Earlier, when entities and corporations were doing business using computers, computer systems and computer networks, the law was not much bothered. However since the year 2000, in India, there has been a change in the position of law.

The Information Technology Act 2000 was enacted primarily as a means for promoting a legal regime which would boost e-commerce in India. In the said law, the Parliament of India mandated the liability of network service providers. The said mandate was given under section 79 of Information Technology Act 2000.

Under the said section 79 of the Information Technology Act 2000, network service providers being Intermediaries were made liable for all third party data or information made available by them. The law however provided two exit routes for exiting the exposure to potential legal consequences for any network service provider/intermediary.

The first exit route was to show that the intermediary or network service provider did not have any knowledge of any contravention or violation of the law. The said exit route was a highly dubious non-starter since it is practically impossible to prove lack of knowledge in physical terms in any case. Further the judiciary in India has by and large not entertained a single case where proof of lack of knowledge by a network service provider/intermediary has been upheld by a court of law in India.

However with effect from 5th of February 2009, there has been a change of law in India.

The Information Technology Amendment Act, 2008 amended the Information Technology Act, 2000 and the said Amendment act was notified in the official Gazette on 05.02.2009. It is pertinent to note that under the amended Information Technology Act 2000, the language of section 79 has undergone a change. However in the said language, the legislature has still upheld the necessity of the intermediary to exercise due diligence while discharging its obligations under the Information Technology Act, 2000.

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