Copyright Infringement: The Perils of Indirect Liability

摘要

Indirect liability for copyright infringement is a significant risk for businesses involved in the sale or distribution of copyrighted materials. Such a business may be vicariously liable for infringement, which means that it has the right and ability to control the infringing activity and also has a financial interest in it. Or, such a business may be contributorily liable for the infringing activity, which means that it knows or should know of the infringing activity and materially contributes to it. These liability doctrines have been applied in a broad array of situations. It is difficult to predict with confidence how a court will rule in any given case, particularly with respect to the financial interest element of vicarious liability and the material contribution element of contributory liability. To reduce the risk of indirect liability for copyright infringement, businesses should take such practical steps as they can to avoid inadvertently promoting or becoming involved in copyright infringement. Most important, they need to be prepared to respond in a reasonable, prompt and effective way to complaints of copyright infringement.