Explain the method which the e-commerce subsidiaries of fintech companies Paythen Ltd and Kyuthen Ltd should use to navigate legal risks related to counterfeit products while ensuring responsible platform management.

The safe harbour protection for e-commerce marketplaces is an important aspect that deserves careful consideration. The concept of safe harbour under Section 79 of the Information Technology Act, 2000 (IT Act), acts as a defence for the intermediaries, but there are some instances where Intellectual Property Rights (IPR) are openly violated by the intermediaries. Safe harbour protection acts as an inherent security granted to intermediaries against the imposition of liability for acts done by third parties. Safe harbour provisions were introduced to protect intermediaries from becoming liable for the acts of third parties, provided the intermediary observed 'due diligence'. Intermediaries are shielded from liability under Section 79 of the IT Act for data, material, and information shared by users through them but over which they have no direct knowledge. Under the safe harbour, intermediaries are protected from third-party information and data made available or hosted by them thereby acting as a defence. Intermediaries are protected by safe harbour from all legal consequences unless they knew that illicit content was being broadcast on their platform. This method may be used to navigate legal risks related to counterfeit products while ensuring responsible platform management. To maintain safe harbour protection, e-commerce platforms must demonstrate proactive due diligence, such as monitoring for counterfeit goods, verifying sellers, and acting promptly on complaints.