Google's lawyers have to be pretty happy today, given the news that a second judge has sided with a video-sharing site in a copyright infringement lawsuit.
U.S. District Court Judge A. Howard
Matz in Los Angeles dismissed a lawsuit brought by Universal Music Group against video sharing site Veoh. Matz ruled that the DMCA's safe harbor provisions protect Veoh from liability. The decision
marked the second major victory for Veoh, which also defeated a copyright infringement lawsuit by adult entertainment company Io Group.
The safe harbors generally state that sites are immune
from copyright infringement liability as long as they remove pirated material upon request. But there are exceptions. One applies when sites know they host infringing material.
Universal,
which has vowed to appeal the ruling, argued that Veoh shouldn't be protected by the safe harbors. But Matz disagreed, finding that Veoh removed videos upon request and that there was no evidence that
the company knowingly allowed pirated clips to remain on the site.
These same arguments are also playing out in New York, where Viacom (and other companies) are suing Google's YouTube for
copyright infringement. While federal judges in New York need not follow holdings by judges in California, and while all lawsuits obviously involve unique facts, the rulings in Veoh's favor certainly
seem likely to help Google.
Electronic Frontier Foundation lawyer Fred von Lohmann says the ruling "is likely to prove influential in the pending lawsuits against YouTube." He notes that Matz
specifically approved of Veoh's anti-infringement initiatives, which seem similar to those used by YouTube. Among others, Veoh uses filtering technology by Audible Magic and terminates accounts of
users who continue to upload pirated clips after receiving a warning.
But, while Matz's endorsement of those policies is good for Veoh, and probably also YouTube, it could be problematic for
smaller companies that don't use similar anti-infringement strategies. In fact, it now seems entirely possible that bigger companies with aggressive policies will end up getting the benefit of safe
harbors while the smallest sites -- those, say, run by college kid in a dorm room -- won't.