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INFORMATION TECHNOLOGY ACT Group-6

Group Members:
Kunal Jagda Sachin More Chintan Patel Ronak Shah Vinit Shah Rahul Yesale Prem Mehta Malay Parekh - 018 - 029 - 032 - 045 - 046 - 053 - 054 - 055

Need for IT Act

The rapid evolution of Internet has raised numerous legal issues and questions Countries throughout the world are formulating way to control, regulate and facilitate electronic communication and commerce and fight against the cyber crime. In many cases, law enforcement officers have lacked the tools needed to tackle the problem Old laws didnt quite fit the crimes being committed Debates over privacy issues hampered the ability of enforcement agency to gather the evidence needed to prosecute these new cases

Section 3: Digital Signature

Authentication of electronic records

Law Says: Subject to the provisions of this section any subscriber may authenticate an electronic record by affixing his digital signature.

The authentication of the electronic record shall be effected by the use of asymmetric crypto system and hash function which envelop and transform the initial electronic record into another electronic record. Any person by the use of a public key of the subscriber can verify the electronic record. The private key and the public key are unique to the subscriber and constitute a functioning key pair.

Section 2: Digital Signature (contd..)

Legal recognition of digital signatures Law Says: Where any law provides that information or any other matter shall be authenticated by affixing the signature or any document shall be signed or bear the signature of any person then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied, if such information or matter is authenticated by means of digital signature affixed in such manner as may be prescribed by the Central Government. Regulation of Certifying Authorities The Information Technology Act empowers the Controller of Certifying Authorities to regulate licensed Certifying Authorities in India.

The Central Government is empowered to appoint: A Controller of Certifying Authorities Deputy Controllers Assistant Controllers

Cyber Crime

In general Terms Cyber crime is defined as an unlawful acts wherein the computer is either a tool or target or both Against Individuals Harassment via e-mails. Dissemination of obscene material. Unauthorized control/access over computer system. Email spoofing Cheating & Fraud

Against Society Pornography Financial crimes Sale of illegal articles Online gambling Forgery
Against Nation Unauthorized control/access over computer system Possession of unauthorized information. Cyber terrorism against the government organization

Section 66: Hacking with computer system


Law Says : when there is intent to cause or knowledge that one is likely to cause wrongful loss or damage to the public or any person by destroying or deleting or altering any information residing in a computer resource or diminishing its value or utility or affecting it injuriously by any means.

Punishment : Imprisonment up to three years, or fine which may extend upto Two lakh rupees, or with both. Non Bailable.

Case Study: Hacking with computer system - Bangalore techie convicted in hacking case
The Press Information Bureau (PIB), Chennai, had lodged a complaint with the CBI after it found some misunderstanding cropping up amongst its staff due to an e-mail communication. During the investigation, CBI found that Arunkumar had logged into the PIB accounts after hacking passwords. He had made alterations in the computer database pertaining to the users. He was sentenced to undergo one year rigorous imprisonment and pay a fine of Rs 5,000 after being convicted in a hacking case

Section 66 F: Cyber Terrorism Law Says: Whoever with intent to threaten the unity, integrity, security or sovereignty of India or to strike terror in the people or any section of the people by denying or cause the denial of access to any person authorized to access computer resource attempting to penetrate or access a computer resource without authorization or exceeding authorized access introducing or causing to introduce any computer contaminant Punishment Cyber terrorism is punishable with imprisonment which may extend to imprisonment for life, Non-Bailable

Case Study: Cyber Terrorism - Threat email: Police slap cyber-terrorism charges
The police registered a case of cyber terrorism when threat email was sent to the BSE and NSE An email challenging the security agencies to prevent a terror attack was sent by one Shahab Md with an ID sh.itaiyeb125@yahoo.in to BSEs administrative email ID corp.relations@bseindia.com The IP address of the sender was traced to Patna in Bihar and the person was brought to justice for cheating, criminal intimidation cases under the IPC and a cyber-terrorism case under the IT Act

Section 65: Tampering with computer source documents Law Says: Whoever knowingly or intentionally conceals, destroys or alters or intentionally or knowingly causes another to conceal, destroy or alter any computer source code used for a computer, computer program, computer system or computer network, when the computer source code is required to be kept or maintained by law for the time being in force, shall be punishable
Punishment

Imprisonment up to three years, or with fine which may extend up to two lakh rupees, or with both. Non-Bailable
Case Study: Tampering with computer source documents Saket
Singhania

an engineer was sent by his employer to America to develop a software program for the company.
Singhania,

instead of working for the company, allegedly sold the source code of the program to an American client of his employer Due to which the employer of Saketh suffered loss.
This

case which was registered under Section 65 of the IT Act, for theft of computer source code

Section 67: Publishing of information which is obscene in electronic form Law Says: Publishing or transmitting or causing to be published in the electronic form, any material which is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it Punishment On first conviction - imprisonment of either description for a term which may extend to five years and with fine which may extend to one lakh rupees Second or subsequent conviction - imprisonment of either description for a term which may extend to ten years and also with fine which may extend to two lakh rupees. Non-Bailable.

