Peer-to-Peer File Sharing and Secondary Liability in Copyright Law Peer-to-Peer File Sharing and Secondary Liability in Copyright Law Edited by Alain Strowel Professor, Facultés Universitaires Saint-Louis, Brussels and University of Liège, Avocat, Belgium Edward Elgar Cheltenham, UK • Northampton, MA, USA © Alain Strowel 2009 All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc William Pratt House Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2009922756 ISBN 978 84720 562 Typeset by Cambrian Typesetters, Camberley, Surrey Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall Contents List of contributors Table of cases vi x Introduction: peer-to-peer file sharing and secondary liability in copyright law Alain Strowel Liability of users and third parties for copyright infringements on the Internet: overview of international developments Allen N Dixon Legal issues in peer-to-peer file sharing, focusing on the making available right Michael Schlesinger Secondary liability for copyright infringement with regard to hyperlinks Alain Strowel and Vicky Hanley Copyright control v compensation: the prospects for exclusive rights after Grokster and Kazaa Jane C Ginsburg Global networks and domestic laws: some private international law issues arising from Australian and US liability theories Graeme W Austin A bipolar copyright system for the digital network environment Alexander Peukert Sharing out online liability: sharing files, sharing risks and targeting ISPs Robert Clark A reverse notice and takedown regime to enable public interest uses of technically protected copyrighted works Jerome H Reichman, Graeme B Dinwoodie and Pamela Samuelson Index 12 43 71 110 124 148 196 229 305 v Contributors Graeme W Austin is the J Byron McCormick Professor of Law at the University of Arizona He holds a J.S.D and LL.M from Columbia University and is a graduate of Victoria University of Wellington Born in New Zealand, where he practiced commercial law and was a senior lecturer at the University of Auckland, his work focuses on cross-border intellectual property issues He recently served as advisor to the American Law Institute Project on Intellectual Property, Principles Governing Jurisdiction, Choice of Law, and Judgments in Transnational Disputes, and is co-author of International Intellectual Property: Law and Policy (2nd ed.) He also teaches regularly as a visiting professor at the University of Melbourne, Australia Robert Clark is an Associate Professor of Law at the School of Law, University College Dublin Since 1992, he has been the Irish national representative in the European Commission Copyright Experts Group and is a member of the Irish government’s Internet Advisory Board and the Patent Office Users Council He is the founder and chair of the Irish ALAI group (1996) Since 1999, Robert has been employed as a consultant to the leading Irish law firm Arthur Cox where he specialises in intellectual property and information technology law He is the co-author (with Shane Smyth) of Intellectual Property Law in Ireland, now in its second edition, and is the author of Irish Copyright and Design Law, both of which are currently published by Tottel Graeme B Dinwoodie is Professor of Law, Associate Dean, and Director of the Program in Intellectual Property Law at Chicago-Kent College of Law He also holds a Chair in Intellectual Property Law at Queen Mary College, University of London Professor Dinwoodie has authored numerous articles on intellectual property law He holds a First Class Honours LL.B degree from the University of Glasgow, an LL.M from Harvard Law School, where he was a John F Kennedy Scholar, and a J.S.D from Columbia Law School, where he was a Burton Fellow He was elected to membership in the American Law Institute in 2003 Allen N Dixon is a lawyer who has represented the intellectual property interests of the technology and traditional content industries in various vi Contributors vii capacities for more than 20 years He has served in General Counsel and Assistant General Counsel positions in Asia, the US and Europe As European counsel and partner at Covington & Burling, he was the senior legal advocate of the business software sector on intellectual property matters in Europe in the late 1990s, acting as counsel to the Business Software Alliance and individual software companies From 2000 to 2005 he was General Counsel and Executive Director of the international recording industry association IFPI Since 2005, he has been the principal and managing director of International Intellectual Property & Technology Consulting Jane C Ginsburg is the Morton L Janklow Professor of Literary and Artistic Property Law at Columbia University School of Law, and CoDirector of its Kernochan Center for Law, Media and the Arts With Professor Sam Ricketson, she is the co-author of International Copyright and Neighbouring Rights: The Berne Convention and Beyond (Oxford University Press, 2006) Other books include Foundations of Intellectual Property (Foundation Press, 2004) with Professor Robert P Merges, and Intellectual Property Stories (Foundation Press, 2005) with Professor Rochelle Dreyfuss With Professor Dreyfuss and Professor Franỗois Dessemontet, she is also a co-reporter for the American Law Institute Project on Intellectual Property: Principles Governing Jurisdiction, Choice of Law and Judgments in Transnational Disputes Vicky Hanley is a UK associate in the Brussels office of Covington & Burling LLP Her practice involves legislative advocacy and advising on policy-making and legislative processes Miss Hanley has recently advised leading multinational companies on regulatory issues in areas