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Perfect 10, Inc. v. Visa International Service Association

494 F.3d 788 (2007) cert. denied, 128 S. Ct. 2871 (2008)

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Perfect 10, Inc. v. Visa International Service Association

United States Court of Appeals for the Ninth Circuit

494 F.3d 788 (2007) cert. denied, 128 S. Ct. 2871 (2008)

Facts

Perfect 10, Incorporated (Perfect 10) (plaintiff) published a magazine and a website that each contained copyrighted images of beautiful models. Perfect 10 alleged that various websites infringed its copyright in the images by altering the images and selling them online. Perfect 10 notified Visa International Service Association (Visa) (defendant) and other banks and processing services (defendants) of websites containing infringing images and asked the defendants to stop processing payments for those sites. The defendants refused to do so. Visa received a fee for each transaction, and Visa’s user agreement provided that member banks must not provide services to merchants committing certain illegal activities. Perfect 10 sued Visa and the other defendants for secondary copyright infringement under theories of contributory and vicarious infringement. Visa filed a motion to dismiss for failure to state a claim. The district court granted Visa’s motion and dismissed the claim. Perfect 10 appealed.

Rule of Law

Issue

Holding and Reasoning (Smith, J.)

Dissent (Kozinski, J.)

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