Legal Aspects Of Business Tempering With Computer Source Code
Faculty of Technology Management
MBA in Technology Management
LEGAL ASPECTS OF BUSINESS
TEMPERING WITH COMPUTER SOURCE CODE
(IT ACT SECTION 65)
Submitted to: Mr. Indravadan Parmar
Prepared By: - Kiran Makwana (AM0910)
Kevin Naik (AM1010)
Bilva Patel (AM1110)
C EPT UNIVERSITY
Kasturbhai Lalbhai Campus, University Road, Ahmedabad - 380009, Gujarat, India.
Ph-0091-79-26302470/ 26302740 Fax-0091-79-26302075
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Legal Aspects Of Business Tempering With Computer Source Code
Tampering with Computer Source Code
According to section 65 of the IT Act 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 programme, 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 with imprisonment up
to three years, or with fine which may extend up to two lakh rupees, or with both. Explanation.—for the
purposes of this section, "computer source code" means the listing of programmes, computer commands,
design and layout and programme analysis of computer resource in any form.
Computer source code is the listing of programmes, computer commands, design and layout and programme
analysis of computer resource in any form.
Computer source code need not only be in the electronic form. It can be printed on paper (e.g. printouts of
flowcharts for designing a software application).
Let us understand this using some illustrations.
Illustration 1
Bilva has created a simple computer program. When a user double-clicks on the hello.exe file created by
Bilva, the following small screen opens up:
Hello World
The hello.exe file created by Bilva is the executable file that he can give to others. The small screen that opens
up is the output of the software program written by Bilva.
Bilva has created the executable file using the programming language called ―C‖. Using this programming
language, he created the following lines of code:
main ()
{
printf ("hello, ");
printf ("world");
printf ("\n");
}
These lines of code are referred to as the source code.
Illustration 2
Noodle Ltd has created software for viewing and creating image files. The programmers who developed this
program used the computer-programming language called Visual C++. Using the syntax of these languages,
they wrote thousands of lines of code.
This code is then compiled into an executable file and given to end-users. All that the end user has to do is
double-click on a file (called setup.exe) and the program gets installed on his computer. The lines of code are
known as computer source code.
Illustration 3
Bilva is creating a simple website. A registered user of the website would have to enter the correct password to
access the content of the website. He creates the following flowchart outlining the functioning of the
authentication process of the website.
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Legal Aspects Of Business Tempering With Computer Source Code
He takes a printout of the flowchart to discuss it with her client. The printout is source code.
This section relates to computer source code that is either:
1. Required to be kept (e.g. in a cell phone, hard disk, server etc.), or
2. Required to be maintained by law
The following acts are prohibited in respect of the source code
1. Knowingly concealing or destroying or altering
2. Intentionally concealing or destroying or altering
3. Knowingly causing another to conceal or destroy or alter
4. Intentionally causing another to conceal or destroy or alter
Let us discuss the relevant terms and issues in detail.
Conceal simply means ―to hide‖.
Illustration
Bilva has created a software program. The source code files of the program are contained in a folder on Bilva’s
laptop. Sameer changes the properties of the folder and makes it a ―hidden‖ folder. Although the source code
folder still exists on Bilva’s computer, he can no longer see it. Sameer has concealed the source code.
Destroys means ―to make useless‖, ―cause to cease to exist‖, ―nullify‖, ―to demolish‖, or ―reduce to nothing‖.
Destroying source code also includes acts that render the source code useless for the purpose for which it had
been created.
Illustration 1
Bilva has created a software program. The source code files of the program are contained in a folder on Bilva’s
laptop. Sameer deletes the folder. He has destroyed the source code.
Illustration 2
Bilva has created a software program. The source code files of the program are contained in a folder on Bilva’s
laptop. Sameer deletes one of the source code files. Now the source code cannot be compiled into the final
product. He has destroyed the source code.
Illustration 3
Bilva is designing a software program. He draws out the flowchart depicting the outline of the functioning of
the program. Sameer tears up the paper on which he had drawn the flowchart. Sameer has destroyed the source
code.
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Legal Aspects Of Business Tempering With Computer Source Code
Alters, in relation to source code, means ―modifies‖, ―changes‖, ―makes different‖ etc. This modification or
change could be in respect to size, properties, format, value, utility etc.‖
Illustration
Bilva has created a webpage for her client. The source code of the webpage is in HTML (Hyper Text Markup
Language) format. Sameer changes the file from HTML to text format. He has altered the source code.
Tampering with Computer Source Code
(Summary)
Actions covered Knowingly or intentionally concealing, altering or destroying computer source
code (or causing someone else to do so).
Penalty Imprisonment up to 3 years and / or fine up to Rs. 2 lakh
Relevant authority Judicial Magistrate First Class
Appeal lies to Court of Session
Investigation Controller of Certifying Authorities (CCA)
Authorities Person authorized by CCA
Police Officer not below the rank of Deputy Superintendent
Points to mention in Complainant details
Complaint Suspect details
How and when the contravention was discovered and by whom
Damage suffered
Other relevant information
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Legal Aspects Of Business Tempering With Computer Source Code
Case Study
Ors. Vs. The State of Andhra Pradesh & Anr
IN THE HIGH COURT OF ANDHRA PRADESH
Cri. Petn. Nos. 2601 and 2602 of 2003
Decided On: 29.07.2005
Appellants: Syed Asifuddin and Ors.
Vs.
Respondent: The State of Andhra Pradesh and Anr.