including intellectual property and telecommunications, including the current review of the electronic communications regulatory framework She is also an Edmund Davies Scholar of The Honourable Society of Gray’s Inn (2002) and a member of the European Bar Group Recent publications include ‘Last-ditch attempt to improve the EU patent system’ in the Journal of Intellectual Property Law & Practice (September 2007), which she coauthored with Alain Strowel Alexander Peukert is Associate Professor of Civil Law, Commercial Law and Intellectual Property Law at the Johann-Wolfgang-Goethe University Frankfurt/Main, Cluster of Excellence ‘The Formation of Normative Orders’ He graduated in law (1998) and earned his doctorate in law (1999) from the University of Freiburg After his second state examination (2001), he worked at a law firm in Berlin, specializing in IP and media law From 2002 to 2008, he was a senior research fellow at the Max Planck Institute for viii Peer-to-peer file sharing and secondary liability in copyright law Intellectual Property, Competition and Tax Law in Munich In 2008, he obtained his postdoctoral lecture qualification from the University of Munich Jerome H Reichman is the Bunyan S Womble Professor of Law at Duke Law School He has written and lectured widely on the diverse aspects of intellectual property law, including comparative and international intellectual property, and the connection between intellectual property and international trade laws In collaboration with Keith Maskus, he recently published International Public Goods and Transfer of Technology Under a Globalized Intellectual Property Regime (Cambridge Press, 2005) He is a consultant to numerous intergovernmental and nongovernmental organizations, a member of the Board of Editors for the Journal of International Economic Law, and also of the Scientific Advisory Board of il Diritto di Autore (Rome) Pamela Samuelson is the Richard M Sherman ’74 Distinguished Professor of Law and Information at the University of California at Berkeley, a Director of the Berkeley Center for Law & Technology and an advisor to the Samuelson High Technology Law & Public Policy Clinic at Boalt Hall She is a Fellow of the Association for Computing Machinery (ACM), a Contributing Editor of Communications of the ACM, a past Fellow of the John D & Catherine T MacArthur Foundation, and an Honorary Professor of the University of Amsterdam Michael Schlesinger is Of Counsel to Greenberg Traurig His practice focuses on intellectual property with an emphasis in international copyright law and trademark law Mr Schlesinger represents the International Intellectual Property Alliance (IIPA) in worldwide copyright legislation and enforcement reform efforts, as well as government affairs and trade-related aspects of intellectual property rights His regional focus is on Asia, the Middle East and Africa He works with governments on implementing emerging standards of IP protection, as well as compliance with international intellectual property and trade agreements Alain Strowel is a professor at the Saint-Louis University in Brussels, the University of Liège and the Catholic University of Brussels-Leuven, where he teaches copyright, design law and media law A member of the Brussels Bar since 1988, he graduated in law (1983) and obtained a Ph D in law (1992) from the University of Louvain-la-Neuve Prior to joining the US firm Covington & Burling in 2001, where he concentrates on the IP issues in relation to IT, he worked in the Brussels IP section of the Dutch firm NautaDutilh He has authored numerous articles and several books, including Droit d’auteur Contributors ix et copyright (LGDJ and Bruylant, 1993) and Droit d’auteur et numérique: logiciels, bases de données, multimédia (Bruylant, 2001) with Estelle Derclaye He has also edited various books including Of Authors and Origins (Clarendon Press, 1994) with Brad Sherman, and Droit d’auteur et liberté d’expression (Larcier, 2006) with Fr Tulkens 308 Peer-to-peer file sharing and secondary liability in copyright law contributory liability 15, 35–6, 63, 76, 102–3, 111–12, 114–15, 122, 204, 209 copyright management information 155–6, 157–8, 167 direct copyright liability and hyperlinks 76–88 exclusive rights 169, 170, 171, 173–4, 183 inducement liability, US 15–16, 76, 135, 140, 204 and P2P networks 151–4 small copyright owners and bipolar copyright system 170, 177–8 vicarious liability 15, 63, 76, 102, 204, 209 see also bipolar copyright system for digital network environment; peer-to-peer global networks and domestic laws, liability theories; peer-to-peer (P2P) file sharing; technically protected copyright works copyright control versus compensation advertising as inducement 117–18, 121 ‘authorizing’ infringement 119–23 business plan dependent on infringement 114, 118 effective copyright protection 115 end user infringement, evidence of 114 films and sound recordings copyright infringements 110 infringement inducement elements 114–15, 116–17 infringement-enabling virtues of device, promotion of 114, 115–16 infringing uses, failure to filter out 114, 117 MP3 cases see MP3 cases revenue security for copyright holders 116, 118–19 software copyright protection, circumventing 112, 287 ‘substantial non-infringing use’ standard 112, 113–14, 115, 116–17 and technological advancement 110 copyright law ‘anti-delegation’ architecture of 295 author’s role in 142, 145–6 and consumer protection 295 and patent laws, links between 243–4 secondary infringement 1–2, 3, 4–5, 7–8 secondary infringement, and hyperlinks 5, 71–109 self-service photocopying of copyright materials 55 and Web 2.0 services 75, 77, 78 see also