Remarks

Preparation for Midterm Exam

ITPE: For Finals

Lecture Notes

Lecture 1: Intro to Law

1.1 Ethics in IT

1. Professional ethics: Standards set by professional organizations for the behaviour and values of people working within a specific field.

2. Moral = Right or wrong actions done based on personal and group values, affected by religion and culture

3. Law = Right or wrong actions established by Parliament and written in black and white

4. Ethics = Right or wrong actions established by true facts collected by researchers and studies that are agreed by majority
Ethics is basically unwritten rules.

5. Importance of Ethics
Guides Professional Conduct Ethics provides rules for professionals to interact with others in their field.
Promotes Morality It helps individuals act in ways that align with concepts of goodness and fairness.
Defines Identity Ethics shapes individual and societal values, influencing how we see ourselves and others.
Prevents Chaos A shared ethical framework ensures order by providing a common standard for right and wrong.

6. Possible conflicts that may arise

a. Moral but Illegal - Hack to other network to reveal evil activity

b. Legal but not ethical - Pay low wages in countries where labour laws are lenient

c. Legal but not moral - Abortion

7. MBOT Code of Ethics (PIC is D BullShit)
Professionalism
Integrity
Competence
Diligence (Hard-working)
Benevolence (Kindness)
Strive to Perfection

1.2 Introduction to Law

a. Protect basic rights (Liberty, Equality, Freedom of Speech)

Liberty: Freedom from oppressive restrictions on life, behavior, or views.

Equality: Equal status, rights, and opportunities for all.

Freedom of Speech: The right to express opinions without censorship or punishment.

b. Ensure a safe and peaceful society

c. Applies to all

d. Essential to abide (must follow) (east adoption to change that occur)

e. Change with time (constantly amended when needed)

1.3 Dual Legal System

1. The Federal Constitution is a supreme law in Malaysia and consists of 183 articles of law

Legal framework to measure validity of other laws

2. Dual Legal System = Federal Law + Syariah Law

3. Federal laws made by legislators in Parliament of Malaysia, known as Acts

a. Criminal law: Punishes person found guilty of committing a crime

Crime:

Violent (robbery)

Property (burglary)

Financial (fraud)

Drug-related (trafficking)

Sex (rape)

Public order (rioting)

Computer (cyberbullying)

Traffic offenses (hit and run)

Crime is done purposely and the State must prove all elements of a crime beyond a reasonable doubt to obtain a conviction

b. Civil law: Involves non-criminal cases such as (business/family) dispute, marriage & divorce, inheritance dispute that are punishable by compensations or damages

Cases under Civil Law: Breaches of contract claims, complaints against the city, equitable claims

4. State laws made by assemblymen in DUN (Dewan Undangan Negeri), known as ordinances/enactments.

5. Article 75 of Constitution states that federal law prevail over any inconsistent state law

6. Syariah Law applies to Muslims only and has jurisdiction in marriage, inheritance and apostasy叛教

7. Judiciary司法机关
Superior Courts (Federal Court, Court of Appeal, High Court)
Subordinate Courts (Sessions Court, Magistrate Court)

Cyber Law

1. Cyber law governs legal issues involving computers, the Internet, and networked technologies, covering communication, transactions, and information distribution.

2. Computer Crimes Act 1997:
1. Unauthorized Access Addresses illegal access to computer material without permission.
2. Unauthorized Modification Covers offenses involving the alteration of computer content without authorization.
3. Misuse of Network Facilities Regulates improper use of network services or systems.

3. Digital Signature Act 1997:
1. Regulation of Digital Signatures Establishes rules for the use and validity of digital signatures.
2. Facilitation of Electronic Transactions Supports secure and reliable electronic transactions.
3. Recognition of Electronic Documents Ensures legal acceptance of electronic documents and signatures.

4. Communications and Multimedia Act 1998:
1. Secure Information and Reliable Networks Ensures data security and dependable communication networks across Malaysia.
2. Affordable Services Promotes accessible and reasonably priced communication services.
3. Licensing Regulates licensing for communication and multimedia services.
4. Consumer Protection Safeguards users' rights in communication and multimedia sectors.
5. Offenses Addresses misuse of networks and computers.

5. Personal Data Protection Act 2010:
1. Regulates Personal Data Processing Governs the handling of personal data in commercial transactions.
2. Protects Privacy Safeguards individuals' privacy by ensuring proper data management.
3. Covers Data Handling Includes rules for collecting, processing, and storing personal data.

Lecture 2: Legal Issues in IT

2.1 Digital Signature

1. Electronic Signature - used within computer systems (any electronic method of signing a doc, such as typing a name/insert a scanned signature)

2. Digital Signature - uses cryptographic techniques to secure doc and ensure authenticity, is ⊆ Electronic Signature.

3. Advantages of Digital Signature

Non-repudiation 不可反悔

Confidentiality (private 保密性)

Identity Authentication

Cost and Time effective

High security

4. Disadvantages

Technical issues (e.g., software malfunctions, compatibility)

Requires specialized knowledge to use and manage

Cybersecurity risks (e.g., private key compromise密钥被盗)

Limited legal recognition in some jurisdictions

Dependence on costly and complex infrastructure

Privacy concerns due to online verification

5. Digital Signature created by:

Hash Function:

• Creates a fixed-length hash value (randomized characters).

• Conceals the input’s actual size and protects data integrity.