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Legal Aspects Of Business Tempering With Computer Source Code
Summary
Tata Indicom employees were arrested for manipulation of the electronic 32-bit number (ESN) programmed
into cell phones that were exclusively franchised to Reliance Infocomm.
The court held that such manipulation amounted to tampering with computer source code as envisaged by
section 65 of the Information Technology Act, 2000.
Background of the case
Reliance Infocomm launched a scheme under which a cell phone subscriber was given a digital handset worth
Rs. 10,500 as well as service bundle for 3 years with an initial payment of Rs. 3350 and monthly outflow of
Rs. 600. The subscriber was also provided a 1 year warranty and 3 year insurance on the handset.
The condition was that the handset was technologically locked so that it would only work with the Reliance
Infocomm services. If the customer wanted to leave Reliance services, he would have to pay some charges
including the true price of the handset. Since the handset was of a high quality, the market response to the
scheme was phenomenal.
Unidentified persons contacted Reliance customers with an offer to change to a lower priced Tata Indicom
scheme. As part of the deal, their phone would be technologically ―unlocked‖ so that the exclusive Reliance
handsets could be used for the Tata Indicom service.
Reliance officials came to know about this ―unlocking‖ by Tata employees and lodged a First Information
Report (FIR) under various provisions of the Indian Penal Code, Information Technology Act and the
Copyright Act.
The police then raided some offices of Tata Indicom in Andhra Pradesh and arrested a few Tata Tele Services
Limited officials for re-programming the Reliance handsets.
These arrested persons approached the High Court requesting the court to quash the FIR on the grounds that
their acts did not violate the said legal provisions.
Issues raised by the Defense
1. Subscribers always had an option to change from one service provider to another.
2. The subscriber who wants to change from Tata Indicom always takes his handset, to other service providers
to get service connected and to give up Tata services.
3. The handsets brought to Tata by Reliance subscribers are capable of accommodating two separate lines and
can be activated on principal assignment mobile (NAM 1 or NAM 2). The mere activation of NAM1 or
NAM2 by Tata in relation to a handset brought to it by a Reliance subscriber does not amount to any crime.
4. A telephone handset is neither a computer nor a computer system containing a computer programme.
5. There is no law in force which requires the maintenance of "computer source code". Hence section 65 of the
Information Technology Act does not apply.
Findings of the court
1. As per section 2 of the Information Technology Act, any electronic, magnetic or optical device used for
storage of information received through satellite, microwave or other communication media and the devices
which are programmable and capable of retrieving any information by manipulations of electronic, magnetic
or optical impulses is a computer which can be used as computer system in a computer network.
2. The instructions or programme given to computer in a language known to the computer are not seen by the
users of the computer/consumers of computer functions. This is known as source code in computer parlance.
3. A city can be divided into several cells. A person using a phone in one cell will be plugged to the central
transmitter of the telecom provider. This central transmitter will receive the signals and then divert them to the
relevant phones.
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Legal Aspects Of Business Tempering With Computer Source Code
4. When the person moves from one cell to another cell in the same city, the system i.e., Mobile Telephone
Switching Office (MTSO) automatically transfers signals from tower to tower.
5. All cell phone service providers have special codes dedicated to them and these are intended to identify the
phone, the phone's owner and the service provider.
6. System Identification Code (SID) is a unique 5-digit number that is assigned to each carrier by the licensor.
Every cell phone operator is required to obtain SID from the Government of India. SID is programmed into a
phone when one purchases a service plan and has the phone activated.
7. Electronic Serial Number (ESN) is a unique 32-bit number programmed into the phone when it is
manufactured by the instrument manufacturer. ESN is a permanent part of the phone.
8. Mobile Identification Number (MIN) is a 10-digit number derived from cell phone number given to a
subscriber. MIN is programmed into a phone when one purchases a service plan.
9. When the cell phone is switched on, it listens for a SID on the control channel, which is a special frequency
used by the phone and base station to talk to one another about things like call set-up and channel changing.
10. If the phone cannot find any control channels to listen to, the cell phone displays "no service" message as it
is out of range.
11. When cell phone receives SID, it compares it to the SID programmed into the phone and if these code
numbers match, cell knows that it is communicating with its home system. Along with the SID, the phone also
transmits registration request and MTSO which keeps track of the phone's location in a database, knows which
cell phone you are using and gives a ring.
12. So as to match with the system of the cell phone provider, every cell phone contains a circuit board, which
is the brain of the phone. It is a combination of several computer chips programmed to convert analog to
digital and digital to analog conversion and translation of the outgoing audio signals and incoming signals.
13. This is a micro-processor similar to the one generally used in the compact disk of a desktop computer.
Without the circuit board, cell phone instrument cannot function.
14. When a Reliance customer opts for its services, the MIN and SID are programmed into the handset. If
someone manipulates and alters ESN, handsets which are exclusively used by them become usable by other
service providers like TATA Indicom.
Conclusions of the court
1. A cell phone is a computer as envisaged under the Information Technology Act.
2. ESN and SID come within the definition of ―computer source code‖ under section 65 of the Information
Technology Act.
3. When ESN is altered, the offence under Section 65 of Information Technology Act is attracted because
every service provider has to maintain its own SID code and also give a customer specific number to each
instrument used to avail the services provided.
4. Whether a cell phone operator is maintaining computer source code, is a matter of evidence.
5. In Section 65 of Information Technology Act the disjunctive word "or" is used in between the two phrases –
a. ―when the computer source code is required to be kept"
b. ―maintained by law for the time being in force"
