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The case, at this stage, marks a big win for UGC sites.

In 2007, YouTube got hit with a serious $1B lawsuit initiated by Viacom (owners of Paramount, MTV and other big and famous media industry brands). The primary claim made in the pleadings talked of close to 160,000 YouTube clips which were posted without permission in violation of Viacom copyright.

YouTube and Google (which acquired the video sharing site after the suit was waged) claimed in their defense that they were acting in compliance with the U.S. DMCA (Digital Millennium Copyright Act), meaning, they used a notice and takedown procedure which dealt with infringing materials after the fact, in response to complaints of copyright owners.

A Federal court in NYC (Southern District of New York), has now ruled in favor of YouTube/Google. The case delivers YouTube a decisive victory on the question of interpretation of the safe harbor pursuant to DMCA's §512(c). The ruling in essence states that the current industry standard practices of notice-and-takedown for user-generated copyright infringement, meets the standard set by the safe harbor. This case may cement the practice of websites to not have to proactively detect and filter out infringing content. We will of course need to wait and see if the opinion withstands appeal (Viacom will undoubtedly try to attack the court's decision and may even attempt taking this case all the way up to the Supreme Court...)

I think the decision is very encouraging for user-generated-content sites. Unless, turned on appeal, the decision will act as shield for UGC platforms.
A Federal court in NYC (Southern District of New York), has ruled in favor of YouTube/Google on June 23, 2010. The delivers YouTube a decisive victory on the question of interpretation of the safe harbor pursuant to DMCA's §512(c). The ruling in essence states that notice-and-takedown of user-generated infringing content, meets the standard set by the safe harbor set forth by the law. So no need for websites to proactively detect and filter out infringing materials. We will of course need to wait and see if the opinion withstands appeal (Viacom will undoubtedly try to attack the court's decision and may even attempt taking this case all the way up to the Supreme Court…)

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