Lecture 7: Internet Copyright 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Outline • Digital Millennium Copyright Act – DeCSS • Internet copyright cases • Napster issues • Digital watermarking • International copyright 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Effect of the Internet • Copyright used to be a matter for publishers • Now everyone can be a publisher • Reproducing works used to be expensive • Now it’s cheap, almost zero cost • Carrying around works used to be difficult • Now it’s easy CREATIVE NOMAD 30 GB JUKEBOX PRICE: $200 HOLDS 8000 SONGS 2.5¢ PER SONG 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Effect of the Internet • Everything is digital – – – – Text, Music Photographs Movies, Video Animation • Broadband carries huge amounts of copyrighted content into homes and office • High-speed wireless brings more content • National borders are meaningless 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Napster A A searches F -- A downloads F -- B shares F B Napster -- Napster B HAS FILE F F IS OFTEN DIGITAL MUSIC B IS WILLING TO “SHARE” THE FILE A HAS FILES TO SHARE ALSO A B F SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Napster A A searches F -- A downloads F -- B shares F B Napster -- Napster File index A B A & B JOIN NAPSTER A & B TELL NAPSTER ABOUT THEIR FILES NAPSTER MAINTAINS INDEXES F SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Napster A A searches F -- A downloads F -- B shares F B Napster -- Napster A ASKS NAPSTER: WHO HAS FILE F? Where is F? A B F SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Napster A A searches F -- A downloads F -- B shares F B Napster -- Napster NAPSTER SAYS B HAS FILE F Where is F? B has F A B F SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Napster A A searches F -- A downloads F -- B shares F B Napster -- Napster A ASKS B TO SEND FILE F Where is F? B has F A Get F F B F SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS A&M Records, Inc. v. Napster, Inc., 114 F.Supp.2d 896 (N.D. Cal. 2000) aff’d 239 F.3d 1004 (9th Cir. 2001), aff’d after remand, 284 F.3d 1091 (9th Cir. 2002) • Napster distributed file-sharing software and maintained an index of MP3 music available on various PCs • Music files were not stored on Napster servers • Napster knew that large-scale distribution of copyrighted songs was taking place • Napster never copied or distributed one song • Napster is useful for many legal purposes • A&M Records wanted an injunction • Held, Napster users engage in direct copyright infringement • Held, Napster is a contributory infringer. Injunction granted 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS UMG Recordings, Inc. v. MP3.com, Inc., 92 F.Supp.2d 349 (S.D.N.Y. 2000) • MP3.com maintained a database of MP3s of copyrighted music constructed from tens of thousands of CDs • Subscribers could access the MP3s from anywhere in the world over the net but first: – Had to prove they already owned the CD by insterting it into their CD reader for a few seconds; or – Had to buy the CD from an MP3.com affiliate • UMG, a copyright owner, sued for infringement • MP3.com argued fair use. No charge for subscriptions; users already owned the CDs • “The complex marvels of cyberspatial communication may create difficult legal issues; but not in this case. Defendant's infringement of plaintiff's copyrights is clear.” 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS KaZaa A S2 S1 A searches F -- A downloads F -- B shares F B F B S1 S2 -- BASED ON “SUPERNODES” SUPERNODES HAVE HIGH BANDWIDTH ANYONE CAN BE A SUPERNODE SUPERNODES ARE NOT CONTROLLED BY KAZAA A SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS KaZaa A S2 S1 -- A downloads F -- B shares F B F A A searches F B S1 S2 -- A & B DOWNLOAD KaZaa SOFTWARE A SENDS ITS SUPERNODE HASHED FILENAMES B SENDS ITS SUPERNODE HASHED FILENAMES SUPERNODES DO NOT KNOW ACTUAL FILENAMES SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS KaZaa A S2 S1 A searches F -- A downloads F -- B shares F B B S1 S2 -- A ASKS ITS SUPERNODE: WHO HAS F? F QUERY A SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS KaZaa A S2 S1 A searches F -- A downloads F -- B shares F B F B S1 S2 -- S1 DOESN’T KNOW S1 ASKS ITS NEIGHBORS QUERY A SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS KaZaa A S2 A searches F -- A downloads F -- B shares F B S1 S2 -- QUERY HIT: B has F S1 B F S2 FINDS F IN ITS INDEX S2 RETURNS THE INFORMATION: B HAS F A SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS KaZaa A S2 A searches F -- A downloads F -- B shares F B S1 S2 -- QUERY HIT: B has F S1 B S1 TELLS A: “B HAS F” F A SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS KaZaa A S2 S1 -- A downloads F -- B shares F B GET F A searches F B S1 S2 -- A ASKS B TO SEND F F A SOURCE: MICHAL FELDMAN 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Pollstar, Inc. v. Gigmania, 170 F. Supp. 2d 974 (E.D. Cal. 2000) • • • • Pollstar is an online index of concerts Gigmania copied the Pollstar content onto its own site Pollstar sued for copyright infringement (& other claims) Gigmania cited Feist, claiming the concert listings have no originality • Pollstar said concert listings are not like the white pages. They have time value from being up-to-date • No court has yet held that such information is protectible. Idea: time value does not make originality • [Gigmania was caught by deliberate false information posted on Pollstar] 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Digital Millennium Copyright Act • Copyright Act amendments passed in 1998: – Circumvention of copy protection mechanisms – Copyright Management Information (CMI) – Limited Liability of Online Service Providers (OSPs) • Penalty: – First offense: $500K + 5 yrs. – Second offense: $1M + 10 yrs. 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Liability of Service Providers • Service provider: “an entity offering the transmission, routing, or providing of connections for digital online communications, between or among points specified by a user, of material of the user's choosing, without modification to the content of the material as sent or received.” • Allows: – Transitory digital network communications – System caching – Information residing on systems at the direction of users 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Liability of Service Providers • Information residing on systems at the direction of users. SP has no liability if: – No knowledge of infringement – No knowledge of facts from which infringement is apparent – After obtaining knowledge, acts expeditiously to remove infringing content – Does not receive direct financial benefit from the infringement – Has designated an agent to receive notification of infringement • Take-down provision – No liability for removing material claimed to be infringing 17 U.S.C. §512 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Liability of Service Providers • Information location tools. SP has no liability for “referring or linking users to an online location containing infringing material or infringing activity, by using information location tools, including a directory, index, reference, pointer, or hypertext link” under same conditions as on previous slide • Subpoena to identify infringer – “A copyright owner ... may request the clerk of any United States district court to issue a subpoena to a service provider for identification of an alleged infringer.” 