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Advanced Copyright Issues on the Internet

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Advanced Copyright Issues on the Internet ADVANCED COPYRIGHT ISSUES ON THE INTERNET * David L. Hayes, Esq. FENWICK & WEST LLP * Chairman of Intellectual Property Practice Group, Fenwick & West LLP, Mountain View & San Francisco, California. B.S.E.E. (Summa Cum Laude), Rice University (1978); M.S.E.E., Stanford University (1980); J.D. (Cum Laude), Harvard Law School (1984). An earlier version of this paper appeared in David L. Hayes, “Advanced Copyright Issues on the Internet,” 7 Tex. Intell. Prop. L.J. 1 (Fall 1998). The author expresses appreciation to Matthew Becker for significant contributions to Section III.E (“Streaming and Downloading”). © 1997-2013 David L. Hayes. All Rights Reserved. (Updated as of June 2013) TABLE OF CONTENTS I. INTRODUCTION 14 II. RIGHTS IMPLICATED BY TRANSMISSION AND USE OF WORKS ON THE INTERNET 15 A. The Right of Reproduction 15 1. The Ubiquitous Nature of “Copies” on the Internet 16 2. Whether Images of Data Stored in RAM Qualify as “Copies” 16 3. The WIPO Treaties & the European Copyright Directive Are Unclear With Respect to Interim “Copies” 23 (a) Introduction to the WIPO Treaties & the European Copyright Directive 23 (b) The WIPO Copyright Treaty 25 (c) The WIPO Performances and Phonograms Treaty 28 4. The Requirement of Volition for Direct Liability 30 (a) The Netcom Case 31 (b) The MAPHIA Case 33 (c) The Sabella Case 34 (d) The Frena Case 35 (e) The Webbworld Case 36 (f) The Sanfilippo Case 37 (g) The Free Republic Case 38 (h) The MP3.com Cases 40 (i) The CoStar Case 43 (j) The Ellison Case 44 (k) Perfect 10 v. Cybernet Ventures 44 (l) Field v. Google 45 (m) Parker v. Google 46 (n) The Cablevision Case 46 (o) Arista Records v. Usenet.com 49 (p) Quantum Systems v. Sprint Nextel 50 (q) Disney Enterprises v. Hotfile 51 (r) Perfect 10 v. Megaupload 52 (s) Wolk v. Kodak Imaging Network 53 (t) Fox Broadcasting v. Dish Network 53 (u) Perfect 10 v. Giganews 57 (v) Summary of Case Law 59 5. The Reproduction Right Under WIPO Implementing Legislation 60 (a) United States Legislation 60 (1) The Digital Millennium Copyright Act 60 (2) Legislation Not Adopted 60 (b) The European Copyright Directive 62 6. Peer-to-Peer File Sharing 67 - 2 - (a) BMG Music v. Gonzalez 67 (b) Columbia Pictures v. Bunnell 68 (c) Sony BMG Music Entertainment v. Tenenbaum 68 (d) Capitol Records v. Thomas-Rasset 73 7. The Immunity of the Audio Home Recording Act (AHRA) 76 (a) The Napster Cases 76 (b) The Aimster Case 77 (c) Atlantic Recording Corp. v. XM Satellite Radio 77 B. The Right of Public Performance 80 1. Isochronous Versus Asynchronous Transmissions 81 2. The Meaning of “Publicly” 82 3. Live Nation Motor Sports v. Davis 82 4. United States v. ASCAP 83 5. The Cablevision Case 85 6. Ringtones – In re Application of Cellco Partnership 86 7. Warner Bros. v. WTV Systems 88 8. Capitol Records v. MP3tunes 91 9. The Aereo Case 91 10. The BarryDriller Case 99 C. The Right of Public Display 101 1. The Frena, Marobie-FL, Hardenburgh and Webbworld Cases 101 2. Kelly v. Arriba Soft 103 3. Ticketmaster v. Tickets.com 106 4. Perfect 10 v. Google (aka Perfect 10 v. Amazon) 107 5. Healthcare