A lot of copyright news this week!

Supreme Court reverses in Kirtsaeng — First up, the Supreme Court released its decision in Kirtsaeng on Tuesday.

Copyright Act in the Digital Age — Next, the Register of Copyrights went to Congress to propose a general revision of the Copyright Act. Rob Levine wrote a fantastic preview of her testimony.

Worth the Wait: 9th Circuit Delivers Big Win for Creators in Isohunt Case — Then on Thursday, the 9th Circuit released its opinion in a case that seemed almost forgotten (Isohunt was argued nearly 2 years ago). The Copyright Alliance’s Alexandra Goldstein summarizes the decision, which seems to provide strong support for the common sense notion that those who intentionally profit off infringement don’t get a free pass just because they operate online instead of offline.

Meltwater loses again: the black knight rises — Finally, a NY district court ruled against a digital news clipper on copyright infringement. This is a fascinating case involving fair use and other issues in an online context. Dominic Young provides a good summary of the opinion here, but I may dig into the decision more in a stand alone post next week.

In other news…

Protect rights of artists in new copyright law — This week’s must-read is Sandra Aistar’s op-ed regarding the push for a general copyright revision. “Ensuring that all creators retain the freedom of choice in determining how their creative work is used, disseminated and monetized is vital to protecting freedom of expression.  Consent is at the heart of freedom, thus we must judge any proposed update by whether it prioritizes artists’ rights to have meaningful control over their creative work and livelihood.”

Mirror, Mirror…Why Does the Anti-Copyright Lobby Live in Opposite World? — Ellen Seidler provides some cutting insights. “The talking points echoed by the panel at SXSW reflected the anti-copyright lobby’s disingenuous mantra that content creators seeking to protect their work from theft should be viewed as criminals, while those who brazenly steal (and monetize) the work of others are somehow the ‘innovators.’”

A Step Closer to an Internet that Values Freedom of Expression, Freedom of Information, and the Freedom to Protect the Things We Create and Own — Chris Marcich of the MPAA comments on the recent European Court of Human Rights decision in the Pirate Bay case. “The Internet is a central part of our lives.  Citizens across the world, particularly young people, care about it passionately.  So do we.  We just want to ensure the Internet works for everyone.  We want an Internet where the creative property of artists and creators is protected along with the privacy and security of all users.  An Internet where the values society holds dear in the offline world, shape how we interact online.  And yes, these include freedom of expression, freedom of information and the freedom to protect the things we create and own.”

IFPI slams EU piracy study as ‘flawed and misleading’ — Recently, the EU released a study on piracy’s effects on digital music sales. The study’s conclusions were misreported the study itself suffers some serious flaws.

SXSW: David Lowery and Co. Lash out Against Industry ‘Pimps’ — Last week was the music portion of SXSW. Billboard takes a look at what may have been one of the best panels: David Lowery, Daryl Friedman, East Bay Ray, and Nakia discussing “Who’s Ripping Me Off Now?”

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Stop pretending cyberspace exists — Salon makes the case that “cyberspace” as a metaphor should join “cyberspace” as a term in the dustbin of history. “If you’re not convinced by now that the very notion of cyberspace is silly, try substituting ‘fax’ or ‘telephone’ or ‘telegraph’ for ‘cyber’ in words and sentences. The results will be comical. ‘Activists denounced government criminal surveillance policies for colonizing Fax Space.’ ‘Should Telephone Space be commercialized?’ Again, the point is not that telecommunications should not be structured and governed in the public interest, but rather that the debate about the public interest is not well served by the Land of Oz metaphor.”

Ninth Circuit Poised to Address Torrent Site Liability — Remember Isohunt? Oral arguments were held nearly two years ago in an appeal of the decision holding the BitTorrent site liable for massive copyright infringement, but the Ninth Circuit has yet to issue a decision. Jesse Creed has an analysis of the issues in that case over at the Idea/Expression blog.

He Builds It, Audiences Come: A Q&A With A Good Day to Die Hard Production Designer Daniel Dorrance — An interesting interview over at the Credits, taking a look at some of the behind-the-scenes highlights from Dorrance’s career, which includes films like Hook, Saving Private Ryan, and Collateral. Great copyright-related anecdote at the end too, where Dorrance talks about clearing the rights for graffiti.

