lSÞ LlablllLy for Subscrlber

ChrlsLopher Sabec
  !"# %&' (#)*+
  Þeer-Lo-peer plracy ls 42° of all norLh Amerlcan
upload Lramc.
  !"# ,--' (#)*+
  uS Law makes plracy lllegal.
  nobody ls legally enuLled Lo paruclpaLe ln plracy
wlLh lmpunlLy -- noL even lSÞs.
  !"# ,.#&/ (#)*+
  8lghLs holders can hold lSÞs accounLable.
AbsenL Lhe uMCA,
lSÞs 8lsk 3rd ÞarLy LlablllLy
  0-(-12*& 13 4"#..5 6789-(
  Cherry Aucuon ran a swap meeL ln lresno.
  vendors pald a fee ln exchange for booLh space.
  Cherry Aucuon repeaLedly leased space Lo vendors
who sold counLerfelL recordlngs.
  lonovlsa repeaLedly warned--and evenLually sued--
Cherry Aucuon.
  LsLabllshed Lhe concepLs of conLrlbuLory and
vlcarlous copyrlghL lnfrlngemenL aL Lhe appellaLe
lonovlsa's 1wo 1esLs
  vlcarlous LlablllLy
  2 prong LesL
  8e ln a posluon Lo sLop Lhe lnfrlngemenL.
  uerlve a ñnanclal beneñL from Lhe lnfrlnger.
  ConLrlbuLory LlablllLy -
  2 prong LesL
  Pave knowledge of Lhe lnfrlngemenL.
  MaLerlally conLrlbuLe Lo Lhe lnfrlngemenL.
LnLer Lhe uMCA
  laced wlLh Lhe specLer of 3
parLy llablllLy, lSÞs
wenL Lo Congress.
  SoughL a shleld from llablllLy.
  lSÞs hlL Lhe [ackpoL wlLh Lhe 4 uMCA safe harbors.
  noLe well:
  lSÞs knew Lhey had llablllLy.
  ?ou don'L hlre lobbylsLs and wage a leglslauve
baule for exempuon from llablllLy you don'L
Lhlnk you have.
17 u.S. Code § 312 (a) Lhrough (d)
1he lour Safe Parbors

uMCA safe harbors provlde proLecuon from 3
parLy llablllLy for:

A.  1ranslLory ulglLal neLwork Communlcauons (1ransmlmng),
8.  SysLem Cachlng (Cachlng),
C.  lnformauon 8esldlng on SysLems or neLworks aL Lhe
ulrecuon of users (SLorlng),
u.  lnformauon Locauon 1ools (Llnklng)
17 u.S. Code § 312 (a) Lhrough (d)
1he lour Safe Parbors
  Secuon 312(a) Servlce Þrovlders -- "CondulLs"
  Law has yeL Lo develop.
  Secuon 312(c) Servlce Þrovlders -- "Posung Servlces"
  ?ou1ube, MÞ3Lunes, Corbls, eLc.
  Where all Lhe currenL law resldes.
  lSÞs favorlLe sLraw man:
  "We don'L hosL, so Lhere's noLhlng for us Lo Lake down."
  no argumenL Lhere!
  Seem Lo be saylng LhaL 312(c) ls Lhe only recourse for rlghLs
holders and slnce lSÞs are noL covered by 312(c), Lhey need Lake
no acuon.
  lSÞs seem Lo be lmplylng /"#2. Safe Parbor ls uncondluonal.
Safe Parbors Are noL uncondluonal
  8efore a servlce provlder can Lake advanLage of any of Lhe four
safe harbors, lL musL meeL Lhe requlremenLs of Secuon 312(l).
  1hls requlremenL ls a prerequlslLe for every uMCA safe harbor and
ls a fundamenLal safeguard for copyrlghL owners.
  "Þurpose of Lhe condluons for ellglblllLy provlslon of Lhe uMCA ls
Lo deny proLecuon Lo servlce provlders LhaL LoleraLe users who
ßagranLly dlsrespecL copyrlghLs" (4&:2/-; <#8-.'* 13 =>?/7(#*@3
  CLher courLs have descrlbed enforcemenL of Lhls provlslon as
essenual Lo ºmalnLaln Lhe 'sLrong lncenuves' for servlce provlders
Lo prevenL Lhelr servlces from becomlng safe havens or condulLs
for known repeaL copyrlghL lnfrlngers" A>#.B#8/ CD 13 45%#.(#/
17 u.S. Code § 312(l)
4-('29-(* B-. F&B# G&.%-. H;2,2%2;2/5
  (l) Condluons for LllglblllLy.
  (1) Accommodauon of Lechnology.- 1he llmlLauons on
llablllLy esLabllshed by Lhls secuon shall apply Lo a servlce
provlder only lf Lhe servlce provlder-
  (A) has adopLed and reasonably lmplemenLed, and
lnforms subscrlbers and accounL holders of Lhe servlce
provlder's sysLem or neLwork of, a pollcy LhaL provldes
for Lhe Lermlnauon ln approprlaLe clrcumsLances of
subscrlbers and accounL holders of Lhe servlce provlder's
sysLem or neLwork who are repeaL lnfrlngers, and
  (8) accommodaLes and does noL lnLerfere wlLh sLandard
Lechnlcal measures.
1wo Condluons
  !"#$%#&% ()*+$,*#- .)#/0&)/1
  8efers Lo means by whlch copyrlghL owners may
ldenufy or proLecL copyrlghLed works.
  lSÞs can'L LhwarL eñorLs Lo pollce copyrlghLs.
  2)3)#" 4$5&,$6)& 78-,*91
6'-:/ & :-;285 LhaL LermlnaLes ln approprlaLe
clrcumsLances subscrlbers who are repeaL
I(B-.J /"#2. *7%*8.2%#.* and accounL holders of Lhls
pollcy, and
<#&*-(&%;5 2J:;#J#(/ Lhls pollcy.
CompllanL 8epeaL lnfrlnger Þollcles
  ln 4-.%2* 13 6J&K-(, Lhe CourL descrlbes a
properly adopLed lSÞ lnfrlngemenL pollcy as one
  Conveys Lo subscrlbers LhaL Lhere ls a reallsuc
LhreaL of loslng ºLhelr access Lo Lhe lnLerneL" as
a resulL of repeaLed lnfrlngemenL.
  uoes noL LoleraLe ßagranL or blaLanL copyrlghL
lnfrlngemenL by lLs users.
  uoes noL say Lhelr access Lo ºconLenL."
WhaL ls a 8epeaL lnfrlnger?
  lSÞs musL provlde for Lermlnauon ln approprlaLe clrcumsLances of "repeaL lnfrlngers".
  WhaL ls a repeaL lnfrlnger?
  noL really deñned ln Lhe sLaLuLe.
  1he plaln language of Lhe sLaLuLe would supporL an lnLerpreLauon LhaL a repeaL lnfrlnger ls
someone who lnfrlnges repeaLedly.
  WhaL courLs have sald ls:
  Servlce provlders LhaL "fall Lo LermlnaLe users desplLe Lhelr perslsLenL and ßagranL
lnfrlngemenL are noL ellglble for proLecuon under Lhe safe harbor" (4&:2/-; <#8-.'* 13
  users "who know Lhey lack auLhorlzauon and neverLheless upload conLenL for Lhe world
Lo experlence and copy" are ºblaLanL lnfrlngers LhaL lnLerneL servlce provlders are
obllgaLed Lo ban"(4&:2/-; <#8-.'* 13 =>?/7(#*).
  ln Corbls, Lhe CourL gave as an example of blaLanL, repeaL lnfrlngemenL !"# %&#'()* %+
",)-'#-. %+ /,-(% 01#. +%' 2##' !% 2##' 3%24()*.
  Some lSÞs wlll argue lL means %)14 an lnLerneL subscrlber LhaL has been ad[udlcaLed by a
courL as gullLy of lnfrlngemenL (presumably Lwlce).
  noL aware of any courL LhaL has ascrlbed Lhls meanlng.
  ln[uncuve rellef probably renders Lhls lnLerpreLauon mooL.
Why uoes 1hls Mauer?
  Þeer-Lo-peer plracy ls 42° of all norLh Amerlcan upload Lramc!
  lncludes movles, vldeo games, soûware, and books.
  lorecasL LhaL Lhls Lo grow ln Lhe by 170° by 2016.
  CurrenLly Lracklng more Lhan 300,000 subscrlbers on Lhe Lop 3 lSÞs:
  Who are blaLanLly and repeaLedly dlsLrlbuung our cllenLs' copyrlghLs.
  uesplLe muluple nouñcauons Lo Lhe lSÞs of Lhese lnfrlngemenLs.
  noL slmply slngle songs, buL compleLe movles, enure albums, and full
dlscographles conLalnlng hundreds of ñles.
  1hls conunues desplLe Lhe law (and desplLe Lhe lSÞs' own pollcles).
  1hls should noL be happenlng:
  4-7./* "&1# "#;' /"&/ *"-)2(, & *#.128# :.-12'#. B&2;* /- /#.J2(&/# )"#( 2/
"&* *7L82#(/ #12'#(8# /- 8.#&/# &8/7&; M(-);#',# -B .#:#&/ 2(B.2(,#J#(/ 2*
*7L82#(/ /- :.-1# /"# 2(&'#N7&85 -B & .#:#&/ 2(B.2(,#. :-;285 7('#. OCPA2@3
  1he exlsung law ls good, lL [usL needs Lo be enforced.
WhaL ls Lhe Soluuon?
  We wanL Lo encourage Lhe rlghLs holders Lo hold
lSÞs accounLable for repeaL lnfrlngemenL of Lhelr
conLenL by seeklng Lermlnauon of repeaL lnfrlngers.
  1here ls mlsconcepuon LhaL Lhe lSÞs won'L do Lhls,
buL we have found LhaL many of Lhem wlll.
  8elleve lL or noL, some lSÞs even agree wlLh us!
  noL Lheoreucal:
  Q# &.# *788#**B7; #1#.5 '&5 )2/" /"2* &.,7J#(/3
  =-.# /"&( CRD IF>* /"&/ &.# &8/7&;;5 *7*:#('2(,
.#:#&/ 2(B.2(,#.*3
1hank you.

5"'(.!%2"#' 6/7#3

(310) 731-7311