Advocates, Inc. v. Harding, Earley, Follmer & Frailey 119 6. ICG-Internet Commerce Group, Inc. v. Wolf 120 D. The Right of Public Distribution 120 1. The Requirement of a “Copy” 120 (a) Cases Addressing Whether Mere Posting Is a Distribution 121 (1) Cases Holding That Mere Posting Is a Distribution 122 (2) Cases Holding That Mere Posting Is Not a Distribution 126 (3) Cases Refusing To Decide the Issue 135 2. The Requirement of a “Public” Distribution 135 3. The Requirement of a Rental or Transfer of Ownership 136 4. The Right of Distribution Under the WIPO Treaties 137 5. The Right of Distribution Under WIPO Implementing Legislation 138 (a) United States Legislation 138 (b) The European Copyright Directive 138 E. The Right of Importation 138 F. The New Right of Transmission and Access Under the WIPO Treaties 139 1. The Right of Communication to the Public in the WIPO Copyright Treaty 140 2. The Right of Making Available to the Public in the WIPO Performances and Phonograms Treaty 142 - 3 - 3. The Right of Transmission and Access Under WIPO Implementing Legislation 143 (a) United States Legislation 143 (b) The European Copyright Directive 144 G. New Rights and Provisions Under The Digital Millennium Copyright Act, the European Copyright Directive & Legislation That Did Not Pass 146 1. Circumvention of Technological Measures and Rights Management Information Under the DMCA 146 (a) Circumvention of Technological Protection Measures 147 (1) Prohibition on Conduct 147 (i) Exemptions Adopted by the Librarian of Congress 148 a. Scope of the Network Connection Exemption – The TracFone Cases 158 (ii) Epic Games v. Altmeyer 161 (iii) Facebook v. Power Ventures 161 (iv) Bose v. Zavala 162 (v) MGE UPS Systems v. GE 162 (vi) Granger v. One Call Lender Services 163 (2) Prohibition on Devices 163 (i) Sony Computer Entertainment America v. Gamemasters 164 (ii) The DirecTV Cases 165 a. DirecTV, Inc. v. Borow 165 b. DirecTV, Inc. v. Carrillo 165 (iii) Sony Computer Entertainment America v. Divineo 165 (iv) Ticketmaster L.L.C. v. RMG Technologies, Inc. 167 (v) The Tracfone Cases 167 (vi) Movida Communications, Inc. v. Haifa 168 (vii) Microsoft Corp. v. EEE Business Inc. 168 (viii) MDY Industries v. Blizzard Entertainment 169 (ix) Coupons, Inc. v. Stottlemire 174 (x) CoxCom, Inc. v. Chafee 175 (xi) The DISH Network Cases 175 a. Dish Network v. Sonicview 175 b. Dish Network v. SatFTA 176 c. Dish Network v. Dimarco 176 d. Dish Network v. Sonicview 177 e. Dish Network v. Alejandri 178 (xii) Realnetworks v. DVD Copy Control Association. 179 (xiii) Apple v. Psystar 180 (xiv) Blizzard Entertainment v. Reeves 183 (xv) The Craigslist Cases 183 a. Craigslist v. Naturemarket 183 b. Craigslist v. Mesiab 184 c. Craigslist v. Hubert 185 d. Craigslist v. Branley 185 - 4 - e. Craigslist v. Kerbel 185 (xvi) Echostar v. Viewtech 186 (xvii) Adobe Systems v. Feather 186 (3) What Constitutes an Effective Technological Measure 187 (i) Auto Inspection Services v. Flint Auto Auction 187 (ii) Healthcare Advocates, Inc. v. Harding, Earley, Follmer & Frailey 187 (iii) Apple v. Psystar 190 (4) No Requirements With Respect to Design of a Product 190 (5) Other Rights Not Affected 190 (6) Exemption for Nonprofit Organizations and Law Enforcement 191 (7) Reverse