Case Study: Publishing of information which is obscene in electronic form


Doctor found guilty in cyber porn case A fast-track court in Chennai convicted Dr L Prakash, an orthopaedician, for making porn films and selling them abroad. He use to sell the cds in the United States and France, marked materials on surgical procedures Person was charged under Section 67 of the IT Act IPC Sections 120 B (conspiracy) and 367 (kidnapping), Section 516 of the Immoral Trafficking (Prevention) Act, Sections 4 and 6 of the Indecent Representation of Women (prohibition) Act

Section 71: Penalty for Misrepresentation Law Says: Whoever makes any misrepresentation to, or suppresses any material fact from, the Controller or the Certifying Authority for obtaining any license or Digital Signature Certificate, as the case may be, Shall be punished This section applies to: a person, who, for obtaining a digital signature certificatemakes a misrepresentation to the Certifying Authority, suppresses any material fact from the Certifying Authority. a person obtaining a license to operate as a Certifying Authoritymakes a misrepresentation to the Controller suppresses any material fact from the Controller
Punishment imprisonment

up to 2 years and / or fine up to Rs. 1 lakh

Illustration: Penalty for Misrepresentation Sameer is applying for a digital signature certificate. He fills in his name as Siddharth and also submits photocopies of Siddhartha's passport as proof of identity Sameer is liable for misrepresenting information to the Certifying Authority

Section 72: Penalty for Breach of Confidentiality and Privacy Act Says:
Any person who has secured access to any electronic record, book, register, correspondence, information, document or other material without the consent of the person concerned, discloses such electronic record, book, register, correspondence, information, document or other material to any other person shall be punished.
Punishment

imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both. For disclosure of information in breach of contract is imprisonment for a term up to three years or with fine up to five lakh rupees or with both.

Case Study : Pune Citibank mphasis call center fraud In call Center written Non-Disclosure & Confidentiality Agreement is obtained at the time of joining from each employee Some employees gained the confidence of the customer and obtained their PIN numbers under the guise of helping the customers out of difficult situations which was then used to transfer money out of those customers' accounts and into their accounts in pune Total $350,000 form accounts of US Customers were dishonestly transferred criminals were traced and brought to justice Police recovered $23,000 funds allegedly stolen

Conclusion

To curb computer crimes, the police alone cannot make all the difference.

Awareness regarding these cyber laws must be created


Private and Non-Governmental organizations must play an active role Judiciary will also have to play a proactive role in adjudicating cyber trials.

They must themselves study the laws carefully and effectively enforce them.
Co-ordination amongst the organizations, police and judiciary will definitely create some impact and minimize the crime rate.

Competition commission of India

Definition of competition ?

Competition is an evasive term

It is not defined in the Act


It refers to economic rivalry amongst economic enterprises to control greater market power

Economic enterprises compete to outsmart their competitors and in the process sometimes eliminate rivals.
Level of Competition does not depend upon number of players in an industry but degree of contestability.

Benefits of Competition

Promotes efficiency;
Encourages innovation; Punishes the laggards; Facilitates better governance; Boosts choice improves quality,

Reduce costs;
Ensures availability of goods in abundance of acceptable quality at affordable price.

The Competition Act, 2002

The Competition Act was passed by the Parliament in the year 2002.
The President accorded assent in January, 2003.

It was subsequently amended by the Competition (Amendment) Act, 2007.


The Competition Commission of India and the Competition Appellate Tribunal have been established. The provisions of the Competition Act relating to anticompetitive agreements and abuse of dominant position were notified on May 20, 2009.

COMPETITION ACT, 2002


OBJECTIVES:

To prevent practices having appreciable adverse effect on competition;


to promote and sustain competition in trade and industry;

to protect the interest of consumers;


to ensure freedom of trade carried on by the participants in market in India;

Establishment of the Competition Commission of India.

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The objectives of Competition Law have been further highlighted in a recent judgment delivered by Hon'ble Supreme Court as: "The main objective of competition law is to promote economic efficiency using competition as one of the means of assisting the creation of market responsive to consumer preferences. The advantages of perfect competition are threefold: allocative efficiency, which ensures the effective allocation of resources, productive efficiency, which ensures that costs of production are kept at a minimum and dynamic efficiency, which promotes innovative practices."

Anti-competitive agreements Section 3


Prohibit anti-competitive agreements (including cartels)

The Act deals with following kind of agreements.


