This document discusses the need for companies to have robust IT security, email, and internet usage policies. It notes that most organizations do not have adequate policies in place to protect data and prevent misuse. The document outlines why such policies are important from both a legal and risk management perspective. It discusses how policies help establish appropriate usage of company resources, prevent data theft, and ensure compliance with privacy laws. The document advises that policies should apply to all employees and others associated with the organization. It provides examples of objectives that policies can achieve, such as maintaining security and productivity. The conclusion emphasizes that policies help reduce legal risks and damage to an organization's reputation.

1. Need for having Security, Email & Internet Usage Policy
in Companies - Legal requirements and implications
BY
VIJAY PAL DALMIA, ADVOCATE
SUPREME COURT OF INDIA & DELHI HIGH COURT
M O BI L E: + 9 1 9 8 10081079 E MAI L: V P DALMIA@GMAI L.COM

2. All organizations must have a robust IT Security, Email & Internet Usage Policy, which should be strictly implemented to
establish standard practices and rules for responsible, safe and productive use of the Electronic mail (e-mail) and the
internet; and to ensure the protection of information/data of the Organisation and prevention of any misuse thereof.
It is a fact of life that most of the Organisations do not have any Data, IT Security, Email & Internet Usage Policy, or may
be having inadequate policies, which fail to protect and safeguard the interest of the organizations and their
management, leading to the risk of unwarranted criminal and civil consequences.
The effective implementation of policies for the protection of data, misuse of internet and emails, becomes difficult in
the court of law in the absence of a well-defined policy, which is duly acknowledged by the employees of the
organizations. The safeguard of data, e-mail system and network of an Organisation has come to play an extremely vital
role in today's fast moving, but invariably technically fragile, business environment. The first step towards enhancing a
company's security is the introduction of a precise yet legally enforceable security policy, informing employees/staff on
the various aspects of their responsibilities, general use of company resources and explaining how sensitive information
must be handled. The policy should also describe in detail the meaning of acceptable use, as well as clearly list the
prohibited activities.

3. WHY SHOULD AN ORGANIZATION HAVE AN IT POLICY?
Because an organization, its officers including its Directors and Principal Officers, may be directly
and vicariously liable for the acts of organizations' Employees and Agents, etc.,
◦ Under the law relating to
◦ Strict Liability,
◦ Vicarious Liability.
Because Data Protection and Secrecy has become the norm of the day, and it's obligatory to protect
data.
Because every organization is legally obliged to protect its employees, clients and customers from
illegal, unauthorized, inappropriate and unwarranted
◦ Use of
◦ Email;
◦ Internet Usage;
◦ Laptop/Desktops;
◦ Hardware;
◦ Data card;
◦ Pen Drive.

4. WHY SHOULD AN ORGANIZATION HAVE AN IT POLICY?
Because all organizations need to secure
◦ Computer Network; and
◦ Against Unauthorized System Access to prevent data theft, virus, and malware attacks.
Because every organization needs to prevent its employees from installing illegal software,
directly through internet or CD’s, etc., which exposes an organization to copyright violations.
This can be effected by controlling software Installation Rights.
Because every organization has to create system back up and maintain its IT infrastructure.
Because every organization must control unauthorized Third Party and Remote Access to its
computers and IT network.

5. WHY SHOULD AN ORGANIZATION HAVE AN IT POLICY?
Because Data of a Company includes its valuable Intellectual Property Assets, which may include
◦ Patents,
◦ Designs,
◦ Copyrights,
◦ Trade Secrets (Unpatented),
◦ Customer Data,
◦ Business Data,
◦ Business Methods,
◦ Third Party Data,
◦ Formulas,
◦ Source Code,
◦ Employee Information.
◦ Know-how
◦ Confidential Information

6. WHY SHOULD AN ORGANIZATION HAVE AN IT POLICY?
Because an organization may be under a LEGAL & CONTRACTUAL OBLIGATION:
◦ to protect the Sensitive Personal Data of its customers and employees, under the Information
Technology Act, 2000; and
◦ in case of violation of your organization’s legal obligation,
◦ All persons who are directly responsible for the day to management of your organization including its directors and principal
officers may be held legally liable for
◦ Civil action, i.e., compensation under Section 43A, and
◦ Criminal action, i.e., Punishment under Section 72A,
◦ For failure to protect any sensitive personal data which its owns, controls or operates.
◦ As Information Technology (Reasonable security practices and procedures and sensitive personal data
or information) Rules, 2011
◦ provide for having Mandatory Privacy Policy for protection of sensitive personal data.