Engineering for Interoperability 192 (i) Universal City Studios Inc. v. Reimerdes 197 (ii) Storage Technology Corporation v. Custom Hardware Engineering & Consulting 198 (iii) Chamberlain Group, Inc. v. Skylink Technologies, Inc. 198 (iv) Lexmark International, Inc. v. Static Control Components, Inc. 199 (v) Davidson Assocs. v. Internet Gateway 199 (vi) Sony Computer Entertainment America v. Divineo 203 (8) Encryption Research 203 (9) Protection of Minors 204 (10) Protection of Personally Identifying Information 204 (11) Security Testing 204 (12) Copy Restrictions To Be Built Into VCRs and Camcorders 204 (13) Other Cases Filed Under the Anti-Circumvention Provisions 205 (i) Sony Computer Entertainment, Inc. v. Connectix, Inc. 205 (ii) RealNetworks, Inc. v. Streambox Inc. 206 (iii) Universal City Studios, Inc. v. Reimerdes 210 (iv) A Related DVD Case Involving Trade Secret Claims – DVD Copy Control Association, Inc. v. McLaughlin (the Bunner case) 215 (v) A Related DVD Case – Norwegian Prosecution of Jon Johansen 219 (vi) Another Challenge to the DMCA – The Felten Case. 219 (vii) Pearl Investments, LLC v. Standard I/O, Inc. 220 (viii) 321 Studios v. Metro Goldwyn Mayer Studios, Inc. 221 (ix) I.M.S. Inquiry Management Systems, Ltd. v. Berkshire Information Systems, Inc. 222 (x) Paramount Pictures Corp. v. 321 Studios. 223 (xi) Macrovision Corp. v. 321 Studios 223 (xii) Comcast of Illinois X v. Hightech Electronics, Inc. 223 (xiii) Davidson & Assocs. v. Internet Gateway 224 (xiv) Agfa Monotype Corp. v. Adobe Sys. 224 (xv) Egilman v. Keller & Heckman 227 - 5 - (xvi) Macrovision v. Sima Products Corp. 227 (xvii) Nordstrom Consulting, Inc. v. M&S Technologies, Inc. 228 (xviii) R.C. Olmstead v. CU Interface 229 (xix) Avaya v. Telecom Labs 229 (xx) Actuate v. IBM 230 (xxi) Navistar v. New Baltimore Garage 231 (xxii) Dice Corp. v. Bold Technologies 231 (14) Criminal Prosecutions Under the DMCA 232 (i) The Sklyarov/Elcomsoft Case 232 (ii) Other Criminal Prosecutions Under the DMCA 233 (15) Other Uses of the Anti-Circumvention Provisions as a Sword 234 (i) Lexmark International, Inc. v. Static Control Components, Inc. 234 (ii) Chamberlain Group, Inc. v. Skylink Technologies, Inc. 240 (iii) In re Certain Universal Transmitters for Garage Door Openers 246 (iv) Storage Technology Corporation v. Custom Hardware Engineering & Consulting 247 (b) Integrity of Copyright Management Information 252 (1) Definition of CMI 252 (i) Cases Requiring CMI to be Part of a Technological System or Process 252 a. The IQ Group, Ltd. v. Wiesner Publishing, LLC 252 b. Textile Secrets Int’l, Inc. v. Ya-Ya Brand Inc. 255 c. Jacobsen v. Katzer 256 d. Silver v. Lavadeira 257 (ii) Cases Not Requiring CMI to be Part of a Technological System or Process 257 a. McClatchey v. The Associated Press 257 b. Associated Press v. All Headline News Corp. 258 c. Fox v. Hildebrand 258 d. Faulkner Press v. Class Notes 259 e. Agence France Presse v. Morel 259 f. Murphy v. Millennium Radio 261 g. William Wade Waller Co. v. Nexstar Broadcasting 262 (2) Prohibitions on False CMI and Removal/Alteration of CMI 263 (i) Cases re Removal or Alteration of CMI 263 a. Kelly v. Arriba Soft Corp. 263 b. Thron v. Harper Collins Publishers 264 c.
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