Cyber Crimes against Property

(Cyber Squatting & Software Piracy)

*Rehan Umar Khan

Abstract
In the present world as we are witnessing the growth of electronic age in India as the
government is taking steps to move their governance system and other works to be
carried via internet or electronically. But at the same time we are also witnessing the
rapid growth of cyber crimes. We often came across a person who has been a victim of
cyber crime. Hacking and online frauds are the most common attacks we hear today as
well as we also know that serious crimes like cyber squatting, cyber stalking and cyber
terrorism are taking place too. In this paper I have discussed the cyber crimes against
property that is again a wide topic so I will be focusing upon only two cyber crimes; (i)
Cyber squatting (ii) Software Piracy. I will discuss that how these crimes happen and
what are the remedies available against them in India.

Contents
Introduction ..................................................................................................................... 2
Cyber Squatting ............................................................................................................... 3
Role of ICANN in DNS ............................................................................................... 4
UDRP.......................................................................................................................... 4
UDRP Procedure ......................................................................................................... 5
Some cases on Cyber squatting .................................................................................... 5
Software Piracy ............................................................................................................... 7
Software Piracy and Indian Law ...................................................................................... 8
How Pirated software can affect us? ............................................................................ 9
Conclusion .................................................................................................................... 10
References ..................................................................................................................... 11

*Author is a student of MSCLIS at the National Law Institute University, Bhopal

Electronic copy available at: http://ssrn.com/abstract=2392687

 Introduction
We are moving from the age of information technology to the age of information security
as now we are more concerned about how to secure our information; the reason is the
rapid growth in the graph of cyber crimes 1 or computer crimes. New methods of
connectivity and communications are being developed with the time, and, so are the ways
to misuse them. People had started to depend on the machines rather on themselves thus
computer databases have taken the place of manual records which need to saved and
secured and also should be available at the very time they are required. An E has been
added to almost all the major or basic things which we do in our daily life like E-banking,
E-shopping, and E-governance2 etc. Governments are also taking initiative to start and
regulate their works via electronic methods or internet.
Doing the work on internet is no doubt very convenient, easy and much better way to do
but at the same time it needs to be safe and secured. The only thing why people hesitate
to do their work online is because due to the lack of trust in the system. We now and then
read the news on newspapers or televisions about the frauds that take place on the
internet or through the internet. It is easier to break into a database and steal the
information on a computer as compared to a thief going and stealing the manual records
from an office. Information or the data is the main asset of an organization which we
need to make sure that its confidentiality, integrity and availability should be maintained.
That is why, now a days companies are making its employees aware about the possible
risks and threats of the minor incidents which can lead to a big disaster or attacks on their
systems.
Cyber crimes are the crimes in which a computer is either used as a tool or a target but
the main point lies in the fact that what can be described as a computer or what are the

1
Cyber crime conviction rates remain low, even as cyber fraud continues to increase, at
http://www.business-standard.com/article/technology/the-face-of-indian-cyber-law-in-2013-
113123000441_1.html (Last visited-Jan, 05, 2014)
2
E-governance hopes rise as India crosses 1 billion transactions, at
http://articles.economictimes.indiatimes.com/2013-10-29/news/43495939_1_e-governance-cyber-cafes-
deloitte-touche-tohmatsu-india (Last visited on Jan, 05, 2014)

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Electronic copy available at: http://ssrn.com/abstract=2392687

things which can fall under the definition of a computer. In India the IT act defines the
computer in the definition clause which helps a lot in solving the cyber crimes.

Cyber Squatting
Cyber squatting is the process in which a person registers a domain name in a faith to
profit from someone else trademark. In general if someone purchases a domain name
which is identical or similar to an existing business so that he or she can sell it back to the
business owner at a high price than that person can be called a cyber-squatter. Let us first
understand the working of Internet, domain names and their registration to get a better
idea about Cyber-Squatting.
Internet is an expanding network of computers connected together with various
telecommunication mediums thus enabling them to exchange data and information
between them, it is also called the world wide web of computers. Each computer (host)
which is connected to the computer is assigned a numerical IP address which is a 32 bit
number expressed in four octets. An IP address is very hard to remember as it consists of
a 16 digit number so Internet authorities had also assigned an alphanumeric address
called Domain names to website which is quite easy to remember as compared to IP
addresses. Now websites can also be reached by just typing their names instead of IP
addresses. A user can also search for information or websites through internet directories
which is usually done through search engines like Google, yahoo, bing etc.
Each domain name is further dived into sub domains. The top level domains consist of
suffix through which we can broadly understand the type of the website. For example if
the website ends with .com it is supposed to be a commercial website whereas if a
website ends with .gov it is supposed to be a website of one of the departments of the
government. There are many other top level domains like .edu for educational websites
and .org for non-profit organizations. The second level domain name is placed before the
top level which is the name of the trademark of the organization. The “www” is a prefix
which is the sign of World Wide Web. Most of the organization wants their domain name
to be exactly the name of their trade business or the name of their organization. For
example the domain name of the renowned paper The Hindu is www.thehindu.com
which tells that this website belongs to The Hindu paper. The software programs that are
used to open websites are known as Web browsers. A simple user dosen’t has to type the

