Tech Giants Want to Punish DMCA Takedown Abusers

copyright-brandedEvery day copyright holders send millions of DMCA takedown notices to various Internet services.

Most of these requests are legitimate, aimed at disabling access to copyright-infringing material. However, there are also many overbroad and abusive takedown notices which lead to unwarranted censorship.

These abuses are a thorn in the side of major tech companies such as Google, Facebook and Microsoft. These companies face serious legal consequences if they fail to take content down, but copyright holders who don’t play by the rules often walk free.

This problem is one of the main issues highlighted in a new research report (pdf) published by the CCIA, a trade group which lists many prominent tech companies among its members.

The report proposes several changes to copyright legislation that should bring it in line with the current state of the digital landscape. One of the suggestions is to introduce statutory damages for people who abuse the takedown process.

“One shortcoming of the DMCA is that the injunctive-like remedy of a takedown, combined with a lack of due process, encourages abuse by individuals and entities interested in suppressing content,” CCIA writes.

“Although most rightsholders make good faith use of the DMCA, there are numerous well-documented cases of misuse of the DMCA’s extraordinary remedy. In many cases, bad actors have forced the removal of material that did not infringe copyright.”

The report lists several examples, including DMCA notices which are used to chill political speech by demanding the takedown of news clips, suppress consumer reviews, or retaliate against critics.

Many Internet services are hesitant to refuse these type of takedown requests at it may cause them to lose their safe harbor protection, while the abusers themselves don’t face any serious legal risk.

The CCIA proposes to change this by introducing statutory damage awards for abusive takedown requests. This means that the senders would face the same consequences as the copyright infringers.

“To more effectively deter intentional DMCA abuse, Congress should extend Section 512(f) remedies for willful misrepresentations under the DMCA to include statutory awards, as it has for willful infringement under Section 504(c),” CCIA writes.

In addition to tackling DMCA abuse the tech companies propose several other changes to copyright law.

One of the suggestions is to change the minimum and maximum statutory damages for copyright infringement, which are currently $750 and $150,000 per work.

According to the CCIA the minimum should be lowered to suit cases that involve many infringements, such as a user who hosts thousands of infringing works on a cloud storage platform.

The $150,000 maximum, on the other hand, is open to abuse by copyright trolls and rightsholders who may use it as a pressure tool.

The tech companies hopes that U.S. lawmakers will consider these and other suggestions put forward in the research paper, to improve copyright law and make it future proof.

“Since copyright law was written more than 100 years ago, the goal has been to encourage creativity to benefit the overall public good. It’s important as copyright is modernized to ensure that reforms continue to benefit not just rightsholders, but the overall public good,” the CCIA concludes.

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Piracy: Hollywood’s Losing a Few Pounds, Who Cares?

factThis week it was revealed that Paul Mahoney, the former operator of streaming portal FastPassTV, is now facing a custodial sentence following his guilty plea before a Northern Ireland court.

After operating his sites for around six years, the prosecution claims that Mahoney made almost 410,000 euros ($471,500) in advertising revenue.

Extrapolating what was probably a good year for viewing numbers on FastPassTV, David Groome QC came to the conclusion that the 30-year-old potentially cost Hollywood around £120 million [$188m].

Following Mahoney’s guilty plea it’s unlikely that those numbers will ever be challenged. As a result, when the authorities and anti-piracy group FACT get their conviction, the public deterrent they’ve been looking for will be home and dry.

But despite looking forward to what is likely to be billed as a historic judgment, it appears that the industry still has work to do to get the man in the street onside. That became evident during an appearance by FACT Director General Kieron Sharp on the local BBC Radio Foyle

After discussing the background to the case, Sharp was confronted with an uncomfortable truth.

“I would imagine the problem for you Kieron in your job is that a lot of people out there – and we’re already seeing it in fact in the [listener] texts to the show this morning – is that [the public] don’t really see the victim in all of this,” the BBC presenter said.

“They see this as Hollywood losing a few pounds – who cares?”

If industry figures are to be believed, around 20% of the populations of several European countries are accessing content from sites such as Mahoney’s, so some lack of sympathy shouldn’t come as too much of a surprise. That being said, Sharp’s response only raises more questions.

“Yes I know, that’s an unfortunate way of looking at things really. The big problem about this is that these people are all film fans. They want to watch films and television programs,” he said.

“The best example I can give you is Game of Thrones which is made in Northern Ireland as you know. Huge success story for Northern Ireland, for the people who are working there and getting employment in the film industry.

“They’re the sort of programs that won’t get made in the future if you think that all this is about is a few quid out of the pockets of those in Hollywood.”

While choosing Game of Thrones as an example makes sense from a local perspective, it’s a confusing selection from a piracy standpoint.

As pointed out here on dozens of occasions, Game of Thrones is the most pirated TV show in history. Yet season after season the show returns, each time bringing in more and more legitimate viewers despite smashing several piracy records. Even the show’s director thinks that piracy doesn’t hurt the production.

Nevertheless, when challenged by the interviewer Sharp maintained his position.

“An ordinary film coming out of Hollywood costs $60m to $100m to make and they have to make a return on that. If these films don’t get made then people won’t have jobs, it’s as simple as that. It’s quite straightforward, absolutely no doubt about it whatsoever,” he said.

Sharp wouldn’t be drawn on whether Mahoney should be sent to prison when he’s sentenced next month, noting that’s for the court to decide. But whatever happens to him, problems persist, not only with the countless other people like Mahoney scattered around the globe, but also with public perception. Still, FACT is hopefully that people can be persuaded to do the right thing.

“They can be [prosecuted] but we’re more interested in converting those people into paying customers,” Sharp said. “They’re film fans, we want them to enjoy the product at its best and not from some cheap ripoff copy.”

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