Legal and Ethical Issues in ICT

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					Part 2
   Table of Contents
    ◦ Part 1
        What Are Ethics?
        Solving Ethical Dilemmas
        Corporate Social Responsibility
        How Do Ethics Apply to ICT?
    ◦ Part 2
        Legal and Ethical Issues in ICT
        Access to Information
        Ownership of Information
        Company Resources and Company Time
        Unauthorized Use of Computers and Information
        Fraud
        Protecting Yourself from Cyberscams
If I do the
wrong thing,         If I do the right
am I breaking        thing, then should my
the law?             actions be seen as
                     legal? And I’m not
                     going to get into

Why is it that the
something that is             Why don’t
legal and                     clear
something that is             differences
ethical not                   between what
necessarily that              is legal and
defined?                      what is ethical
       The difference between legal and ethical:

Legal and ethical
actions do not
necessarily go
hand in hand.
   The law is constantly evolving to address
    issues in ICT.
   Some legal and ethical issue include:
    ◦   Access to Information
    ◦   Ownership of Information
    ◦   Company Resources and Company Time
    ◦   Unauthorized Use of Computers and Information
    ◦   Fraud
   A serious ethical issue raised by ICT concerns
    the degree to which all Canadians have equal
    access to information.
    ◦ In an information-literate society, citizens must
      have the ability to read and write.
      According to Statistics Canada , there still is a digital
       divide - a gap in the rate of Internet use among certain
       groups of people.
   Citizens should have access to computer
    hardware and software.
    ◦ Hard-copy resources are widely and cheaply
      available in places such as the libraries.
    ◦ However, information is increasingly converted to
      digital-only formats and requires computers to
      access it.
    ◦ These days, the cost for a computer has dropped
      significantly and as a result technology is accessible
      to more individuals and organizations.
      However, there are still people in our society who
       cannot afford to purchase ICT.
   Factors that influence access to
    1. Income:
      Internet users by income (2005–2006)
      Wealthier Canadians have more access to
    2. Gender:
      Men tend to use the Internet more than
    3. Education:
      Internet users by education (2005–2006)
      More-educated Canadians have better access
       to ICT
    4. Age and the presence of children:
      People with teens in the home tend to have
       more access.
   Other factors that influence access to
    5. Access to digital information (information that
     people have to pay to use.)
            Even with access to ICT, this is another cost that is
             often unmanageable .
            Example: access to medical information from online
             medical articles
    6. Lack of training to use hardware and software
     wisely and safely
   Information should be
    thought of as material
    ◦ You would not want someone
      to borrow your stuff without
      asking, so why would you
      borrow information without
    ◦ You need to give people credit
      for their work.
   Ownership of information
    raises many legal and
    ethical issues.
   While giving credit for written work and ideas
    is one aspect of ownership of work, there are
    many more forms of intellectual property.

    ◦ Definition: This term describes an idea, a concept,
      or any other intellectual work that has commercial
      value, meaning that it can generate income or
      profit for its owner.
   Examples of intellectual
    property:                               Use of these materials
    ◦ written work (books, poems,           has ethical and legal
      essays, articles, etc. )              aspects. From an ethical
    ◦ creative work (e.g., songs,           perspective, fair dealing
      recordings, video, cartoons,
      drawings, photographs,                allows us to think
      choreography)                         through consequences
    ◦ code created by a computer            of use. As well, most
      programmer (e.g., HTML code used      would say that
      for a website, code used to make a    plagiarism is also
      video game)
    ◦ company logos                         wrong.
    ◦ unique ways of doing or making
      things, such as a recipe, a process
      for manufacturing, a trade secret
      (e.g., a secret recipe for a fast
      food, etc.)
    ◦ a design for a product (e.g., iPod)
   So what laws do we have to protect intellectual
      The Canadian Intellectual Property Office allows
       people and organizations to protect their intellectual
       property formally by filing it officially for
       trademarks, and patents, or using the Copyright Act.
   So why doesn't
    everyone do it?
    ◦ It’s a time-consuming
    ◦ Registration can be very
   So what does a copyright, patent, or
    trademark do for the owner?
    ◦ When a person (or organization) uses protected
      information without the owner’s permission, he or
      she is breaking the law.
◦ The penalties vary depending on the offence, but
  there are some exceptions where just citing the
  work is legal-referring to fair dealing
   Fair Dealing is a set of principles or guidelines that
    are used to interpret the law on copyright (not the
     Fair Dealing is the use or reproduction of a work for
      private study, research criticism, review, or news
      reporting without permission from the copyright holder.
  They help you determine when it is OK to use other
   people’s work. Basically if the work is for:
     Educational purposes
     For Factual reasons
     Use only a small portion of the original work.
   The copyright law protects authors, of a
    paper, book, song, or other piece of original
    work, from having their work stolen.
    ◦ When a individual creates an original work,
      legislation gives the creator of that work the
      copyright that is the exclusive right to reproduce,
      publish, or perform the work.
      You don’t need to register for it, it is automatic.
   Law for copyright = The Copyright Act
    ◦ This law governs copyright infringement.
    ◦ It states that no one can reproduce or use the
      work created by another person without
      permission from the holder of the copyright.

