Unit 8:Legal and Ethical Issues

Created by: INSO;

Cyber Crime & Computer Crime | Intellectual Property | Privacy & Ethical Issues | Cyber Law
in Nepal

Cyber Crime:

Cybercrime is a crime relating to any illegal behavior committed by or in relation to a

computer system or network, including such crime as illegal possession or distribution of
information by means of a computer system or network. In short, cybercrime is a crime
committed through cyber.

Computer Crime:

Computer Crime also known as cyber crime, e-crime, electronic crime, or hi-tech
crime refers to any crime that is performed by experienced computer user. This
type of computer users which can do these types of crimes are known as
Hackers. The term hacker, although originally a complimentary word for a
computer enthusiast, now has a derogatory meaning and refers to someone who
accesses a computer or network illegally. They can even corrupt the necessary files
of an organization from a computer.

CYBERCRIME AND INTERNET CRIME: UNDERSTANDING

Unauthorized access to another's a computer, deleting data or jeopardizing the data, or

destroying the computer by virtue, etc. can also be cybercrime.
And specifically in the case of internet crime, one has to use the internet as the medium
E:g hacking, phishing, E: mail bombing, spam, etc. [note: internet crime is also cybercrime]

What makes cybercrime?

When there is the presence of the following:

illegal act
using computer
with or without internet
must have malafide intention
the harm caused to the property or life of the person.

What are the elements of cybercrime?

To prove one act as cybercrime: it requires the following elements:

Actus Reus (physical element)
Mens Rea (mental element)
 Modus Operendi (computer, internet)

What is the emerging trend in cybercrime?

phishing
botnet attacks(robot)
voice over IP communication
cloud computing
not only methods but impacts also changed.

What are the major cybercrimes ?

IP theft and privacy

photo mutilation
imposter
email fraud for ransom
pornography
cyber bullying
forgery
online gambling
child trafficking
sexting, sextortion, etc.

What is Intellectual Property?

Intellectual property (IP) refers to creations of the mind, such as
inventions; literary and artistic works; designs; and symbols,
names and images used in commerce.
IP is protected in law by, for example, patents, copyright and trademarks, which enable
people to earn recognition or financial benefit from what they invent or create. By striking the
right balance between the interests of innovators and the wider public interest, the IP system
aims to foster an environment in which creativity and innovation can flourish.

Types of intellectual property

Patents

A patent is an exclusive right granted for an invention. Generally speaking, a patent provides
the patent owner with the right to decide how - or whether - the invention can be used by
others. In exchange for this right, the patent owner makes technical information about the
invention publicly available in the published patent document.

Copyright
Copyright is a legal term used to describe the rights that creators have over their literary and
artistic works. Works covered by copyright range from books, music, paintings, sculpture and
films, to computer programs, databases, advertisements, maps and technical drawings.

Trademarks

A trademark is a sign capable of distinguishing the goods or services of one enterprise from
those of other enterprises. Trademarks date back to ancient times when artisans used to put
their signature or "mark" on their products.

Industrial designs

An industrial design constitutes the ornamental or aesthetic aspect of an article. A design

may consist of three-dimensional features, such as the shape or surface of an article, or of
two-dimensional features, such as patterns, lines or color.

Geographical indications

Geographical indications and appellations of origin are signs used on goods that have a
specific geographical origin and possess qualities, a reputation or characteristics that are
essentially attributable to that place of origin. Most commonly, a geographical indication
includes the name of the place of origin of the goods.

Trade secrets

Trade secrets are IP rights on confidential information which may be sold or licensed. The
unauthorized acquisition, use or disclosure of such secret information in a manner contrary
to honest commercial practices by others is regarded as an unfair practice and a violation of
the trade secret protection.

Ethical Issues
Some of the major ethical issues faced by Information Technology (IT) are:

1. Personal Privacy

2. Access Right

3. Harmful Actions

4. Patents

5. Copyright

6. Trade Secrets

7. Liability

8. Piracy
Cyber Crime Laws in Nepal:
What are the legal provisions of cybercrime in Nepal?

In Nepal, the Nepal Police have been using the Electronic Transactions Act 2063
(Hereafter referred ETA ) to regulate cybercrimes. Section 47 of the Act is the most used
section to prevent cybercrime in Nepal. This section stipulates that if a person publishes
or displays material against morals, etiquette, hatred, or malice on a computer, internet,
and other electronic media, the culprit can be punished with a fine of 1 lakh rupees or
imprisonment for up to 5 years or both.

Section 48 of the Act is also used customarily, which stipulates that if any person who
has access to any record, book, register, correspondence, information, documents or any
other material under the authority conferred under this Act or Rules framed hereunder
divulges or causes to divulge confidentiality of such record, books, registers,
correspondence, information, documents or materials to any unauthorized person,
he/she shall be liable to the punishment with a fine not exceeding Ten Thousand Rupees
or with imprisonment not exceeding two years or with both, depending on the degree of
the offense.

What is the punishment provisioned by the law of Nepal relating to pirating, destroying, or
altering computer source data?

