Tuesday, April 14, 2020

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Charter Can't Sue Over False DMCA Notices, Record Labels Argue
Ernesto, 14 Apr 10:43 PM

Legal battles between copyright holders and Internet providers are not new. In most countries these disputes revolve around site blocking but, in the US, a different trend has emerged.

Over the past years, several major ISPs have been sued for failing to terminate accounts of alleged repeat infringers.

These lawsuits are serious business. Late last year, for example, Cox was found guilty by a jury that awarded a billion dollars in damages. While the judgment is being appealed, other ISPs are on high alert.

This is also true for Charter Communications, one of the largest Internet providers in the US. The company was sued last year by several major music companies, including Capitol Records, Warner Bros, and Sony Music, which argued that the ISP is liable for pirating subscribers.

Last month Charter replied to the record labels' complaint. In addition to denying many of the allegations, the ISP also went on the offensive. Charter submitted a counterclaim accusing the labels of sending inaccurate DMCA takedown notices.

The claim comes after the music companies removed 272 sound recordings and 183 music compositions from their initial complaint. These were dropped after the record labels were ordered to produce further evidence that they indeed owned the rights.

Charter believes that the companies have sent many inaccurate takedown notices in the past. These notices reportedly cause damage to the ISP, which says it incurred costs and reputational damage by forwarding the "false accusations."

"Charter is injured when it processes inaccurate notices, causing it to forward false accusations to its subscribers, to the extent this creates tension with the impacted subscribers, negatively affects goodwill, and causes reputational harm to Charter," the counterclaim reads.

This could be a serious problem, especially since some of the claimed works were also used to calculate the damages in the Cox trial. However, the music companies now argue that the allegations don't hold water and they, therefore, ask the court to dismiss the counterclaim.

In a reply, received last week by the US District Court in Denver, Colorado, the music companies point out that under the DMCA, misrepresentation claims only hold up if the receiving party removed or disabled access to the infringing content.

In this case, Charter didn't. The ISP went on the record stating that it could not remove any content, or stop users from sharing any files.

"Here, Charter does not allege that it removed or disabled access to any infringing material or activity identified in Plaintiffs' notices. In fact, Charter concedes that it cannot remove infringing content, nor restrict its users' access to it. Thus, no amendment could cure the deficiency, and the claim should be dismissed with prejudice," the labels write.

In addition, the labels point out that the ISP failed to state a claim. While mistakes may have happened while sending takedown notices, Charter has no evidence showing that the labels had "actual knowledge" of any misrepresentations, they counter.

"Charter's claim is based entirely on speculation arising from Plaintiffs' decision in February 2020 to drop from this suit a few hundred of more than 11,400 copyrighted works included in their original complaint.

"Charter also has not identified any material misrepresentation or a single infringement notice that it claims was inaccurate, as required," the labels add.

Finally, the music companies point out that the DMCA's three-year statute of limitations has expired for Charter's claims. The notices at issue were sent nearly four years ago, they point out.

Based on these arguments, the labels ask the court to dismiss the ISP's counterclaim. On top of that, they also want Charter's request for a declaratory judgment on contributory liability dismissed.

Both requests are now with the court which, in due course, will decide if Charter can move ahead with its case or if it will be tossed out.

Here is a copy of the record labels' reply with the dismissal requests (pdf).

Drom: TF, for the latest news on copyright battles, torrent sites and more. We also have an annual VPN review.

Internet Archive to Senator: No "Emergency Copyright Act" Required, Fair Use Has Library Covered
Andy, 14 Apr 11:01 AM

On first view, making books, learning and other research materials available online during a nationwide library shutdown as a result of the coronavirus pandemic seems like a positive step. However, the National Emergency Library recently launched by the Internet Archive now finds itself in the middle of a controvery.

The National Emergency Library, which contains around 1.4 million scanned books, is free for everyone to access. Available until at least the end of June 2020, the library has effectively suspended wait-lists, which allows lenders to obtain books on a temporary basis but without having to wait until other readers have finished reading their copies.

