Assume an IT consultant company is working on a MIS for a commercial bank. Explain why it is important for the two organizations to enter into a non-disclosure agreement. Explain the importance of copyright protection in the software industry

A Management Information System ICT Revision Questions and Answers

A commercial bank is a business entity in a highly competitive sector. Similarly IT consultancy and software development are also very competitive sectors. Because of the tough competition and need to do well to survive, the companies do their utmost to make sure their business secrets, strategies, software source codes, system access privileges etc are protected and do not get leaked to the people who should not have them. In the modern digital age, the data and information are the biggest asset. A single page of information can divulge critical business strategy or an important system design. Such breach of confidentiality can be extremely harmful to the organization and its business prospects. Though there are many ways such information can be released, it is normally assumed that the internal staff members do not release them. At least they may have sworn to protect that. However, the scenario is tricky when two separate entities work on a common project such as MIS deployment. This involves close collaboration and sharing of the important assets such as system access, design topologies, personnel and privilege information etc. To make sure that these critical information of one entity are not compromised the other, it is customary to sign a non-disclosure agreement (NDA) between the two. This creates a legal obligation for each entity to safeguard the information and data of the other. In case of any breach, the NDA also gives a strong legal case for the entity whose data is breached.
Copyright protection scheme is designed to promote innovation and reward & acknowledge the innovators. The new products, services, tools etc developed or created an innovator finds good use among a lot of people but at the same time, the innovation can be copied some rogue person and promoted his or her own. In such a case, the original creator of the product does not get due credit, both material and immaterial. This makes true innovators discouraged to further work on such creative projects. As a result, the pace of innovation, creation and ideation slows down leading to the disadvantage for all. To make sure this does not happen, the innovators, creators, artists, designers etc need to get both financial and non-financial credit for their creation. This is ensured the copyright regime which protects the original creator against unlawful copying, distribution and monetization of the products or services without the consent of the original creator. Such copyright protects the innovators, ensures benefits (if applicable) for them in terms of direct sales or shares, and above all, makes sure that the name of the creator is associated with the creation. This protects the intellectual property, discourages illegal copying and encourages innovation. Hence, copyright protection regime is of great importance in all modern industry including IT

industry. It is even more relevant in computer and IT industry because in this field there are many means and mechanisms which the intellectual property can be stolen and breached.

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