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  • partly cloudy

    Is The DMCA Broken?

    Adam Holland, April 25, 2013

    Abstract: Or is it at least wearing out? We think so.
    We look at some recent events that suggest copyright law is so far behind reality that it's time for a new one. Some fairly highly placed people agree.



    Some recent developments have us here at Chilling Effects, and in other places as well, wondering if the DMCA, which is shockingly celebrating its 16th anniversary this year.
    Given the rate at which technology changes, it’s probably not surprising that the law might be having trouble keeping pace. “Slowly but exceedingly fine” and all that. However, some recent cases moving through the courts, as well as some other developments on both the technology and general business practice fronts are really bringing the inadequacies of the DMCA into sharp relief.

    First off is this week's stunning ruling from a New York state court re: UMG Recordings lawsuit against Grooveshark. Grooveshark’s parent company is Escape Media.
    [ Disclosure: I love Grooveshark and have an account]

    The gist of the suit was / is that Grooveshark, despite its licenses, was violating UMG’s copyrights in various sound recordings. Critically, these were recordings made, or “fixed”, pre-1972.

    Grooveshark relied on its DMCA-granted immunity from Section 512. UMG said that didn’t help, because Section 301 of the DMCA explicitly stated that it did not apply to any sound recording fixed prior to 1972.
    Sure enough, that appears to be exactly what 301 says. To wit:

    “With respect to sound recordings fixed before February 15, 1972, any rights or remedies under the common law or statutes of any State shall not be annulled or limited by this title until February 15, 2067. The preemptive provisions of subsection (a) shall apply to any such rights and remedies pertaining to any cause of action arising from undertakings commenced on and after February 15, 2067.”
    [NB the original version of this section had 2047 as the date, but the 1998 DMCA revisions changed it to 2067]

    That the DMCA nevertheless should apply is a difficult textual argument to make, which may be why the NY court made the ruling that it did.
    “Initially, it is clear to us that the DMCA, if interpreted in the manner favored by defendant, would directly violate section 301(c) of the Copyright Act.”

    However, as Grooveshark accurately points out, this would “eviscerate” the DMCA and render it useless for its intended purpose, streamlining the ability of service providers to offer content without investing massive resources in vetting it beforehand. Imagine if Grooveshark had to investigate whether every song uploaded to it was pre- or post-1972 (not as easy as it sounds).
    In fact, the effect that this interpretation of Section 301 has on the DMCA is so powerful that when the issue has come up in the past, including in courts at both the state level (in this very case) and at the federal level, inCapitol Records v. MP3 Tunes and in Perfect 10 Inc. v. CCBill LLC. the opinions have gone the other way, and ruled that there is no Section 301 conflict, largely because of Congressional intent.
    I.e. “This Court concludes that there is no conflict between section 301 and the DMCA's safe harbors for infringement of pre-1972 recordings.”
    In general, see pp 14-17 of that opinion, or this write-up, here.

    In Perfect 10, the court was concerned not only with Section 512 of the DMCA, but also Section 230 of the Communications Decency Act. The judge there took the expansive (but logical) view that Section 230 preempted all state IP law. A lengthier quote is worth it.

    “[P]ermitting the reach of any particular state's definition of intellectual property to dictate the contours of this federal immunity would be contrary to Congress's expressed goal of insulating the development of the Internet from the various state-law regimes. See 47 U.S.C. §§ 230(a) and (b); see also Batzel, 333 F.3d at 1027 (noting that “courts construing § 230 have recognized as critical in applying the statute the concern that lawsuits*1119 could threaten the ‘freedom of speech in the new and burgeoning Internet medium’ ” (quoting Zeran, 129 F.3d at 330)). In the absence of a definition from Congress, we construe the term “intellectual property” to mean “federal intellectual property.”
    However, that last sentence, “federal intellectual property” might be a lever with which to distinguish this case.
    As Eric Goldman points out in a piece for Forbes , with three different interpretations of the situation now extant, it’s going to be quite a hairball to resolve.


    On a different front, we see the recurrence of an older, no less problematic idea, that of using private contracts to go around or supersede the tenets of copyright law. Put the DMCA aside. Forget about fair use. Regardless of the legality of a user’s use of a song from Universal Music, if it comes down from YouTube because UMG complains, that’s the end of the process. No notice/counter-notice, no newly user-friendly YouTube internal procedure. Nothing. Why? Because YouTube has a contractual arrangement with UMG that says so.
    While of course there’s no “right” to post things to YouTube, and as the explanation points out, a poster can always take it up with UMG directly, this is deeply concerning. If major players in the online content space (which is to say, the people who control to what information the public has easy or most typical access) can simply side-step copyright law with contracts, who is to gainsay them? As TechDirt says, it looks like “YouTube has made at least some deals that effectively wipe out fair use for some users.” We’ve seen this identical behavior at different scales with the Google Book settlement and with various international trade agreements whose tenets ignore or supersede federal law. Will it take a high-profile test case to strike the right balance between freedom to contract and copyright law?-- which, it bears repeating, is meant to “promote the progress of science and the useful arts” not to guarantee a profit to particular businesses or business models.

    With all of these developments, it seems pretty clear to us here that the DMCA is up for some substantial revision in order to settle this once and for all.
    Fortunately, the right people seem to be starting to realize that things need to change as well.
    Recently, the Register of Copyright called for updates to copyright law. including shorter terms of copyright. There was some change pushback to her speech, which lacked detail, but reactions were mostly positive., and at least people are open to the idea of change.

    Further, just this week, “House Judiciary Committee Chairman Bob Goodlatte (R-Va.) announced in a speech at the World Intellectual Property Day celebrations that the Judiciary Committee will conduct a comprehensive review of U.S. copyright law It’s about time! One can only hope that all of the right people will be at the table and listened to for advice, concerns and general context, so that whatever results from the review isn’t completely one-sided, as some have said of the 1970’s CONTU and 1990’s CONFU recommendations, and the public’s side of the copyright bargain gets a fair shake.
    Will they ask Derek Khanna to comment? ;)

    It’s going to be key to remember, as discussions commence, that simply being willing to think about changing copyright law doesn’t necessarily mean that change will be for the better. Remember the ratchet.

     


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