Chapter 3 Copyright Infringement Copyright Infringement occurs Infringer

Chapter 3 Copyright Infringement

Copyright Infringement occurs • Infringer • Publishes or distributes • Copyrighted material • Without copyright holder’s permission Pg. P BUSA 331 2

No Infringement… • Material is not published or distributed • Material is not copyrighted • Copyright expired • Material produced by government • Permission Given • Letter, license, contract • CC license Pg. P BUSA 331 3

Infringement Requirements • Infringer-person who does not own copyright • Infringer publishes • Infringer distributes • Copyright ownership • Permission not granted Pg. P BUSA 331 4

Published or Distributed • Posting to • • • Website Blog Usenet group Email, attachment Chat, IM • Making files available not infringement unless… • Distribution occurs! Pg. P BUSA 331 5

Infringement Types • Direct • Done with intent • Contributory • Helps others infringe • Vicarious • Controls infringer, financial gain • Inducement • Distributes device to promote infringement Pg. P BUSA 331 6

Direct Infringement • Website is open to world • Place copyrighted material on website. • No permission = infringement • Cannot copy newspaper story about yourself • Cannot scan magazine photos and publish • Beware publication in other media • Brochure ≠web Pg. P BUSA 331 7

Website Direct Infringement • Without contrary contract, website designer owns copyright • Updating website could be derivative work = infringement Pg. P BUSA 331 8

Contributory Infringement. Content • Allowing others to publish copyrighted material • To your blog, wiki, chat room, guest book…. • CDA-Communications Decency Act (discussed later) can protect website owners and other publishers from liability-but is not a license to infringe Pg. P BUSA 331 9

Avoiding Contributory Infringement • If allow others to publish to your site, then • Have moderator to clean up postings or • Use filtering or blocking software on postings • Or do not allow third-party postings on your site • Defeats the purpose of a ‘discussion’ • Intent is not required to find infringement, but can affect amount of damages Pg. P BUSA 331 10

Contributory Infringement. Hypertext Linking • Good idea to obtain permission to link to another site • Otherwise legal entanglement • As yet, no U. S. court has ruled, but… Pg. P BUSA 331 11

Contributory Infringement-Search Engine Links • Is Google Indexing, then linking to site content, photos infringement? • Courts not clear, U. S. , German cases • Prevent indexing using robots. txt Pg. P BUSA 331 12

Contributory Infringement. Posting Files • Australia, posting mp 3 s, ISP contribute to infringement • U. S. law shields ISP from liability by withholding responsibility (CDA) Pg. P BUSA 331 13

Hyperlinking • Get express or implied consent (reciprocal links) • Don’t link to infringing copyrighted material • Use linking disclaimers Pg. P BUSA 331 14

Contributory Infringement- Inline Linking • Displaying copyrighted graphic from one site that originates elsewhere • Known as ‘hotlinking’ or ‘bandwidth theft’ • Avatars, comic strips (Dilbert) • Legal status not yet resolved • Not really copying, just pulling image…? • But graphic is being displayed elsewhere… • Example Pg. P BUSA 331 15

Contributory Inringement-Deep. Linking • Link bypassing home page, to internal website page • Problem-loss of bypassed site pages income • Page displays • Bypassing ads • Problem-Create impression that sites are linked Pg. P BUSA 331 16

Framing Problems • Viewing content of second site which is framed by information of first site • Possible confusion • Intentional misrepresentation • Example Pg. P BUSA 331 17

Digital Millennium Copyright Act • Title I-Criminal liability • Title II-Online Service Provider Immunity Pg. P BUSA 331 18

DMCA Title I • Illegal to circumvent copy protection • What, no reverse engineering? Pg. P BUSA 331 19

DMCA Title II • Safe harbor requirements • • • Infringer termination policy Designated copyright agent Notice to delete infringement OSP not aware of infringement OSP not gaining $ benefit OSP must respond quickly to infringement notice Pg. P BUSA 331 20

DMCA Title II Takedown Notices • Notice to OSP to delete infringing material • Problematic/Faustian • OSP acts quickly-may take down non infringing material (parody) • OSP acts slowly-may incur liability under Title II • No independent investigation of infringement required! Pg. P BUSA 331 21

DMCA Title II-Wrongful Takedown • OSP not liable, notice sender is. • Takedown fever • Viacom/Web Junk 2. 0 • UMG, court states ‘fair use’ must be considered before sending takedown notices Pg. P BUSA 331 22

Pre-DMCA • Betamax Test • Is the technology capable of commercially significant non-infringing uses? • Yes- ok to use • No-contributory infringement Pg. P BUSA 331 23

Post-DMCA • de. CSS • software negating CSS illegal • cannot copy own DVDs Pg. P BUSA 331 24

Peer 2 Peer P 2 P • Link computers • Share files • Napster is modified, central index • Problem • Used for infringement • Not much non-infringing use Pg. P BUSA 331 25

Betamax Rises • Ninth Circuit • Grokster court rebukes motion picture industry for stifling innovation • Technology brings good industry changes in long run • But not the last word… Pg. P BUSA 331 26

Vicarious Infringement • Liability for other’s infringement • Requires control over other, $ benefit • Credit card companies evaded liability in transactions of infringing content • Others not so lucky… Pg. P BUSA 331 27

RIAA Plan-Sue Customers • Between 2003 -07 • Sues 30, 000 people! • 12 year old, 66 year old grandma, dead person… Pg. P BUSA 331 28

Making Available • Is it enough to sue for this? • Or is distribution proof required? • Federal courts do not agree-hotly contested issue Pg. P BUSA 331 29

Harm Vs. Damages • Thomas case-$80, 000 per song • Excessive awards raise issues…questions • Is this unconstitutional? Pg. P BUSA 331 30

RIAA Pays Defendant Foster • Foster awarded attorney fees • RIAA failed to prove vicarious infringement • Encourages others to ‘stand up’ ? Pg. P BUSA 331 31

RIAA Course Change • December 2008, shift to ISPs • But is the end? • Another Business Model? Pg. P BUSA 331 32

Bottom Line • Music Industry Should Consider New Business Model Pg. P BUSA 331 33

INDUCE • Inducing Copyright Infringement Act of 2004 • Would eliminate Betamax test, and more… • Destroy remote computers? ? • Not passed, but could come back later… Pg. P BUSA 331 34

Supreme Court Grokster • Overturns 9 th Circuit • Avoids technology (Betamax) question. . it stands • Focuses on inducement • Actively and knowingly encourage illegal use… • But anytime -Congress could declare technology illegal… Pg. P BUSA 331 35

First Sale Doctrine • Supreme Court, 1908 • Buyer can sell without permission of copyright holder • Can resell CD, but • Probably cannot resell multiple copies of downloaded music file burned to CD Pg. P BUSA 331 36

File-Sharing’s Future? • Technology keeps improving, changing, adaptingsimplifying file-sharing • Copyright holders want their profits • Battle shows no signs of ending… • i. Phone 4 and beyond… Pg. P BUSA 331 37