    ◦ Duration: exists for the life of the creator plus
      50 years after the end of the calendar year of the
      creator’s death
        However there are some expectations, such as Crown
         works (government publications), works by unknown
         authors, etc. (page 329 of handout)
        Once the copyright expires, the work is said to be a
         public domain and may be copied freely without
   The Copyright Act allows for civil and criminal
    charges to be laid against a person who
    infringes copyright. Civil charges mean the
    copyright owner, or someone on behalf of
    owners, can sue the culprit.
   If found guilty, the person infringing copyright
    will be fined.
   Criminal charges can also be laid against the
    person by the Crown, and if convicted, the
    person who infringed copyright can be fined or
    imprisoned, or both.
       Example:
    ◦    Read the article “Is It Sharing or Stealing?”
            Divide into two groups in the class. Brainstorm
             arguments on both sides of the Napster issue—to
             share or not to share, to pay for copyrighted
             material or not to pay. Create a list, and share your
             arguments with the other group.
            Based on what you learned about Ownership of
             Information, what Canadian laws or statutes govern
             a case like the Napster case?
   Article “Is It Sharing or Stealing?”
   Issue:
    ◦ to share-
      Easy access
      free
    ◦ or not to share-
      Illegal to share since artists don’t get money
    ◦ to pay for copyrighted material or not to pay-
      Most students don’t want to pay for music
   Trademarks and patents
    provide protection of non-
    written work, similar to
   Trademarks protect
    intellectual property in the
    form of words, phrases, or
    ◦ Unlike copyrights, which are
      automatic, trademarks must be
      registered with government and
      are costly to acquire.
    ◦ Example : Nike
   Trademarks are governed by Section 409(1)
    of the Canadian Criminal Code. Under that
    section, it is a criminal offence for a person
    “to have in his possession, or to dispose of, a
    die, block, machine or other instruments
    designed or intended to be used in forging a
   Like copyright infringement, trademark
    infringement can be handled in civil court,
    where a trademark holder sues the person
   Example dealing with ICT:
    ◦ Trademark cases: between Pro-C, a small Waterloo, Ontario,
      software development firm and a large retailer, Computer City.
    ◦ Pro-C owned the trademark WINGEN. It was registered in both
      Canada and the United States for software only.
    ◦ Computer City launched a line of its own PCs called WINGEN, sold
      only in the United States.
    ◦ Pro-C sued Computer City.
    ◦ As it turned out, Pro-C’s website wound up getting Computer
      City’s online traffic. So many people visited the site and sent
      inquiries to Pro-C that its website crashed, so the company could
      not serve its customers.
    ◦ Pro-C first won the case, but Computer City appealed. Computer
      City won the appeal because its product was sold in the United
      States (and, therefore, did not compete with the Canadian
      WINGEN products from Pro-C), and because Pro-C did not
      actually lose business from its website because of the problems.
   Talking Trademarks
   The CBC Marketplace segment examines how
    brand names have entered our language as
    common usage and the effect that this has on
   After viewing the clip, make a list with a
    partner of the top 10 brands you use.
    ◦ For each, discuss ways in which you might
      inadvertently advertise the brand name.
   Parents, similar to trademarks, can be
    registered to protect intellectual property in
    the form of processes, articles and inventions
    ◦ Must register a patent and therefore can be a
      costly and lengthy process
   In Canada, patents are governed by the
    Patent Act.
   Like trademarks, they can also be dealt with
    criminally or civilly.
   Example;
    ◦ Patent case in Canadian and U.S. law dealing with
    ◦ In 2004, the Supreme Court of Canada ruled in
      favour of Monsanto, an agricultural biotech
      company that creates genetically modified seeds.
      The ruling was that a Canadian farmer had violated
      Monsanto’s patent by growing canola seeds
      developed by Monsanto on his land without
   Example:
     ◦ In 2006, a Waterloo, Ontario, company, Research in Motion
       (RIM), which created the BlackBerry PDA, settled a patent-
       infringement case with a company called NTP.
     ◦ RIM had been using technology for BlackBerries that NTP
       claims to hold a patent on.
     ◦ Through the U.S. court system, NTP tried to shut down RIM’s
       service to consumers.
     ◦ The case was eventually settled out of court, with RIM paying
       $612.5 million to NTP.

