under 63 of the Copyright Act: Offence of infringement of copyright or other rights conferred by this Act. Any person who knowingly infringes or abets the infringement of(a)The copyright in a work, or (b) Any other right conferred by this Act, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees: Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees . Explanation.- Construction of a building or other structure which infringes or which, if completed, would infringe the copyright in some other work shall not be an offence under this section.

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4. CASE STUDY OF CYBER CRIME:4.1. Open Source Licensing:Open source licensing is resorted to by many sites. However this has certain legal issues. Basically there can be an issue of copyright. Other relevant issues are questions of enforceability on account of clash of local legislation and international agreement. The rights of a programmer warranties and software patent also needs to detailed study.

4.2. Cyber Jurisdiction:-

Internet creates virtual world. There are no demarcated boundaries between the people who utilize the web. The utility extends to information, e-banking, ecommerce, communication etc. the technology is open to hacking, pornography, gambling, identity-theft etc.This requires understanding of jurisdiction. Various principles have been evolved to decide the jurisdiction. To mention (1) minimum contest test (2) personal jurisdiction (3) long arm statutes. With reference to Indian situation section 75 of Information Technology Act, 2000 contents the provisions regarding jurisdiction. Section 13(3), (4) and (5) also deal with cause of action which is of significance in internet transactions.Jurisdiction can also be decided on the basis of choice of law, location of server, defendants domicile, and place of performance of contract, plaintiffs domicile and purposeful. .

4.3 Andhra Pradesh Tax Case:Dubious tactics of a prominent businessman from Andhra Pradesh was exposed after officials of the department got hold of computers used by the accused person. The owner of a plastics firm was arrested and Rs 22 crore cash was recovered from his house by sleuths of the Vigilance Department. They sought an explanation from him regarding the unaccounted cash within 10 days. The accused person submitted 6,000 vouchers to prove the legitimacy of trade and thought his offence would go undetected but after careful scrutiny of vouchers and contents of his computers it revealed that all of them were made after the raids were conducted. It later revealed that the accused was running five businesses under the guise of
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one company and used fake and computerised vouchers to show sales records and save tax.

4.4 Selected Asia specific Cases:-

The following section provides a selection of actions taken against file-sharing Web sites and P2P services in the Asia/Pacific region, focusing on Australia, China, Japan and South Korea. 1. In Australias largest copyright infringement case, three university students received criminal sentences for running a Web site called MP3/WMA Land, which offered more than 1,800 pirated songs for download. In light of their age at the time and the fact that they never profited from their actions, the court warranted 18-month suspended sentences for two of the students and an additional fine of US$5,000 for one of them. Moreover, one student and a third participant were given 200 hours of community service. 2. Reportedly, China has become a leading exporter of counterfeit and pirated goods to the world. The U.S. industry estimates the value of counterfeit goods in China at US$19 billion to US$24 billion, with losses to U.S. companies exceeding US$1.8 billion a year. The severe piracy problems derive from a combination of cultural, historic and economic factors and are further aggravated by inconsistent, weak enforcement by officials. File-sharing Web sites and networks such as Jelawat and Kuro have been developing rapidly, too. The distributors of P2P software claim that file-sharing falls within the private use exception to copyright, but the Supreme Peoples Court of China rejected this interpretation. Increasingly, copyright owners and right organizations are challenging file-sharing Web sites on copyright infringement claims. 3. The Beijing No 1 Peoples Court ruled in April 2004 that the Web site chinamp3.com violated the IP rights of Hong Kong-based entertainment companies Go East Entertainment and Sony Music Entertainment (Hong Kong), and ordered the site to pay US$19,000 in damages. The suit concerned the unauthorized distribution of MP3 music files. The defendant argued that he had merely provided links for download and not a direct download service, and therefore should not be held responsible for the IP rights violations. According to observers, the courts ruling may prove to be a significant development in the
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nascent field of Chinese copyright enforcement in the digital age. 4.5 Parliament attack case:Bureau of Police Research and Development at Hyderabad had handled some of the top cyber cases, including analyzing and retrieving information from the laptop recovered from terrorist, who attacked Parliament. The laptop which was seized from the two terrorists, who were gunned down when Parliament was under siege on December 13 2001, was sent to Computer Forensics Division of BPRD after computer experts at Delhi failed to trace much out of its contents. The laptop contained several evidences that confirmed of the two terrorists motives, namely the sticker of the Ministry of Home that they had made on the laptop and pasted on their ambassador car to gain entry into Parliament House and the the fake ID card that one of the two terrorists was carrying with a Government of India emblem and seal. The emblems (of the three lions) were carefully scanned and the seal was also craftly made along with residential address of Jammu and Kashmir. But careful detection proved that it was all forged and made on the laptop.

