Legal History

The Supreme Court has ruled that companies purchasing software to organise or automate their business operations cannot claim the status of “consumer” under the Consumer Protection Act, 1986.

In M/S Poly Medicure Ltd. v. M/S Brillio Technologies Pvt. Ltd., a Bench comprising Justices JB Pardiwala and Manoj Misra held that such transactions are inherently commercial, as the software in question directly contributes to profit-making and operational efficiency. This, the Court said, places the purchase outside the definition of “consumer” in Section 2(1)(d) of the 1986 Act.

The case arose from a complaint filed in 2019 before the Delhi State Consumer Disputes Redressal Commission by Poly Medicure, a company involved in the import and export of medical devices. The firm had bought a licence for “Brillio Opti Suite” from Brillio Technologies and later alleged that the software malfunctioned. It sought a refund of the licence fee and development charges, along with interest, on grounds of deficiency of service.

The State Commission dismissed the complaint in August 2019, finding that the software was acquired for commercial purposes. The National Consumer Disputes Redressal Commission (NCDRC) upheld that decision in June 2020.

Before the Supreme Court, Poly Medicure argued that it had purchased the software solely for its own use and not for resale, contending that internal operational tools should not qualify as commercial acquisitions. It relied on prior rulings extending consumer protection to self-employed individuals whose purchases were linked to livelihood.

The Supreme Court disagreed, noting that although companies may file consumer complaints, they may do so only when the goods or services have no commercial purpose. Examining the nature of the software, the Bench found that it was used for export documentation, consignment tracking, foreign exchange management and handling statutory benefits — all integral to the company’s business.

The Court clarified that the “dominant purpose” test applies: software purchased to streamline business functions is meant to increase efficiency, reduce costs and ultimately boost profits. Such objectives, it said, clearly fall within commercial use.

Accordingly, the Court upheld the findings of the lower fora and dismissed the appeal,

concluding:

“The transaction of purchase of goods/services (i.e., software) had a nexus with the generation of profits and, therefore, the appellant cannot be considered a consumer under Section 2(1)(d) of the 1986 Act.”

Microsoft is facing a new lawsuit from consumers who allege that the technology giant illegally inflated prices for generative artificial intelligence through a secret agreement with ChatGPT maker OpenAI.

The proposed class action, filed in San Francisco federal court, claims Microsoft used an exclusive cloud computing deal with OpenAI to restrict the supply of computational resources needed to operate ChatGPT.

Microsoft has so far invested more than $13 billion in OpenAI.

The lawsuit states that the deal Microsoft struck early in OpenAI’s development violated federal antitrust law by restraining market competition and artificially driving up ChatGPT subscription prices, while reducing product quality for millions of users of the AI platform.

Although the alleged restraints on OpenAI have since eased, they remain as “a sword of Damocles over OpenAI wielded by one of its principal competitors,” according to the lawsuit.

Microsoft, in a statement, said that while it was still reviewing the lawsuit, “we believe that our OpenAI partnership promotes competition, innovation, and responsible AI development.”

OpenAI, which is not named as a defendant, declined to comment. Lawyers representing the 11 consumers who filed the lawsuit did not immediately respond to a request for comment.

Microsoft first announced in 2019 that it was investing $1 billion in San Francisco-based OpenAI, saying it had forged a multi-year partnership to develop AI supercomputing technologies on Microsoft’s Azure cloud computing service.

OpenAI, founded in 2015 as a non-profit, has since restructured itself as a for-profit company.

The lawsuit alleges that Microsoft exploited its agreement with OpenAI to profit from its success while developing its own rival products, including the AI platform Copilot.

ChatGPT prices were said to be substantially higher than competitors’ during a price war earlier this year, according to the lawsuit.

The alleged restraint on OpenAI was partially lifted in June when OpenAI began purchasing computing power from Google, the plaintiffs claim.

The plaintiffs seek damages for alleged overcharges dating back to ChatGPT’s launch in November 2022, as well as a court order to prevent Microsoft from reimposing the restrictions.

The case is Samuel Bryant et al v. Microsoft Corp, U.S. District Court, Northern District of California, No. 3:25-cv-08733.

The legal history of the Middle East is a rich and complex tapestry woven from diverse threads, including ancient Mesopotamian traditions, Roman and Byzantine law, Islamic jurisprudence and modern secular and international influences. This content provides a broad overview of the key periods and developments, with a specific focus on the unique legal evolution of the Gulf countries.

