Cloud Computing and Copyright: New Challenges in Legal Protection? - Challenges of Information Management Beyond the Cloud - page 57

consumers used this technology for illicit purposes, others used it for “time shifting”,
recording and watching their favorite shows at a later time. The Court stated:

…the sale of copying equipment, like the sale of other articles of commerce,
does not constitute contributory infringement if the product is widely used for
legitimate, unobjectionable purposes. Indeed, it need merely be capable of
substantial non-infringing uses.

Sony doctrine is based on fair use of copyrighted material, and is considered the
most important decision to balance the interest of copyright industries, creative
information technology developers, and users of information technology. In this case,
the Supreme Court adopted a solution that weighed the value and legitimacy of the
new technology against the likely harm to copyright holders [2].
Nowadays, the Sony doctrine is used to deal with Internet Service Providers'
liability, in order to determine a possible indirect liability for copyright infringements
by the users of new technologies like P2P.

3.2 Internet and Intellectual Property

The impact of the Internet on intellectual property was addressed in 1996 by the
World Intellectual Property Organization (WIPO) with two new treaties: the WIPO
Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty
(WPPT) [3]. These treaties, known as “Internet Treaties”, were approved with the
purpose of updating the international treaties on copyright and related rights to the
digital era, and provide additional protections for copyright holders derived from
advancements in Information Technology.

3.3 Copyright Legal Protection in USA

In USA, copyright is protected under the Copyright Act of 1976, included in Title 17
of United States Code. In 2000, the Digital Millennium Copyright Act (DMCA) was
approved. This Act is a consequence of Internet development, and implements the
principles of WIPO treaties in this country. The USA Copyright Act was amended to
incorporate the DMCA.
The DMCA establishes the safe harbor defense rules as a limitation of liability for
ISP regarding copyright infringement by Internet users. The DMCA seeks to balance
the interest of copyright owners and online service providers “…by promoting
cooperation, minimizing copyright infringement, and providing a higher degree of
certainty to service providers on the question of copyright infringement” ( Capitol
Records, Inc. v. MP3tunes, LLC. )
The Copyright Act also establishes the fair use exemptions in copyrighted works.
The fair use of a copyrighted work is based on the purposes and character of the use,
among other factors.
The safe harbor principles and fair use have been considered by courts in this
country to determine ISP secondary liability for user services copyright
infringements.