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    You Tube in the Clear?

    The copyright infringement case against online video-stream site veoh.com, and its respective San Diego based company, Veoh Networks, has been dismissed by a California federal court.  The law suit against Veoh was brought by adult entertainment company Io Group, Inc., who alleged that ten of their films had been placed on veoh.com for viewing, without authorization.  (You Tube does not 
                                     
    However, Judge Howard Lloyd ruled that under the safe-harbor provision of the DMCA (17 USC 512) Veoh's liability was limited.   In his explanation of the safe-harbor application Judge Lloyd wrote, “Veoh has a strong DMCA policy, takes active steps to limit incidents of infringement on its Web site and works diligently to keep unauthorized works off its site” (from toptechnews.com <
    http://www.toptechnews.com/story.xhtml?story_id=13100C1FLTWK> ). Therefore, because copyrighted material is chosen and posted by the user and not Veoh Network, and because Veoh subsequently works diligently to remove such content via notice and takedown, Io Group, Inc., was ruled to be unable to claim that Veoh lost the protection of the DMCA's safe harbor.
     
    Youtube, and its owner Google, have praised the decision made in this case.  Viacom is suing Youtube on a similar theory.

    Changing Texas Public Records Policy One Email at a Time

    The Texas governor's office retained its email for seven days before it was automatically deleted.  That is, until one software engineer began sending batch requests every four days to prevent the deletion of those records.  As a result, the governor is looking into changing its policy.  Score one for the little guy.

    Judicial Writedowns

    In a case in the Northern District of Texas, the RIAA sued a sixteen-year old defendant for infringing its sound recordings.  The recording industry plaintiffs  moved for summary judgment on the question of statutory damages, stating that it was entitled to the minimum $750 per work.  The  Court found that a genuine issue of material fact existed as to whether the infringement was innocent because of the defendant's age and the fact that according to her affidavit she thought that the material available on Kazaa and LimeWire was authorized.  The court ruled that an issue of material fact existed on whether or not the infringement was innocent, and ordered the parties to confer on whether the case could be settled for $200 per work.

    Second Circuit Redefines Fixation and Direct Infringement

    In a case with far-reaching consequences, the Second Circuit in Cartoon Network. v. CSC Holdings softened the definition of "fixation" refined the circumstances under which a volitional element of "direct infringement" must appear, and clarified the definition of public performance.  Cablevision was sued based on the DVR functionality that it offered consumers, in which it allowed consumers to begin taping a show not on their own hard drive, but remotely on Cablevision's servers.  They could then view that show at their convenience.  

    As part of their theory, the studio plaintiffs alleged that the buffer copies created in the course of this process constituted infringing copies.  In MAI v. Peak, the 9th Circuit found that the fixation of software in RAM constituted a copy of a computer program.  Section 101 of the Copyright Act states that a work is "fixed" (e.g., copied) when iis "sufficiently permanent or stable to permit it to be perceived, reproduced, or otherwise communicated for a period of more than transitory duration."  The Second Circuit distinguished MAI on the basis that in that case, the computer program remained resident in RAM for the entire portion of use.  In this case, the copies of motion pictures in the DVR system's buffers were immediately overwritten.  They did not exist for more than a period of "transitory duration" and were therefore not infringing.

    Next, the court broadened the applicability of the Netcom case, stating that Cablevision did not have the necessary intent to be directly liable for infringement.  More specifically, the way the DVR system worked, the consumer initiates any copy that is made on the system.  Like the operator of a VCR, it is the consumer who is responsible for the direct copy and not the VCR manufacturer. 

    Finally, the court rejected the studio's position that the transmission of the  work back to the consumer at a later time via time-shifting constituted a public performance.  The court found that the definition of  "public performance" turns on the potential audience for a transmission, not the audience for a work.  

    The decision does NOT address the contributory liability of the cable system (e.g., Betamax II) .  And it's probably not over.  The seeking of Supreme Court review is certainly plausible.  In any event, it's a big deal.  We encourage those interested to read it.

    Patry Goes Dark

    One of the best (in fact the best) blogs on copyright law went dark earlier this week.  Bill Patry shut down his blog in part because he found the state of the law "too depressing" and in part because the personal views that he posted on his blog were being attributed to his employer.  He will be missed.  Older links to his posts on this site are no longer operative, as he purged his archives as well.

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