What are the ground rules for indirect liability of a video sharing web site?
Viacom’s $1 billion lawsuit against YouTube may be decided based on legislatively created Section 512 rules contained in the Copyright Act and/or judicial created rules outlined above.27 YouTube utilises a centralised server client architecture suggesting that it possesses the right and ability to control the actions of its customers. Viacom sued YouTube for three counts of direct infringement and three counts of indirect infringement (one each for inducement, contributory, and vicarious liability) while YouTube is likely to seek immunisation based on Section 512 (c), although the law is undeveloped as to whether Section 512 can provide a safe harbor for direct infringement liability. Viacom seeks damages from YouTube and, more significantly, a redesign of the technology to proactively limit or reduce the placement of infringing content on the web site. It appears that copyright owners view YouTube today as a piracy business similar to Napster and Grokster, that is, an online competito
