Short note on IT Amendment Act, 2008
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http://cis-india.org/advocacy/digital-governance/information-technology-act/short-note-on-amendment-act-2008

Pranesh Prakash of the Centre for Internet and Society wrote a short
note in February 2009 on the Information Technology (Amendment) Act,
2008. This is being posted as a precursor to a more exhaustive
analysis of the Act and the rules sought to be promulgated under the
Act. Thus, this does not cover the regulations that have been drafted
under the Act.

The new amendments to the Information Technology Act, 2000 that got
passed by the Lok Sabha last December deserve a careful reading. There
are a number of positive developments, as well as many which dismay.
Positively, they signal an attempt by the government to create a
dynamic policy that is technology neutral. This is exemplified by its
embracing the idea of electronic signatures as opposed to digital
signatures. But more could have been done on this front (for instance,
section 76 of the Act still talks of floppy disks). There have also
been attempts to deal proactively with the many new challenges that
the Internet poses.
Freedom of Expression

The first amongst these challenges is that of child pornography. It is
heartening to see that the section on child pornography (s.67B) has
been drafted with some degree of care. It talks only of sexualized
representations of actual children, and does not include fantasy
play-acting by adults, etc. From a plain reading of the section, it is
unclear whether drawings depicting children will also be deemed an
offence under the section. Unfortunately, the section covers everyone
who performs the conducts outlined in the section, including minors. A
slight awkwardness is created by the age of "children" being defined
in the explanation to section 67B as older than the age of sexual
consent. So a person who is capable of having sex legally may not
record such activity (even for private purposes) until he or she turns
eighteen.

Another problem is that the word "transmit" has only been defined for
section 66E. The phrase "causes to be transmitted" is used in section
67, 67A, and 67B. That phrase, on the face of it, would include the
recipient who initiates a transmission along with the person from
whose server the data is sent. While in India, traditionally the
person charged with obscenity is the person who produces and
distributes the obscene material, and not the consumer of such
material. This new amendment might prove to be a change in that
position.

Section 66A which punishes persons for sending offensive messages is
overly broad, and is patently in violation of Art. 19(1)(a) of our
Constitution. The fact that some information is "grossly offensive"
(s.66A(a)) or that it causes "annoyance" or "inconvenience" while
being known to be false (s.66A(c)) cannot be a reasons for curbing the
freedom of speech unless it is directly related to decency or
morality, public order, or defamation (or any of the four other
grounds listed in Art. 19(2)). It must be stated here that many argue
that John Stuart Mill's harm principle provides a better framework for
freedom of expression than Joel Feinberg's offence principle. The
latter part of s.66A(c), which talks of deception, is sufficient to
combat spam and phishing, and hence the first half, talking of
annoyance or inconvenience is not required. Additionally, it would be
beneficial if an explanation could be added to s.66A(c) to make clear
what "origin" means in that section. Because depending on the
construction of that word s.66A(c) can, for instance, unintentionally
prevent organisations from using proxy servers, and may prevent a
person from using a sender envelope different form the "from" address
in an e-mail (a feature that many e-mail providers like Gmail
implement to allow people to send mails from their work account while
being logged in to their personal account). Furthermore, it may also
prevent remailers, tunnelling, and other forms of ensuring anonymity
online. This doesn't seem to be what is intended by the legislature,
but the section might end up having that effect. This should hence be
clarified.

Section 69A grants powers to the Central Government to "issue
directions for blocking of public access to any information through
any computer resource". In English, that would mean that it allows the
government to block any website. While necessity or expediency in
terms of certain restricted interests are specified, no guidelines
have been specified. Those guidelines, per s.69A(2), "shall be such as
may be prescribed". It has to be ensured that they are prescribed
first, before any powers of censorship are granted to any body. In
India, it is clear that any law that gives unguided discretion on an
administrative authority to exercise censorship is unreasonable (In re
Venugopal, AIR 1954 Mad 901).
Intermediary Liability

The amendment to the provision on intermediary liability (s.79) while
a change in the positive direction, as is seeks to make only the
actual violators of the law liable for the offences committed, still
isn't wide enough. This exemption is required to be widely worded to
encourage innovation and to allow for corporate and public initiatives
for sharing of content, including via peer-to-peer technologies.

Firstly, the requirement of taking down content upon receiving "actual
knowledge" is much too heavy a burden for intermediaries. Such a
requirement forces the intermediary to make decisions rather than the
appropriate authority (which often is the judiciary). The intermediary
is no position to decide whether a Gauguin painting of Tahitian women
is obscene or not, since that requires judicial application of mind.
Secondly, that requirement is vitiates the principles of natural
justice and freedom of expression because it allows a communication
and news medium to be gagged without giving it, or the party
communicating through it, any due hearing. It has been held by our
courts that a restriction that does not provide the affected persons a
right to be heard is procedurally unreasonable (Virendra v. State of
Punjab, AIR 1958 SC 896).

