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eBay Beats DMCA

pgrote writes "eBay won a court battle that brought to light a key provision of the DCMA. The judge says, "Although it may facilitate the sale of pirated material, "eBay does not have the right and ability to control such activity," a standard required by the Digital Millennium Copyright Act, the judge wrote." So does that mean that the P2P file trading programs are legal since the pirating occurs off the sites? This is could be a very important precedent. " In talking to some lawyer friends, their perspective on part of the Napster case was that by being very difficult in the beginning, Napster almost doomed itself. But, as always, IANAL ? .

25 of 179 comments (clear)

  1. This might mean something... by Dimensio · · Score: 4, Interesting

    This probably wouldn't have any effect on P2P programs themselves, as the courts would have to decide whether the intent of such software was to deliberately facilitate copyright infringement, but this could take the heat off of ISPs and give them more leeway when they are told by someone (like, say, the MPAA) that a user is sending pirated software through their service. Remember the salon.com story about a person accused of copyright infringement on USENET whose access was immedeately suspended while they were on vacation, no investigation necessary? ISPs may now have more freedom to say 'prove it' when the MPAA, RIAA or another such organization comes knocking.

    1. Re:This might mean something... by dragons_flight · · Score: 5, Informative

      I do remember that story and since then I've done a little foot work to see what the deal is.

      Looking to the DMCA itself, what happens when infringement is suspected? Well copyright holders (or more typically their lawyers), can send a letter to your ISP (or other network provider) and they then cut off your service or risk being sued. Actually if you look at the wording in the DMCA, it appears that the intent was that action be taken only if you are actively infringing on copyrights, such as hosting files on a website, at the time of the receipt of the copyright holder's letter (amended section 512 of the Copyright Act). One problem is that the limitations on damages appear to allow an ISP to cut off all service whenever a notice is received without any repercussions and regardless of any actual infringement (Section 512(g)(1)). A second problem is that even if you aren't infringing at the moment, the fact that someone said you were might be enough to negate the ISP's protection should you infringe in the future (see Section 512(c)).

      The DMCA does explicitly allow you recourse however. Pursuant to Section 512(g)(3) you can file a counter notice with the ISP and they have to restore your access within 14 days unless the copyright holder files for a court order against you. I don't know how this will intersect with the notion of arbitrary service termination in many license agreements, however. Furthermore, if you prove in court that you did not commit the act of which you are accused then the accuser may be subject to paying monetary losses, punitive damages and legal costs.

      IANAL, but I am a concerned citizen (IAACC, anyone?)

    2. Re:This might mean something... by CaptJay · · Score: 5, Interesting
      The DMCA does explicitly allow you recourse however. Pursuant to Section 512(g)(3) you can file a counter notice with the ISP and they have to restore your access within 14 days unless the copyright holder files for a court order against you.

      The problem, of course, being that you have still suffered an interruption of a service you pay for, because some copyright owner said you were doing illegal things. The source of the problem is that the law asserts good faith from the copyright holders, and relies on them to not make any errors. When an error *does* occur, then the customer ends up being branded a criminal without having any kind of chance to challenge this verdict BEFORE his access is terminated.

      Presumption of innocence does not work for companies, and the DMCA seems to openly take advantage of that fact to try to scare people who might want to violate copyrights: "We need proof to send you to jail, but we don't need any to cut your internet access..."

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    3. Re:This might mean something... by dragons_flight · · Score: 3, Insightful

      Maybe it's just your wording here, but if this is the case, I'd be very scared... you shouldn't have to prove that you're "not guilty", they should have to prove that you ARE guilty.

      Perhaps it is sloppy wording on my part. The most relevant section (512(f)) makes no reference to burden of proof, so I would assume that standard principles still apply. Again IANAL, but it would seem to me that if you contest their claim of infringement then the burden lies with the accuser. However to recieve full punitive damages (above and beyond monetary losses and court costs), requires the accuser "knowingly materially misrepresents", which might require you to prove something about the accuser. I'm not sure.

      In any case I am pretty sure that typical rules regarding court evidence and proof still apply. Sorry for any confusion.

  2. Next Step by Fat+Casper · · Score: 5, Insightful
    Now what we need is for the Bush administration to order the Justice Department not to enforce the DMCA. The're already dropping useful judgements, maybe now they can do something useful themselves.

