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Sean Flaim on the private enforcement of copyrights

by on March 26, 2013 · 2 comments

Sean Flaim, an attorney focusing on antitrust, intellectual property, cyberlaw, and privacy, discusses his new paper “Copyright Conspiracy: How the New Copyright Alert System May Violate the Sherman Act,” recently published in the New York University Journal of Intellectual Property and Entertainment Law.

Flaim describes content owners early attempts to enforce copyright through lawsuit as a “public relations nightmare” that humanized piracy and created outrage over large fines imposed on casual downloaders. According to Flaim, the Copyright Alert System is a more nuanced approach by the content industry to crack down on copyright infringement online, which arose in response to a government failure to update copyright law to reflect the nature of modern information exchange.

Flaim explains the six stages of the Copyright Alert System in action, noting his own suspicions about the program’s states intent as a education tool for repeat violators of copyright law online. In addition to antitrust concerns, Flaim worries that appropriate cost-benefit analysis has not been applied to this private regulation system, and, ultimately, that private companies are being granted a government-like power to punish individuals for breaking the law.

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Why SOPA Threatens the DMCA Safe Harbor

by on November 18, 2011 · 25 comments

The Stop Online Piracy Act (SOPA), a controversial bill before the House of Representatives aimed at combating “rogue websites,” isn’t just about criminal, foreign-based sites that break U.S. intellectual property laws with impunity. Few dispute that these criminal websites that profit from large-scale counterfeiting and copyright infringement are a public policy problem. SOPA’s provisions, however, extend beyond these criminal sites, and would potentially subject otherwise law-abiding Internet intermediaries to serious legal risks.

Before moving forward with rogue websites legislation, it’s crucial that lawmakers take a deep breath and appreciate the challenges at stake in legislating online intermediary liability, lest we endanger the Nozickian “utopia of utopias” that is today’s Internet. The unintended consequences of overbroad, carelessly drafted legislation in this space could be severe, particularly given the Internet’s incredible importance to the global economy, as my colleagues have explained on these pages (1, 2, 3, 4, 5, 6)

To understand why SOPA could be a game-changer for online service providers, it’s important to understand the simmering disagreement surrounding the Digital Millennium Copyright Act (DMCA) of 1998, which grants certain online service providers a safe harbor from liability for their users’ copyright infringing actions. In exchange for these protections, service providers must comply with the DMCA’s notice-and-takedown system, adopt a policy to terminate users who repeatedly infringe, and meet several other conditions. Service providers are only eligible for this safe harbor if they act to expeditiously remove infringing materials upon learning of them. Also ineligible for the safe harbor are online service providers who turn a blind eye to “red flags” of obvious infringement.

The DMCA does not, however, require providers to monitor their platforms for infringing content or design their services to facilitate monitoring. Courts have held that a DMCA-compliant service provider does not lose its safe harbor protection if it fails to act upon generalized knowledge that its service is used for many infringing activities, in addition to lawful ones, so long as the service provider does not induce or encourage users’ infringing activities.

Defenders of the DMCA safe harbor argue that it’s helped enable America’s Internet-based economy to flourish, allowing an array of web businesses built around lawful user-generated content — including YouTube, Facebook, and Twitter — to thrive without fear of copyright liability or burdensome monitoring mandates.

Conversely, some commentators, including UCLA’s Doug Lichtman, argue that the DMCA inefficiently tips the scales in favor of service providers, to the detriment of content creators — and, ultimately, consumer welfare. Pointing to a series of court rulings interpreting the safe harbor’s provisions, critics argue that the DMCA gives online intermediaries little incentive to do anything beyond the bare minimum to stop copyright infringement. Critics further allege that the safe harbor has been construed so broadly that it shields service providers that are deliberately indifferent to their users’ infringing activities, however rampant they may be.

What does SOPA have to do with all of this? Buried in the bill’s 78 pages are several provisions that run a very real risk of effectively sidestepping many of the protections conferred on online service providers by the DMCA safe harbor.

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Congress takes another stab at combating Rogue Websites with the PROTECT IP Act

by on May 12, 2011 · 23 comments

Last November, I penned an essay on these pages about the COICA legislation that had recently been approved unanimously by the U.S. Senate Judiciary Committee. While I praised Congress’s efforts to tackle the problem of “rogue websites” — sites dedicated to trafficking in counterfeit goods and/or distributing copyright infringing content — I warned that the bill lacked crucial safeguards to protect free speech and due process, as several dozen law professors had also cautioned. Thus, I suggested several changes to the legislation that would have limited its scope to truly bad actors while reducing the probability of burdening protected expression through “false positives.” Thanks in part to the efforts of Sen. Ron Wyden (D-Ore.), COICA never made it a floor vote last session.

