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Will the Internet wipe out brick and mortar businesses? As more of the real world moves into cyberspace, what will the shape of business be? Subramaniam Vutha launches a forum on these vital issues

In a book named The death of distance, Frances Cairncross of The Economist outlines the 30 major effects of the internet revolution. Of greatest interest to Indian businesses would be her forecast that "developing countries will increasingly perform on-line services – monitoring security screens, running help-lines and call-centres, writing software, and so on – and sell them to the rich industrial countries that generally produce such services domestically."

India appears to have several advantages in the Internet world. With its telecom and information technology sectors booming and the advent of cheaper non–PC Internet access devices, it does look like the World Wide Web will provide great opportunities to Indian businesses. It will also present great challenges.

Who should participate in this forum
There is a great need for a discussion in India on the potential effects and opportunities created by the Internet and the threats posed by it. The Internet is not only about technology or the law. It will affect business structures, marketing, sales, purchase, corporate governance, planning, insurance and every other facet of business. So business executives from every function should participate in this forum.

The model for this forum
This series will focus on the business aspects of the Internet. There are useful examples to emulate. For example: the Berkman Center for Internet & Society, a research program created by a network of teaching and research fellows from Harvard and elsewhere, who, together with students, entrepreneurs, business executives, lawyers and virtual architects, are exploring cyberspace and sharing in its study. The aim: to identify and engage the challenges of cyberspace.

So here is a programme - a series of online articles on "Internet effects: e- business and intellectual property rights" - intended to stimulate thought, to evoke comments and queries and to promote sharing of views and experiences across the group. Plus interviews with senior Tata executives on the implications for their businesses.

The series of online articles (with contributions from the legal and technology experts within the group and guest articles from others) will discuss the following issues and questions:

Online contracting — The implications of the Information Technology Act 2000, the challenges of determining the authenticity of the contracting parties, the integrity of electronic forms of contracts/records and the issue of non-repudiation of contracts where there is no "writing". Several collateral issues arise -- including those relating to digital signatures, evidentiary presumptions, measures of caution and application of swiftly changing technological options.
Risks and liabilities — To the "real world" risks of defamatory content and vicarious liability for employee actions, new ones will be added, such as those arising from hacking and spamming (users sending millions of e-mails blocking ISP services). With the emergence of new risks, insurance companies will need to design and offer new forms of insurance and risk cover.
Business structures — The Internet, according to Ms Cairncross, will encourage the 'loose knit corporation' held together by culture and communication networks. It will also demand new forms of business structures to address specialised needs, facilitate risk management and encourage entrepreneurial activity on the net.
IPR issues — 80 per cent of corporate intellectual property is now held in digital form. The Internet will bring several new IPR issues to the fore. These will include copyright protection on the Internet - the world's largest copying machine; trade mark and domain name issues (with the latter emerging as key business identifiers); trade secret and confidential information on an inherently open and unpoliced global network and service marks in an Internet world where services will dominate.
Also, the value of design in the frenzied rush for attracting "eyeballs". And the growing numbers of business model patents, which threaten to confer monopolies in new and crucial areas.
Corporate governance — The Internet will permit new forms of board and shareholder interaction, new methods of information sharing, decision-making and addressing rising corporate transparency demands. How do we foresee the shape of corporate governance in the light of the technological options now available?
Consumers — Business-to-consumer commerce on the net will create new consumer issues. Also, consumers will assert their rights across borders and against suppliers they may never see or meet. What new forms of accreditation and certification will emerge to protect consumers? How will companies cope with the new consumer issues that will emerge? Above all, which companies will capture the position of "trust" which will become crucial in Internet dealings?
Antitrust and competition issues — The Internet will give rise to new anti-trust and competition issues. These will be discussed. Also the likely shape of laws and regulations to address such issues
Privacy and security — Technology facilitates the gathering of personal data. But consumers and citizens worldwide are apprehensive about the potential threat to their privacy, leading to legislation on data protection. What challenges will businesses face? What policies and safeguards will they need to introduce?
Innovation — What new forms of innovation, technical and non-technical, do we need to encourage in order to stay ahead of global competition? How do Indian businesses assume leadership positions by innovating? At least in select areas? How do we foster innovation in Indian companies and in Indian society?

The road ahead
Over the next few weeks you will see a series of articles on these subjects. Your participation by way of comments, queries and sharing of insights and experiences will greatly benefit the group.

He is also a speaker and contributor on intellectual property rights, e-commerce and information technology law issues, and a member of the Confederation of Indian Industries’ working group on TRIPS (Agreement on Trade-Related Aspects of Intellectual Property Rights).