individual countries Corwin, P and L Hadley 155 Creative Commons 265 Creative and Media Business Alliance 221–2 Cunard, J 301 Davidson, D 280 Dawyndt, P 265 DeCSS 104–6, 251–2, 251, 279–80 deep linking 60–61, 72, 73, 91–2, 108 Denmark Copyright Act 91 ISPs and file sharing 222–3 links sites 23, 91–2, 209 ‘making available’ right 204 third-party injunctions on copyright infringements 30, 31 Desbois, H et al 164 digital-rights management (DRM) systems 148–9, 152–9, 165–6, 174, 177, 178, 181, 183, 184 pay-per-use business models 168 and technological protection 166, 167–71, 173, 182, 224 see also bipolar copyright system for digital network environment Dinwoodie, Graeme B 229–304 discovery of identity orders 218–22 see also anonymity and the Internet Dixon, Allen N 12–42 Dogan, S 110, 255 dual-use technology Sony safe harbour as default rule 242–6, 255 and threat to innovation 262–3, 268 Index see also technically protected copyright works Dusollier, S 231, 289, 296 DVD Copy Control Association Inc 104 E-Talk Communications 95–6 Eckersley, P 151, 153, 155, 159 eDonkey 30 Eechoud, M von 135 Einhorn, M and B Rosenblatt 193–4 Electronic Frontier Foundation (EFF) 152, 153, 176, 191, 252, 253, 278, 279, 282 embedded links 72, 73, 81, 108 and royalties 83–4 EMI 59, 95, 199, 204, 217, 219 eMule 61 Epstein 176 Europe anti-circumvention rules 231–2, 233, 234, 246, 289 ‘communication to the public’ right 48–9 Copyright Directive Implementation Study 286, 287, 289, 291, 297, 299, 300, 302 copyright exclusivity 170 cultural industries in Europe resolution 70 Data Protection Directives 221–2 discovery of identity orders 218 E-commerce Directive 2000/31/EC 14, 21, 32, 100, 107, 202, 205, 206–7, 218, 222, 223, 224–5, 226, 227, 238 EC Directive 93/98, copyright term 179 EC Directive 96/9 (legal protection of databases) 80 Enforcement Directive 2004/48 218, 221 illegal file sharing 45 Information Society Directive 198 intellectual property criminalenforcement directive proposal 33 prescriptive parallelism in 285–8 public interest uses of technically protected content 231–2, 233, 234 309 reverse notice and takedown procedure 276, 283–303, 290–96 Safe Harbour Agreement 220, 226, 238 Software Directive 289 technical protection and copyright owners 252 Telecommunications Data Protection Directive 220 third-party copyright liability legislative trends 33, 204 TRIPS Agreement arrangement with US 150–51 see also individual countries Europe, Copyright Directive 19, 30, 32, 48, 81, 89, 166, 170, 194, 198, 215, 232, 233, 234, 278, 299, 303 Europe, Copyright Directive, Article 6(4) 106, 231, 283–303 and classes of work 292–4 and copyright exemptions 299–300 limitations of 287–9 and privileged uses 294, 295–300 relief, developing appropriate forms of 296–300 reverse notice and takedown application 290–95 and technically protected copyrighted works 283–303 triggering entitlement to relief 291–3 unfulfilled normative commitment underlying 284–9 voluntary arrangements, encouraging proper role of 293–6 Europe, Copyright Directive, Implementation Study 286, 287, 288, 291, 297, 299, 300, 302 Europe, E-commerce Directive 48 pre-Directive European case law 207–8 European Convention on Human Rights (ECHR), Article 10 (freedom of expression) 74, 79, 99 European Free Trade Area (EFTA) 289–90 Everlasting 29 exclusive rights copyright 169, 170, 171, 173–4, 183 and levy/tax system, opting out of 187 310 Peer-to-peer file sharing and secondary liability in copyright law extraterritorial reach of copyright law 54, 130–40 see also territoriality EzPeer 27, 61, 62 Facebook 197 FastTrack Favale, M 299 Federation Against Software Theft (FAST) 222 Fernando, G et al 268 Ficsor, M 46, 48, 50, 162, 163, 164, 165, 168, 170, 172, 174, 175, 195 Fiji, ‘communication to the public’ right 50 File Rogue 57 films child pornography 225 copyrighted, and hyperlinks 104–6 and sound recordings copyright infringements 110 to DVD, speeding up transfer 69 filtering gold file flood 52 infringing uses, failure to filter out 114, 117 Internet copyright infringements, international developments 30–33, 117, 119, 279 technology 26–7, 28–9, 31, 32–3, 38–9, 58–9, 117, 119, 129, 144 financial benefit see revenue firewalls 220 Fisher, W 148, 149, 152, 156–8, 159–60, 172, 174, 181, 182, 184, 189, 190, 191, 192, 258 5fad 60 4FO AG 178 framing 72, 73, 81–3 France Copyright Act (2006) 7, 219 copyright law amendments (2006) 33–4 copyright law and consumer protection 295 copyright infringement 199, 207–8 Data Protection Authority 219 digital sales, low, and unauthorized file-sharing 70 films to DVD, speeding up transfer 69 future legislation 69, 70 identity orders 219 ‘licence globale’ music, DRM-free tracks 69 Olivennes Report and illegal file sharing 69 search engine with links to illicit content 103–4 third-party copyright liability legislative trends 30, 33–4 Frankenstein defence 40 freedom of expression 79, 105–6 see also headlines as pointers Freenet 57 Ganley 208 Garnett, K et al 18 Garnett, N 295 Gathem, G and A Strowel 99 Geiger, C 154–5, 164, 173 Gendreau, Y 126 Germany Civil Code (Article 830) 107 Copyright Act 106, 287 Copyright Administration Law 188 copyright and ‘all rights reserved’ clause 188 copyright law and consumer protection 295 copyright limitation and Berne Convention 150 copyright and thumbnail reproductions 87 disturbance liability 106–7 file sharing jurisdiction 213, 221 ISP liability pre-European Directive 207 levy for private copying, future of 192, 194 links to circumventing devices 106–7 music file-sharing 20 privacy issues 221 Telemedien law 107 third parties, injunctive relief against (stôrerhaftung) 19, 30 Gervais, D 149, 151, 152, 162, 163, 