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Intellectual Property LawSupreme Court of India

B.N. Firos v. State of Kerala & Ors.

Civil Appeal · 2018 INSC 270Decided 27 Mar 2018
Civil Appeal No. 79 of 2008
Justice Ranjan Gogoi · Justice Mohan M. Shantanagoudar

Background

The appellant, an IT consultant who had developed the application software for Kerala's "FRIENDS" e-governance bill-collection project on behalf of Microsoft (which had been engaged by the State), challenged a 2002 government notification under Section 70(1) of the Information Technology Act declaring the FRIENDS computer system a "protected system." He also challenged the constitutional validity of Section 70 itself, claiming he held copyright in the software he had developed. His writ petition, writ appeal, and review petition were all dismissed by the Kerala High Court, leading to this appeal.

Decision Breakdown

The Supreme Court examined Section 70 of the IT Act (including its 2009 amendment narrowing the power to declare "protected systems" to critical information infrastructure) and found the government's notification power was validly and narrowly exercised. On the copyright claim, the Court held that under Section 17(a) of the Copyright Act, since the appellant had developed the software as work commissioned and paid for by Microsoft (by his own pleaded case), he could not claim to be the "first owner" of copyright in it: that claim was "palpably unfounded" on his own version of events. Finding no ground to interfere with the High Court's orders, the Supreme Court affirmed them and dismissed the appeal, leaving the parties to bear their own costs.

Lesson Learnt

A developer who creates software for a client under a commission or employment-like arrangement generally does not personally own the copyright in that work under Section 17(a) of the Copyright Act: ownership follows the commissioning/paying party, not merely the person who wrote the code.

B.N. Firos v. State of Kerala & Ors. – Legal Case Shots | LegalAware