Today, three U.S. Senators introduced a similar bill, entitled the PROTECT IP Act (bill text), which, like COICA, establishes new mechanisms for combating Internet sites that are “dedicated to infringing activities.” I’m glad to see that lawmakers adopted several of my suggestions, making the PROTECT IP Act a major improvement over its predecessor. While the new bill still contains some potentially serious problems, on net, it represents a more balanced approach to fighting online copyright and trademark infringement while recognizing fundamental civil liberties.

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TPW 44: Unsafe at Any Setting (A Conversation with Chris Soghoian)

by on June 19, 2009 · 5 comments

chris soghoianIn episode #44 of “Tech Policy Weekly,” Berin Szoka and Adam Thierer engage in a debate with Internet security expert Chris Soghoian, who is a student fellow at the Berkman Center for Internet & Society at Harvard University. He is also a Ph.D. candidate at Indiana University’s School of Informatics.

Chris is an up-and-coming star in the field of cyberlaw and technology policy as he has quickly made a name for himself in debates over privacy policy, data security, and government surveillance.  He straddles the line between academic and activist, and the role he often plays in many tech policy debates is somewhat akin to what Ralph Nader has done in many other fields through the years. Except, in this case, instead of “Unsafe at Any Speed” it’s more like “Unsafe at Any Setting,” since Chris is often raising a stink about what he regards as unjust or unreasonable privacy or security settings that various online websites or service providers use.

On the show, Chris talks about two of his recent crusades to get certain online providers to change their default settings to improve user security or privacy: (1) His effort this week to get major email providers—and Google in particular—to change their default security settings on their email offerings; and (2) his earlier crusade to create permanent opt-out cookies to stop behavioral advertising by advertising networks.

There are several ways to listen to today’s TLF Podcast. You can press play on the player below to listen right now, or download the MP3 file. You can also subscribe to the podcast by clicking on the button for your preferred service. (And do us a favor, Digg this podcast!)

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Veoh Considered

by on September 22, 2008 · 8 comments

I reviewed the Veoh case for DRMWatch recently:

The user-generated video site Veoh achieved a victory in court on August 27th when California District Judge Howard Lloyd ruled that it was entitled to the protection of the DMCA’s safe harbor provisions. Veoh was accused of copyright infringement by IO Group, a maker of adult films…

Like eBay v. Tiffany, another case in which one might trumpet a tech-side win… the tech gets at least some protection from liability. But only in a context in which the tech is already taking substantial steps to help the plaintiff trademark/copyright owner with their enforcement problem, steps that would have been hard to conceive of a decade ago, and that many would have grandly declared to be too ambitious and too invasive for online services to attempt. Prediction: the case law is now much more mature, but the business side is just getting started. More and fancier filtering to come.

It’s funny and scary how many of our grand ideas about justice, rights, freedom, fairness and property come down to what we can become accustomed too.  Bad, in the sense that one can easily lose the customary baselines against which freedom is measured in a generation or so. Good, in the sense that one is not limited to identify freedom with just one historic mythical Golden Age; a free society has somewhat more leeway.

I’m fond of paradoxes these days. Tedious things. Almost as annoying to other people, I am sure, as those characters (you know who you are) who make puns all the time.

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The New War on MP3s: EMI’s Push to Ban Remote Music Storage

by on March 26, 2008 · 4 comments

In the latest C:Spin over at CEI’s website, I examine the record industry’s latest Internet copyright battle and the shortcomings it reveals about U.S. intellectual property laws:

The next potential casualty of America’s deficient copyright regime is MP3Tunes, a San Diego startup founded by Web entrepreneur Michael Robertson, which lets users store digital music files in a secure, Web-based locker they can access from anywhere. MP3Tunes lets listeners access only music they have uploaded themselves. Like a handheld MP3 player, MP3Tunes frees music lovers from dragging around massive album collections on physical discs. But now Robertson’s service has run into a major obstacle. EMI, a major British record label, has sued MP3Tunes for copyright infringement. EMI contends that since users are transferring their music to a third party without getting permission from the record label, MP3Tunes is violating EMI’s exclusive right to distribute its music. MP3Tunes faces tough odds given past rulings in copyright infringement cases. EMI’s argument seems tenuous. MP3Tunes doesn’t “share” files with anybody but the original owner, and paying a third party to act as a custodian does not imply a transfer of ownership. Individuals can already store digital files online using myriad services from Flickr to Mozy. We increasingly back up our entire lives to online repositories, and the individual, not the website, remains the owner.

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