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    1. Re:Next Step by osgeek · · Score: 4, Informative

      Unfortunately, they're only going to drop judgments where the ruling is not in favor of big companies making money

      To be fair (something you don't see on /. very often), we're talking about the entertainment industry here. If any party has sold its soul to them for campaign contributions lately, it's been the Democrats. The Clintons basically rented out the Lincoln Bedroom for every big star and producer in Hollywood in exchange for a few bucks.

      Perhaps the Bush administration will deal the entertainment industry a blow for being such loyal Democrats and cripple their revenues by taking the teeth out of the DMCA. :)

  3. We need more court cases like this. by mblase · · Score: 5, Insightful

    EBay asked Hendrickson to submit a sworn, written statement detailing his claim through its Verified Rights Owner Program, which lets copyright holders request that eBay remove an infringing item. Hendrickson refused, saying his general complaints should have been good enough.

    I love that part. EBay suggested he go through their standard procedure for filing copyright complaints, which (I believe) has worked for others in the past. He refused, snobbily. He brought a legal case, and he lost.

    Good for him. If he'd done things the acceptable way instead of trying to let lawyers solve his problem, he'd probably have the problem solved already. America needs more lessons like this.

    1. Re:We need more court cases like this. by osgeek · · Score: 4, Interesting

      If he'd done things the acceptable way instead of trying to let lawyers solve his problem, he'd probably have the problem solved already. America needs more lessons like this.

      Hear hear. The problem is that the US has so many damned lawyers, and our law schools are churning out tons more all the time. A few years back, the statistic I heard was that the US has 5% of the world's population, but 75% of the world's lawyers. Makes me wake up in a cold sweat in the middle of the night.

      The problem with churning out all these lawyers is that the law is a self-germinating profession. For example, what happens if you have too many house painters in an area? Well, prices go down, service levels probably go up, and some of those painters have to diversify or move into other fields to make a living. Like most professions, an over-abundance of practitioners yields negative pressure for an increase of practitioners.

      What happens when you have too many lawyers in an area? Well, they just start taking on more frivolous cases and filing more suits, which does what? Creates work for opposing lawyers, which actually increases the demand for lawyers! They clog our legal system with crap like a credit card company clogs your email box with spam.

      Worse yet, having lost most of their senses of morality and ethics plying the legal trade, these bastards are the first ones likely to go into politics. That's where they really start creating extra opportunities for their fellow attorneys.

      Lawyers are pure evil. Oppose the sharks that are the Association of Trial Lawyers of America, and any politicians in their back pockets. They make the RIAA and the MPAA look like a bunch of guppies by comparison.

  4. Makes sense... by gamgee5273 · · Score: 4, Insightful
    I think the question of whether Napster or other P2P systems are legal is clearer after this ruling.

    Think about it: If I provide you with a hammer with the purpose of you using it as a device to pound nails into wood, etc., I really don't expect to be sued if you use it to bash in a guy's head down the street. eBay wasn't created to facilitate the transfer of illegal copies of materials, though some might use it for such.

    The question the courts should be asking is: did the system - let's say Napster - purposfully come about to circumvent legal aquisition of music? If I sold you the hammer with the purpose of selling you an offensive weapon, I should expect to be a party to the demise of the former human on the sidewalk.

    So, Legal Eagles, were Napster, Gnutella, etc. created as P2P systems that were "turned evil," or were they "evil" from the get-go? Therein lies the answer, I think.

  5. Import games by slim · · Score: 5, Interesting

    Does this mean they can start allowing import games to be sold? I've bid on a number of Japanese import Dreamcast and Saturn games, where the auction has subsequently been pulled. Turns out that Sega demanded that eBay pull any such auctions, suggesting that they "promote piracy", although afaik there is no law prohibiting the resale of import games.

    1. Re:Import games by Rogerborg · · Score: 4, Informative
      • Does this mean they can start allowing import games to be sold

      Read the article. The only thing tested here was eBay's takedown procedure, which the complainant arrogantly refused to follow. This ruling sets no precedents, not changes the situation one bit.

