A diplomatic standoff between India and the U.S. over last week's Indian crackdown on pornography appears to have been averted. The showdown centered on the arrest of Avnish Bajaj, CEO of EBay's Indian subsidiary, after his company's site listed an auction for the cellphone sex video at the heart of the controversy. The Guardian reported last week that Condoleezza Rice allegedly phoned an Indian ambassador to demand the release of Bajaj, who is a U.S. citizen. A U.S. State Department spokesperson also told reporters that "this situation is one of concern at the highest levels of the U.S. government," prompting at least one Indian politician to accuse the U.S. of "meddling."

The confrontation apparently subsided after Bajaj was released on bail.

India Daily reports that the ongoing controversy may lead India to pass its own version of America's controversial "Digital Millenium Copyright Act." Legislators hope that such a law will provide clearer definitions of ISP and website liability than those currently in effect.

[Guardian Unlimited] Delhi schoolboy sparks global porn row
[LA Times] American Freed in Indian Scandal
[India Daily] India plans US model cyber law

If you think the U.S. has become sexually repressed as of late, check out this story about India's reaction to a 17 year old boy who used his camera phone to record a sex act. Money quote:

In a case that has shocked many Indians, the prosecution had demanded he be put in psychiatric care for displaying "animal instincts".

The parents of the girl involved have reportedly sent her to Canada. Because, as we all know, if you want to shield someone from sex tapes, you send them to North America.

[BBC News] Sex-case Delhi schoolboy bailed