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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). © 1997-2010 David L. Hayes. All Rights Reserved. (Updated as of Oct. 2010) TABLE OF CONTENTS I. INTRODUCTION 12 II. RIGHTS IMPLICATED BY TRANSMISSION AND USE OF WORKS ON THE INTERNET 13 A. The Right of Reproduction 14 1. The Ubiquitous Nature of “Copies” on the Internet 14 2. Whether Images of Data Stored in RAM Qualify as “Copies” 15 3. The WIPO Treaties & the European Copyright Directive Are Unclear With Respect to Interim “Copies” 21 (a) Introduction to the WIPO Treaties & the European Copyright Directive 21 (b) The WIPO Copyright Treaty 23 (c) The WIPO Performances and Phonograms Treaty 26 4. Whether Volition Is Required for Direct Liability 28 (a) The Netcom Case 29 (b) The MAPHIA Case 31 (c) The Sabella Case 32 (d) The Frena Case 33 (e) The Webbworld Case 34 (f) The Sanfilippo Case 35 (g) The Free Republic Case 36 (h) The MP3.com Cases 37 (i) The CoStar Case 41 (j) The Ellison Case 42 (k) Perfect 10 v. Cybernet Ventures 42 (l) Field v. Google 43 (m) Parker v. Google 44 (n) The Cablevision Case 44 (o) Arista Records v. Usenet.com 47 (p) Quantum Systems v. Sprint Nextel 48 (q) Summary of Case Law 49 5. The Reproduction Right Under WIPO Implementing Legislation 49 (a) United States Legislation 49 (1) The Digital Millennium Copyright Act 50 (2) Legislation Not Adopted 50 (b) The European Copyright Directive 52 - 2 - 6. Peer-to-Peer File Sharing 57 (a) BMG Music v. Gonzalez 57 (b) Columbia Pictures v. Bunnell 58 (c) Sony BMG Music Entertainment v. Tenenbaum 58 7. The Immunity of the Audio Home Recording Act (AHRA) 61 (a) The Napster Cases 61 (b) The Aimster Case 61 (c) Atlantic Recording Corp. v. XM Satellite Radio 62 B. The Right of Public Performance 64 1. Isochronous Versus Asynchronous Transmissions 65 2. The Meaning of “Publicly” 66 3. Live Nation Motor Sports v. Davis 67 4. United States v. ASCAP 68 5. The Cablevision Case 68 6. Ringtones – In re Application of Cellco Partnership 70 C. The Right of Public Display 72 1. The Frena, Marobie-FL, Hardenburgh and Webbworld Cases 72 2. Kelly v. Arriba Soft 74 3. Ticketmaster v. Tickets.com 77 4. Perfect 10 v. Google (aka Perfect 10 v. Amazon) 77 5. Healthcare Advocates, Inc. v. Harding, Earley, Follmer & Frailey 89 6. ICG-Internet Commerce Group, Inc. v. Wolf 91 D. The Right of Public Distribution 91 1. The Requirement of a “Copy” 91 (a) Cases Addressing Whether Mere Posting Is a Distribution 92 (1) Cases Holding That Mere Posting Is a Distribution 93 (2) Cases Holding That Mere Posting Is Not a Distribution 97 (3) Cases Refusing To Decide the Issue 105 2. The Requirement of a “Public” Distribution 106 3. The Requirement of a Rental or Transfer of Ownership 106 4. The Right of Distribution Under the WIPO Treaties 107 5. The Right of Distribution Under WIPO Implementing Legislation 108 (a) United States Legislation 108 (b) The European Copyright Directive 108 - 3 - E. The Right of Importation 109 F. The New Right of Transmission and Access Under the WIPO Treaties 110 1. The Right of Communication to the Public in the WIPO Copyright Treaty 110 2. The Right of Making Available to the Public in the WIPO Performances and Phonograms Treaty 112 3. The Right of Transmission and Access Under WIPO Implementing Legislation 113 (a) United States Legislation 113 (b) The European Copyright Directive 114 G. New Rights and Provisions Under The Digital Millennium Copyright Act, the European Copyright Directive & Legislation That Did Not Pass 116 1. Circumvention of Technological Measures and Rights Management Information Under the DMCA 116 (a) Circumvention of Technological Protection Measures 117 (1) Prohibition on Conduct 117 (i) Exemptions Adopted by the Librarian of Congress 118 a. Scope of the Network Connection Exemption – The TracFone Cases 122 (ii) Epic Games v. Altmeyer 125 (iii) Facebook v. Power Ventures 126 (iv) Bose v. Zavala 126 (2) Prohibition on Devices 127 (i) Sony Computer Entertainment America v. Gamemasters 128 (ii) DirecTV, Inc. v. Borow 129 (iii) Sony Computer Entertainment America v. Divineo 129 (iv) DirecTV, Inc. v. Carrillo 130 (v) Ticketmaster L.L.C. v. RMG Technologies, Inc 130 (vi) The Tracfone Cases 131 (vii) Movida Communications, Inc. v. Haifa 131 (viii) Microsoft Corp. v. EEE Business Inc 131 (ix) MDY Industries v. Blizzard Entertainment 132 (x) Coupons, Inc. v. Stottlemire 134 (xi) CoxCom, Inc. v. Chafee 135 (xii) DISH Network v. Sonicview 136 (xiii) Realnetworks v. DVD Copy Control Association 136 (xiv) Apple v. Psystar 138 - 4 - (xv) Craigslist v. Naturemarket 140 (3) What Constitutes