In a blog post on Wednesday, Ryan Hagemann, the company's Government and Regulatory Affairs Technology Policy executive, said IBM would back "reasonable, considered measures to regulate online activities that are clearly illegal".
He said that meant taking a look at Section 230, which right now prevented any provider of an "interactive computer service" from liability for any action that occurred on that platform, irrespective of whether the provider turned a blind eye to the illegal activity or not.
"Courts have found companies that knowingly host illegal content to be exempt from legal liability based on the broad protection that CDA 230 provides," Hagemann said.
In March last year, the US passed a law to crack down on the spread of online content that facilitated trafficking children for sexual exploitation.
IBM said instead of exempting all platforms from liability, any exemption should be conditional on companies adopting a standard of "reasonable care" and acting and adopting preventive measures to curb illegal use of their service.
"The 'reasonable care' standard would provide strong incentives for companies to limit illegal and illicit behaviour online, while also being flexible enough to promote continued online innovation and fairly easy adaptation to different online business models," Hagemann said.
The approach of having precision regulation meant requirements or liability should be focused on those in a position to do something about illegal online content.
"The reasonable care standard should apply precisely and narrowly: to 'providers' of interactive computer services that not only host information but also make that information available to the public and have the technical means, practical ability, and the right to moderate content," Hagemann said.