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IP address of The Hindu if he or she wishes to open it. What they will do either they will
type www.thehindu.com in the address bar of the web browser or they simply search The
Hindu in one of the search engines. The point is that the domain names cannot be same
for no matter what is the situation. If a domain name is registered no one else can get the
same domain name again irrespective of the geographical locations. A website can be
opened from all over the world thus allowing all the people to know about it.

Role of ICANN in DNS

ICANN (Internet Corporation for Assigned Names and Numbers) was formed in 1998. It
is an international multi-stakeholder organization which is responsible for the technical
management and coordination of the Internet’s domain name system. It coordinates the
Internet Protocol address space allocation and root server system management functions.
It also maintains the directory linking domain names with IP numbers of the domain
name servers.
How cyber squatting started?
When the system of assigning domain names started it was on the first-come first-
registered bases which lead many individuals/corporations which were not the originals
owners of the trademarks or the trade businesses to register the domain names of well
known trade names, brand names, company name etc. They registered the domains
names in the faith to gain profit or to sell them back the domain names at a very high
price in comparison to the price in which they bought it. These things started to trouble
the genuine buyers a lot whose domains names were already registered by someone else.
In India there is no specific act for cyber squatting and is still dealt under the Trademark
act of 1999.

UDRP
The Uniform Domain Name Dispute Resolution Policy was started by ICANN in 1999 as
WIPO made some recommendations on it. The UDRP is only limited to clear cases of
bad-faith and abusive registration and use of domain names. It has been appreciated by
trademark owners a lot as it has helped to resolved the cases of cyber squatting. The
UDRP procedure is optional for trademark owners but it is mandatory for (gTLD)

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domain name registrants. The UDRP does not prevent any party from filing a dispute in
courts.
The UDRP is only applicable to registrations in generic top level domains such as .com,
.net and .org but it will apply to any new gTLD’s if introduced.

UDRP Procedure
1. A complaint is filed and fee is paid.
 WIPO acknowledges receipt of complaint.
 Requests details from relevant registrar.
 Checks complaint complies with rules.
2. WIPO notifies respondent of complaint.
3. Response if filed/not filed.
 WIPO acknowledges receipt of response or sends default
notice.
4. WIPO appoints administrative panel.
 Administrative panel notifies WIPO of decision & WIPO
notifies parties and registrar of decision.
5. Decision
6. Decision implemented

Some cases on Cyber squatting

Yahoo!, Inc. vs Akash Arora & Anr. on 19 February, 1999
This was the first case of cyber squatting that came to Indian courts. In this case the
plaintiff filed a suit against the defendant seeking for a decree of permanent injunction as
to restrain the defendants and their partners from operating any business from internet
under the trademark of “Yahooindia.Com” or any other domain name which is identical
or similar to plaintiff’s trademark “Yahoo.com”. The court observed that the degree of
similarity is very important for the action to pass off and in this case it is very much
possible that it will be confuse and puzzle the people who want to visit “Yahoo.com”. If
we consider both the domain names it is very much clear that the two names are almost
identical and similar.
Tata Sons Limited and Anr Vs fashion ID Limited (2005) 140 PLR 12