Of Brands, Digital Pirates — And Shame — The USC Annenberg Lab has released its latest monthly look at ad-supported piracy. The February edition highlights a number of brands that frequently show up on illicit file-sharing sites. Fox Business has the scoop.

The De Minimis Doctrine Plays an Important Role in Copyright Law — A quick at some of the notable cases exploring the de minimis doctrine in copyright law.

National Recording Preservation Plan aims to protect America’s audio history — The Library of Congress is moving to implement a Congressionally mandated plan to curate and preserve the vast trove of recorded music from the past century plus. “The library’s plan makes 32 recommendations toward preserving the nation’s endangered audio heritage. It calls for a publicly accessible directory of sound collections; a national policy for collecting, cataloguing and preserving neglected recordings; the implementation of best practices for preserving digital audio files; and more.”

The Prop Building Guidebook: For Theatre, Film, and TV — Finally, on a personal note, I’m very happy to point readers toward Eric Hart’s (my brother) new book on building props, which has just gone on sale today goes on sale February 26th. Eric also blogs at Prop Agenda.

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A Blogging Hiatus — Ben Sheffner has put his site, Copyrights and Campaigns, on hiatus after his recent move from NBC Universal to Content Protection Counsel at the MPAA. Since the end of 2008, Ben has brought solid, in-depth reporting and analysis on copyright issues from a reasonable, pro-copyright-owner perspective. His voice will be missed in the blogosphere.

Stuck on Rewind — The Copyright Alliance takes aim at a remark by Public Knowledge about the film industry’s supposed fear of technology. As the Alliance’s Sandra Aistars responds: “Seriously? The notion that the creative world is somehow afraid of, opposed to or otherwise unable to co-exist with a 21st Century technology world is about as up-to-date as the Betamax recorder.”

Copyright PSA for the Reel Challenge via Ray Dowd’s Copyright Litigation Blog. More from the filmmakers behind the video at http://www.yellyfishblog.blogspot.com/

Golan v. Holder: Supreme Court to Review Copyrighting Works in Public Domain — Edward Lee (a former professor of mine) shares some thoughts on the case he helped bring which was recently granted cert by the Supreme Court. I wrote a brief summary of the case last week.

Are Canada’s copyright laws friendly or unfriendly towards wealth destroyers according to Prof. Geist? — Barry Sookman thoroughly examines the inconsistent and contradictory claims of law professor Michael Geist concerning litigation between the CRIA and IsoHunt. Worth a read, especially since many of Geist’s copyright claims are repeated as gospel among copyright critics.

Isaac Newton’s Shamefully Unpublished Calculus Book — I’m currently reading a book on the history of mathematics and came across this gem of an article from the mid-90s. For over a decade, we’ve heard of how computers and the internet will free artists from the evils of book publishers (or record labels, or film studios, etc). Much of the talk is hype, but sometimes, as this article demonstrates, things are just flat-out made up.

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I sometimes see the phrase “.torrent = .crime” used online in discussions about enforcing copyright online. It is considered by copyright critics as a dig against efforts to enforce the widespread copyright infringement occurring within the bittorrent ecosystem1 — the idea being that content producers have mistakenly declared torrent technology categorically unlawful.

Most recently, it has popped up in response to the US government’s seizure of domain names as part of Operation in Our Sites. A number of the sites targeted were part of the bittorrent ecosystem, like meta-search engine Torrent Finder. And with the pending appeal of Isohunt in the Ninth Circuit, the meme will likely persist — the torrent search engine’s appellate brief devotes considerable space to rebutting the association between torrents and infringement. Proponents of the meme believe the association is unfair and are quick to point out the many legitimate uses of the bittorrent protocol as evidence.

The snappy soundbite, however, glosses over the distinction between a technology and uses of a technology. It also relies on a fundamentally flawed premise: the fact that there are some legitimate uses of a technology does not make all uses of that technology legitimate. And within the general bittorrent ecosystem, there are a lot of illegitimate uses of the technology — so much so that the association between “torrent” and “crime” is not entirely unfair.

The Supreme Court, through its decisions in Sony Corp of America v. Universal City Studios, 464 US 417, and MGM v. Grokster, 545 US 913, maintained what is really a common sense distinction between technology and uses of that technology. Simply put, you can’t be liable simply for making something that can be used for copyright infringement, but you can be liable if you intend or encourage infringing uses.

