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Commercial Web Site Does Not Violate DMCA
The 4th Circuit Court of Appeals became the first appellate court to rule that a Web site operator does not violate the Copyright Act in passively and unknowingly posting infringing materials received from its users even if it fails to qualify for the Digital Millennium Copyright Act's (DMCA) safe harbor provision under 17 U.S.C. 512. CoStar Group Inc. v. LoopNet Inc., 2004 WL 1375732 (4th Cir., June 21, 2004).
The dispute in CoStar centered around copyrights to real estate photographs. CoStar Group Inc. claimed to have assembled “the largest known digital image library of commercial properties.” CoStar owned the copyright to many of the photographs. They allowed customers to access the database for a fee and an agreement not to post the photographs on any other site. LoopNet is a commercial Web hosting service subscribed to mostly by real estate brokers who post listings of commercial properties on the site. Those brokers who submit photographs were required to fill out a form asserting that “all necessary rights and authorizations” were obtained from the copyright owner. Additionally, before accepting a photograph for posting, a LoopNet employee “cursorily” reviewed it to identify any “obvious evidence…that the photograph may have been copyrighted” by someone other than the individual submitting it.
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