Entertainment and media industry of India is all set to touch new heights in India. Information and communication technology (ICT) has also expanded the reach and scope of entertainment and media industry in India. Along with these growth trends there are also many challenges that must be taken care of by these industries. These include cyber law due diligence requirements (PDF) and cyber security compliances as well.
Mobile and online gaming industry of India is also fast maturing and as per various business reports it is going to grow further in the coming years. However, the mobile application developers in India are not complying with Indian laws as on date. While online gaming market of India is fast growing yet when it comes to rules and regulations various gaming stakeholders are very lax in following the same. Even rules pertaining to mobile payment are not followed in true letter and spirit.
Many mobile gaming stakeholders in India have explored the route of e-commerce as well without following the legal requirements. Surprisingly, the e-commerce due diligence in India is neglected by even the investors and financial institutions.
There are set online gaming industry laws in India that must be adhered to by various online gaming stakeholders, including the mobile gaming companies and stakeholders. Individuals and companies providing online and mobile gaming facilities and services must not only comply with traditional laws of India but also with the Information Technology Act, 2000 (IT Act 2000) and many other techno legal regulations as applicable in India.
For instance, a mobile gaming provider may be held accountable for the contents and games it provides to various consumers and users. Mobile games providers are also “Internet intermediary” within the meaning of IT Act, 2000 and they can be held liable for violation of Internet intermediary obligations. Further, payment gateway issues are also involved in mobile gaining services.
If a company is involved in the creation and marketing of mobile games, its directors can be held liable for cyber law violations through such mobile games. The liability of directors can be found under various Indian laws like IT Act, 2000, Companies Act, 2013, Code of Criminal Procedure, 1973, Indian Penal Code, 1860, etc. Even the legal risks for companies developing e-commerce and online and mobile gaming applications and websites in India are well known.
In their own interest, mobile games providers in India must strictly comply with the techno legal requirements as prescribed by various Indian laws. Otherwise, they may find themselves on the wrong side of the Indian laws.