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The Hon'ble High Court of Delhi Court held that "The use of the same or similar domain
name may lead to a diversion of users which could result from such users mistakenly
accessing one domain name instead of another. This may occur in e-commerce with its
rapid progress and instant (and the erotically limitless) accessibility to users and potential
customers and particularly so in areas of specific overlap. Ordinary consumers/users
seeking to locate the functions available under one domain name may be confused if they
accidentally arrived at a different but similar web site which offers no such services. Such
users could well conclude that the first domain name owner had mis-represented its
goods or services through its promotional activities and the first domain owner would
thereby lose their customer. It is apparent therefore that a domain name may have all the
characteristics of a trademark and could found an action for passing off"
Dr Reddy's Laboratories Limited Vs Manu Kosuri and Anr 2001 (58) DRJ241
The Hon'ble High Court of Delhi Court held that "It is a settled legal position that when a
defendant does business under a name which is sufficiently close to the name under
which the plaintiff is trading and that name has acquired a reputation the public at large is
likely to be misled that the defendant's business is the business of the plaintiff or is a
branch or department of the plaintiff, the defendant is liable for an action in passing off
and it is always not necessary that there must be in existence goods of the plaintiff with
which the defendant seeks to confuse his own domain name passing off may occur in
cases where the plaintiffs do not in fact deal with the offending goods. When the
plaintiffs and defendants are engaged in common or overlapping fields of activity, the
competition would take place and there is grave and immense possibility for confusion
and deception. The domain name serve same function as the trademark and is not a mere
address or like finding number of the Internet and, Therefore, plaintiff is entitled to equal
protection as trade mark. The domain name is more than a mere Internet address for it
also identifies the Internet site to those who reach it. In an Internet service, a particular
Internet site could be reached by anyone anywhere in the world who proposes to visit the
said Internet site. In a matter where services rendered through the domain name in the
Internet, a very alert vigil is necessary and a strict view needs to be taken for its easy
access and reach by anyone from any corner of the world. The trademarks/domain name
'DR. REDDY'S' of the plaintiff and 'drreddyslab.com' of the defendants are almost

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similar except for use of the suffix 'lab.com' in the defendants domain use. The degree of
the similarity of the marks usually is vitally important and significant in an action for
passing off as in such a case, there is every possibility and likelihood of confusion and
deception being caused. Considering both the domains' name, it is clear that two names
being almost identical or similar in nature, there is every possibility of an Internet user
being confused and deceived in believing that both the domain names belong to plaintiff
although the two domain names belong to two different concerns".

Software Piracy
Software Piracy is one of the biggest challenges that India is facing now a days as
according to a survey held by a firm Business Software Alliance (BSA) that about 63%3
of Indians use pirated software. It is hurting the Indian economy badly as well as
affecting the business of the organizations that develop the software by working hard day
and night.
Software piracy is simply using the software without a proper license which should be
purchased prior to the use of that software from the developer. Similarly using single user
license for software in multiple machines as well as selling trial versions of software also
comes under software piracy.
Types of software Piracy:
 End-User piracy
End-User piracy is unauthorized reproduction of copies of licensed software or in
simple words we can say that it is making the duplicate copies of genuine software.
Using one licensed copy of a software to install it on many computers.
 Internet Download
When a software is downloaded from the internet instead of purchasing it legally is
said to be a pirated copy download over the internet. There are many ways through
which a software can be downloaded from the internet.
 Websites that offer to download software for free on in exchange of
something or for very less price.
 Peer-to-peer networks that enable the download of pirated softwares.

3
63% of Indian Users Use Pirated Software, at http://www.cio.in/news/63-indian-users-use-pirating-
software-263522012 (Last Visited on Jan, 06, 2014)

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  Hard-Disk loading
This happens usually when a computer seller sells a new computer with the
pirated copies of software already installed in it. In India it very common that
buyers of new computer usually ask the shop owners to install as a lot of software
in it.
 Software counterfeiting
Software counterfeiters illegally make duplicate copies of software and sell them
to customers who believe that they are buying the genuine software. It is very
difficult to distinguish between a genuine software and a counterfeited software as
they also come with good packaging, manuals etc. When customer tries to register
the software online and he or she cannot then they realize that is not a genuine
copy of that software.

Software Piracy and Indian Law

In India to combat the grave problem of software piracy we have laws and acts which
needs to be implemented strictly in order to stop the software piracy. The amendments
that were done in the year 1994 to the Indian Copyright Act, 1957 contains the definition
of computer programs. The copyright act clearly defines the rights of copyright holder,
the way software can be given on rentals, the right of the license owner to make backup
copies and also it defines the punishments and fine for the infringement of the
copyrighted software. Let us see how computer programme has been defined in the
copyright act.
Section 2(ffc) "computer programme" means a set of instructions expressed in words,
codes, schemes or in any other form, including a machine readable medium, capable of
causing a computer to perform a particular task or achieve a particular result;
Section 634 of the Act says that there is a minimum jail term of 6 months and fines up to
`2, 00,000 and jail term up to 3 years or both. Any individual or company who without
authorization copies, download, sale software is punishable under this section.