165, 171, 172, 184, 186, 188, 199, 203 Index Ginsburg, Jane C 82, 110–23, 137, 141, 149–50, 162, 164, 166, 172, 232, 250, 253, 254, 268, 275, 278, 280, 294, 301 Gnarls Barkley, Crazy 196 Goldstein, P 125, 158, 189, 194 Google 23, 76, 87–8, 96, 101–4 Google.News 75, 76, 78–9 Greece, technological protection measures 299 Griffin, J 155 Griffiths, J and U Suthersanen 99 Grokster 1, 2, 6, 15–16, 31, 33, 35–6, 38–41, 62–4, 102, 110–11, 113–22, 125, 133–5, 137, 140–44, 146–7, 152–3, 166, 177, 179–80, 182, 193–4, 204, 208–9, 244, 246, 255–8, 260–67, 283 (see also individual cases in Table of Cases for breakdown) Guibault, L 155, 173 Hanley, Vicky 71–109 Harris, E 212 Hartwig, H 19 headlines as pointers 76–9, 82–3 and freedom of expression 79, 105–6 news reporting exceptions 78–9 see also pointers Henry 224 Herman, B and O Gandy 250 Higgins, R 144, 145, 147 Hilty, R 179 Ho, J 61 Hof, R 260 Hoffmann, W 186, 188 Högberg, S 114, 121, 208 Hong Kong Copyright Ordinance Section 26 49–50, 56 ‘making available’ right 49–50, 56 ‘seeding’ files and ‘swarm’ groups 56 Hugenholtz, B 19, 286, 287, 289 Hugo and Hugot 219 Hyland, A 208, 211 hyperlinks automatic link 73, 74 collection of unprotected 79–80 and ‘communication to the public’ 81 311 copyright liability, caused by content of linked site 88–107 and copyrighted films 104–6 deep linking 60–61, 72, 73, 91–2, 108 direct copyright liability, cases involving 76–88 direct and indirect copyright infringement 75–6 directories and copyright protection 80 dual character of linking as technique and form of expression 72–4 dynamic link 73 embedded links 72, 73, 81, 83–4, 108 external 74 framing 72, 73, 81–3 headlines as pointers see headlines as pointers hosting ISP liability 75, 200, 208 HREF link 72 HTML code 72, 73 illicit content, hosting of links to 98–101 index comparison 80 infringements involving linking techniques and processes 80–84 internal 73–4 intra-page 73 liability for copyright infringement 76 linking as form of expression 74 linking to file-sharing programs 97–8 links to circumventing devices 104–7 moral rights, protection of 81–3 MP3 files see MP3 files and online intermediaries 75–6 operators and copyright infringement 75 photographs see photographs pointers see pointers and posting of URL addresses 89 protected articles and cache copies 87–8 search engine with links to illicit content 101–4 search engines and copyright protection 80, 84–8, 93–4, 96–7, 100–104 312 Peer-to-peer file sharing and secondary liability in copyright law surface linking 72 techniques for linking 72–4 third-party liability for ’links’ sites 22–4, 54 India, ‘making available’ right 49 Indonesia, ‘making available’ right 50, 51 innovation threat, and dual-use technology 262–3, 268 intellectual property criminal-enforcement directive proposal, Europe 33 Intellectual Property and the National Information Infrastructure White Paper, US 234–5, 236, 237, 241, 242, 245–8, 276 liability theories, de jure 134–40, 143 and online liability, sharing out 216 international copyright law 159–75, 176, 182–9 mandatory minimum rights 160–62 International Federation of the Phonographic Industry (IFPI) 20–21, 23, 27, 28, 29, 30, 31, 44, 59, 61, 69, 74, 80, 89, 90–91, 92, 97, 99–101, 196, 213, 219, 223, 261 Internet copyright infringements, international developments 12–42 ability to prevent or deter third party 38, 39 and advertising 26, 61, 117–18, 121 ‘authorization’, interpretation of tests for 35, 55–6 common elements, consistent application of 37–40 common law and civil law rules 15–19 copyright liability to online activities, application and limitations of 19–33 copyright liability to online activities, future cases, factors for 35–7 copyright liability to online activities, solutions 35–41 cost-benefit analysis 39–40 definitions of terms 13–15 defunct defences 40–41 Einstein defence 40 extent of infringement 38 extent of third party’s involvement 37, 39 filtering technologies 26–7, 28–9, 30–33, 38–9, 117, 119, 279 financial benefit of third party 38, 39, 40, 76, 102 Frankenstein defence 40 incentives to cooperate with copyright holders 240 knowledge of infringing activities 37, 39, 52, 76, 106 ‘knowledge’, interpretation of elements of 37, 39 Land-of-Far-Far-Away defence 41 legislative trends 33–5 liability of file-sharing services 24–9 relationship of third party with user 37, 39 Scintilla defence 41 search engine with links to illicit content 103–4 search engines and copyright protection 80, 84–8, 93–4, 96–7, 100–104 self-regulation, suggested 236 statutory exemptions 21–2 third party, due care of 38–9, 76 third-party liability 21–33, 39 third-party liability for ‘links’ sites 22–4, 54 user liability 19–21 Wink-Wink defence 41 see also Berne Convention; online liability, sharing out; TRIPS Agreement; WIPO Ireland authorization of infringement 204 copyright infringement provisions 203–4, 206 Data Protection Acts 1988–2003 215–16, 219 file sharing jurisdiction 214 ISPs and file sharing 215–17, 219, 221 Norwich Pharmacal file-sharing decision 215–17, 219, 223 Index Postal and Telecommunications Services Act (1983) 215, 219 privacy issues 219, 220, 221 replication as infringement 199 Italy ISP disclosure orders 218 music online and mobile sales 44 iTunes 260–61, 263 Jacover, A 153, 156 Jaisingh, J 177 Japan Copyright Law 25, 57 ‘File Rogue’ case 57 file-sharing services liability 25 ‘making available’ right 49, 57 mobile music piracy 44–5 reverse takedown and notice approach 283 Japan MMO 25 Kabat, A 154, 156 Kaplan, B 273 Kazaa 2, 16, 24–5, 28–9, 31, 37, 39, 41, 52–3, 66, 67, 98, 113, 117, 119–21, 124, 126–30, 143–4, 147, 209, 211–12, 214, 227 Kennedy, G and S Doyle 27 Koelman, K 19, 