As we have all witnessed and experienced, advancements in information technology have introduced numerous digital products—such as applications, softwares, and e-books—into the global marketplace.
This article aims to explore how the sale of digital products is governed within Islamic jurisprudence by examining the fundamental principles of trade and contemporary scholars’ viewpoints. The purpose of this review is to understand how these practices can be aligned with Islamic law and to identify practical issues along with potential solutions.
Digital Products
The growth of digital technology has affected many aspects of life, including the way we conduct transactions. Today, digital products are key commodities in the global economy.
However, questions arise regarding the compatibility of these practices with Islamic law. The fundamental principles of trade within Islamic jurisprudence must be examined to understand how digital products can be regulated within the framework of Shariah.
In Islamic jurisprudence, transactions must meet several core principles. One of the primary principles is clarity, which requires that the goods being traded must be clearly defined in terms of their nature and quantity.
For digital products, this means that product descriptions must be clear and detailed. Al-Mawardi, in his work Al-Hawi al-Kabir, emphasizes the importance of clarity in transactions to prevent disputes. Al-Mawardi, A. (2011). Al-Hawi al-Kabir. Dar al-Fikr. p. 45.
For instance, if someone purchases software without sufficient explanation of its functional limitations or usage, they may feel deceived if the product does not meet their expectations. Therefore, sellers of digital products must ensure that their product descriptions are comprehensive and include all critical information to avoid future disputes. This not only adheres to Islamic legal principles but also fosters trust between sellers and buyers.
Islamic Jurisprudence on Digital Transactions
In Islamic jurisprudence, the fundamental principles of trade encompass more than just the clarity of the goods being sold. Ownership and the right to transfer ownership are also crucial elements in ensuring legitimate and fair transactions.
Ownership and the transfer of rights in the context of digital products add complexity compared to physical goods. Although digital products like software, music, or e-books lack a physical form, the usage rights granted to buyers must still comply with Shariah.
According to Al-Kasani, “The rights to the usage license for digital products must align with the principles of ownership in Islamic jurisprudence.” Al-Kasani, A. (2012). Badai’ al-Sanai’ fi Tartib al-Sharai’ (Vol. 1). Dar al-Kutub al-Ilmiyyah.
Al-Shafi’i, in his Al-Risalah, states, “Uncertainty in digital transactions can be avoided by ensuring that all aspects of the product are described in detail.” Al-Shafi’i, M. (2015). Al-Risalah. Dar al-Fikr. p. 103.
Gharar, or excessive uncertainty, is one of the key concepts in Islamic law related to transactions. Gharar refers to ambiguity or uncertainty in a transaction that could lead to conflict or injustice.
In the context of digital products, issues of gharar may arise if the product descriptions or access rights are not clearly defined, which can create potential risks and confusion for buyers.
Scholars have varied opinions on the sale of digital products. Some scholars argue that the fundamental principles of trade in Islamic jurisprudence still apply to digital products.
Al-Sa’di notes, “Although digital products are intangible, basic principles in Islamic jurisprudence, such as clarity and ownership, still hold.” Al-Sa’di, M. (2020). Contemporary Issues in Islamic Finance. Journal of Islamic Economics, 15(2), 45-62. p. 52.
It is well-known that selling non-existent goods is not permissible, as one of the pillars of trade is the existence of the product. Therefore, some scholars emphasize the need for adjustments in evaluating digital transactions.
In this regard, Al-Jaziri argues, “Since digital products are intangible, adjustments in contracts, as well as rights and obligations in transactions, are necessary to ensure compliance with Shariah.” Al-Jaziri, M. (2018). Al-Fiqh al-Hanafi wa Usuluh. Dar al-Fikr.
Practical Issues in Digital Product Sales
Selling digital products faces several practical issues, one of which is copyright protection and the risk of piracy.
Al-Mutairi stresses, “Implementing effective copyright protection mechanisms is essential to ensuring the legitimacy of digital product transactions.” Al-Mutairi, A. (2021). Copyright and Islamic Law. Pustaka al-Huda. p. 68.
From an Islamic legal perspective, violating copyright and engaging in piracy can be categorized as ghashab (usurpation) or even theft. Selling someone else’s property without the owner’s knowledge is, therefore, unlawful.
Guarantees and customer support also need to be properly addressed. Al-Nahhas highlights, “Clear information about customer support and product warranties is crucial to ensuring that buyers understand the rights and quality of the products they purchase.” Al-Nahhas, I. (2023). Consumer Protection in Digital Transactions: An Islamic Perspective. Journal of Contemporary Fiqh, 12(1), 22-38. p. 25. This is once again to prevent fraud, which can lead to losses both minor and significant.
Adherence to Shariah principles in transactions must be consistently maintained. Al-Rahman suggests, “Oversight and regulation from Islamic legal bodies can help ensure that digital business practices align with Shariah principles.” Al-Rahman, S. (2022). Shariah Compliance in Digital Business. Al-Bukhari Press. p. 90.
While the sale of digital products differs from transactions involving physical goods, it can be analyzed within the framework of Islamic jurisprudence. With careful consideration and appropriate adjustments, digital transactions can comply with Islamic law. Digital business owners should consult Islamic legal experts to ensure their practices align with Shariah, while leveraging technology to maximize its benefits.