Entrepreneurs Should Know These Things about Cyberlaw

Cyberlaw is essentially the law that relates to the Internet, computer, information technology, cyber space, mobile app, and websites.
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

  • |
  • Jun 15,2020
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  • 18 Mins Read

Today, whatever a business owner does, whether it is a banking contract and anything related to electronics, is termed as a legal reality because of the information technology act. Cyberlaw is essentially the law that relates to the Internet, computer, information technology, cyber space, mobile app, and websites.  

In India, cyberlaw comprises three acts that are, Information Technology Act 2000, Information Technology Amended Act 2008, and IT Rules 2011. At present, every online business is governed under IT Rules 2011. In the fast-paced digital ecosystem, corporate businessmen, small businesses and startups should understand legal nuisances behind this cyberlaw. 

Important Things about IT Act 

Before learning key factors about IT Act, it is vital to know that this law does not recognise a few things when there is an electronic business. Those four things are: 

  1. Power of Attorney 
  2. Will or Trust Deed 
  3. Negotiable instrument other than cheque 
  4. Any sales document of immovable profits

In essence, this law promotes e-commerce. It provides legal recognition to electronic transactions, legal transactions, e-records and e-contracts. 

Right to Privacy 

Owing to the apex court's jurisdiction, the right to privacy is now a fundamental right. It is no longer a dark line. It is going to be a centrestage attention. No matter if it is an employee or consultant or anybody primarily protecting data is the only thing that businesses have to adopt. 

The right of privacy is further classified into two types, that are: 

  1. PRI (Private Key) is known to the private companies only
  2. PUB (Public Key) is known to the public

When the public key and private key corresponds, only then a document is validated. 

Ways to Authenticate Business in Digital Ecosystem

There are different ways to validate business transactions and agreements in the digital world. These ways are mentioned below: 

1. E-contracts



We are a part of the digital environment today. Companies use it for business and trading purposes. Entrepreneurs, corporations and startups that are working on the website should employ or create e-contracts. The e-contracts are basically three types 

  • ClickWrap  

It is a contract in which a user clicks on “ I agree”. For instance, purchasing products on e-commerce platforms through e-contract. Also, while signing up for gmail, there is a terms and conditions concord that a user agrees to and then, create an email id. 

  • Shrink 

When a user purchases DVD and CDs from the market. He agrees to terms and conditions like Microsoft Office or any other digital tools. 

  • Browse Wrap 

When a user is browsing various applications on the website, and downloading mobile applications. All these apps have terms and conditions. 

2. Digital Signatures 

A digital signature should be issued by a certified authority. It adds more authenticity while transacting or dealing with the customers. It is basically recorded in the form of electronic data.

Anything a user does, gets recorded as an evidence. Thus, users whether individuals or corporations need to be cautioned while making communication. 

Ideally, an individual or entrepreneur or corporation should use a digital environment with care and caution. There is a lot of evidence and trails that are left behind a single digital transaction.

Cyber Crimes that Happen in the Digital Environment  

Similar to the offline world, various crimes take place in the digital environment that entrepreneurs may or may not be aware of. Some of those cybercrimes are mentioned below. 

1. Phishing 

Phishing occurs commonly with regards to business offices. It is creating fake login pages and they look alike original websites. A humongous amount of data is collected from this type of website. It is one of the most increasing cybercrimes that users are likely to be hit with in the coming time. 

2. Identity Theft 

The Internet has ensured anonymity to the users. Today, while carrying transactions with anyone online, it is vital to know whether that person is genuine or fake.

3. Ransomware 

In this,a user’s device is being locked and he is asked to pay a certain amount as a ransom in the form of cryptocurrency. Once the ransom is paid, only then data is released. 

4. Corporate Theft 

Corporate data is shared in various systems without former protection, which increasingly expose corporations and confidential data to cyber criminals. 

5. IP Issues 

Several intellectual properties like trademarks, copyright, patents and trade secrets are emerging. Whether it is a service-based company or product-based company, a lot of data is released.  There are generally two types of issues that can be faced by the companies--Trademark and Copyright. 

Copyright largely affect corporations and enterprises in the digital environment as there is a copying contact as a new emerging trend for the Indian people 


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