Ancient Foundations: The Dawn of Codification

The Middle East is the cradle of some of the earliest known legal systems. Around 1754 BCE, King Hammurabi of Babylon, in modern-day Iraq, created one of the most famous and comprehensive ancient legal codes. The Code of Hammurabi was inscribed on a stone stele and included 282 laws governing a wide range of issues. Other ancient legal traditions, such as the Mosaic Law, also provided detailed legal and moral codes that influenced later religious and legal thought.

The Influence of Greco-Roman Law

Following the conquests of Alexander the Great and the establishment of the Roman Empire, Greco-Roman legal principles began to permeate the region. Roman law, with its emphasis on codified statutes and a structured court system, had a lasting impact, particularly in areas like Egypt, Syria, and Palestine. The Byzantine Empire continued to apply and develop Roman law, which served as a foundation for some later legal systems.

The Rise of Islamic Law: Shari'a

The 7th century CE marked a pivotal moment with the advent of Islam. Islamic law, or Shari'a, emerged as a comprehensive legal and ethical framework derived from two primary sources: the Qur'an and the Sunnah. Over time, Islamic scholars developed a complex methodology to interpret these sources, leading to the emergence of different schools of jurisprudence. Shari'a covers a vast array of topics, including personal status (marriage, divorce, inheritance), criminal law and contract law. This system was historically administered by judges (qadis).

The Ottoman Empire: A Synthesis of Legal Systems

The Ottoman Empire, which controlled much of the Middle East, including parts of the Arabian Peninsula, developed a legal system that blended Islamic and secular law. While Shari'a governed personal status and some criminal matters, the Ottomans also created a body of secular law called qanun. The Tanzimat reforms of the 19th century introduced new commercial, penal, and civil codes based on European models, a trend that would later influence the legal systems of the Gulf states.

The Gulf Countries: Tribal Law, British Influence and Modernisation

The legal history of the Gulf countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) is distinct due to a unique blend of tribal traditions, British colonial influence and rapid modernisation driven by oil wealth.

Tribal and Customary Law (Urf): Before the modern state and formal legal systems, much of the Gulf's population was organised along tribal lines. Tribal law, or Urf, was an informal system based on custom and tradition, often enforced through tribal leaders. This system governed land rights, conflict resolution, and social conduct. Even today, tribal affiliations and customs continue to hold social and, in some cases, political importance, influencing how laws are applied and disputes are resolved.

The British Protectorate Era: From the 19th century until the 1970s, many of the Gulf states were British protectorates. During this period, the British introduced their own legal and judicial systems, primarily to handle commercial disputes involving foreign merchants. This created a dual system where British courts applied Anglo-Mohammedan law for foreigners, while local courts continued to apply Shari'a and customary law for the local population, especially in personal and family matters.

Capital punishment, also known as the death penalty, has a long and complex history that varies significantly from country to country. The implementation of capital punishment has evolved over time, shaped by cultural, religious, political, and legal factors. In this article, we will explore the historical perspective of capital punishment in different countries, highlighting key moments and shifts in attitudes towards this controversial practice.

Ancient Civilisations:

The origins of capital punishment can be traced back to ancient civilizations, where it was often used as a means of retribution, deterrence, and social control. In ancient Mesopotamia, the Code of Ur-Nammu (circa 2100-2050 BCE) is one of the earliest known legal codes to prescribe death as a punishment for certain offenses. Similarly, in ancient Rome, the Twelve Tables (circa 450 BCE) included provisions for capital punishment.

Medieval Europe:

During the medieval period in Europe, capital punishment became more widespread and took on various forms, including hanging, beheading, and burning at the stake. The severity of punishment often depended on the nature of the crime and the social status of the offender. The execution of criminals in public spaces was intended to serve as a deterrent, emphasizing the power and authority of the ruling elite.

Enlightenment and Legal Reforms:

The Age of Enlightenment in the 18th century brought about significant changes in philosophical and legal thought. Thinkers like Cesare Beccaria argued against the arbitrary and cruel nature of capital punishment, advocating for more humane and rational forms of punishment. As a result, some European countries began to reconsider their approach to the death penalty.

Abolitionist Movements:

The 19th and 20th centuries witnessed the rise of abolitionist movements advocating for the complete elimination of capital punishment. Countries such as France and Norway abolished the death penalty during this period. The abolitionist movement gained momentum after World War II, with the establishment of international organizations like the United Nations promoting human rights and opposing capital punishment.