However, copyright holders, authors groups and publishers have criticized the move, claiming that without remuneration for creators, the library acts as a glorified pirate site.

The Authors Guild, for example, described the move as "appalling", slamming the initiative as pushing the boundaries of copyright law while trampling on the rights of struggling authors. The Copyright Alliance went further still, describing the project as "particularly vile".

With pressure mounting, the government has now become involved. In a letter to Internet Archive founder Brewster Kahle, Senator Thom Tillis – whose Senate Judiciary Committee Subcommittee on Intellectual Property is currently conducting a review of the Copyright Act – says he recognizes the essential nature of books and the problems being encountered as a result of the coronavirus lockdown.

Citing various measures taken by copyright holders to "ease the struggles", he highlights that these, however, do not break the law.

"These voluntary efforts should be commended, not only because they are expanding access to copyrighted works, but also because they do not violate copyright law or harm creators. On the contrary, these times have shown the critical value of copyrighted works to the public interest," Senator Tillis writes.

Noting that he "deeply values access to copyrighted works," the Senator insists that such access should be provided within the law. He stops short of citing any specific laws that the Internet Archive is supposedly breaking but suggests that the National Emergency Library is illegal nonetheless.

"I am not aware of any measure under copyright law that permits a user of copyrighted works to unilaterally create an emergency copyright act. Indeed, I am deeply concerned that your 'library' is operating outside the boundaries of the copyright law that Congress has enacted and alone has jurisdiction to amend," he adds.

There are no overt threats in the letter, which may suggest that the Senator is hoping for an amicable agreement, perhaps by reverting the library to its original status with lending limits returned to normal and other copyright matters solved. However, Kahle doesn't seem particularly interested in a compromise.

He insists that the National Emergency Library is not only essential in a time of national crisis, but is also acting well within the confines of existing copyright legislation.

"The National Emergency Library was developed to address a temporary and significant need to our communities – for the first time in our nation's history, the entire physical library system is offline and unavailable," Kahle informs the Senator.

"Your constituents have paid for millions of books they currently cannot access. According to National Public Library survey data from 2018-2019, North Carolina's public libraries house more than fifteen million print book volumes in their hundred twenty-three branches across the State. Because those branches are now closed and their books are unavailable, the massive public investment paid by tax-paying citizens is unavailable to the very people who funded it."

This specific example, Kahle notes, is echoed around the nation, affecting public, school, college and academic libraries alike. The National Emergency Library, he contends, aims to provide a solution by enabling teachers, students and communities to access the learning material currently out of reach.

Kahle also provides some lending statistics, indicating that 90% of the books borrowed thus far were published more than 10 years ago and two-thirds were published last century. Overall, he states, the volume of lending to date is comparable "to that of a town with 30,000 people", with 90% returning books after reading them for just 30 mins.

"These usage patterns suggest that perhaps that patrons may be using the checked-out books for fact checking or research, but we suspect a large number of people are browsing the book in a way similar to browsing library shelves," he adds.

Kahle insists that the library isn't offering any recently published books and any authors who prefer not to have their books made available can ask the library to have them removed. This, he stresses, does not have to be via a formal DMCA notice but a plain request not to have their works included. He then addresses the issue of legality, in particular the Senator's claim that the library has somehow enacted its own emergency legislation.

"You raise the question of how this comports with copyright law," Kahle writes. "Fortunately, we do not need an 'emergency Copyright Act' because the fair use doctrine, codified in the Copyright Act, provides flexibility to libraries and others to adjust to changing circumstances. As a result, libraries can and are meeting the needs of their patrons during this crisis in a number of ways."

Kahle concludes by acknowledging that in their "haste" to respond to the urgent needs of teachers, students, and librarians, the project did not do enough to engage with authors, publishers and policymakers. However, he claims that those conversations are now underway and invites the Senator to contribute by addressing the urgent access needs of the country.

The letter from Senator Tillis and response from Internet Archive can be found here and here

Drom: TF, for the latest news on copyright battles, torrent sites and more. We also have an annual VPN review.

 
 
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