As per the ETA, 2063 (section 44), if any person, knowingly or with malafide intention,
pirates, destroys, alters computer sources code to be used for any computer, computer
programmer, computer system or computer network or cause, other to do so, he/she
shall be liable to the punishment with imprisonment not exceeding three years or with a
fine not exceeding two hundred thousand Rupees or with both.

Is unauthorized access to computer materials, a cybercrime?

Unauthorized Access is an offense punishable by law. If any person to have access to any
program, information, or data of any computer, uses such a computer without
authorization of the owner of or the person responsible for such a computer or even in
the case of authorization, performs any act to have access in any program, information or
data contrary to from such authorization, such a person shall be liable to the punishment
with the fine not exceeding Two Hundred thousand rupees or with imprisonment not
exceeding three years or with both depending on the seriousness of the offense.[Section
45, ETA 2063]

What are the provisions regarding damage to any computer and information system?

If any person knowingly and with a mala fide intention to cause wrongful loss or damage
to any institution destroys, damages, deletes, alters, disrupts any information of any
computer source by any means or diminishes value and utility of such information or
 affects it injuriously or causes any person to carry out such an act, such a person shall be
liable to the punishment with the fine, not exceeding two thousand Rupees and with
imprisonment not exceeding three years or with both.[Section 46, ETA 2063]

Is the publication of illegal materials in electronic form allowed?

No, it is not. If any person publishes or displays any material in electronic media including
computer, internet which is prohibited to publish or display by the prevailing law or
which may be contrary to public morality or decent behavior or any type of material that
may spread hate or jealousy against anyone or which may jeopardize the harmonious
relations subsisting among the peoples of various castes, tribes and communities shall be
liable to the punishment with the fine not exceeding One Hundred Thousand Rupees or
with the imprisonment not exceeding five years or with both.[Section 47, ETA 2063]

What are the provisions of the law of Nepal regarding computer fraud?

If any person, intending to commit any fraud or any other illegal act, creates, publishes,
or otherwise provides a digital signature certificate or acquires benefit from the payment
of any bill, the balance amount of any one's account, any inventory or ATM card in
connivance of or otherwise by committing any fraud, amount of the financial benefit so
acquired shall be recovered from the offender and be given to the person concerned and
such an offender shall be liable to the punishment with a fine not exceeding one hundred
thousand Rupees or with imprisonment not exceeding two years or with both.[Section
52, ETA2063]

What is the punishment for a person who abets others to commit a computer-related
offense?

If any person abuts another to commit an offense relating to computer under ETA Act or
who attempts or is involved in a conspiracy to commit such an offense shall be liable to
the punishment of a fine not exceeding fifty thousand Rupees or imprisonment not
exceeding six months or with both, depending on the degree of the offense.[Section 53,
ETA 2063]

What is the punishment for an offence committed outside Nepal?

If any person commits any act which constitutes an offense under ETA Act and which
involves the computer, computer system, or computer network system located in Nepal,
even though such an act is committed while residing outside Nepal, a case may be filed
against such a person and shall be punished accordingly. [Section 55, ETA 2063]

Crimes as per the “Electronics Transaction Act-2063”

Paragraph-9 describes the guilt and Surcharge regarding computers abuse
Article -44: Piracy, Amendment or Destruction of Computer Source => 3 years jail or Rs.
200000 as Surcharge
Article-45: Access to unauthorized Items =>=> 3 years jail or Rs. 200000 as Surcharge or BOTH
Article-46: Damage to Computer Information System =>=> 3 years jail or Rs. 200000 as
Surcharge or BOTH

Article-47: Publishing illegal things in Electronic Format=>i) 5 years in jail or Rs. 100000 as
Surcharge or BOTH. ii) If the act is repeated punishment is up to 1.5 times of previous
Article-48: Privacy transgress => 2 years jail or Rs. 100000 as Surcharge or BOTH
Article-49: publishing false information=> 2 years jail or Rs. 100000 as Surcharge or BOTH

Article-50: Publishing False License or Certificate=>i) 2 years in jail or Rs. 100000 as Surcharge
or BOTH ii) If incomplete, up to Rs 100000 as Surcharge iii) If consciously done, ) 2 years jail or
Rs. 100000 as Surcharge or BOTH

Article-51: Not admitting assigned description or document=> Surcharge up to 50000

Article-52: Computer brummagem=>) 2 years jail or Rs. 100000 as Surcharge or BOTH
Article-53: Encouraging for committing cyber crime=>) 6-month jail or Rs. 50000 as Surcharge
or
Article-54: Helper will be assigned half punishment than Committer
Article-55: Cybercrime committed Out of Nepal: Issue will be forwarded as per the law

Article-56: confiscation: Used computers, computer system, floppy disk, CDs or related
equipment is being confiscated

Article-57: Guilt from an Organized Institution: Responsible Person will be taken as guilt.
Article-58: Others=> 6-month jail or Rs. 50000 as Surcharge or BOTH

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