--- title: "Cyber crime and IP theft" subject: "Information System" chapter: 2 key: "semester_8/information_system:cybercrime-ipr-theft" source: https://www.bctengineer.com/q/semester_8/information_system/cybercrime-ipr-theft site: BCT Engineering --- # Cyber crime and IP theft Information System · Chapter 2: Control, Audit and Security of Information Systems - Asked in: 2071 Bhadra, 4 marks - Video: [Introduction To CyberCrime | Types of Cyber Crime | How To Prevent Cyber Crime | Intellipaat](https://www.youtube.com/watch?v=qS4ViqnjkC8) — Intellipaat - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/information_system/cybercrime-ipr-theft - Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-2 ## Question How do you define cyber crime and theft of intellectual property rights? Discuss with suitable cases. ## Short answer Cyber crime is illegal activity using computers or networks as tool, target, or place, e.g., hacking, phishing, identity theft, prosecuted under Nepal's Electronic Transactions Act. Theft of intellectual property rights involves unauthorized copying or use of copyrights, patents, trade secrets; forms include software piracy, trade secret theft, and trademark counterfeiting. Cases: Napster shut down for music copyright infringement; The Pirate Bay convicted for enabling piracy. ## Answer #### Cyber crime **Cyber crime** is any illegal activity that uses a computer, network or the Internet as a tool, target or place of crime. In Nepal it is covered by the **Electronic Transactions Act, 2063 (2008)**, which defines offences such as unauthorized access, damage to computer systems, publishing illegal material, and computer fraud. Types: hacking, phishing, identity theft, online banking and credit card fraud, ransomware, cyber bullying and stalking, spreading malware, DoS attacks, publishing obscene or defamatory material. Cases: a person who hacks a bank account and transfers money; fake emails collecting banking passwords; in Nepal, ATM card skimming and social media account fraud have been prosecuted under the Act. #### Theft of intellectual property rights **Intellectual property (IP)** includes copyrights, patents, trademarks, trade secrets and designs. **IP theft** is the unauthorized copying, use, distribution or sale of protected work. Forms: - **Software piracy** - illegal copying and use of licensed software. - **Copyright infringement** - sharing movies, music, e-books by torrents. - **Trade secret theft** - stealing source code or designs by employees or hackers. - **Trademark counterfeiting** - fake brand websites and products. - **Plagiarism** of content and patent violation. Cases: Napster was shut down by court order (2001) for enabling music copyright infringement, and the founders of The Pirate Bay were convicted in Sweden (2009); Oracle v. Google was a long dispute over the copying of Java APIs, which the US Supreme Court finally decided in Google's favour as fair use (2021); employees leaving with company source code have been sued for trade secret theft. Legal protection in Nepal: Copyright Act 2059 (2002), Patent, Design and Trademark Act 2022 (1965), and the Electronic Transactions Act. Prevention includes licensing, DRM, access control and awareness. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Which best defines cyber crime? A. Illegal activity that uses a computer, network or the Internet as a tool, target or place of crime B. Any use of the Internet for entertainment C. Only crimes that damage computer hardware D. Only financial theft carried out through banks Answer: A. Cyber crime covers computers or networks used as the tool, target or place of the offence, not just hacking or money theft. (Key point: Cyber crime definition) 2. Which Nepali law defines offences such as unauthorized access, damage to computer systems and computer fraud? A. Copyright Act 2059 (2002) B. Electronic Transactions Act, 2063 (2008) C. Patent, Design and Trademark Act 2022 D. Banking Offence Act only Answer: B. Cyber offences are covered by the Electronic Transactions Act; the other Acts protect intellectual property. (Key point: Nepali law) 3. What is intellectual property theft? A. Losing a laptop that holds company files B. Buying licensed software and installing it once C. Unauthorized copying, use, distribution or sale of protected work D. Using public-domain material freely Answer: C. IP theft is unauthorized use of protected work such as copyrights, patents, trademarks and trade secrets. (Key point: IP theft meaning) 4. Sharing movies and music through torrents is an example of which form of IP theft? A. Trade secret theft B. Trademark counterfeiting C. Patent filing D. Copyright infringement Answer: D. Distributing copyrighted media without permission is copyright infringement; trade secret theft is stealing source code or designs. 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