Software Copyright In Nepal.
1. Legal Framework of Software Copyright in Nepal
In Nepal, software is protected under the Copyright Act, 2059 (2002) and the Copyright Rules, 2061 (2004). Key points:
Software as Literary Work: Computer programs (source code, object code, UI, and documentation) are considered literary works.
Rights of the Creator: The creator has exclusive rights to reproduce, distribute, adapt, translate, publicly display, or perform the software.
Automatic Protection: Copyright exists automatically once the work is fixed in a tangible form, even without registration. Registration strengthens enforcement.
Moral Rights: Creators have the right to attribution and integrity of the work, which cannot be waived.
2. Key Case Laws on Software Copyright in Nepal
Case 1: Shah & Others vs Inland Revenue Department
Facts: The Inland Revenue Department seized both hardware and the billing system software developed by Shah and others during an investigation.
Legal Issue: Whether software/source code is intellectual property protected under the Copyright Act.
Ruling: The Supreme Court held that software, including source code, is a protected work. Government authorities must respect the creator’s rights before seizing or using it.
Impact: This was a landmark recognition that software is protected IP in Nepal.
Case 2: National Software & IT Solutions Pvt. Ltd. Misuse Case
Facts: Three individuals were arrested by the Nepal Police Cyber Bureau for copying and attempting to sell software source code owned by the company.
Legal Issue: Unauthorized reproduction and distribution of copyrighted software.
Ruling/Action: Criminal action was initiated under the Copyright Act for infringement.
Impact: Established that both civil and criminal remedies are available for software copyright violations.
Case 3: Supreme Court Decision No. 8178
Facts: A copyright infringement case involving unauthorized reproduction of a literary work.
Legal Principle: Strict procedural compliance is necessary when filing a copyright claim.
Relevance to Software: Software copyright infringement cases must follow proper procedural rules for claims to be valid.
Case 4: Moral Rights Protection Case
Facts: An author’s name was removed from published work after economic rights were transferred.
Legal Principle: Moral rights (right to attribution and integrity) remain with the creator, even after transferring economic rights.
Relevance to Software: Applies to software documentation, UI design, and other creative elements. Developers retain moral rights over their work.
Case 5: Software Piracy Enforcement Example
Facts: Unauthorized duplication and sale of licensed software copies by a business in Kathmandu.
Legal Issue: Copyright infringement via piracy.
Ruling/Action: Civil lawsuits were filed; the court granted injunctions to stop further distribution and awarded damages.
Impact: Reinforced that selling pirated software in Nepal constitutes actionable copyright infringement.
3. Common Forms of Software Copyright Violation in Nepal
Copying software source code without authorization.
Selling or distributing pirated copies.
Modifying software and redistributing without permission.
Misusing UI or design elements of software.
4. Remedies under Nepalese Law
Civil Remedies
Injunctions: Court orders to stop infringement.
Damages: Compensation for actual loss.
Accounts of Profits: Defendants must disclose profits from infringement.
Criminal Enforcement
Serious infringement, such as piracy or misuse of source code, may lead to criminal prosecution and imprisonment.
5. Key Takeaways for Software Developers in Nepal
Software is protected automatically as a literary work.
Registration is helpful for easier enforcement.
Moral rights remain with the creator even if economic rights are transferred.
Civil and criminal remedies are available for infringement.
Procedural compliance is necessary for any legal action.
6. Summary of Case Principles
| Case | Principle | Relevance to Software |
|---|---|---|
| Shah & Others vs Inland Revenue | Software is protected IP | Recognized source code as copyrighted work |
| National Software & IT Solutions misuse | Unauthorized copying is infringement | Criminal enforcement possible |
| Supreme Court 8178 | Procedural compliance matters | Applies to all copyright claims |
| Moral Rights Case | Creators retain attribution and integrity rights | Relevant for software docs and UI |
| Software Piracy Case | Piracy is actionable | Civil remedies and injunctions available |
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