165, 168 Koneru, P 136 Koopa 197 Korea ‘communication to the public’ rights 58 Copyright Act (2006) 34, 58, 59 Copyright Act, proposed Amendment to Enforcement Decree 34 file-sharing services liability 25–7 KOMCA (Korean music publishers’ society) 26 ‘making available’ right 49, 50, 57–9 MP3 files in shared folders 58–9 third-party copyright liability legislative trends 34 Kugoo 61 Kur, A 194, 195 Kuro 27–8, 61–2 Kuwait, ‘making available’ right 49 Laddie, H et al 17, 36, 127 313 Land-of-Far-Far-Away defence 41 Landes, W and R Posner 176 Laos, ‘making available’ right, lack of 50 Lardner, J 242, 245, 258 Latin America, broadband expansion 44–5 Latman & Tager 111 Lemley, K 240 Lemley, M and R Reese 153–4, 155, 159, 176, 177, 180, 255, 257, 258, 259, 262, 266, 268 Lessig, L 110, 149, 154, 157, 158, 159, 164, 176, 177, 179, 193, 195, 262 levy/tax system, opt-in mechanism 187, 190–92 compared to collective licensing 191–2 features and benefits 190–91 and liability rules 192 licensing, individual, and levy system, switching between 176–81 ‘non-commercial use’ levy proposal 156–7, 159–60, 163–4, 166, 167, 168–9, 171, 173, 174, 177, 178–9, 180–81, 184, 186, 187, 190–91 private copying, future of 192, 194 levy/tax system, opting out of 181–90 ‘all rights reserved’ clause 188 compliance with international copyright law 182–9 and exercise of exclusive rights 187 features and benefits 181–2 see also bipolar copyright system and digital network environment licensing collective, compared to levy/tax system 191–2 compulsory licensing, opt out scheme 158, 159–60, 163, 164, 166, 167, 168, 169, 170, 171, 173–4, 257–8 compulsory licensing, suggested 157–8, 180, 188–9 Creative Commons 263 individual, and levy system, switching between 176–81 314 Peer-to-peer file sharing and secondary liability in copyright law non-voluntary, and P2P file sharing 154–9, 163–4, 166, 172–4, 191–2 voluntary collective, suggested 152–3 Lichtman, D and W Landes 244, 260 Liebowitz, S 152 Lincoff, B 155 Linux 104 Lipton, J 232, 252, 253, 275, 276, 279–80 Litman, J 118, 123, 158, 160, 172, 180, 181–2, 183, 184, 185, 188, 189, 235, 243, 244, 258 Liu, J 281 lock-out technology cases 269–76, 279, 295, 297, 300 broader implications of 274–6 and replacement parts and repairs 256–7 Lunney, G 155, 159 McClure, S 97 Macedonia, ‘making available’ right 49 McGrath 220 ‘make-a-tape’ case 111–12 ‘making available’ right implementing, peer-to-peer (P2P) file sharing 45, 52–68, 200, 202, 203 online liability, sharing out 203–4 Malaysia, ‘making available’ right 49 Marsland, V 77 Masouyé, C 164, 165, 185, 189 MediaSentry 67, 219–20 Melichar, F 188 Menell, P and D Nimmer 244 ‘mere conduit’ providers 21, 32, 202, 206, 224, 225, 226 Merges, R 192 Mexico, file sharing jurisdiction 213 Microsoft 138, 226 Molina, M 60 Mongolia, ‘communication to the public’ rights 50 Moorhouse 17, 39, 127, 210, 212 Mormon Church 89, 90 Morpheus 113 MP3 files ‘assisting’ infringement 96–7 ‘authorizing’ infringement 94–6 copyright control versus compensation 112–13 direct access to files 93 illicit content, hosting of links to 99–101 linking to file-sharing programs 97–8 links to copyrighted file 89–97, 129 links to copyrighted files 91–2, 93–7, 209 monitoring volume use 21, 219–20 in shared folders 58 see also music MP3.com 62, 63 MP3s4free.net 54, 96, 129, 208 Mulligan, D and A Perzanowski 281 Muper 61 music industry copyright infringement, early instance of 63 DRM-free tracks 69 file-sharing 20–21, 208, 212–13, 257–8, 260–61, 263 films and sound recordings copyright infringements 110 illegal file sharing, peer-to-peer (P2P) file sharing 44 mobile music piracy 44–5 and online liability, sharing out 196–7 online music sales, rise in 44 see also MP3 files Myanmar, ‘making available’ right, lack of 50 MySpace 197, 226 Nadel, M 153 Napster 2, 6, 16, 22, 31, 58, 62, 63, 66, 103, 112–14, 208, 209, 211, 245, 255, 258–61, 263–5, 267, 283 Nepal, ‘making available’ right 50 Netanel, N 123, 152, 154, 156, 159, 160, 167, 168, 170, 173, 174, 191, 258 Netherlands Civil Code 99, 218 Copyright Act 94 discovery of identity orders 218, 220, 221 file-sharing services 24–5, 29, 37 Index illicit content, hosting links to 98–9 ISPs and file sharing 222 links sites 24, 93–4, 209 third-party copyright liability legislative trends 33, 214 networking sites 197, 226, 240 New Zealand ‘authorizing’ infringement 120, 210–11 ‘communication to the public’ rights 50 Copyright Act (1994) 120 Nimmer, D 244, 248, 275 Nimmer, M 273 Nordemann, W et al 183, 184, 185 Norway Copyright Act 93 downloading for private use 93 linking to file-sharing programs 92–3, 97–8 ‘making available’ right 204 Oberholzer, F and K Strumpf 152 Oman, ‘making available’ right 49 online liability, sharing out anonymity and the Internet 214–22 anonymity and the Internet, ISP revealing subscriber details 214–16 Australian cases and European counterparts 208–11 authorization of infringement in common law 204, 210 and caching 200–201 cease and desist case law 223 civil liability for online transmissions 204–6 and communication to the public 199 copyright board and appeal court decisions, and SOCAN (Canada) 83–4, 200–203, 211 and data protection 215–16 defamation actions prior to ECommerce Directive 205 discovery of identity orders, some European decisions on 218–22 E-Commerce Directive see under Europe 315 file sharers and personal liability 213–14 file-sharing phenomenon 196–8, 200–211, 222–7 and firewalls 220 Grokster and Australian law 211–13, see also Grokster and intellectual property rights 216 Irish Norwich Pharmacal file-sharing decision 215–17, 219, 223 ISP immunity in UK law, weakening of 224–6 ISP liability 200–203, 205–12 