17 U.S.C. §512 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Kelly v. Arriba Soft Corp., 114 F.Supp.2d 1116 (C.D. Cal. 1999), aff’d in part, reversed in part, remanded 280 F.3d 934 (9th Cir. 2002) • Arriba Soft ran a search engine that displayed images obtained by spidering the web. It downloaded full-size images, reduced them to small thumbnails, then discarded full-size. (See, e.g., Google.) • Users could search for images; Arriba would display thumbnails • Clicking a thumbnail would access the original web page but display only the image • Kelly had copyrighted photos on his website; 35 appeared on Arriba • “Copyright management information” was on Kelly’s site but was not displayed by Arriba • Kelly sued for copyright infringement & violation of the DMCA • District court held for Kelly; Arriba appealed • Held, no copyright infringement for the thumbnails • Reversed, as to infringement of the public display right for the fullsized images 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Copyright Protection Circumvention • Applies to devices that – are primarily designed or produced for circumventing; – have only a limited commercially significant purpose or use other than to circumvent; – or are marketed for use in circumventing • Exceptions – – – – – Reverse engineering Law enforcement Encryption research Protection of minors Protection of personally identifying information 17 U.S.C. §1201 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS The DeCSS Cases • Hollywood movies are issued on DVD in encrypted form using a system called CSS (Content Scrambling System) • Movies can only be played on “authorized” players (ones licensed to use CSS. Authorized players cannot copy DVDs • A teenager in Norway (Jon Johansen) figured out how to decrypt DVDs. He created a program called DeCSS that makes unencrypted disk files from DVDs • The unencrypted files can be compressed using a pirated MPEG codec known as DivX, exchanged over the Internet and played without a DVD player • Eric Corley, a New York journalist, posted the source code for DeCSS on his website, 2600.com and linked to a download site giving an executable program and decryption instructions • The movie industry sued Corley in Federal Court (Southern District of New York) under the Digital Millennium Copyright Act (first court test of the anticircumvention provisions) 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS DeCSS Issues • Is DeCSS a “circumvention device”? • Does Corley have a First Amendment right (free speech) to post DeCSS code • Is Corley a contributory infringer of copyright by providing DeCSS? • Is linking to a copy of the code different from posting the code? • Every computer program is a number. Does this make printing the number corresponding to DeCSS illegal? • Does restricting dissemination of computer source code inhibit scientific research? See David Touretzky’s site. DO NOT download or run DeCSS. 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Universal City Studios et al. v. Reimerdes 111 F.Supp.2d 194 (S.D.N.Y. 2000) aff’d 273 F.3d 429 (2nd Cir. 2001) • • • • • HELD, DMCA is not unconstitutional DeCSS is a circumvention device Corley is liable for violations of the DMCA Corley is enjoined from posting DeCSS Corley may not link to sites where DeCSS is available 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Copy Protection • Prevent copying in the first place – Copy protection systems – Secure browsers • Make sure it’s paid for – IP rights management systems • Detect copying – Digital watermarking – Cybersurveillance 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Digital Watermarks + Watermark Original image 45-848 ECOMMERCE LEGAL ENVIRONMENT Watermarked image SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Digital Watermarks Most transformations do not affect or obliterate a spread-spectrum watermark A big user: Corbis 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Cybersurveillance Countermeasure: When Cyveillance visits your site, deliver sanitized pages! 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 SOURCE: CYVEILLANCE COPYRIGHT © 2004 MICHAEL I. SHAMOS Why Digital Rights Management Must Fail • All senses are analog • Media and the Internet are digital • Copy protection systems ultimately fail because – Recording medium is digital – Must be converted to analog for human sensation – The analog signal can be copied and re-digitized • (Fails to stop piracy; succeeds at generating revenue) 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS International Copyright • Fundamental rule: “national treatment” • Countries that have signed an international convention (e.g. International Copyright Convention, Berne Convention) • Treat foreigners as their own nationals for copyright purposes • Problem: cost of enforcement, differing rights • World Intellectual Property Organization 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS International Law • Example: European law recognizes “moral rights” of authors: – right of integrity (protects against mutilation or destruction) – right of attribution (“paternité” - right to be given credit for one's work, and avoid credit for a work one did not create) – right of withdrawal (“retrait” - authority to remove one's works from public circulation) – droit de suite (the right to collect resale royalties) 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Major Ideas • The Internet has brought down the value of works • The cost and ease of copying makes protection of IP more difficult • Instrumentation of the Internet makes it easier to detect violators • File-sharing is a huge risk to content owners because it is distributed and difficult to stop • Alternative: fair pricing of digital content, easy micropayment collection methods 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS Q&A 45-848 ECOMMERCE LEGAL ENVIRONMENT SPRING 2004 COPYRIGHT © 2004 MICHAEL I. SHAMOS