One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr. X, a software developer from City A, spent three years developing an AI-powered legal research tool covering multiple domains of Indian law. He had created proprietary algorithms and invested significant resources into training the AI models. In DD/MM/2023, he discovered that Mr. Y, a former employee of XYZ Tech Solutions, had stolen the complete source code and was selling it to competitors under a different name.

Mr. Y had unauthorized access to the company’s GitHub repository and had downloaded the entire codebase before leaving the organization. He then approached ABC Legal Services and DEF Law Tech, offering to sell them a “revolutionary” AI legal tool. When Mr. X found out through industry contacts, he realized his intellectual property worth several crores had been compromised. The stolen tool was being marketed as an original creation by PQR Software Company, with Mr. Y as the claimed developer.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Immediately document all evidence of the theft including access logs, email communications, and version control history. Secure your remaining intellectual property by changing all passwords and access credentials. File a police complaint under cyber crime provisions while simultaneously preparing for civil litigation. Consider seeking interim injunctions to prevent further unauthorized use or sale of your proprietary code.

Applicable Sections of Law

The primary legal framework includes Section 318 of BNS (theft), Section 316 of BNS (criminal breach of trust), and provisions under the Information Technology Act, 2000. Copyright infringement claims can be pursued under the Copyright Act, 1957. Additionally, Section 43 and 66 of the IT Act cover unauthorized access to computer systems and data theft. Trade secret violations and breach of employment contracts provide additional civil remedies. The Bharatiya Nagarik Suraksha Sanhita provides procedural guidelines for filing FIRs and conducting investigations in cyber crime cases.

If You Are the Complainant

Gather comprehensive evidence including source code comparisons, access logs, employment agreements, and confidentiality clauses. File an FIR at the cyber crime police station with jurisdiction over your location. Prepare detailed technical documentation showing the uniqueness and originality of your code. Engage forensic experts to establish the timeline and method of theft. Simultaneously file a civil suit for damages and seek interim injunctions to prevent further unauthorized use or distribution of your intellectual property.

If You Are the Victim

Immediately change all system passwords and revoke access credentials for the suspected individual. Document the financial losses and potential damages caused by the theft. Preserve all digital evidence including server logs, email communications, and version control history. Contact your insurance provider if you have cyber liability coverage. Inform your clients and business partners about the potential data breach while maintaining confidentiality about ongoing legal proceedings. Consider hiring a cybersecurity firm to assess the extent of the breach and prevent future incidents.

How the Police Behave in Such Cases

Cyber crime police typically treat intellectual property theft seriously, especially when significant financial losses are involved. They will require detailed technical documentation and evidence to understand the complexity of the case. Investigation may involve digital forensics experts and coordination with multiple jurisdictions if the accused operates across states. Police often seek assistance from technical experts to verify claims about code similarity and unauthorized access. The investigation timeline can be lengthy due to the technical nature of evidence collection and analysis.

FAQs People Normally Have

• Can I recover monetary damages? Yes, you can claim actual losses, lost profits, and in some cases, punitive damages through civil litigation.
• How do I prove the code was stolen? Through technical analysis showing code similarity, access logs, and timeline evidence of unauthorized access.
• Is this a criminal or civil matter? It’s both – you can file criminal charges for theft while simultaneously pursuing civil remedies for damages.
• How long does the case take? Criminal cases can take 2-5 years, while civil cases may resolve faster through settlements or interim orders.

What Evidence Is Required?

• Original source code with timestamps and version control history
• Employment agreements and confidentiality clauses
• Server access logs showing unauthorized downloads
• Email communications or digital correspondence
• Technical expert reports comparing code similarity
• Financial records showing development costs and losses
• Documentation of the accused person’s access credentials and permissions

How Long Will the Investigation Take?

Criminal investigations in intellectual property theft cases typically take 12-18 months for completion. The timeline depends on the complexity of technical evidence, cooperation from involved parties, and the need for forensic analysis. Civil proceedings can move faster, especially when seeking interim relief. Court hearings and final disposition may extend the overall timeline to 2-3 years for complete resolution of both criminal and civil aspects.

Advocate Sudhir Rao, Supreme Court of India