UMG Recordings, Inc. v. Shelter Capital Partners LLC

667 F.3d 1022 (2011)

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UMG Recordings, Inc. v. Shelter Capital Partners LLC

United States Court of Appeals for the Ninth Circuit
667 F.3d 1022 (2011)

  • Written by Tammy Boggs, JD

Facts

Veoh Networks (Veoh) (defendant) was an internet service provider (ISP) that operated a publicly accessible music-sharing website. Users could upload and share their own user-created music. In addition, Veoh had an agreement with a prominent holder of music copyrights, SonyBMG, that allowed for sharing of SonyBMG’s copyrighted music videos. Unauthorized sharing of music videos also occurred on Veoh because users could share music for which the copyright holder was Universal Music Group (UMG) (plaintiff), and UMG had not consented to the music sharing. News articles reported on the issue of UMG’s copyrighted materials being available on Veoh, a problem that Veoh acknowledged. Veoh implemented measures to deter copyright infringement, but the issue persisted. It was undisputed that whenever UMG formally notified Veoh of infringing activity, Veoh expeditiously removed the specific content or disabled access to it. Veoh did not otherwise have a practice of affirmatively investigating whether users were authorized to share specific content. UMG sued Veoh for copyright infringement. On summary judgment, Veoh argued that it was protected by a statutory safe harbor as an ISP pursuant to 17 U.S.C. § 512(c). The district court agreed and granted summary judgment to Veoh. UMG appealed.

Rule of Law

Issue

Holding and Reasoning (Fisher, J.)

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