    ◦ Just when that case was settled, RIM was accused of a similar
      patent infringement by mobile email provider, Visto.
         In 2009, RIM ended the three-year patent dispute with Visto
          Corp. by agreeing to pay $267.5 million to settle, adding to a
          costly series of intellectual-property purchases.
   License is a contract through which the owner
    of a piece of intellectual property permits
    another individual or organization to make,
    use, or sell that piece of intellectual property
    in exchange for some form of compensation.
    ◦ The license allows the owner to maintain his/her
      ownership of the intellectual property
   There are three forms of licensing:
   1. Content licensing
    ◦ Refers to the ownership and sharing of any type of information in digital
      form through a contract
       Includes: databases, articles, Web content, videos, clipart, font, stock reports
        and music
       Example: Napster: case regarding ownership and sharing of content
   2. Technology licensing
    ◦ Refers to permission to use processes or actual software applications
       Example: individuals and corporations purchase Microsoft Office, therefore,
        the license to use it.
   3. Advertising and cross-branding
       Refers to agreements among businesses (or individuals) to use one another’s
        names and logos to increase business
       Example: “Starbucks, Hershey to create new high-end chocolate products”
            Cross-branding. Good enough for Starbucks and Hershey. How ’bout you?

       Problem: when intellectual property is used without a license (Website
        displayed a company’s logo without that company’s permission) or logos are
        not properly displayed as per a license agreement
   Piracy is the illegal reproduction and distribution
    of materials such as software applications,
    whether for business or personal use.
   Piracy is a form of copyright infringement, and it
    can take several forms:
    ◦ End-user piracy
        users copy software without buying it.
    ◦ Pre-installed software
        takes one copy of software and installs it illegally on more than one
    ◦ Internet piracy
        unauthorized copies are downloaded over the Internet
    ◦ Counterfeiting
        illegal copies of software are made and distributed in packaging
       that reproduces the manufacturer’s packaging
   A 2006 survey found that, in 2005, 35 percent of the
    packaged software installed on computers worldwide was
    illegal, amounting to over $34 billion in losses due to
   Canadians have a double standard for
    software piracy. This graph shows that half of
    Canadians believe that pirating software is OK
    for personal use but not for companies.
   Legal and ethical issues:
    ◦ theft from employers by employees.
        Examples of theft:
           Employees who bring home company stationery or use
            equipment such as photocopiers for personal use are
               While at work, employees are paid to carry out
                the duties of the job.
               Employers often say that personal business
                should be left for personal time.
   Examples (continued)
    ◦ Using the Internet at work for personal reasons
        Since the employer pays for the Internet service, the
         computer the employee is using, and the employee’s
         time, many believe that the Internet should be used
         only for work related purposes.
        A survey of Internet use while at work shows:
           Canadian workers spend nearly 800 million hours a
            year surfing the Web for personal reasons not related
            to their jobs at all!
           Similarly, a U.S. survey found that for every eight
            hours at work (not including lunches and breaks),
            employees spend about two hours surfing the Web for
            non-work purposes, with an estimated cost of $759
            billion to the U.S. economy.
◦ Many of the Canadian
  workers surveyed stated that
  their companies had no
  policy governing use of the
  Internet at work.
◦ Companies need to act (with
  regards to the use of
  company equipment for
  faxing, e-mailing, and
  accessing the Internet) or
  suffer losses in productivity
   Its unethical to surf the Internet for personal use
    at work,
    ◦ BUT a recent ruling suggests that it just might be legal
        In 2006, one New York City employee who was fired for
         surfing the Internet at work fought back—and won!
        A Department of Education employee was fired for using
         the Internet at work. However, the judge ruled in his
         favour because employers should apply the same standard
         to personal Internet use as they do to other personal
         activities, such as taking personal calls or reading the
         paper, as long as a worker still does his or her job.
   Do you think as more cases like this go to court,
    this fuzzy issue, linking what is ethical and legal,
    will be resolved?
   Read the article “Which Company Am I?”
    ◦ In your group answer question #1 and 2
   Intellectual property is one form of information
    that is subject to Canadian law.
   However, it is also illegal to use various other
    forms of information and ICT without permission.