Contemporary Perspectives:

In the 21st century, the global stance on capital punishment remains diverse. Some countries, particularly in Europe, have abolished it entirely, while others, such as the United States, continue to practice it. China, Iran, Saudi Arabia, and a few other nations maintain high execution rates, often facing international criticism for their approach.

Human Rights and International Law:

The Universal Declaration of Human Rights, adopted by the United Nations in 1948, asserts the right to life as a fundamental human right. Several international agreements, including the International Covenant on Civil and Political Rights (ICCPR), emphasise the aim of progressively restricting and ultimately abolishing the death penalty.

Capital punishment has traversed a long and varied path throughout history. Cultural, legal, and philosophical shifts have influenced the acceptance or rejection of this controversial practice. While some countries have embraced the principles of human rights and moved towards abolition, others continue to grapple with the moral and ethical implications of taking a human life in the name of justice.

The ongoing debate surrounding capital punishment reflects the complex and evolving nature of societal attitudes towards punishment and justice on a global scale.

The history of laws and legal systems is a fascinating journey that spans millennia, reflecting the evolution of human societies and the complex dynamics that shape their governance. From ancient codes etched in stone to modern legal frameworks, the development of laws mirrors the changing needs, beliefs, and values of civilizations across the globe. This essay will explore the key milestones in the evolution of laws and legal systems, examining the diverse paths that different cultures have taken to establish and refine their systems of justice.

Ancient Legal Codes:

The roots of formal legal systems can be traced back to ancient civilizations that sought to regulate human behavior and resolve disputes within their communities. One of the earliest known legal codes is the Code of Ur-Nammu, dating back to around 2100-2050 BCE in Sumeria. However, it is the famous Code of Hammurabi, established by the Babylonian king Hammurabi around 1754 BCE, that stands as a hallmark in legal history. Inscribed on a stele, Hammurabi's code consisted of 282 laws that governed various aspects of life, from commerce to family matters, and prescribed punishments for violations.

Classical Legal Traditions:

The ancient Greeks and Romans contributed significantly to the evolution of legal thought. In ancient Athens, the concept of democracy played a crucial role in shaping legal principles. The Athenian legal system included a jury system where citizens participated in the administration of justice. Meanwhile, in Rome, the Twelve Tables (449 BCE) laid down the foundation for Roman law, emphasizing principles of fairness and equality before the law. Roman legal ideas, especially those of jurists like Cicero, influenced later legal developments in Europe.

Religious Influence on Laws:

Religious texts and doctrines have also played a pivotal role in shaping legal systems. The Judaic tradition, with the Mosaic Law, introduced the Ten Commandments and a comprehensive set of rules governing various aspects of life. In medieval Europe, canon law, derived from the teachings of the Christian church, coexisted with secular laws and influenced legal proceedings. Similarly, Islamic jurisprudence, based on the Quran and Hadith, has been a fundamental source of legal principles in many Middle Eastern and North African societies.

Medieval and Feudal Legal Systems:

The medieval period saw the emergence of feudalism, and legal systems were often decentralized, with local lords exercising authority over their territories. Customary laws, developed over time within specific regions, guided communities in dispute resolution. As medieval societies transformed, centralized authorities began to assert control over legal matters, leading to the gradual development of more unified legal systems.

The Renaissance and the Enlightenment:

The Renaissance and Enlightenment periods marked significant shifts in legal thinking. Legal scholars during this era, such as Hugo Grotius and John Locke, laid the groundwork for modern concepts of natural law and individual rights. The Enlightenment's emphasis on reason and rationality fueled the development of legal systems that sought to balance the power of the state with the protection of individual liberties.

Modern Legal Systems:

The 19th and 20th centuries witnessed the codification and formalization of legal systems across the globe. The Napoleonic Code (1804) in France, influenced by Enlightenment ideals, became a model for legal reforms in many European countries. Common law systems, rooted in English legal traditions, spread through the British Empire and continue to shape legal systems in numerous jurisdictions today.

International Law and Globalisation:

The 20th century saw the establishment of international legal frameworks, including the United Nations and various treaties, to address global challenges. Human rights, environmental regulations, and trade agreements reflect the interconnectedness of nations and the need for cooperative legal solutions in the face of transnational issues.

The evolution of laws and legal systems is a testament to humanity's quest for justice, order, and the protection of individual rights. From ancient codes etched in stone to modern, complex legal frameworks, the journey has been marked by diverse cultural influences, philosophical shifts, and the constant adaptation to societal changes. As we navigate the complexities of the 21st century, understanding this historical evolution provides valuable insights into the foundations of our legal systems and the ongoing quest for a just and equitable society.