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Now that the long-simmering copyright dispute between Hollywood and the Web has hit the U.S. Court of Appeals for the Second Circuit, the outcome could set a national precedent regarding the scope of potential liability for nearly every business on the Internet that posts infringing content. Viacom Inc. was seeking to overturn its devastating loss it suffered in June when U.S. District Judge Louis L. Stanton of the Southern District of New York found that, under the safe harbor provisions of the Digital Millennium Copyright Act (“DMCA”), YouTube bore no liability for thousands of videos posted by third parties on its site in alleged infringement of Viacom's copyrights. Viacom International Inc. v. YouTube Inc., 718 F.Supp.2d 514 (S.D.N.Y. 2010).
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