7. WHY SHOULD AN ORGANIZATION HAVE AN IT POLICY?
◦ The organization and it's all principal officer and directors may be held liable,
◦ to pay Compensation,
or
◦ for Criminal Prosecution for
◦ Negligent handling of data or information leading to DEFAMATION; or
◦ Use of unauthorized or pirated software.
◦ The organization and it's all principal officer including its directors may also be held liable for criminal
prosecution,
◦ Tampering of computer source documents- u/s 65 of the IT Act, 2000,
◦ Sending of offensive messages u/s 66A of the IT Act, 2000 through
◦ Computer resources & Communication devices,
◦ Punishment for identity theft- u/s 66C of the IT Act, 2000,
◦ Use of computer resource for cheating by impersonation- u/s 66D of the IT Act, 2000,
◦ Violation of privacy by use of electronic means of a company- u/s 66E of the IT Act, 2000,
◦ Publication or transmission of obscene material in electronic form- u/s 67 of the IT Act, 2000.

8. Information technology resources
It is important to note that Information technology resources (IT resources) of a company may
include:
◦ computers,
◦ computer-based networks,
◦ computer peripherals,
◦ operating systems,
◦ e-mail,
◦ Intranet,
◦ software or any combination thereof
◦ that are made available by a Company to support its goals of providing quality products and services to customers, increase
shareholder value and foster employee satisfaction.

9. TO WHOM DOES IT POLICY APPLY?
IT Policy of the organization should be universally applicable across the organization, including
its
•Directors
•Employees,
•Part-time employees,
•Industrial Trainees,
•Contractors,
•Agents,
•& all others, who may be directly or indirectly associated with the conduct of the business of the
organization.

10. ADVANTAGES OF HAVING AN IT POLICY:
Time Management, as office hours can be used only for official work thereby enhancing
productivity.
Optimum and efficient utilization and management of company resources including computer
resources for maximum efficiency.
Maintaining healthy, cordial and predefined Employer & Employee Relationship.
Customer Relationship.
Prevent Poaching of your human resource.
Leads to Reduction in the risk of use of pirated and unauthorized use of the software.
Authorized Official use of Company network and resources can improve the functioning of IT
system, which also leads to Bandwidth Protection.

11. OBJECTIVES & PURPOSE OF HAVING AN INFORMATION
TECHNOLOGY POLICY
◦ Establishing a culture of security and trust for all employees;
◦ Providing guidelines governing proper use of IT and Internet by all employees;
◦ Ensuring the use of internet only as a tool for continuous improvement of efficiency and performance;
◦ Fixing the responsibility & liability in case of misuse of IT resources;
◦ Preserving the integrity of the information technology systems;
◦ Protecting IT systems against the accidents, failures or improper use;
◦ Controlled right to access confidential data;
◦ Controlling of copying, removal or alteration of any data, file or system resources;
◦ Maintenance of a high level of professionalism in keeping with Code of Ethics;
◦ Maintaining Company’s reputation among trade and public;
◦ To supplement, not replace, all existing laws, regulations, agreements, and contracts.

12. IT POLICY IS THE WAY TO GO AHEAD, AS:
Most of our communications are now electronic.
Recipients of electronic documents, like
◦ agents,
◦ distributors,
◦ Customers etc.
◦ Need the source and authenticity of the documents or messages.
It may satisfy audit requirements.
It assists in compliance with applicable laws, Regulations, Guidelines, and recommendations.
It mitigates risk from a security breach.
Such policy educates users on sound security practices, and
Having such a policy leads to a reduction of legal risk.

13. RISK FACTOR INVOLVED IN NOT HAVING AN EFFECTIVE
IT POLICY
Espionage: Employees are falling to the lure or trap of RIVALS, and passing sensitive and secure
data of the organization.
Damage to Goodwill, Reputation, Credibility of the organization.
Harassment: Viewing inappropriate content, such as pornography, hate or violence, can create
an environment that is hostile and offensive for co-workers, and can damage the reputation of
the organization.
Viruses: Visiting less than reputable websites can lead to viruses, spyware, or other malicious
software getting into the network.
Productivity: Frequent online browsing, shopping, and chatting can get in the way of getting the
work done, and often leads to resentment from the coworkers.
Service Interruptions: Large downloads and streaming audio and video can suck up network
resources that other employees need to do work and service customers

14. VIJAY PAL DALMIA, Advocate
Supreme Court of India & Delhi High Court
1st, 9th & 11th Floors ǀ Mohan Dev Building ǀ 13, Tolstoy Marg ǀ New Delhi 110001 (India)
Phone: +91 11 42492532 (Direct)
Mobile: +91 9810081079
email:- vpdalmia@gmail.com