Put another way, while direct infringement is a strict liability tort, meaning the intent of an infringer is irrelevant, secondary liability requires some form of culpability. Grokster reads Sony as saying you can’t impute this intent based solely on the characteristics of a device. But the rule in Sony doesn’t mean a manufacturer or service is completely precluded from liability if it satisfies the Sony safe harbor — a manufacturer or service provider can still be liable if it is found to be culpable in other ways, including whether it induced infringement.

The Supreme Court in Grokster noted three features of the evidence of intent that most showed culpability. Satisfying a known source of demand for copyright infringement, no attempt to filter or develop mechanisms for diminishing infringing activities, and selling advertising based on high-volume use — revenues increase the more people use it, and the overwhelming amount of people use it for infringing purposes. Any one of these alone is not enough to show culpability, but taken together, the intent to encourage infringement is, in the words of the Court, “unmistakeable.”

The torrent ecosystem facilitates piracy — not by design, but by use.

I’m talking about just the torrent ecosystem here — the trackers, hosts, and search engines that do little if anything to ensure their services are not used to aid in distributing unauthorized content. BitTorrent as a protocol is in no way a problem. Facebook, Twitter, and other large-scale systems use the BitTorrent protocol to distribute software updates to their servers; the same is true of gaming companies like Blizzard Entertainment, makers of Worlds of Warcraft. Many Linux distros are promulgated via bittorrent. The technology offers several advantages over other methods of distributing large amounts of data.

But outside these specific uses is a world of public torrent hosts that allow anyone to upload torrent files of any type of content, no questions asked, and search engines that can help users locate whatever they want. And it is here where, any way you look at it, “.torrent” actually does equal “.crime”. The overwhelming majority of what is being distributed in the general bittorrent ecosystem is infringing.

How overwhelming? According to the available research, anywhere from 90-99% of files available in the torrent ecosystem are infringing.2 A study released January 2011 discovered only 1 legitimately offered file in the top 10,000 torrents offered by one of the largest public bittorrent trackers.

In the face of such overwhelming infringement, it’s absurd to think you can design a site or service that facilitates access to this universe of material, without any attempt at filtering or mitigating infringement, and escape liability. The fact that there are some legitimate uses for the technology does not mean that all uses of the technology are legitimate. Search engines, trackers, and torrent hosts exist for verified and authorized content. But that fact doesn’t save the general and open-for-all torrent sites; neither does the fact that the protocol is used by large-scale systems for distributing software updates. It’s not like Facebook and Twitter are going to Torrent Finder to find new patches.

The distinction between legitimate and illegitimate uses of bittorrent is a distinction between services where the use of the protocol is secondary to the service and the ability to pirate through the service is diminished and minimized, and services that tap into the general bittorrent ecosystem. The latter services may claim to have legitimate uses, but these claims are drowned out by the evidence.

The business model of these sites depends on popular — ie, copyrighted — content. It’s the major draw: Torrent Finder wasn’t making $15,000 a year advertising to people looking for the latest Linux distros or searching for unsigned bands. Isohunt’s Gary Fung admitted as much during the course of that litigation.3 Courts looking at nearly every other major file-sharing service that has found itself subject to a lawsuit have come to the same conclusion: ”While there is doubtless some demand for free Shakespeare,” said the Supreme Court in Grokster, ”the evidence shows that substantive volume is a function of free access to copyrighted work.”4

Sites that have gone legit have discovered just how true this is. Search engine YouTorrent reported that it lost over half its traffic when it stopped indexing files from sites like PirateBay and only returned verified authorized and open-license results.

Some torrent site operators have adopted a “would if they could” attitude toward copyright infringement: they’d like to stop it, but it’s impossible to know what files are authorized and which are not. This argument doesn’t hold up against the significant percentage of infringing files available.

Some theories of secondary liability, like contributory infringement, require that the secondary party has some knowledge of the underlying misconduct, with the caveat that the secondary party cannot escape liability by being “willfully blind.” You can’t, like an ostrich with his head in the sand, deliberately ignore bad behavior and expect to stay out of trouble. While the question of willful blindness can often be a tough one to answer, courts haven’t had trouble in cases of file-sharing services. With such a high percentage of infringing files present on all these services — 89%, 95%, 99% — you can’t claim ignorance of infringement.

