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Third Party Liability
• Contributory Liability– 1. Knowledge of infringing activity– 2. Induce, causes, or materially contributes
• Vicarious Liability– 1. Right and ability to supervise– 2. Direct financial interest in infringing activity
Digital Copyright
• How is digital technology different?– Copying costs near zero– Distribution costs near zero– Copies are perfect– Search costs are low
Digital Copyright
• Legislative Changes– Audio Home Recording Act (1992)– DPRSRA (1995)– No Electronic Theft Act (1997)– Digital Millennium Copyright Act (1998)
AHRA (1992)
• Audio Home Recording Act (AHRA)– Response to introduction of DAT in 1980s– Basic provisions
• Manufacturers can sell digital recording devices• Consumers can make personal, noncommercial copies• Devices must include serial copy prevention technology• Royalty charged on devices and recording media
– Does not cover• Computer hard drives or CD burners• Blank CDs• MP3 Players (Diamond Multimedia case)
DPRSRA (1995)
• Digital Performance of Sound Recordings– New right given to sound recordings
– Covers digital performances of such• E.g. cable radio, direct satellite radio, internet radio
• Where digital radio received via subscription
– Rights depend on type of performance• Where interactively on-demand, must get license
• Where non-interactive broadcast, compulsory license
– Recall: must also get musical work rights, too
NET (1997)
• No Electronic Theft Act (1997)– Increased scope of criminal sanctions– Response to LaMacchia case
• Formerly, required commercial advantage
• Case where uploaded software for free; no liablity
– Change so that based on retail value of works• More than $1,000 of copyrighted works
• Within 180 day period
DMCA (1998)
• Digital Millennium Copyright Act– Technological protection mechanisms
• Anti-circumvention provisions
• Anti-device provisions
– Copyright management information– ISP liability provisions
DMCA (1998)
• Anti-circumvention provisions– Separate liability for acts of circumvention
• Independent of copyright infringement
• List of narrow defenses, but no fair use defense
– Applies to access and copy control technology
– Copyright Office can exempt certain works
• Anti-trafficking provisions– Bars distribution of circumvention technologies
– Where primary purpose is to facilitate infringement
DMCA (1998)
• ISP Provisions– Safe harbor for transmission and caching– Safe harbor for hosting content
• Notice and take-down procedure
• Immune from direct and contributory suits
– Subpoena power
Peer to Peer Technology
• Distributes Software and Updates• Serves Ads
All Files, FileNames, IPAddresses
Open Issues
• What is the Sony standard?– Capable of substantial noninfringing uses?– Actual evidence of such uses?
• Does Sony apply to on-line services?
• Is Sony the right standard?