an Effective Technological Measure 140 (i) Auto Inspection Services v. Flint Auto Auction 140 (ii) Healthcare Advocates, Inc. v. Harding, Earley, Follmer & Frailey 141 (iii) Apple v. Psystar 144 (4) No Requirements With Respect to Design of a Product 144 (5) Other Rights Not Affected 144 (6) Exemption for Nonprofit Organizations and Law Enforcement 145 (7) Reverse Engineering for Interoperability 146 (i) Universal City Studios Inc. v. Reimerdes 151 (ii) Storage Technology Corporation v. Custom Hardware Engineering & Consulting 152 (iii) Chamberlain Group, Inc. v. Skylink Technologies, Inc 152 (iv) Lexmark International, Inc. v. Static Control Components, Inc 153 (v) Davidson Assocs. v. Internet Gateway 153 (vi) Sony Computer Entertainment America v. Divineo 157 (8) Encryption Research 157 (9) Protection of Minors 158 (10) Protection of Personally Identifying Information 158 (11) Security Testing 158 (12) Copy Restrictions To Be Built Into VCRs and Camcorders 158 (13) Other Cases Filed Under the Anti-Circumvention Provisions 159 (i) Sony Computer Entertainment, Inc. v. Connectix, Inc 159 (ii) RealNetworks, Inc. v. Streambox Inc 160 (iii) Universal City Studios, Inc. v. Reimerdes 164 (iv) A Related DVD Case Involving Trade Secret Claims – DVD Copy Control Association, Inc. v. McLaughlin (the Bunner case) 169 (v) A Related DVD Case – Norwegian Prosecution of Jon Johansen 173 (vi) Another Challenge to the DMCA – The Felten Case 173 (vii) Pearl Investments, LLC v. Standard I/O, Inc 174 (viii) 321 Studios v. Metro Goldwyn Mayer Studios, Inc 175 (ix) I.M.S. Inquiry Management Systems, Ltd. v. Berkshire Information Systems, Inc 176 (x) Paramount Pictures Corp. v. 321 Studios 177 (xi) Macrovision Corp. v. 321 Studios 177 (xii) Comcast of Illinois X v. Hightech Electronics, Inc 177 - 5 - (xiii) Davidson & Assocs. v. Internet Gateway 178 (xiv) Agfa Monotype Corp. v. Adobe Sys 178 (xv) Egilman v. Keller & Heckman 181 (xvi) Macrovision v. Sima Products Corp 181 (xvii) Nordstrom Consulting, Inc. v. M&S Technologies, Inc 182 (xviii) R.C. Olmstead v. CU Interface 183 (xix) Avaya v. Telecom Labs 183 (xx) Actuate v. IBM 184 (14) Criminal Prosecutions Under the DMCA 185 (i) The Sklyarov/Elcomsoft Case 185 (ii) Other Criminal Prosecutions Under the DMCA 186 (15) Other Uses of the Anti-Circumvention Provisions as a Sword 187 (i) Lexmark International, Inc. v. Static Control Components, Inc 187 (ii) Chamberlain Group, Inc. v. Skylink Technologies, Inc 193 (iii) In re Certain Universal Transmitters for Garage Door Openers 199 (iv) Storage Technology Corporation v. Custom Hardware Engineering & Consulting 200 (b) Integrity of Copyright Management Information 204 (1) Definition of CMI 204 (i) The IQ Group, Ltd. v. Wiesner Publishing, LLC 205 (ii) McClatchey v. The Associated Press 207 (iii) Textile Secrets Int’l, Inc. v. Ya-Ya Brand Inc 208 (iv) Jacobsen v. Katzer 209 (v) Associated Press v. All Headline News Corp 210 (vi) Silver v. Lavadeira 210 (vii) Fox v. Hildebrand 211 (viii) Jacobsen v. Katzer 211 (ix) Murphy v. Millennium Radio Group LLC 212 (2) Prohibitions on False CMI or Altering CMI 212 (i) Thomas M Gilbert Architects v. Accent Builders 212 (3) Exceptions and Limitations 212 (4) Cases Filed Under the CMI Provisions 213 (i) Kelly v. Arriba Soft Corp 213 (ii) Thron v. Harper Collins Publishers 214 - 6 - (iii) Gordon v. Nextel Communications 214 (iv) Schiffer Publishing, Ltd. v. Chronicle Books, LLC 215 (v) Monotype Imaging, Inc. v. Bitstream Inc 216 (vi) Keogh v. Big Lots Corp 218 (vii) Goldman v. Healthcare Management Systems 219 (c) Remedies for Violations of Sections 1201 and 1202 219 (1) Statutory Damages 219 (i) Sony Computer Entertainment America v. Filipiak 219 (ii) Sony Computer Entertainment v. Divineo 220 (iii) McClatchey v. The Associated Press 221 (iv) MDY Industries, LLC v. Blizzard Entertainment, Inc 222 (2) Jurisdictional Issues – Blueport Co. v. United States 222 (d) Alternative Approaches to the DMCA That Did Not Pass 222 (e) The Battle Between Content Owners and Technology Companies Over Built-In Technological Measures 223 2. Anticircumvention Provisions Under the European Copyright Directive 224 3. Anti-Circumvention Provisions in Other Foreign Countries 227 4. Fair Use 228 (a) United States Legislation That Did Not Pass 228 (b) The European Copyright Directive 228 5. Expansion of Library/Archives Exemptions 229 6. Distance Education 230 7. Copying in the Course of Computer Maintenance or Repair 230 8. Other Provisions of the DMCA 231 (a) Evaluation of Impact of Copyright Law on Electronic Commerce
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