The technological advancements followed by the invention of the internet were
a ground-breaking norm, which has opened a Pandora box of opportunity as well as
challenges to the modern knowledge-based economy. The digital era has
transformed the way that ideas are shared, creativity is expressed, and business
is conducted. However, it has also introduced new legal difficulties, especially
with regard to copyright violations. It is important to consider the
accountability and immunity afforded to intermediaries, including online service
providers, in instances of copyright infringement.
This study looks at the intricate relationships that exist between internet
middlemen, copyright holders, and the changing legal system. It focuses on
examining the various culpability levels placed on intermediaries for hosting or
enabling content that violates copyright as well as the immunity clauses that,
in some situations, protect intermediaries from prosecution.
Through navigating
the complexities of legal doctrines, precedents, and international frameworks,
the study seeks to critically analyze the need to safeguard copyright and the
need to promote innovation and free expression online. Online content has made
things easier for customers to obtain and has accelerated corporate growth. It
does, however, also provide anonymous pirates access to copyrighted works. Since
it is hard to identify specific users, copyright owners rely on internet
intermediaries to stop the distribution of stolen content. As such, they hold
internet service providers responsible for permitting the existence of pirated
works.
Emergence of intermediaries
The inexorable march towards the commercialization of the internet was an
irresistible force, transforming the digital landscape into a dynamic
marketplace of endless possibilities, and the internet has become an inevitable
part of communication and the dissemination of information across the globe. The
term intermediary has evolved for decades now. The internet is no longer a
fragile new means of communication that could easily be smothered in the cradle
by overzealous enforcement of laws and regulations applicable to
brick-and-mortar businesses' [1]observed by the court in
Fair Housing Council of
San Fernando Valley v. Roommate.com, LLC, internet has become the basic public
good [2].
With the advent of the internet, certain jurisdictions have realized
the need to regulate the intermediaries, and as a result, several laws and
international frameworks have evolved. The first challenge was to different
jurisdictions is to define the term of "intermediaries in internet" .
When it
comes to enabling communication, transactions, and interactions online,
intermediaries are crucial. Internet service providers (ISPs), domain
registrars, app stores, social media, e-commerce, online payment processors,
online advertising networks, content delivery networks (CDNs), domain
registrars, and review and rating platforms are examples of common
intermediaries. These middlemen facilitate transactions, link consumers to the
internet, and assist users in finding information. They also make it easier to
buy and manage domain names, improve the delivery of web content, and link users
and developers. They also make it easier to share reviews and ratings and to
distribute mobile applications.
The problem of intermediaries has plagued India for more than two decades; it
has recently been the subject of discussions in several countries, including the
EU and the USA. India's stance on intermediary liability is still being
developed; it aims to strike a compromise between the standards of developed
nations and its own. It has been difficult to provide a clear framework for
intermediaries' role since inconsistent attempts have been made to address the
extent of intermediary accountability.
In India, people that receive, store, or
send electronic documents on behalf of another person are known as internet
intermediaries, and their activities are defined by the IT Act. These middlemen
offer services including social media, web hosting, search engines, internet
services, and e-commerce platforms. The internet's anonymity, nevertheless, can
encourage misuse and criminal activity. This affects the internet's independence
and freedom of expression by raising concerns about whether middlemen should be
viewed as simple messengers or as more powerful sentinels.
Understanding intermediary liability and immunity
In terms of copyright law, intermediary liability refers to the legal
obligations of organisations like ISPs, social networking platforms, search
engines, and content hosting websites that operate as middlemen in
communications or transactions between parties. These middlemen are essential to
the spread of digital content and online communication, but they also run the
risk of unintentionally encouraging users to violate copyright.
Internet
intermediaries are liable for contributory infringement in copyright law,
Intermediaries such as internet service providers (ISPs), social media
platforms, search engines, and websites that contain information are subject to
a variety of responsibilities under copyright law. These responsibilities fall
into one of five categories: safe harbor, secondary, vicarious, direct, and
contributory immunity. When an intermediate commits a direct copyright
violation, such as keeping stolen content on its server, this will inevitably
lead to guilt.
When a middleman intentionally aids or abets in copyright infringement by
another party-for example, by offering platforms, services, or tools utilised
for infringement—they become liable for contributory liability. When an
intermediary controls infringing acts and receives direct financial profit from
them, vicarious liability arises. A more expansive idea known as secondary
liability makes intermediaries liable for third parties' copyright violations
even in cases where they were not directly involved in the illegal activity or
received financial gain from it. Intermediaries are allowed safe harbour
immunity subject to certain requirements, including the implementation of
notice-and-takedown processes and the termination of repeat infringers' accounts
following valid notification from copyright holders.
Situations when an intermediary indirectly supports copyright infringement—for
example, by offering services or infrastructure that make it possible for
illegal activity to take place—are referred to as instances of indirect
responsibility. Intermediaries who assist copyright infringement may still be
held legally liable, but their cooperation may also have negative effects on
their reputation or business. Intermediaries must comprehend and manage these
responsibilities in order to guarantee copyright compliance and reduce legal
risks.
