Chief of eBay's Indian Site Arrested, Released

An anonymous reader writes "As reported, Avinash Bajaj, the CEO of Baazee.com, the Indian subsidiary of eBay, was arrested by the Indian police for distributing pornography. What really seems to have happened is that two high school students from Delhi Public School filmed themselves having oral sex, and this video was distributed through Delhi by email. Some time later, Ravi Raj Singh, a college student from IIT Delhi, offered his VCD of the 157-second clip for sale on Baazee. Avinash Bajaj has now been released on bail, but his U.S. passport is still impounded. AP report here." In reaction to the scandal, SoumyaRay writes, "the Indian government is planning a law based on the DMCA that would establish the responsibility of the corporation when dealing with copyrighted materials. The law 'would deal with four categories of functions by a service provider: transitory communications, system caching, storage of information on systems or networks and information location tools.' Does this differ in any major way with the DMCA? What is being overlooked and what is the potential for abuse? What would you propose?"