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  6. Try Catching the REAL criminals by Thnurg · · Score: 4, Insightful

    Making unauthorised copies of a copyrighted work is illegal. That's fair do's, and a deal that I accept as right. However, it has become difficult to enforce.
    It's almost impossible to catch and prosecute people who make copies of CDs for their friends, and other such illegal acts.
    As a result, lawmakers and "content" providers fall over themselves making up daft laws and policies in order to combat the problem.
    Instead of targetting eBay, and firing the DMCA at them (which is itself a circumvention device - it enables the law to circumvent going after the REAL criminals, and instead sends them after those who attempt to enrich society) would it not make more sense to hang around eBay for a while, bid on unauthorised material (I REFUSE to use the word Pirated), offer to pay by cheque, and then send the heavy mob round to the address, thus catching the real criminal?
    Surely if such tactics could be used instead of lazily hiding behind the DMCA we wouldn't need such daft laws in the first place, and the REAL criminals would be in jail, instead of an innocent Russian hacker.

    --
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  7. Re:This really means little... by Rogerborg · · Score: 5, Informative
    • more importantly is that the judge threw out this case

    You must be reading a different article, because the one linked to talks about a "ruling". The "dismissal" mentioned is a sloppy non-legal refernece to the request for damages, not of the case itself.

    Hint to moderators: read the referenecs before moderating comments "insightful" or "informative".

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  8. Re:eBay is and old idea on new Tech, not so with N by Rogerborg · · Score: 4, Informative
    • The reason the judge ruled this way in this case [...] is simple: eBay is online auctions, and auctions have been around foreve

    Utter twaddle. Read the article. The reason for the loss was that it was an ill advised suit. The complainant refused to comply with eBay's take-down procedure, launched straight into an arrogant lawsuit, and got (rightly) reamed for it.

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  9. E-bay auction item #857329457: DMCA licence by hardaker · · Score: 4, Troll

    I say we put the DMCA up for auction on E-Bay as a "revenue protecting licence agreement text suitable for governments funded by large buisnesses". How much do you think it would go for?

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  10. Fork in the Road by pagsz · · Score: 3, Insightful

    While this victory by eBay is an important one, only time will tell why. Hopefully, it will help copyright law and enforcement get back to a more reasonable path. But, it could have the opposite effect. The MPAA and RIAA may donate some money to some influential congressmen (read: bribe) and add some more quasi-constitutional teeth to the monster known as the DMCA (God that sounds corny).

    Just waking up and still a bit cranky,

    --
    -- If any of the above made sense, I assure it was purely by accident.
  11. Re:eBay is and old idea on new Tech, not so with N by Zeinfeld · · Score: 3, Informative
    On the other hand, Napster, P2P, and mp3's are all relatively new technologies that judges don't know the first thing about, and are not comfortable with at all

    Untrue, Patel knew precisely what Napster was about, it had no real purpose other than copyright infringement and its creators had no intention of discouraging piracy. No amount of /. sophistry changes that.

    eBay on the other hand has a real purpose that does not depend on infringing others copyrights and had established a takedown proceedure that was clearly in good faith.

    The ratio of infringing content to non-infringing on Napster was at least 20:1. The ratio of infringing to non-infringing on eBay is no more than 1:2000.

    In this case the chump refused to submit a sworn statement to state that the material was infringing so the court threw out the case. The courts are entitled to consider whether the parties are acting in good faith and protect a good faith party from an unjustified lawsuit.

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  12. Re:And the monsters recoil in fear... by Steve+B · · Score: 4, Insightful
    EBay asked Hendrickson to submit a sworn, written statement Hendrickson refused, saying his general complaints should have been good enough.


    Translation: I can't go to jail for perjury if I lie when making "general complaints".

    --
    /. If the government wants us to respect the law, it should set a better example.
  13. eBay won because by Omnifarious · · Score: 5, Insightful

    eBay won because they were big, established, and profitable. They also had clear non-infringing uses of their service established.

    Napster was percieved as an upstart pirate of a company, and that's why they lost.

    I don't think it has a great deal to do with the letter of the law here, but how the companies were percieved by the respective judges.

  14. Re:This really means little... by bwt · · Score: 5, Interesting

    EBay provides auctions, not internet service, so they are an "ASP", not an "ISP".

    When a judge dismisses a case, they do so based on legal reasoning that does set a precedent. This can come in one of two forms. A case can be dismissed for failure to state a claim for which the court has the power to provide a remedy, or it can be concluded on "summary judgement" which means that there were no disputed material facts requiring a trial so that the question is one of pure law. Both types of order are usually supported with a written opinion.

    I cannot tell which actually occured and the article doesn't link to the opinion.

