Cloud Computing and Copyright: New Challenges in Legal Protection? - Challenges of Information Management Beyond the Cloud - page 61

the court found the corporation liable for contributory and vicarious liability. The
technology in P2P and file sharing has evolved since Napster. Decentralized and
hybrid models have replaced centralized technologies such as Napster.
P2P file sharing itself is not illegal. This technology can be used for legal purposes
because it is capable of substantial non infringing uses according to the Sony doctrine.
Nevertheless, the majority of P2P users distribute copyrighted materials without
authorization from the copyright holders. In Metro-Goldwyn-Mayer Studios, Inc v.
Grokster , the Ninth Circuit affirmed the applicability of the Sony doctrine to P2P file
sharing. In this case, the court determined that P2P software distributors Grokster and
StreamCast Networks could not be found liable as contributory infringers because,
like Sony doctrine, their products were capable of substantial non infringing uses. On
appeal to the Supreme Court, the Ninth Circuit decision was vacated and remanded
with the Court taking a very dim view of Grokster's affirmative actions in promoting
the infringing activity.
Even though users have the primary liability in these cases, the ISP could be found
indirectly liable. Most of the litigation regarding vicarious liability against Internet
intermediaries is related to actions against developers of P2P software. Contributory
infringement has also been considered by courts in P2P cases. In Napster case, the
ISP was found guilty for contributory infringement. The court determined that
Napster had materially contributed to the infringement by providing the support
services that allowed users to find and download music.

6 Cloud Computing Service Providers Liability for Copyright

Infringement

The safe harbor and fair use principles have also been used by courts in the USA to
deal with copyright infringement regarding cloud computing service providers'
liability.
The first case related to cloud computing service providers' liability for copyright
infringement in this country is Capitol Records, Inc. v. MP3tunes, LLC , also known
as “MP3tunes case”. In this case, the court discusses if cloud computing service
providers are eligible for protection under the safe harbors created by DMCA.
EMI Inc. and fourteen record companies and music publishers claimed copyright
infringement against MP3tunes, a cloud-storage that allows its users to store music in
an online locker. MP3tunes offered a hybrid private-public cloud service in
MP3tunes.com, and also owns Sideload.com as a second website. Sideload.com is a
search engine site that allows users to search links on the Internet to download (or
“sideload”) music, and upload it to an MP3tunes digital locker. Once a song is added
to an online locker, it can be downloaded from any user's device, and users can share
and use copyrighted material without author's consent.
MP3tunes registered an agent with the Copyright Office to receive notices from
alleged infringement from copyright owners and displayed the contact information of
this agent in both sites. MP3 tunes received a takedown notice from EMI, identifying
350 song titles and links indexed in Sideload.com that connected the users to sites