Horizontal Agreements, which: fix (determine) prices limit or control production, supply, technical development etc. allocate areas or customers bid rigging or collusive bidding These type of agreements are presumed to cause appreciable adverse effect on competition. Shall not apply to any agreement entered into by way of joint ventures if such agreement increases efficiency in production, supply, distribution, storage, acquisition or control of goods or provision of services.

b.Vertical Agreements such as: tie in arrangement exclusive supply or distribution refusal to deal resale price maintenance These type of agreements are not outright prohibited but subject to rule of reasoning. Only if they cause or likely to appreciable adverse effect on competition, they are prohibited.
However, exemption has been provided to agreements involving intellectual property rights (IPRs) and to the right of any person to export goods from India to the extent the agreement relates exclusively to production, supply, distribution or control of goods or provision of services for such exports.
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Existence of Dominance And Exercise of Dominance

Existence of dominance is not bad. Exercise of dominance if it falls amongst Abuses , is only frowned upon Dominance means position strength which enables it operate independent competitors, consumers relevant market in its favour. of to of or

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Abuse of dominant position


(Section 4) There shall be an abuse of dominant position, if an enterprise or a group :

Directly or indirectly, imposes unfair or discriminatory Condition in purchase or sale of goods or service; or Price in purchase or sale (including predatory price) of goods or service.
Limits or restricts Production of goods or provision of services or market therefore; or Technical or scientific development relating to goods or services to the prejudice of consumers; or Indulges in practices resulting in denial of market access or Makes conclusion of contracts subject to acceptance by other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts; or Uses its dominant position in one relevant market to enter into, or protect, other relevant market.

Inquiry into certain agreements


(Section 19)

The Commission shall, while determining whether an agreement has an appreciable adverse effect on competition , have due regard to the following factors, namely:
Creation

of barriers to new entrants in the market;

Driving

existing competitors out of the market;

Hindering

entry into the market;

Accrual

of benefits to consumers in production or distribution of goods or provision of services;

Improvements

Promotion

of technical, scientific and economic development by means of production or distribution of goods or provision of services.

To Determine Dominance, the factors to be considered are:

market share of enterprise,

size and resources of enterprise,


size and important of competitors, Commercial advantage of competitors, Vertical integration, Dependence of consumers, Entry barriers, Contribution to economic development any other factor.
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Penalty for anti competitive agreements / abuse of dominant position

The CCI has been empowered to impose penalty which can be up to 10% of the average turnover for the last three preceding financial years upon each such enterprise who are parties to such agreements or abuse.
In case of cartel, the Commission shall impose a penalty equivalent to three times of the amount of profits made out or 10% of average turn over whichever is more.

Composition of Commission
(Section 8)

The Commission shall consist of a Chairperson and not less than two and not more than six other Members to be appointed by the Central Government. The Chairperson and every other Member shall be a person of ability, integrity and standing and who has special knowledge of, and such professional experience of not less than fifteen years in, international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs or competition matters, including competition law and policy, which in the opinion of the Central Government, may be useful to the Commission.

Competition Advocacy
(Section 49)
Overview Under the competition advocacy initiative, the Commission organizes interactive meetings, seminars, etc with different trade organizations, consumer associations, stakeholders and the public at large to spread awareness about the Competition Law and the Commission. Objectives of Competition Advocacy
Spread

awareness about Competition Act and the CCI among various stakeholders. Familiarizes business enterprises, central government ministries, state government ministries,central / state PSUs about the importance and benefits of fair competition and ensure compliance of the provisions of Competition Act by them. Sensitize departments/ministries of central / state governments, and PSUs about nuances of competition law, to facilitate competition audit of their respective laws on different subjects. Take confidence building measures among business enterprises and other stakeholders associated with competition.

Benefits to Centre & State Governments


Several advantages, finally reflecting by way of savings for exchequers, accrue to central and state governments by virtue of adhering to fair competition norms. Fair competition among suppliers improves VFM (Value For Money) gains for procurement agencies. Positive effect takes place on wages, working conditions and workers' welfare as a result of increase in allocative efficiencies arising in labour market. Small enterprises, self-employed and micro-retailers are protected against abuse of dominance by bigger enterprises.

Competition Law and CCI can help government and government bodies by:

Helping to sensitize their procurement officers to the harmful effects of anti competitive practices by suppliers,contractors or manufacturers. Helping identifying areas where bid-rigging, cartelisation of abuse of dominance may be taking place more often. Familiarising with the legal remedies available in competition law. Helping them develop competition compliance programs. Providing competition advise. Helping Nodal Officers at state level in overseeing the task of ensuring fair competition.

5 pillars of the act

Anti-competitive (Section 3)

agreements

Abuse of dominant position (Section 4) Regulate combination (Section 5 / 6) Role of Competition Commission of India (Section 8/18/19/20) Entrust the Competition Commission the responsibility of undertaking competition advocacy, awareness and training about competition issues. (Section 49)