  15. It just occured to me... by A_Non_Moose · · Score: 4, Insightful

    (standard disclaimer, IANAL, etc).
    What all of these cases seem to come down to is *intent*. These are IMO, but consider:

    2600's intent was to play DVD's on linux and, possibly, allow for unrestricted viewing/skipping commercials, re-establish fair use.
    (the fact the judge of the case was in the employ of the MPAA *was* a conflict of interest, despite the judge saying it was not.)

    Dmitry's (and his company, I think) was the same...the intent was fair use, letting blind people have access to ebooks, restoring ones rights should the computer mess up (god knows that *never* happens) and allowing the same rights printed media has
    over electronic media...you have no rights to something you PAID for...excuse me?

    Felten's purpose was academic research, that was stifeld because of the DMCA.
    The intent was to teach his students (and others). The *intent* was education...hell, you can teach someone chemistry, from there they could make medicine, bombs, nerve gas.

    Whoever coined the phrase Digital Crowbar was correct...but it is the DMCA that is the crowbar, I'm afraid. (Digital Millineum Crowbar Assault?)
    People who don't see that are missing the point entirely.
    The Digital Crowbar referrence was to DeCSS, but this is incorrect, it is being used to bludgeon to death the rights of the consumer, the educator, the hacker the innovator or even the curious, and yes, even the business and individual.

    Moose.

    The problem with being esoteric is not that people are "beneath you" it is that your *thinking/reasoning* is so far above everyone else's. (think about it)

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  16. So this doesen't affect the "Takedown" proc? by dschuetz · · Score: 3, Interesting

    Damn. I was really hoping they could throw out the whole takedown procedure in the first place. Or does the ruling indemnify E-Bay from any liability at all, allowing them to throw away the procedure?

    I'm reminded of the posting here a week or two ago from someone who couldn't sell a personal copy of NT, CD and License, 'cause Microsoft kept complaining....

  17. Double standards by RogueAngel7 · · Score: 4, Insightful

    "The judge agreed with eBay's position that it is not like a real-world auctioneer that vouches for the items on sale, but rather more like a provider of the stalls at a flea market."

    how is it that the digital "flea market" owner isn't libal for renting a stall to person selling pirated material, but 2600 magazine is libal for linking to site that provides DeCSS code fragments? another example of the double standard that will bring the DMCA crashing down eventually.

    --
    "Consistency is the hobgoblin of small minds" - RWE
  18. Re:An opposing view on lawyers by osgeek · · Score: 3, Informative

    Lawyers are the closest thing we have to a conscience in this country; without them, big government and big corporations would run roughshod over us.

    And how would they do such a thing? With Lawyers! You think it's not "big government's" lawyers with their no holds barred attitudes pursuing Skylarov? It's certainly not a compromising attitude filled with compassion and a desire to settle the issue without litigation.

    Lawyers are our conscience? Wow, are those just words, or what? At best, lawyers are a necessary evil in our society. Typically, though, they're a morass of sharks, eager to create more work for themselves by filing suits and pushing for legislation that gives them more opportunities to file suits.

    Unlike journalists, lawyers are held to a code of ethics and when they violate it, they can lose their butts.

    More bullshit. They're held accountable by the American Bar Association, their own brethren. That's like saying that the Direct Marketing Association holds its members accountable for spamming.

    let's remember that they're human beings

    So was Timothy McVeigh. What's your point?

    As I said before, at best, lawyers are a necessary evil in our society, like hydrogen bombs. As with hydrogen bombs, ways should be sought to minimize their use in our country. Instead, the foxes are running the chicken coop in Washington, turning out as much legalistic soup as they can to keep us all dependent upon them.

  19. We should have no sympathy... by l1gunman · · Score: 3, Interesting
    for Mr. Hendrickson. eBay has a simple, easy to follow mechanism for removing "infringing" material, which he REFUSED to follow. Even in a court of law, he must AFFIRM that the material was his. This is all eBay asked him to do, and he refused, choosing instead to take his chances in court. Boo-hoo if he lost.

    I had a similar, if far more trivial, case. I posted an auction with a digital picture of the item being offered. Another seller "stole" my picture (and most of my clever auction listing text) to use in his own auction of an identical item. It was obvious that the image was the same (it was shot on my desk) and the words were clear plagiarism.

    A few notes exchanged with eBay, along with an "affirmation" that I took the image with my own digital imaging device, and the offending auction listing was history. It eventually re-appeared, with a poor(er) quality picture and revamped words, but my point had been made.

    Too bad for Mr. Hendrickson that he didn't comply with such an oh-so-simple request. It worked for me...