Cyber IP Infringement
Copyright Infringement Online
Digital piracy
Digital piracy refers to the unauthorized copying, distribution, or downloading of copyrighted digital content like movies, songs, software, e-books, and games over the internet.
This form of piracy has increased manifold due to:
- Easy availability of high-speed internet
- Use of torrent websites and streaming platforms
- Anonymous sharing through cloud and peer-to-peer networks
Unauthorized sharing of copyrighted material
The Indian Copyright Act, 1957 protects the rights of creators over their original works including literary, artistic, musical, and cinematographic content. Unauthorized sharing online violates the exclusive rights of the copyright owner under Sections 51 and 63 of the Act.
Punishment: Imprisonment up to 3 years and fine up to ₹2 lakh under Section 63 of the Copyright Act.
Relevant Provisions under IT Act: Section 66 and 43 of the IT Act can also apply when digital systems are used to facilitate such violations (e.g., hacking DRM-protected files).
Example:
Example 1. Uploading a pirated Bollywood film on a public cloud folder and sharing the link on Telegram channels.
Answer:
This act constitutes copyright infringement and digital piracy. It is punishable under both the Copyright Act and IT Act.
Trademark Infringement Online
Cybersquatting
Cybersquatting occurs when a person registers a domain name identical or confusingly similar to a well-known trademark with the intent to sell it later at a profit or mislead users.
Example: Registering www.tataelectronics.in to divert traffic or sell it to Tata Group.
Such activities violate the Trade Marks Act, 1999 and can be challenged under domain name dispute resolution mechanisms.
Key-word advertising
This occurs when competitors use registered trademarks as keywords in online advertisements (e.g., Google Ads) to divert traffic.
Legal Issue: Whether such use constitutes "use in the course of trade" under trademark law depends on:
- Whether confusion or unfair advantage is caused
- Whether the ad misleads consumers
Online passing off
Passing off occurs when a person misrepresents their goods/services as those of another, damaging the other's goodwill. Online, it happens through similar domain names, website layout, logos, etc.
Judicial Precedent: In Yahoo! Inc. v. Akash Arora (Delhi HC, 1999), the court held that the use of a confusingly similar domain (yahooindia.com) amounted to passing off.
Domain Name Disputes
Uniform Domain Name Dispute Resolution Policy (UDRP)
The UDRP is an international policy developed by ICANN (Internet Corporation for Assigned Names and Numbers) to resolve disputes regarding domain names. It applies to generic top-level domains (e.g., .com, .net).
Grounds for filing a complaint:
- The domain name is identical or confusingly similar to a trademark
- The registrant has no legitimate interest in it
- The domain has been registered in bad faith
Relief: Transfer or cancellation of the domain name.
Section 75 of IT Act for jurisdiction in domain name disputes
Section 75 of the Information Technology Act, 2000 provides for extra-territorial jurisdiction when any offence or contravention involves a computer, computer system, or network located in India.
Hence, if a domain name dispute affects Indian trademarks or is accessed by Indian users, Indian courts can assume jurisdiction, even if the registrant is located abroad.
Example:
Example 2. A foreign party registers www.airindiaoffers.com to mislead users into booking flights on a fake website.
Answer:
This act may amount to cybersquatting and online passing off. Since Indian users and trademarks are affected, Indian courts may assume jurisdiction under Section 75 of the IT Act.
Protection of IP in Digital Environment
Digital Rights Management (DRM)
Meaning and Purpose
Digital Rights Management (DRM) refers to technological tools and systems used to control access to copyrighted digital content. DRM helps copyright holders restrict the use, duplication, and distribution of digital assets like music, films, e-books, and software.
It is a preventive mechanism aimed at combating digital piracy and unauthorized distribution.
Common DRM Techniques
- Encryption: Prevents unauthorized users from accessing content
- Access Control: Limits content access to paying or authorized users
- Watermarking: Embeds invisible marks to trace copyright violations
- License Management: Allows content to be used under specific conditions (e.g., number of devices, usage time)
Legal Backing in India
Under the Copyright Act, 1957 (as amended in 2012), DRM systems are protected under Section 65A, which penalizes circumvention of technological protection measures. Section 65B protects rights management information from being tampered with.
Punishment: Imprisonment up to 2 years and fine for knowingly circumventing DRM systems.
Enforcement of IP Rights Online
Legal Mechanisms
Enforcing IP rights in cyberspace poses unique challenges due to anonymity, cross-border violations, and rapid content replication. However, several legal mechanisms are in place:
- Injunctions: Courts can issue interim or permanent injunctions to restrain websites or individuals from infringing copyright or trademarks.
- John Doe Orders: These are pre-emptive orders passed against unknown infringers. Used in India extensively in film piracy cases (e.g., for movies like Baahubali).
- Website Blocking: ISPs can be directed to block access to infringing sites under court orders.
- Notice-and-Takedown: Intermediaries (e.g., YouTube) are required under Section 79 of the IT Act to remove infringing content when notified.
Role of Cyber Cells and IPR Cells
Several state police departments have cyber cells and IPR enforcement cells to investigate digital piracy, counterfeiting, and online IPR violations. Their role includes:
- Tracking IP addresses of infringers
- Seizing servers or websites involved in infringement
- Coordinating with international law enforcement (INTERPOL, WIPO)
International Cooperation
India is a member of WIPO (World Intellectual Property Organization) and has signed several treaties, such as the WIPO Copyright Treaty (WCT) and WIPO Performances and Phonograms Treaty (WPPT), to strengthen global IP enforcement in the digital age.
Licensing of Digital Content
What is Licensing?
Licensing is the process by which the owner of intellectual property (licensor) grants another party (licensee) the rights to use their IP under agreed terms.
In the digital environment, licensing is crucial for legally distributing and using content like software, e-books, digital art, movies, and music.
Types of Digital Licenses
- Proprietary License: Content is used under strict restrictions (e.g., Microsoft Windows)
- Open Source License: Users can freely use and modify code (e.g., GNU GPL)
- Creative Commons (CC) Licenses: Popular in academia and art, allowing varying levels of reuse (e.g., CC BY-SA, CC BY-NC)
Key Clauses in Digital Licensing Agreements
- Scope and duration of use
- Territory of operation
- Number of devices or users allowed
- Royalty or fee structure
- Termination and revocation terms
Licensing protects the rights of IP owners while also enabling lawful use by consumers or businesses.
Indian Legal Position
Licensing is governed by the Copyright Act, 1957. Digital content licensing must also comply with provisions under the IT Act, 2000 and contract laws, especially when digital agreements are signed via electronic means or clickwrap agreements.