key copyright concept 198–9 ‘making available’ right 203–4 and ‘mere conduit’ defence 21, 32, 202, 206, 224, 225, 226 MP3 files, monitoring volume use 21, 219–20 and music industry 196–7 networking sites and file sharing 197, 226, 240 and online child pornography 225 privacy interest 219–22 privacy interest and criminal procedure for disclosure of personal data 220–22 and royalties payments 200 SABAM v Scarlet decisions 226–7 SOCAN in the Supreme Court of Canada 83–4, 201–3, 211 and supernodes 211–12 technological solutions 212, 224–7 and third party infringement 200–201, 206, 211 UK and Irish law, relevant infringement provisions 203–4 see also Internet copyright infringements, international developments Onsrud, H and J Campbell 263 Pakistan, ‘communication to the public’ rights 50 Panama, ‘making available’ right 49 Papua New Guinea, ‘making available’ right 49 patent law restrictions, and technically protected copyright works 275–6 316 Peer-to-peer file sharing and secondary liability in copyright law peer-to-peer global networks and domestic laws, liability theories and antitrust laws 144, 145 authorizing copyright infringement 125–30, 135–6, 137 author’s role in copyright law 142, 145–6 caching and predicate act theory 137 export of intellectual property liability theories, de jure 134–40, 143 export of liability theories, de facto 140–42 extraterritorial reach of copyright law 54, 130–40 filtering technology see filtering global implementation of WCT, Article 8, and WPPT, Article 15 49–52 Grokster across borders 133–42, see also Grokster indirect liability theory 132 and inducement principle 135, 140 and international copyright law see international copyright law monitoring search requests 127–8 patent and trademark laws, territorial reach of, US 137–40 ‘predicate act’ theory 131, 136–7 public and private international law 144–6 and technology-friendly policies 141–2, 147 territoriality and national treatment 145–6 territoriality, toward a principled departure from 143–6 see also copyright control peer-to-peer (P2P) file sharing audio fingerprint technology 58–9 and broadband expansion 44–5 ‘communication to the public’ see ‘communication to the public’ deep linking of ISPs 60–61 extraterritorial acts of infringement 54, 130–40 failure to take action to curtail file sharing 52 file sharing definition 14–15 financial benefits from infringement see revenue future of legislation 68–70 and link sites see hyperlinks ‘making available’ right see ‘making available’ right MP3 files see MP3 files music industry see music Potato System 178 ‘seeding’ files and ‘swarm’ groups 56 supernodes 64, 211–12 US and EU implementation compared 47–9 see also copyright control Peitz, M and P Waelbroeck 152 Penalver, E and S Katyal 295 Perfect 10 16, 22–3, 67, 87, 96, 101–4, 239 Perzanowski, A 253, 254, 280, 281 Peukert, Alexander 2, 148–95 Philippines, ‘making available’ right 49, 50 photographs child pornography 225 and ‘fair use’ exception 85, 102 and model’s personality rights 82 and online reproduction consent 87–8 in thumbnail format 84–7, 101–4 pointers 72, 75, 107–8 collection of unprotected hyperlinks 79–80 as copyrighted elements 76–9 and direct copyright liability 84–7 and ‘fair use’ exemption 84–7 headlines as see headlines as pointers infringements relating to 76–80 and linking techniques, infringements involving 84–8 visual material as 79 see also hyperlinks Poland file sharing jurisdiction 213 music file-sharing 21 Portugal, file sharing jurisdiction 213 Potato System 178 Powell, G 60 ‘predicate act’ theory 131, 136–7 preference-matching engines 177–8 prescriptive parallelism, Europe 285–7 privacy issues see anonymity Prolok 245 Prosperetti 218, 227 Index public interest user groups of technically protected content 231–2, 233, 234, 263–9 under DMCA, section 512, facilitating 264–6 under DMCA, section 1201, frustrations of 266–9, 270, 271–3, 276–7, 281, 292 Radiohead, In Rainbows 197 Ramkey 245 Reese, R 252, 254 Reichman, Jerome H 229–304 Reinbothe, J 298, 300 Reinbothe, J and S von Lewinski 161, 162, 163, 165, 173, 175, 194 revenue advertising 26, 61, 117–18, 121 financial benefit from infringement, and peer-to-peer file sharing 54 financial benefit of third party 38, 39, 40, 76, 102 and mandatory rights proposals 154, 155–6 for rights holders, lack of, and bipolar copyright system 153, 170, 177–8 royalties 83–4, 200 and security for copyright holders 116, 118–19 reverse notice and takedown framework case-by-case approach 281–3 Europe, Copyright Directive, Article 6(4) 276, 290–95 illustrative applications 278–81 as mode of implementing Article 6(4) of EU Copyright Directive 283–303, 290–96 suggestions 255–83 to enable public interest uses of 229–304 Richardson 219 Ricketson, S 146, 161, 162, 163, 164, 165, 170, 172, 173, 174, 175, 183, 184, 185, 186, 187, 188, 189, 190 Rieber-Mohn, T 289, 294 Rohleder, B 192 Röthlisberger, E 185, 186 royalties 83–4, 200 317 RTC 237 Russell, M 59 Russia, file-sharing 31 Rustad, M and T Koenig 241 SABAM 32–3, 70, 227 Sadd, T 232, 278 safe harbours and anti-circumvention rules 230, 232–52, 259 and anti-circumvention rules, checks and balances in 234–54, 259, 260, 262, 263, 266 provisions 235–41, 301 Safe Harbour Agreement, Europe 220, 226, 238 Safe Harbour Agreement, US 220 Salow, H 240 Samoa, ‘making available’ right 49, 50 Samuelson, Pamela 142, 229–304 Santa Cruz, M 289–90 Scarlet (Tiscali) 32–3, 222, 223, 224, 226–7 Schlesinger, Michael 43–70 Schönherr, F 183, 188 Science Commons 263 Scientology, Church of 98–9 Scintilla defence 41 Sciorra, N 245 ‘seeding’ files and ‘swarm’ groups 56 Seeqpod Seff, A 263 Senftleben, M 159, 162, 163, 164, 165, 166, 172, 