4
63. 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, [except the right conferred by section 53A]
shall be punishable with imprisonment for a term which shall not be less than six months but

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Section 63(B) of the act applies to those who knowingly use infringed copies of software;
it can be an individual or a company.
Section 64 of the copyright act empowers a police officer which in not below the rank of
Sub Inspector or above to seize without warrant infringing copies as well as the material
that is being used for the purpose of making such copies.
Apart from the copyright act those who are using the infringed copies of the copyrighted
software and those who are making the pirated copies of the software are punishable
under the section 66 5 of the IT act, 2000. And those who are providing any help or
assistance to those who are illegally downloading, copying or selling the software can be
punished under the section 43 of the IT act, 2000.

How Pirated software can affect us?

Using pirated software is not a good choice no matter if you are using it in home for your
personal use only. Using pirated software can lead to many risks and possible threats that
can enter into your system. Recently FBI has issued a consumer alert warning of the
possibility of malware on pirated software. If we use pirated software we are not eligible
for any updates, help or trainings etc. Also as we do not get it from a trusted or authorized
source it can contain several malwares or spywares which as a result can cause us sever
damage. Malware can record your keystrokes and steal your personal information and
sending them back to criminals or hackers.
Also if we use a licensed copy of the software it built a trust between us and our
customers and we are sure that it will not lead us to any problem. We can also download
the updates and patches that are available only to the genuine users. If we are facing any
sort of problem we can also revert back to the customer support of the developers. And

which may extend to three years and with fine which shall not be less than fifty thousand rupees but
Contd. On next page
Contd. From previous page
which may extend to two lakh rupees :
Provided that where the infringement has not been made for gain in the course of trade or
business] the court may, for adequate and special reasons to be mentioned in the judgement, 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.
5
Section 66 Computer Related Offences
If any person, dishonestly, or fraudulently, does any act referred to in section 43, he shall be punishable
with imprisonment for a term which may extend to two three years or with fine which may extend to five
lakh rupees or with both.

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the most important thing that we need to keep in mind is that by using pirated software
we are doing a crime and we can be held liable for that at any point of time.

Conclusion
Cyber crimes are on the rise as the use of Internet is growing rapidly across the world.
The introduction of internet in the phones has changed the dimensions of the cyber world
as well as the crimes that are possible now. What we call a smart-phone that enable us to
do so many things like surfing internet, finding directions while travelling, doing
transactions on it can also turn into a spying machine. We can use Internet for a good
cause and bad too, it is on us what we choose to do but we need to stay awake and be
careful in the present world as we do not know when and how we could be the possible
target for an attacker. We should not ignore little things while dealing in cyberspace and
should be cautious while entering our information online. As well as we should use
licensed copies of software for our works as we do not know that there could be malware
or spyware already present in it if we download the pirated ones.

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 References

[1]. Cyber Crime – A Threat to Persons, Property,Government and Societies - Er.

Harpreet Singh Dalla, Ms. Geeta, International Journal of Advanced Research
in Computer Science and Software Engineering, Volume 3, Issue 5, May 2013
[2]. New crimes under the Information Technology (Amendment) Act - Amlan
Mohanty, The Indian Journal of Law and Technology, VOLUME 7, 2011
[3]. FIR in Cyber Squatting: Misinterpretation of IT Act – Neeraj Arora available at:
http://www.neerajaarora.com/fir-in-cyber-squatting-misinterpretation-of-it-act/
(Last Vistited on Jan, 07, 2014)
[4]. Cyber Squatting Laws in India – Singh & Associates available at:
http://www.mondaq.com/india/x/208840/Trademark/CYBER+SQUATTI+NG+L
AWS+IN+INDIA (Last visited on Jan, 07, 2014)
[5]. The Indian Copyright Act, 1957
[6]. The Information Technology Act, 2000
[7]. Software Piracy in India: Costing Millions to State Exchequer in Tax Losses
Sponsored by: BSA - Harish N. Taori, Victor Lim, Archan Shetty, March 2011
[8]. Software Piracy: Causes, Effects, and Prevention, White Paper for Software
Publishers – Aladdin

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