IO Group, Inc. v. Veoh Networks, Inc., 586 F.Supp.2d 1132 (N.D.Cal. 2008)
Facts
Io Group is an adult entertainment company that markets and distributes various products, including videos. Veoh is an internet television network, which allows users to submit videos to share with all others viewers of the Veoh network. Veoh also adds videos to its site. Veoh's employees have uploaded infringing content to its site, but the only material contested by Io Group is alleged infringing material submitted by Veoh users. One main source of income for Veoh comes from online advertising, by way of Google Ad-Sense.
Io Group claims that ten clips of its copyrighted videos were uploaded and viewed on the Veoh site. Upon discovering the copyrighted clips, Io Group did not notify Veoh, rather Io Group filed this lawsuit.
Veoh maintained a policy of respecting copyright owners. It was against Veoh's "Acceptable Use Policy" to upload copyrighted or pornographic material. Veoh designated a Copyright Agent to receive notifications of alleged violations of its policies.
Procedural Posture
This was a decision on cross-motions for summary judgment. Io Group's summary judgment was based on liability for copyright infringement, and Veoh's summary judgment was based on its qualification under safe harbor.
Rule
Safe Harbor
DMCA Section 512(c) limits a service provider's liability "for infringement of copyright by reason of the storage at the direction of a user of material that resides on a system or network controlled or operated by or for the service provider." 17 U.S.C. § 512(c).
Holding
Veoh's DMCA policy is strong and therefore qualifies for safe harbor. Veoh should not bare the entire burden for infringement by third-party users. Veoh has taken appropriate steps to deal with copyright infringement on its site. Veoh's summary judgment is granted and Io Group's summary judgment is denied. The Court did not reach a decision on the alleged copyright infringement liability.
Important Dicta
The court rejects the "transcoding" argument made by Io Group. Io Group argued that "transcoding" the video files from original format into a flash format facilitated user access. However, the court found that a bit-for-bit conversion of the file type did not disqualify Veoh from safe harbor protections.
Future Importance
This ruling provides guidance to other user-uploaded content sites. Compliance with the DMCA will warrant safe harbor protections. Register a Copyright Agent, keep records, and respond quickly to take-down notices.
Critical Analysis
Veoh's compliance with the DMCA provided enormous protection from copyright infringement. By its DMCA compliance, Veoh was able to continue to run its site. User-uploaded content sites need to invest the time and money into DMCA compliance, as the safe harbor protections are essential to continuing the site's operation.
Facts
Io Group is an adult entertainment company that markets and distributes various products, including videos. Veoh is an internet television network, which allows users to submit videos to share with all others viewers of the Veoh network. Veoh also adds videos to its site. Veoh's employees have uploaded infringing content to its site, but the only material contested by Io Group is alleged infringing material submitted by Veoh users. One main source of income for Veoh comes from online advertising, by way of Google Ad-Sense.
Io Group claims that ten clips of its copyrighted videos were uploaded and viewed on the Veoh site. Upon discovering the copyrighted clips, Io Group did not notify Veoh, rather Io Group filed this lawsuit.
Veoh maintained a policy of respecting copyright owners. It was against Veoh's "Acceptable Use Policy" to upload copyrighted or pornographic material. Veoh designated a Copyright Agent to receive notifications of alleged violations of its policies.
Procedural Posture
This was a decision on cross-motions for summary judgment. Io Group's summary judgment was based on liability for copyright infringement, and Veoh's summary judgment was based on its qualification under safe harbor.
Rule
Safe Harbor
DMCA Section 512(c) limits a service provider's liability "for infringement of copyright by reason of the storage at the direction of a user of material that resides on a system or network controlled or operated by or for the service provider." 17 U.S.C. § 512(c).
Holding
Veoh's DMCA policy is strong and therefore qualifies for safe harbor. Veoh should not bare the entire burden for infringement by third-party users. Veoh has taken appropriate steps to deal with copyright infringement on its site. Veoh's summary judgment is granted and Io Group's summary judgment is denied. The Court did not reach a decision on the alleged copyright infringement liability.
Important Dicta
The court rejects the "transcoding" argument made by Io Group. Io Group argued that "transcoding" the video files from original format into a flash format facilitated user access. However, the court found that a bit-for-bit conversion of the file type did not disqualify Veoh from safe harbor protections.
Future Importance
This ruling provides guidance to other user-uploaded content sites. Compliance with the DMCA will warrant safe harbor protections. Register a Copyright Agent, keep records, and respond quickly to take-down notices.
Critical Analysis
Veoh's compliance with the DMCA provided enormous protection from copyright infringement. By its DMCA compliance, Veoh was able to continue to run its site. User-uploaded content sites need to invest the time and money into DMCA compliance, as the safe harbor protections are essential to continuing the site's operation.