173, 195 Seoul Records 59 Sharman 6, 22, 28–9, 31, 38, 39, 40, 41, 52–3, 111, 117, 119–21, 124, 126, 127–8, 143–4, 147, 212–13, 214 Shetland Times 77, 82 Shih Ray Ku, R 148, 153, 155, 156, 159, 259 Singapore, ‘making available’ right 49 Sirinelli, P 150, 170, 175, 194 SK Telecom Skylink 271, 272 Skynet 99–100 Sobel, L 153, 155, 159, 166, 167 software copyright protection, circumventing 112, 286 318 Peer-to-peer file sharing and secondary liability in copyright law EU Software Directive 289 Federation Against Software Theft (FAST) 222 Sohu/Sogou 60 Sony 6, 15, 39, 40, 59, 95, 112–22, 135, 140–43, 211, 212, 236, 242–8, 259–63, 273, 281, 295 Soribada (Asia Media) 25–7, 39, 41, 57–9 Spada, P 287 Spain privacy issues 221 third-party copyright liability legislative trends 33 Speer, L 10 Sri Lanka, ‘making available’ right 49, 50 Steinhardt, R 144 Sterling, J 19 Story, A 144 Streamcast 1, 16, 64, 115, 212, 261–2 streaming 157–8, 166 Streaming Media 149, 153 Strowel, Alain 1–11, 71–109, 123 Subafilms 54, 134–5, 136, 145 Sun Microsystems 266 supernodes 64, 211–12 Swaziland, ‘making available’ right 49 Sweden copyright law 90 future of legislation 69–70 links to copyrighted files (MP3 cases) 89–91, 209 Renfors Report, infringement disconnection 69–70 Sydnor II, T 65 Taiwan Copyright Law 50, 62 Copyright Law amendment 34–5 file-sharing services 27–8 ‘making available’ right 49, 61–2 ‘public transmission’ right 50 third-party copyright liability legislative trends 34–5 Tanzania, Copyright and Neighboring Rights Act (1999) 51 Tariff 22 case 83–4 taxation see levy/tax system technically protected copyright works anti-circumvention provisions 241–2, 245, 248–54, 256, 269, 270, 274, 276, 289 and caching 237, 238 circumvention and public interest uses, regulation of 248–54 competitive uses of noncopyrightable products 274–5 Computer History Museum example 280 copyright and patent laws, links between 243–4 counter-notice regime 239, 240 and digital-rights management (DRM) systems 166, 167–71, 173, 182, 224 dissemination technology cases 255, 257–63 dual-use technologies, Sony safe harbour as default rule 242–8, 255 dual-use technology and threat to innovation 262–3, 268 DVD clips example 279–81 electric fencing 267, 271 and Europe, Copyright Directive, Article 6(4) 283–303 ISP incentives to cooperate with copyright holders 240 ISP safe harbours see safe harbours ISP self-regulation, suggested 236 liability theories 141–2, 147 library filters example 278–9 and LOC (Librarian of Congress) rulemaking procedure 250, 252–4, 280 lock-out technology cases see lockout technology cases online liability, sharing out 212, 224–7 P2P file sharing and secondary liability 258–9, 264–6 and patent law restrictions 275–6 and prescriptive parallelism 285–7 public interest implications 263–9 public interest user groups see public interest user groups regulation of 248–54 replacement parts and repairs and lock-out codes 256–7 Index reverse notice and takedown regime see reverse notice and takedown regime and safe harbours see safe harbours security research example 281 site monitoring 127–8, 155–6, 157–8, 166, 167–71, 173, 182, 239, 240 technically protected works, public interest exceptions 250 see also bipolar copyright system for digital network environment; copyright control Techno Design 24, 93–4, 210, 220, 222, 224 Telewest 222 territoriality extraterritorial reach of copyright law 54, 130–40 and national treatment 145–62 toward a principled departure from 143–6 Thailand ‘communication to the public’ rights 50 ‘making available’ right 49 The Crimea, Secrets of the Witching Hour 197 third party copyright liability legislative trends 33, 34–5, 204 due care of, and Internet copyright infringements, international developments 38–9, 76 financial benefit of, and Internet copyright infringements 38, 39, 40, 76, 102 infringement, and online liability, sharing out 200–201, 206, 211 injunctive relief against (stôrerhaftung), Germany 19 liability, Internet copyright infringements, international developments 21–33, 39 three-step test 17–18, 159, 161, 162–74, 184, 186, 187, 190 conflict with normal exploitation 164–72 market displacement following restriction 165–6 319 special cases 162–4 unreasonable prejudice to the legitimate interests of the rights holder 172–4 thumbnail format, photographs in 84–7, 101–4 Tiscali 32–3, 222, 223, 224, 226–7 TopSearch 31, 53, 127–8 TRIPS Agreement 149–51, 159, 162, 163, 170, 190, 194 Article 9(1) 183 Article 12 176 Article 13 160, 161, 175 dispute settlement procedures 150 see also Berne Convention; Internet copyright infringements, international developments; WIPO 2channel 57 UK anonymity and the Internet, ISP revealing subscriber details 214–15 authorization of infringement 17, 84, 120, 126, 127, 204, 209 British Phonographic Industry (BPI) 223 cassette duplication equipment 17, 126 cease and desist case law 223 Copyright Act (1911) 17, 200, 204, 209 Copyright Act (1956) 17, 200 Copyright, Designs and Patents Act (1988) 17, 77, 120, 206 copyright infringement provisions 203–4 Defamation Act (1996) 205, 206 defamation actions prior to ECommerce Directive 205 and EU Software Directive 289 extraterritorial reach of copyright law 132, 133 file sharing jurisdiction 208, 213, 222 future of legislation 69–70 Gowers Report 69–70, 225 headlines as pointers 76–7 Internet Watch Foundation (IWF) 225 ISP immunity, weakening of 224–6 320 Peer-to-peer file sharing and secondary liability in copyright law music file-sharing 20 online child pornography 225 Personal Internet Security, House of Lords report 225 privacy issues 219, 220, 222 Regulation of Investigatory Powers Act (2000) 220 reverse notice and