Thursday, July 16, 2020

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YouTube & Uploaded Not Liable For Pirate Uploads Advises EU Advocate General
Andy Maxwell, 16 Jul 08:49 PM

After millions of Internet users became content uploaders over the past two decades, copyright holders faced a new and growing problem with online infringement.

On top of legitimately uploaded content, platforms such as YouTube became hosts to millions of infringing uploads, with rightsholders having to devote considerable resources to have them taken down. As a result, some rightsholders have taken legal action against the platforms themselves, trying to hold them liable for the infringements of their users.

Two Cases Reached Europe's Highest Court

The first, brought by music producer Frank Peterson against YouTube and Google in Germany, complained that tracks by artist Sarah Brightman from the album 'A Winter Symphony' were uploaded to YouTube in 2008 without his permission.

The second, also filed in Germany, saw publisher Elsevier filing a complaint against Cyando, the owner of file-hosting platform Uploaded. The company complained that its copyrighted works, including 'Gray's Anatomy for Students', 'Atlas of Human Anatomy' and 'Campbell-Walsh Urology', had been stored on Uploaded in 2013 by the site's users in breach of the publishers' exclusive rights.

Both of these cases are being heard by the Federal Court of Justice, which referred several questions to the EU Court for a preliminary ruling. Today the EU Court published Advocate General Saugmandsgaard Øe's opinion, advising that platforms such as YouTube and Cyando/Uploaded are not directly liable under the Copyright Directive when their users upload copyright-protected content.

The Advocate General's Advice to the EU Court

"[O]perators such as YouTube and Cyando do not, in principle, carry out an act of 'communication to the public' themselves in such a case. The role played by those operators is, in principle, that of an intermediary providing physical facilities which enable users to carry out a 'communication to the public'. Any 'primary' liability arising from that 'communication' is therefore borne, as a rule, solely by those users," a statement on the opinion reads.

Advocate General Saugmandsgaard Øe notes that uploads initiated by users of YouTube and Uploaded are processed automatically and that any check made in advance by the platforms "does not constitute selection in so far as that [the] check is confined to identifying illegal content and does not therefore reflect its intention to communicate certain (and not other) content to the public."

Furthermore, platforms like YouTube (at least in principle) are able to benefit from an exemption from liability for infringing files uploaded by users, provided they do not play an active role that gives them knowledge of or control over the content. In short, if the platforms are not aware that content is infringing and process takedown requests to remove it when appropriate, they cannot be held liable.

Rightsholders Still Able to Obtain Injunctions Against Platforms

Irrespective of the question of liability, the Advocate General advises the EU Court that rightsholders can still apply for injunctions against online platforms in order to defend their rights.

"Rightholders must be able to apply for such an injunction where it is established that third parties infringe their rights through the service provided by platform operators, without the need to wait for an infringement to take place again and without the need to show improper conduct by the intermediary," his advice adds.

Conclusion and Article 17 (formerly Article 13)

While the Advocate General's opinion is not binding, in most cases the EU Court of Justice adopts such recommendations in its final decision. When that happens the cases will head back to the Federal Court of Justice in Germany but unlike previous important copyright rulings that set the stage for years to come, the situation on the ground for companies like YouTube will soon change.

As reported extensively last year, the EU has a new Copyright Directive which includes the so-called "upload filter" requirements of Article 17 (formerly Article 13). That legislation mandates a lot more responsibility for platforms like YouTube and Uploaded.

"That directive, which must be transposed by each Member State into its national law by 7 June 2021 at the latest, requires, inter alia, those operators to obtain an authorization from the rightholders, for example by concluding a licensing agreement, for the works uploaded by users of their platforms," the EU Court noted in today's opinion, adding that since the directive is not yet in force, it doesn't apply to the cases above.

From: TF, for the latest news on copyright battles, piracy and more.

Netflix Blockade Boosted Piracy Searches, Research Finds
Ernesto Van der Sar, 16 Jul 12:34 PM

netflixThere is little doubt that, for many people, Netflix has become a prime source of entertainment.

As a result, some people cut down on their piracy habits. At the same time, however, Netflix titles are frequently pirated as well.

Measuring the true impact of Netflix on local piracy rates is not easy. There is plenty of anecdotal evidence but this is often far from definite. With a new academic study, a group of researchers provide more insight into the link between piracy and Netflix.

Netflix Blockade as a Natural Experiment

In January 2016, Netflix expanded its worldwide reach with dozens of countries, including Indonesia. However, at the end of the month, the country's largest ISP blocked the service, denying access to most Indonesians.

The blockade stayed in place for more than a year. The researchers used this 'natural' block to compare Indonesian piracy searches with those in comparable countries where Netflix launched and remained available.

The results are published in a forthcoming article in the Marketing Science journal titled: "The Effect of Over-the-Top Media Services on Piracy Search: Evidence from a Natural Experiment." This suggests that the unavailability of Netflix boosted searches for pirate alternatives.

20% Boost in Piracy Searches

Compared to a group of Asian control countries, piracy-related searches was a nearly 20% surge in Indonesia following the Netflix blockade.

"Applying the synthetic control method to data from Indonesia and 40 Asian countries where Netflix entered and remained available, we find that Netflix's unavailability in Indonesia leads to a 19.7% increase in piracy search in Indonesia relative to the other countries," the paper reads.

The researchers didn't measure piracy directly but used Google searches for piracy-related terms as a proxy. These were much higher in Indonesia, relatively speaking, compared to the control countries where Netflix remained available.

Another cautious conclusion that can be drawn from the data is that the Netflix introduction in other countries decreased piracy significantly. According to the researchers, it may have resulted in a "decrease of millions of visits" to illegal sites.

"Our findings indicate that the introduction of OTT services is an effective way to discourage people from searching for piracy," the researchers write, noting that this should lead to an increase in revenue in the long term.

Not Only Netflix Titles are Affected

The increased interest in piracy due to Netflix's unavailability is not limited to exclusive Netflix titles. It affects other content as well. This is an interesting finding, suggesting that the unavailability of Netflix may have had broader effects.

If more Indonesians became frequent pirates this would not just affect Netflix but also other content producers and creators, as their work is pirated more often as well.

The findings of this natural experiment confirm that site blocking and other restrictive measures are only part of the anti-piracy toolbox. The availability of good legal options may be just as important.

"From a policy perspective, while punitive measures may reduce the supply of piracy, initiatives that spur the market entry of innovative, high-value media platforms may also produce a substantial decrease in piracy," the researchers note.

From: TF, for the latest news on copyright battles, piracy and more.

 
 
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