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Advanced Copyright Issues on the Internet - Fenwick & West LLP

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whe<strong>the</strong>r such payment was a digital communicati<strong>on</strong>, transmitted without modificati<strong>on</strong> to <strong>the</strong>c<strong>on</strong>tent of <strong>the</strong> material, or was transmitted often enough such that CCBill was <strong>on</strong>ly a transientholder. Accordingly, <strong>on</strong> <strong>the</strong> record before it, <strong>the</strong> court ruled that it could not c<strong>on</strong>clude thatCCBill was a service provider under Secti<strong>on</strong> 512(a), and remanded to <strong>the</strong> district court forfur<strong>the</strong>r c<strong>on</strong>siderati<strong>on</strong> of <strong>the</strong> issue. 1766 e. Columbia Pictures v. Fung. In Columbia PicturesIndustries, Inc. v. Fung, 1767 <strong>the</strong> defendants operated BitTorrent sites through which users couldsearch indexes for dot-torrent files pointing to infringing movies and o<strong>the</strong>r c<strong>on</strong>tent. The courtfound <strong>the</strong> defendants liable for inducement of infringement and rejected asserti<strong>on</strong> of a safeharbor under Secti<strong>on</strong> 512(a) – because of <strong>the</strong> way <strong>the</strong> BitTorrent protocol worked, infringingmaterials did not pass through <strong>the</strong> defendants’ system, which <strong>the</strong> court ruled was a prerequisitefor <strong>the</strong> Secti<strong>on</strong> 512(a) safe harbor. 1768(ii)Caching – Secti<strong>on</strong> 512(b)Secti<strong>on</strong> 512(b) provides that a Service Provider is not liable for m<strong>on</strong>etary relief, and issubject <strong>on</strong>ly to limited injunctive relief, for caching (i.e., what Secti<strong>on</strong> 512(b) calls <strong>the</strong>“intermediate and temporary storage”) of material <strong>on</strong> a system or network operated by <strong>the</strong>Service Provider which was made available <strong>on</strong>line by a pers<strong>on</strong> o<strong>the</strong>r than <strong>the</strong> ServiceProvider. 1769 Such caching must occur through an automatic technical process up<strong>on</strong> <strong>the</strong> original1766 Id.1767 2009 U.S. Dist. LEXIS (C.D. Cal. Dec. 21, 2009).1768 Id. at *60 n.26.1769 Secti<strong>on</strong> 512(b) provides: “(1) Limitati<strong>on</strong> <strong>on</strong> liability – A service provider shall not be liable for m<strong>on</strong>etaryrelief, or, except as provided in subsecti<strong>on</strong> (j), for injunctive or o<strong>the</strong>r equitable relief, for infringement ofcopyright by reas<strong>on</strong> of <strong>the</strong> intermediate and temporary storage of material <strong>on</strong> a system or network c<strong>on</strong>trolled oroperated by or for <strong>the</strong> service provider in a case in which –(A) <strong>the</strong> material is made available <strong>on</strong>line by a pers<strong>on</strong> o<strong>the</strong>r than <strong>the</strong> service provider;(B) <strong>the</strong> material is transmitted from <strong>the</strong> pers<strong>on</strong> described in subparagraph (A) through <strong>the</strong> system or network toa pers<strong>on</strong> o<strong>the</strong>r than <strong>the</strong> pers<strong>on</strong> described in subparagraph (A) at <strong>the</strong> directi<strong>on</strong> of <strong>the</strong> o<strong>the</strong>r pers<strong>on</strong>; and(C) <strong>the</strong> storage is carried out through an automatic technical process for <strong>the</strong> purpose of making <strong>the</strong> materialavailable to users of <strong>the</strong> system or network who, after <strong>the</strong> material is transmitted as described in subparagraph(B), request access to <strong>the</strong> material from <strong>the</strong> pers<strong>on</strong> described in subparagraph (A),if <strong>the</strong> c<strong>on</strong>diti<strong>on</strong>s set forth in paragraph (2) are met.(2) C<strong>on</strong>diti<strong>on</strong>s – The c<strong>on</strong>diti<strong>on</strong>s referred to in paragraph (1) are that –(A) <strong>the</strong> material described in paragraph (1) is transmitted to <strong>the</strong> subsequent users described in paragraph (1)(C)without modificati<strong>on</strong> to its c<strong>on</strong>tent from <strong>the</strong> manner in which <strong>the</strong> material was transmitted from <strong>the</strong> persodescribed in paragraph (1)(A);(B) <strong>the</strong> service provider described in paragraph (1) complies with rules c<strong>on</strong>cerning <strong>the</strong> refreshing, reloading, oro<strong>the</strong>r updating of <strong>the</strong> material when specified by <strong>the</strong> pers<strong>on</strong> making <strong>the</strong> material available <strong>on</strong>line in accordancewith a generally accepted industry standard data communicati<strong>on</strong>s protocol for <strong>the</strong> system or network throughwhich that pers<strong>on</strong> makes <strong>the</strong> material available, except that this subparagraph applies <strong>on</strong>ly if those rules are notused by <strong>the</strong> pers<strong>on</strong> described in paragraph (1)(A) to prevent or unreas<strong>on</strong>ably impair <strong>the</strong> intermediate storage towhich this subsecti<strong>on</strong> applies;- 384 -

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