The Information Technology Act, 2000 recognizes source code as an essential component of software systems. It is explicitly addressed in Section 65 – Tampering with Computer Source Documents.
As per the Act:
“Computer source code” refers to the listing of programs, computer commands, design and layout, and program analysis of computer resources in any form. This includes code written in programming languages like Python, C++, Java, etc., and it governs how a program or system functions.
Source Code as Intellectual Property
Source code is considered intellectual property (IP) and is protected under various laws:
- Copyright Act, 1957 classifies source code as a form of literary work, granting the creator exclusive rights to reproduce, distribute, and modify it.
- IT Act, 2000 punishes unauthorized tampering or deletion of legally maintained code.
- Trade Secret Protections may also apply, especially for proprietary business logic in private applications.
Key points:
- Any unauthorized copying or use of source code is a violation of IP rights.
- Licensing agreements and NDAs are commonly used to secure source code.
- Organizations treat source code as a strategic asset.
Challenges Related to Source Code
Source Code Theft
Hackers or competitors may try to steal proprietary source code, often through data breaches or insider threats, to reverse engineer or exploit the software.
Tampering or Malicious Edits
Unauthorized edits can introduce bugs, malware, or security vulnerabilities, leading to major system failures or data breaches.
Version Control Issues
Managing code across multiple developers or teams requires effective systems like Git. Without it, there is a risk of overwriting important work or losing updates.
Licensing Issues
Using open-source code without adhering to licensing terms or copying proprietary code can result in legal consequences.
Legal Disputes
Conflicts may arise over the ownership of original source code, especially in joint ventures, outsourcing contracts, or when employees transition to competitors.
Punishment for Source Code Offences (IT Act, 2000)
Section 65 of the IT Act penalizes anyone who knowingly or intentionally:
- Conceals,
- Alters, or
- Destroys source code that is legally required to be maintained.
Penalty:
- Imprisonment for up to three years
- Fine up to ₹2,00,000
- Or both
Other Related Legal Provisions
- Section 43 – Penalty for unauthorized access, damage, or data theft
- Section 66 – Hacking-related offences including illegal modification of code
- Section 72 – Breach of confidentiality or privacy, including leaking of source code
- Copyright Act, 1957 – Grants the author exclusive rights over source code
- Trade Secrets Law – Used to file civil suits in cases of source code theft or misuse
