THIRD PARTY LIABILITY, CONTRIBUTORY,
                VICARIOUS & OSP LIABILITY
 

I.    Vicarious & Contributory Infringement
 


        A.    Difference between:

                1.    Vicarious liability - based on employer/employee

                        a.    Direct infringement

                        b.    Financial benefit

                        c.    Ability to supervise

                2.    Contributory infringement

                        a.    Direct infringement

                        b.    Knowledge

                        c.    Material contribution (inducement)

        B.    Cases

                1.    Fonovisa, p. 769


                2.    UMG Recordings v. Sinnott, 300 F. Supp.2d 993
                        (E.D. Cal. 2004)

                3.    Sony, p. 777

II.    Audio Home Recording Act, p. 786

        A.    Digital autio tape (DAT)

        B.    Serial copy management system

        C.    RIAA v. Diamond Multimedia, p. 790

III.    Online Service Provider Liability - § 512

        A.    Two types of OSPs


                1.    Passive conduits - § 512(a) - merely provide Internet
                       access.  They may not:

                       a.    Initiate  transmission that contains copyrighted
                              material,

                       b.    Select the material sent,

                       c.    Select the recipients,

                       d.    Modify the content of the material, or

                       e.    Copy or retain the material longer than is necessary.

                     
                2.    Provide online services (such as hosting webpages) -
                       § 512(c)(1). The OSP must:

                       a.    Not have actual knowledge  material or activity
                               infringing,

                       b.    Not be aware of facts/circumstances upon which
                               infringing activity is apparent,

                       c.    Upon obtaining actual knowledge or awareness,
                               expeditiously remove material [Notice & take down],

                       d.    Not receive a financial benefit attributable to
                               infringing material,

                       e.    Upon notification, act expeditiously to remove material
                              from system, and

                        f.     Not return the material to the system absent  investigation
                                finding posting  material not infringing.
 


                3.    To take advantage of exemption as OSP, § 512(c)(2),
                        it must:

                        a.    Name  agent to receive complaints of such infringement

                        b.    Publish name, address, phone number & email address
                               of the agent

                 4.    Additional exemption for nonprofit educational institutions
                        that are OSPs

                        a.    Faculty members & graduate students teaching &
                                researching - § 512(e)

                        b.    Their activities & knowledge  not considered to be that
                                of institution for  determining liability for infringement
                                if three conditions met:

                                1.    Their infringing activities do not involve providing
                                       online materials that were assigned or required
                                       within preceding 3-year period, &

                                2.    Institution has not received more than two
                                        notifications of infringement by such individuals
                                        within the preceding 3 years, &

                                3.     Institution provides to all users of the system
                                        materials that accurately describe and promote
                                        copyright law compliance.

            B.    Verizon, Supp. 531

IV.    Peer-to-Peer

        A.     UMG Recordings v. MP3.Com,  on p. 506

        B.    Napster, p. 797

        C.    In re Aimster, cited p. 810

        D.    Grokster, Supp. p. 534

V.    Criminal Liability

       A.    Willful infringement

       B.    Purposes of commercial advantage or private financial
               gain

       C.    No Electronic Theft Act, NETAct

              1.    Willfulness = more than simple proof of conduct
                     violating Act

              2.    Penalties

                     a.    Works having combined retail value of $2500 +

                            1.    5 years in federal prison

                            2.    $250,000 fines

                     b.    Works valued at $1000 + within 6 months

                            1.    One year in federal prison

                            2.    $100,000 fine

             3.    Levy prosecution

             4.     DOJ prosecutions