takedown procedure and classes of users 292, 297–8 Ullrich, H 145 Universal Music 6, 16, 22, 23, 28–31, 38, 40–41, 52–4, 59–60, 68, 94–6, 99, 111, 117, 119–21, 124–30, 143–4, 147, 208, 211–14, 220, 227 Urban, J and L Quilter 240 US anti-circumvention rules 230, 231–2, 233–5, 236, 237, 241, 242, 245, 248–54, 256, 269, 271, 274, 276 antitrust law 144, 145 Australia Free Trade Agreement 54 authorizing copyright infringement 135–6, 137 cable subscription services and ‘nearon-demand’ forms of broadcasting and communication 51 common law copyright and tort principles 15–16 ‘communication to the public’ 122, 236–7 Communications Decency Act (CDA) 205–6, 236 contributory liability 15, 35–6, 63, 76, 102–3, 111–12, 114–15, 122, 204, 209 Copyright Act 48, 51, 64, 65, 80, 85, 87, 116, 125, 135, 141, 162, 163, 164, 165, 167, 170, 194, 232, 267, 268, 272 copyright balance, search for 148 copyright exclusivity 170 copyright law 3, 32, 122, 184, 205 Digital Millennium Copyright Act (DMCA) 48, 100, 105–6, 230, 231, 232, 233–4, 237, 238–41, 245, 246, 250–53, 254, 255–6, 259, 278, 283, 291, 292, 303–4 ‘ Digital Millennium Copyright Act (DMCA), s 512 265–6 Digital Millennium Copyright Act (DMCA), s 1201 266–9, 270, 271–3, 276–7, 281, 293 distribution’ model of copyrighted works 47, 64–8 export of intellectual property liability theories, de jure 134–40 export of liability theories, de facto 140–42 extraterritorial reach of copyright law 54, 131, 133–40 ‘fair use’ exception 85, 104 file-sharing services liability 35–6, 38–9, 209, 258–9, 264–6 film industry and links to circumventing devices 104–7 films and sound recordings copyright infringements 110–11 Free Trade Agreements 49, 54 future of legislation 69 hyperlinks and copyright 80, 81, 88, 89 ‘Induce Act’ proposal 33 inducement liability 15–16, 76, 135, 140, 204 Intellectual Property and the National Information Infrastructure White Paper 234–5, 236, 237, 241, 242, 245–9, 276 ISP self-regulation, suggested 236 Lanham Act 139 library filters 276–7 LOC (Librarian of Congress) rulemaking procedure 250, 252–4, 280 ‘making available’ right 47–8, 54, 62–8, 68, 205, 245–6 Motion Picture Association of America (MPAA) music downloading, copyright infringement 63 music online and mobile sales 44 Patent Act 125, 138–9 patent and trademark laws, territorial reach of 137–40 ‘predicate act’ theory 131, 136–7 privacy issues 236 Index ‘publication’, definition of 64, 65–6 reverse notice and takedown procedure 278–9 Safe Harbour Agreement 220 safe harbours provisions 235–41, 259–60 search engine with links to illicit content 101–4 secondary liability 111–19, 209 ‘substantial non-infringing use’ standard 112, 113–14, 115, 116–17 technically protected works, public interest exceptions 250 technology-friendly policies 141–2 telecom industry, immunity from user wrongs 235–6, 239 temporary copies of files and predicate act theory 137 third party, due care of 38–9 third-party copyright liability 33, 76 TRIPS Agreement arrangement with EC 150–51 vicarious liability 15, 63, 76, 102, 204, 209 video tape recording 112 WIPO Copyright Treaties Implementation Act 249 Usenet 205, 237 Van der Laan, K 218 vicarious liability 15, 18, 63, 76, 102, 204, 209 Vienna Convention on the Law of Treaties 162, 169, 189 Vietnam, ‘making available’ right 49, 50 Voelzke, J 205 von Lewinski, S 155, 161, 162, 163, 165, 173, 188, 189, 194, 198 Von Lohmann, F 113, 262 Wandtke, A.-A 154 Wang Qian 97 Warner Music 3, 16, 59 Weatherall, K 147 Web 2.0 75, 77, 88 Weinreb, L 273 Westkamp, G 107, 288 Wilco 180 321 Wink-Wink defence 41 Winny 57 WIPO, see also Berne Convention; Internet copyright infringements, international developments; TRIPS WIPO, Copyright Treaty (WCT) 20, 21, 45, 149–50, 159, 183, 229–30, 237, 248, 264, 268, 290, 294, 295, 301, 302, 303–4 WIPO, Copyright Treaty (WCT), Article ‘making available’ right 45, 48, 173, 174, 183, 190, 198, 199, 202, 203 ‘making available’ right, global implementation of 49–52, 56, 62, 64, 81, 130–31, 166–7 WIPO, Copyright Treaty (WCT), Article 10, tree-step test 167–8, 173, 174–5, 198, 229 WIPO, Copyright Treaty (WCT), Article 11, mandatory protection of technological measures 167–8, 170, 171, 173, 230, 283 WIPO, Copyright Treaty (WCT), Article 12, mandatory protection of rights management information 167, 170, 171 WIPO, Copyright Treaty (WCT), Article 14 198 WIPO, Diplomatic Conference (1966), ‘distribution’ and ‘communication’ models 46–7, 51, 199 WIPO, Performances and Phonograms Treaty (WPPT) 20, 21, 45–6 cable subscription services and ‘nearon-demand’ broadcasting and communication 51 WIPO, Performances and Phonograms Treaty (WPPT), Articles 10 and 14 ‘making available’ right 45–6, 47, 48, 160, 161, 166–7 ‘making available’ right, global implementation of 49–52, 56, 62, 64 ‘making available’ right, incomplete solutions and treatment of related rights 50–52 322 Peer-to-peer file sharing and secondary liability in copyright law Wittgenstein, P 154 WTO dispute settlement system 150, 183 TRIPS see TRIPS Wu, T 241 Xunlei 60–61 Yahoo! China 23, 59–60, 96–7 Youdu 60–61 YouTube 240 Zimmerman, D 253 Zittrain, J 225 .. .Peer-to-Peer File Sharing and Secondary Liability in Copyright Law Peer-to-Peer File Sharing and Secondary Liability in Copyright Law Edited by Alain Strowel Professor,... 2008 4 Peer-to-peer file sharing and secondary liability in copyright law AN OVERVIEW OF LEGAL DOCTRINES AND CASE LAW ON SECONDARY LIABILITY In a contribution entitled Liability of Users and Third... inducing’ the end-users’ acts of infringement As will be explained, the liability for inducement is one form of secondary liability for copyright infringement Peer-to-peer (or P2P) file sharing