   The Criminal Code of Canada’s Section 342.1
    makes it a crime for people to use any computer
    service (processing, storage, or retrieval of data)
    fraudulently, intercept any function of a
    computer system, and even use a computer with
    intent to commit a crime.
    ◦ Examples: hacking, stealing your friend’s password
      to use her or his computer at work without her or
      his knowledge, spamming an organization’s server
      so that it crashes, or using a computer to plan a
   Example:
    ◦ A high-profile case in 2001 was the story of “Mafiaboy,”
      the 17-year-old Canadian teenager who launched a
      denial-of-service attack by bombarding companies with
      thousands of simultaneous messages, which prevented
      users from accessing the companies’ websites.
    ◦ The attack paralyzed many major Internet sites
      (including Yahoo!, eBay, and Amazon) for one week in
      February 2000. Mafiaboy was caught and charged under
      the Criminal Code.
    ◦ He was sentenced to eight months in a youth detention
      centre and a year of probation once released, and he
      was ordered to pay $250 to charity.
    ◦ Mafiaboy on The Hour with Stromboulopoulos:
    ◦ CBC Report About Mafiaboy Book:
    ◦ Identity Theft with Mafiaboy:
   Section 430(1.1) of the Criminal Code talks about
    “mischief to data.”
    ◦ This section makes it a criminal
    offence to destroy or alter data that
    rightfully belongs to someone else
    or to make data unavailable to its
    ◦ For example, suppose a student at your school is laid off
      from her part-time job at a local retail shop. Because she
      is angry at the situation, she decides to delete all the
      financial data from the hard drive at the shop’s computer
      so that the owner no longer has accounting records.
    ◦ This would be an offence under the “mischief to data”
   The Criminal Code addresses
    “theft of telecommunications”
    in Section 326.
    ◦ This section makes it a crime to
      use any telecommunication
      service (e.g., wireless, radio,
      visual, or other transmission)
      fraudulently. Under this section,
      you cannot steal wireless
      Internet from a source such as
      an ISP or organization that is
      emitting a wireless connection
      without the organization’s
   Cyber Terror
    ◦ Terrorists are becoming expert Internet hackers,
      using the Web to get what they want. North
      American governments are scrambling to develop
      ways to stop them.
    ◦ After viewing the clip, discuss the threats of
      hacking. What should individuals, organizations,
      and governments know about this topic?
    ◦ Cyber Terror Still Top Threat?
    ◦ Cyber Attack:
       Fraud is a crime in which individuals deceive others
        or misrepresent themselves to gain something
    ◦    Example: false businesses, identity theft, selling a
         product or service as something it is not.
       Forms of ICT fraud:
    ◦    phishing, pharming, online auction scams, and other
       ICT opens up the floodgates for all sorts of
        fraudulent activities, because:
        1. it is quite easy to mask one’s identity (or worse yet, to take
           someone else’s identity); and
        2. online crime is “borderless,” Internet fraud has grown
           steadily over the past decade.
               Figure 11.6 on page 331 in handout
   The RCMP
    tracks the
    number of
    victims of
    various types
    of online fraud.
   This chart
    shows the
    results of only
    those who
    reported being
    victimized in
   Most people think:
    ◦ Knowingly committing fraud is unethical
       Example: stealing another person’s identity or credit cards.
    ◦ It is illegal to commit fraud.
   Most online fraud is dealt with under two pieces of
    Canadian legislation:
    ◦ The Competition Act makes it a crime to have “false and
      misleading” advertising. This Act allows the Crown to
      charge an individual or business that is misleading
    ◦ Canada’s Criminal Code supplements the Competition
      Act by allowing the Crown to charge ISPs with a crime. By
      allowing criminal web services, the ISP can be charged
      with “aiding and abetting” a crime.
   In addition the Government of Canada
    enforces a law called the Personal Information
    Protection and Electronic Documents Act
    which aims to ensure that organizations in
    Canada use information about individuals
    ◦ This Act helps to protect the use and misuse of you
      personal information that many organizations have
      (such as governments, credit card companies, etc.)
      from problems such as telemarketers and identity
• Examples of
 Most
  scams against
  (identified by
  the Council of
  ◦ Bogus Billing
    for Yellow
  ◦ Fake            •   Fraudulent Telemarketing Offers for Office Supplies
  ◦ Questionable    •   Advance Fee Loan Brokers
    Advertising     •   Phony Promotion/Prize Offers
    Specialty       •   Fundraising Appeals from Fake Charities and Non-profit
    Promotions          Organizations
   Example:
     ◦ In Canada, one of the most important cases of online fraud was against Alan
       and Elliot Benlolo.
     ◦ In 2000, they sent out letters to businesses that looked like bills from Bell
       Canada or the Yellow Pages.
     ◦ These letters were actually for a separate online directory (similar to the
       Yellow Pages) owned by the Benlolos.
     ◦ Their scam resulted in sales of over $1 million, and generated 4400
       complaints to the Competition Bureau.
     ◦ Because of the complaints, law enforcement was able to catch the Benlolos.
     ◦ They were found guilty on 10 counts under the Competition Act, and were
       sentenced to 34 months in prison and fined $400 000.

