Intellectual Property Right has a direct relation to the sphere of cyber space. The Internet poses a large number of problems in the area of copyright and trademark protection. These challenges and the problems posed before us have to be tackled with due care and diligence, taking into consideration the situation prevailing in the era of Napster and beyond. The paper discusses the (i) basic challenges with respect to the intellectual property, (iii) position as to why the copyright is ill-equipped to deal with internet, along with the basic problems of copyright in regard to internet which includes the determination of Public and Private use and the enforcement of liability, (iv) The paper highlights the various issues relating to trademark infringement with respect to different use on the Internet, starting from the issues related to domain name disputes, jurisdiction, linking, framing, meta-tagging or invisible use and spamming.