The intermediary loses protection of the act if (a) it initiates the
transmission; (b) selects the receiver of the transmission; and (c)
selects or modifies the information. While the first two are required
to be classified as true "intermediaries", the third requirement is a
bit too widely worded. For instance, an intermediary might
automatically inject advertisements in all transmissions, but that
modification does not go to the heart of the transmission, or make it
responsible for the transmission in any way. Similarly, the
intermediary may have a code of conduct, and may regulate
transmissions with regard to explicit language (which is easy to
judge), but would not have the capability to make judgments regarding
fair use of copyrighted materials. So that kind of "selection" should
not render the intermediary liable, since misuse of copyright might
well be against the intermediary's terms and conditions of use.
Privacy and Surveillance

While the threat of cyber-terrorism might be very real, blanket
monitoring of traffic is not the way forward to get results, and is
sure to prove counter-productive. It is much easy to find a needle in
a small bale of hay rather than in a haystack. Thus, it must be
ensured that until the procedures and safeguards mentioned in
sub-sections 69(2) and 69B(2) are drafted before the powers granted by
those sections are exercised. Small-scale and targetted monitoring of
metadata (called "traffic data" in the Bill) is a much more suitable
solution, that will actually lead to results, instead of getting
information overload through unchannelled monitoring of large
quantities of data. If such safeguards aren't in place, then the
powers might be of suspect constitutionality because of lack of guided
exercise of those powers.

Very importantly, the government must also follow up on these powers
by being transparent about the kinds of monitoring that it does to
ensure that the civil and human rights guaranteed by our Constitution
are upheld at all times.
Encryption

The amending bill does not really bring about much of a change with
respect to encryption, except for expanding the scope of the
government's power to order decryption.  While earlier, under section
69, the Controller had powers to order decryption for certain purposes
and order 'subscribers' to aid in doing so (with a sentence of up to
seven years upon non-compliance), now the government may even call
upon intermediaries to help it with decryption (s.69(3)).
Additionally, s.118 of the Indian Penal Code has been amended to
recognize the use of encryption as a possible means of concealment of
a 'design to commit [an] offence punishable with death or imprisonment
for life'.

The government already controls the strength of permissible encryption
by way of the Internet Service Provider licences, and now has
explicitly been granted the power to do so by s.84A of the Act.
However, the government may only prescribe the modes or methods of
encryption "for secure use of the electronic medium and Modes or for
promotion of e-governance and e-commerce".  Thus, it is possible to
read that as effectively rendering nugatory the government's efforts
to restrict the strength of encryption to 48-bit keys (for symmetric
encryption).
Other Penal Provisions

Section 66F(B), defining "cyberterrorism" is much too wide, and
includes unauthorised access to information on a computer with a
belief that that information may be used to cause injury to decency or
morality or defamation, even. While there is no one globally accepted
definition of cyberterrorism, it is tough to conceive of slander as a
terrorist activity.

Another overly broad provision is s.43, which talks of "diminish[ing]
its value or utility" while referring information residing on a
computer, is overly broad and is not guided by the statute.
Diminishing of the value of information residing on a computer could
be done by a number of different acts, even copying of unpublished
data by a conscientious whistleblower might, for instance, fall under
this clause. While the statutory interpretation principle of noscitur
a socii (that the word must be understood by the company it keeps)
might be sought to be applied, in this case that doesn't give much
direction either.

While all offences carrying penalties above three years imprisonment
have been made cognizable, they have also been made bailable and
lesser offences have been made compoundable. This is a desirable
amendment, especially given the very realistic possibility of
incorrect imprisonments (Airtel case, for instance), and frivolous
cases that are being registered (Orkut obscenity cases).

Cheating by personation is not defined, and it is not clear whether it
refers to cheating as referred to under the Indian Penal Code as
conducted by communication devices, or whether it is creating a new
category of offence. In the latter case, it is not at all clear
whether a restricted meaning will be given to those words by the court
such that only cases of phishing are penalised, or whether other forms
of anonymous communications or other kinds of disputes in virtual
worlds (like Second Life) will be brought under the meaning of
"personation" and "cheating".

While it must be remembered that more law is not always an answer to
dealing with problems, whether online or otherwise, it is good to note
that the government has sought to address the newer problems that have
arisen due to newer technologies. But equally important is the
requirement to train both the judiciary and the law enforcement
personnel to minimize the possibility of innocent citizens being
harassed.

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