4.6 State of Tamil V/S Suhas Katti:The Case of Suhas Katti is notable for the fact that the conviction was achieved successfully within a relatively quick time of 7 months from the filing of the FIR. Considering that similar cases have been pending in other states for a much longer time, the efficient handling of the case which happened to be the first case of the Chennai Cyber Crime Cell going to trial deserves a special mention.

The case related to posting of obscene, defamatory and annoying message about a divorcee woman in the yahoo message group. E-Mails were also forwarded to the victim for information by the accused through a false e-mail account opened by him in the name of the victim. The posting of the message resulted in annoying phone calls to the lady in the belief that she was soliciting. Based on a complaint made by the victim in February 2004, the Police traced the accused to Mumbai and arrested him within the next few days. The accused was a known family friend of the victim and was reportedly interested in marrying her. She however married another person. This marriage later ended in divorce and the accused started contacting her once again. On her reluctance to marry him, the
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accused took up the harassment through the Internet. On 24-3-2004 Charge Sheet was filed u/s 67 of IT Act 2000, 469 and 509 IPC before The Honble Addl. CMM Egmore by citing 18 witnesses and 34 documents and material objects. The same was taken on file in C.C.NO.4680/2004. On the prosecution side 12 witnesses were examined and entire documents were marked as Exhibits. The Defence argued that the offending mails would have been given either by exhusband of the complainant or the complainant her self to implicate the accused as accused alleged to have turned down the request of the complainant to marry her. Further the Defence counsel argued that some of the documentary evidence was not sustainable under Section 65 B of the Indian Evidence Act. However, the court relied upon the expert witnesses and other evidence produced before it, including the witnesses of the Cyber Cafe owners and came to the conclusion that the crime was conclusively proved. Ld. Additional Chief Metropolitan Magistrate, Egmore, delivered the judgement on 5-11-04 as follows: " The accused is found guilty of offences under section 469, 509 IPC and 67 of IT Act 2000 and the accused is convicted and is sentenced for the offence to undergo RI for 2 years under 469 IPC and to pay fine of Rs.500/-and for the offence u/s 509 IPC sentenced to undergo 1 year Simple imprisonment and to pay fine of Rs.500/- and for the offence u/s 67 of IT Act 2000 to undergo RI for 2 years and to pay fine of Rs.4000/- All sentences to run concurrently."

The accused paid fine amount and he was lodged at Central Prison, Chennai. This is considered as the first case convicted under section 67 of Information Technology Act 2000 in India.

4.7 Baazee.com case:CEO of Baazee.com was arrested in December 2004 because a CD with objectionable material was being sold on the website. The CD was also being sold in the markets in Delhi. The Mumbai city police and the Delhi Police got into action. The CEO was later released on bail. This opened up the question as to what kind of distinction do we draw between Internet Service Provider and Content Provider. The burden rests on the accused that he was the Service
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Provider and not the Content Provider. It also raises a lot of issues regarding how the police should handle the cyber crime cases.

4.8 Pune Citibank Mphasis Call Center Fraud:US $ 3,50,000 from accounts of four US customers were dishonestly transferred to bogus accounts. This will give a lot of ammunition to those lobbying against outsourcing in US. Such cases happen all over the world but when it happens in India it is a serious matter and we can not ignore it. It is a case of sourcing engineering. Some employees gained the confidence of the customer and obtained their PIN numbers to commit fraud. They got these under the guise of helping the customers out of difficult situations. Highest security prevails in the call centers in India as they know that they will lose their business. There was not as much of breach of security but of sourcing engineering. The call center employees are checked when they go in and out so they can not copy down numbers and therefore they could not have noted these down. They must have remembered these numbers, gone out immediately to a cyber caf and accessed the Citibank accounts of the customers.

All accounts were opened in Pune and the customers complained that the money from their accounts was transferred to Pune accounts and thats how the criminals were traced. Police has been able to prove the honesty of the call center and has frozen the accounts where the money was transferred. There is need for a strict background check of the call center executives. However, best of background checks can not eliminate the bad elements from coming in and breaching security. We must still ensure such checks when a person is hired. There is need for a national ID and a national data base where a name can be referred to. In this case preliminary investigations do not reveal that the criminals had any crime history. Customer education is very important so customers do not get taken for a ride. Most banks are guilt of not doing this.

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