Private Key Encryption:

• Encrypts the hash value.

• Recipient uses the signer’s public key to decrypt, ensuring only authorized access.

6. Documents cant be signed by digital signature

Powers of attorney (授权委托书)Wills and codicils (遗嘱 & 附遗嘱)Trusts (信托——受托人必须按照委托人的指示管理财产)Negotiable instruments (流通票据——例:支票)

7. 电子文件同书面文件具足同等效力的充要条件为:

a. fully secured with a digital signature AND

b. digital signature is verified using a public key from a certificate (which is issued by a licensed CA) AND

c. valid when digital signature is created

8. A digital certificate is a small data file that contains verified, identifying information about you or your organization.

9. DSA 1997 - MCMC's role is as follows:
Responsible in administering, enforcing, carrying out and giving effect to the provisions under DSA 1997
Monitor and oversee the activities of Certification Authority's (CA)

CA == MSC Trustgate.com, Telekom Applied Business

2.2 Domain Name

1. A domain name is website's equivalent of a physical address, find a site by using this will be easy instead of using IP.

2. Eight popular domain extensions in Malaysia

.my – This is the country code top-level domain (ccTLD) for Malaysia, widely used by individuals, businesses, and organizations from both local and international users

.com.my – Primarily used by commercial organizations and businesses operating within Malaysia

.org.my – For non-profit organizations, associations, and societies

.net.my – Typically used by network-related organizations

.edu.my – Reserved for educational institutions in Malaysia

.gov.my – Exclusive for Malaysian government entities

.biz.my – Geared towards businesses and MSMEs

.name.my – Used for personal websites by Malaysian individuals

3. Issues with domain name trademark

Cybersquatting (intended to sell or commercial purpose)

• Typosquatting (distorted domain intended to lure or similar to cybersquatting)

• Gripe Sites (websites which criticize someone or something, where the person or thing criticized is a trademark owner)

• Foreign Language Variation

4. Malaysian Network Information Centre (MYNIC)

Provide registry, domain name services, Domain Name System Security Extensions (DNSSEC)Provide Domain Name Dispute Resolution Service

Trademark owner must show reasonable similarity + provide good reasons to cancel others' registered domain name

5. Reverse engineering - legal way to know competitors' trade secret

CopycatHiring competitors' employee

2.3 Antitrust and Anticompetition

1. Antitrust law (反垄断法) - prevents anti-competitive behaviours

Price fixing

Cartel formation同行操纵市场竞争

Predatory pricing通过短期亏损来消除竞争

2.4 Jurisdiction in Cyberspace

1. Jurisdiction and Legal Aspects of E-Business:

Courts have the authority to hear cases and resolve disputes related to e-business activities.

E-Business Reach Launching an e-business may subject a company to lawsuits in states or countries where its users reside.

Company Protection Companies are protected under the Constitution of Malaysia and state laws where they are based.

User Protection All users, including distant ones, are entitled to legal protections when accessing a website.

2. Website Soliciting Level and Future Plans:
1. Passive Website
• Transmits information only, without soliciting business.
• Typically not subject to jurisdiction in foreign states or countries.
2. Interactive Website
• Solicits business and aids users in making purchasing decisions.
• May incur jurisdiction in foreign states or countries.

3. Cyberlaw challenges is due to unique qualities of cyberspace
• Borderless: No physical boundaries.
• Unlimited Access: Open to anyone globally.
• Ubiquitous: Present everywhere.
• Spontaneous: Dynamic and unpredictable.

4. Challenges in Combating Cybercrime:
1. Jurisdictional Issues
• Cybercrimes cross multiple jurisdictions, making it unclear which country's laws apply.
• Perpetrators may exploit countries with weak laws to commit crimes elsewhere.
2. Inadequate Knowledge
• Law enforcement lacks sufficient technical expertise.
• Difficulty in establishing the evidentiary link between crimes and perpetrators.
3. Evasion Techniques
• Advanced cybercriminals erase evidence or make detection impossible.

2.5 Software Licensing

1. Open Source Software
• Source code is publicly available.
• Programmers can modify it to fix bugs or add features.
• Users can create new versions of the software.

2. Closed Source Software/Proprietary Software
• Source code is not accessible to the public.
• Users cannot view, modify, or customize the software.

3. Benefits of Proprietary Software:
1. Ownership and Copyright
• Software producers are granted ownership rights to protect their creations.
2. Profit Opportunity
• Licensing software provides financial benefits to producers.
3. Encourages Creativity and Competition
• Ownership rights drive individuals to work harder and innovate.
• Competition motivates the creation of high-quality products.
4. Rewards for Excellence
• Producers of superior software can earn profits and recognition.

4. Benefits of Open Source Software:
1. Cooperation
• Promotes the idea that software source code should be freely shared, examined, and improved.
2. Improvement Over Time
• Users can fix bugs, enhance features, or adapt software for other uses.
• Faster evolution due to contributions from a larger community.
3. Frequent New Releases
• Open-source programs often have more regular updates compared to proprietary software.
4. No Distribution Burden
• Removes conflict between copyright compliance and helping others.
• Users can share the software freely without licensing issues.
5. No Hindrance to Future Development
• Open-source software belongs to the community, allowing continuous improvement.
• Unlike proprietary software, which may be abandoned, open-source projects can evolve indefinitely.
6. Better Support
• Shifts the focus from production to service, leading to improved customer support.