   Yellow Pages advertisers are being targeted by a ...
   Yellow Pages Scam Alert

   This case represented an important milestone, because three principles were
    used to sentence these convicted criminals:
     ◦ Fines should equal the profits that the criminals made.
     ◦ Jail time should be required.
     ◦ Criminals can face both a fine and a jail term.

   These principles be applied to all online fraud cases from now on.
   One of the problems in Internet fraud is
    catching the criminals.
    ◦ They can be operating from any part of the world,
      and their identities might not be clear.
    ◦ However, Canadian law-enforcement agencies work
      hard to catch these criminals based on complaints
      they receive from consumers and targets.
Legal and Ethical Issues in ICT Questions
  Compare copyright, patents, and trademarks. How are they similar? How are they
  If students at your school were to create a video yearbook, under what law (if any) would
   it be protected? Why?
  Discuss the legal and ethical aspects of taking HTML code from a website you like on the
   Internet and using it for your own personal website.
  What is piracy? Define it, and give an example.
  What have individuals and companies done to ensure that people can download music
   from the Internet legally?
  Is the use of the Internet at work the same as stealing? Why or why not?
  What is meant by unauthorized use of computers and information? What law governs
   this in Canada?
  Give three examples of types of fraud, and which Canadian law(s) they break.
  Are ISPs legally responsible when a criminal uses the ISP’s services to commit fraud? Why
   or why not?
  If you are targeted for an online scam, what should you do?
  Having learned about the legalities of online crime, do you feel that you are sufficiently
   protected by the government and law-enforcement agencies? Why or why not?

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