Written by Kyle Junik, CMLP Intern

Brad Spitz reports in his blog that a French court held DailyMotion liable for copyright infringement, despite concluding that the site was a mere "hosting service." DailyMotion is an online video-sharing site similar to YouTube. In a July 13 ruling (in French), the court went out of its way to label DailyMotion a hosting service, an argument DailyMotion itself put forth. In France, hosting services typically enjoy a safe harbor from the infringing acts of users under the French Act of 21 June 2004 on Confidence in the Digital Environment (in French). The Act implements the European Commission directive on electronic commerce and states in part:

Where an information society service is provided that consists of the storage of information provided by a recipient of the service, Member States shall ensure that the service provider is not liable for the information stored at the request of a recipient of the service, on condition that:

(a) the provider does not have actual knowledge of illegal activity or information and, as regards claims for damages, is not aware of facts or circumstances from which illegal activity or information is apparent; and
(b) the provider, upon obtaining such knowledge or awareness, acts expeditiously to remove or to disable access to the information.

The court found DailyMotion was aware of the infringing content, in part because the site deliberately furnished the users with the means to commit the acts of infringement. The court stated that the Act's limitation on liability is not available when the infringing activities are created or induced by the provider itself. DailyMotion has appealed.

Notably, the language of the French Act is almost identical to the safe-harbor provisions of the Digital Millennium Copyright Act (DMCA) codified at 17 U.S.C. Sec. 512(c). Google (on behalf of its popular video-sharing site, YouTube) frequently invokes the DMCA safe-harbor provisions as a defense to copyright infringement claims brought against it. At the end of the day, the French court ruling has no direct effect on any U.S. court's interpretation of the DMCA, but it may cause Google to reassess its stance on its liability via YouTube.