Anyone who bristles at the association of bittorrent with copyright infringement has to admit, if honest, that within the general bittorrent ecosystem, torrents have largely become synonymous with distributing unauthorized content. The technology itself is neutral, it can be put to legitimate or illegitimate uses, but any service wanting to become a component part of the unregulated, open, and public torrent universe has a high burden for establishing legitimacy.

 

Footnotes

  1. The bittorrent “ecosystem” describes the multitude of independent components — from torrent file hosts, to torrent search engines and meta search engines, to trackers — that together make the bittorrent protocol work. []
  2. Robert Layton & Paul Watters, Investigation into the extent of infringing content on BitTorrent networks, Internet Commerce Security Laboratory (2010), confirms 89% of all torrents in sample infringing; Sauhard Sahi & Ed Felten, Census of files available via BitTorrent, (2010), concluded 99% of files likely infringing; Columbia Pictures v. Fung, Order granting Plaintiffs’ motion for summary judgment on liability (2009), evidence showed approximately 95% of files available on defendant’s torrent search engines infringing. []
  3. Columbia Pictures v. Fung, p. 34. []
  4. 545 US at 926. []

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Preliminary injunction against ivi TV — The online TV service thought it had discovered a loophole in the law, but the judge didn’t buy it. What jumped out at me was this bit from the section on irreparable harm: “In copyright cases, harm can often be irreparable either in light of possible market confusion, because it is ‘notoriously difficult’ to prove the loss of sales due to infringement, and because of loss of the First Amendment ‘right not to speak.’” The court cites to the 2nd Circuit’s decision in Salinger v. Colting (607 F.3d 68), which noted the First Amendment ‘right not to speak’ of a plaintiff in a copyright infringement suit as relevant to the “balance of hardships” step in deciding whether to issue a preliminary injunction. Said the 2nd, “‘[t]he loss of First Amendment freedoms,’ and hence infringement of the right not to speak, ‘for even minimal periods of time, unquestionably constitutes irreparable injury.’”

Google files amicus brief in Isohunt appeal — I don’t have much to say here, except, having gone back through some of the previous documents in the lawsuit against the torrent site, I discovered this little gem in Isohunt’s own appellate brief: “[Defendant Gary Fung] has never sought or received financial support, other than earnings from advertising, sales of T-shirts and donations from individuals.”

NARM 2011 Entertainment & Technology Law Conference Series — The National Association of Recording Merchandisers is presenting its annual conference series featuring “discussions, topics and speakers that intersect the technology, copyright, and entertainment law issues” at the forefront of the entertainment business. The conference will be held in New York City February 28th (this Monday), San Francisco March 30, and Los Angeles May 12.

Kevin Saunderson speaks out on sampling — Says the Detroit techno icon, “I have a huge affection for sampling, it’s how some of the most inspiring and ground breaking tracks of our times were created. We’ve pretty much all sampled records at some time, and cleared the sample so we can use it on our releases, but it is just not cool to take someone else’s music, create a big old loop of it and then put your name on it and try to have success entirely off the back of another artist’s efforts.”

The Motown Sound: In Performance at the White House — Airing March 1 on PBS. President Obama made some remarks at the concert regarding Motown founder Berry Gordy and the legacy of Motown Records:

Now, apparently Berry tried a lot of things before following his heart into music.  A high school dropout, he failed as a record store owner, competed as an amateur boxer, finally took a job earning $85 a week on the assembly line at the local Lincoln-Mercury plant.  And it was there, watching the bare metal frames transformed into gleaming automobiles, that Berry wondered why he couldn’t do the same thing with musicians, and help turn new talent into stars.

And before long, he quit his job at the plant, borrowed $800, and set up shop in a little house with a banner across the front that read “Hitsville, U.S.A.”  His family thought he was delusional.  (Laughter.)  But as Berry said, “People thought the Wright Brothers had a stupid idea, so I say, ‘Bring on the stupid ideas.’”

[…]

Along the way, songs like “Dancing in the Streets” and “What’s Going On” became the soundtrack of the civil rights era. Black artists began soaring to the top of the pop charts for the first time.  And at concerts in the South, Motown groups literally brought people together –- insisting that the ropes traditionally used to separate black and white audience members be taken down.

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