An intermediary is defined as any organisation that manages electronic documents
on behalf of others, including storing, transmitting, or offering services
associated with such records, under Section 2(1)(w) of the Information
Technology Act, 2000. This includes a variety of organisations, including
network, internet, and telecom service providers, in addition to online
platforms like search engines and e-commerce websites.
"The Information
Technology Act of 2000, or IT Act, 2000, defines "intermediary" in Section 2(1)
(w) that- with respect to any particular electronic records, means any person
who on Behalf of another person receives, stores or transmits that record or
provides any service with respect to that record and includes telecom service
providers, network service providers, internet service providers, web-hosting
service providers, search engines, online payment sites, online-auction sites,
online-market places and cyber cafes"[3] Regarding internet activities,
intermediaries' legal obligations and immunity are outlined in India's
Information Technology Act, 2000[4].
Similar restrictions on intermediaries'
responsibility and immunity for online copyright infringement are included in
the Indian Copyright Act, 1957[5]. The legal environment that affects Indian
intermediaries doing business in the digital sphere is shaped by these
legislative frameworks taken together. Information Technologies Act of 2000,
Chapter 12, discusses an intermediary's exemption from liability in specific
situations.
Exemption from Liability (Subsection 1):
Intermediaries are not liable for any
third-party information, data, or communication links made available or hosted
by them, subject to conditions outlined in subsequent subsections.
Conditions for Exemption (Subsection 2):
- Intermediaries are exempt from liability if their function is limited to providing access to a communication system where third-party information is transmitted or temporarily stored.
- Intermediaries must not initiate the transmission, select the receiver of the transmission, or modify the information contained in the transmission.
- Intermediaries must observe due diligence as prescribed by the Act and other guidelines set by the Central Government.
Exceptions to Exemption (Subsection 3):
- Intermediaries are not exempt from liability if they conspire, abet, aid, or induce unlawful acts.
- If an intermediary receives actual knowledge or notification from the appropriate Government or its agency that their platform is being used for unlawful activities, they must promptly remove or disable access to the material without compromising evidence.
Except as provided in Sections 79(2) and (3), intermediaries are not accountable
for third-party information, data, or communication links that they host or make
available under Section 79 of the Information Technology Act, 2000 in India. Any
information handled by an intermediary while they do their duties is referred to
as third-party information. According to Section 79(2), an intermediary is
exempt from liability if all it does is grant access to a communication system
where content is uploaded by third parties and if it doesn't start transmissions
or choose the receivers. On the other hand, if an intermediary follows the
Central Governments due diligence guidelines, it is accountable.
The conditions
under which an intermediary is accountable for information provided by third
parties are specified in Section 79(3) of the IT Act, 2000. If the Intermediary
uses threats or promises to plot, abet, help, or urge an unlawful act, it is
accountable. The Intermediary is liable if they remove information linked to a
computer resource used to perform an illegal act without altering or destroying
the evidence after becoming aware of it or receiving notice of it.
Intermediary liability under copyright Act and changes
Revised in 2012, the Copyright Act contains provisions that exempt
intermediaries from the fair dealing defense. If the third-party right holder
has not explicitly forbade the use of electronic links, access, or integration,
or if the intermediary is unaware or lacks reasonable grounds to believe that
the stored content infringes copyright, then intermediaries are not liable[6] .
In response to a written complaint alleging a violation of third-party rights,
the intermediary is obligated to suspend the storage of the content for a period
of 21 days, or until formal court proceedings are initiated.
If no court order
is issued within twenty-one days, the intermediary may recommence facilitating
access, electronic connections, or integration. Section 52 elucidates two
notable exceptions. One exception pertains to temporary or inadvertent storage
that takes place in the course of transmitting electronic data. The second
scenario pertains to intermediaries who facilitate electronic connections,
access, or integration of transmissions[7] . In this instance, Section 52(1)(b)
applies a takedown provision.
MySpace attempted to differentiate between the
Copyright Act and the I.T. Act in their respective applications. In favor of a
harmonious interpretation of the two Acts, the court determined that transitory
storage is governed by the Copyright Act, whereas intermediaries hosting content
are subject to the I.T. Act[8]. The court further discussed the potential use of
the I.T. Act in situations involving purported copyright infringement.
It
affirmed that Section 81 does not invalidate the safe harbor defense for
intermediaries in relation to copyright actions, and that Sections 79 and 81 of
the I.T. Act ought to be interpreted in conjunction with Copyright Act Section
51(a) (ii). Divergent approaches to interpreting harmonious reading are the
primary cause of scholarly disagreement. Although the I.T. Act and the
Guidelines place obligations on intermediaries, including simple conduits, these
obligations do not include the ability to hold parties accountable for copyright
infringement.
Certain scholars argue in favor of strict compliance with the
language of the law, placing particular emphasis on the fact that safe harbor
protection under the I.T. Act is contingent upon Section 81, which permits the
simultaneous operation of other statutes such as the Copyright Act. By
incorporating the safeguard provision from Section 52(1)(c) into the fair use
exception, this interpretation provides protection against secondary
infringement for intermediaries.
The objective of the 2012 amendment to the Copyright Act was to restrict the
application of filtering and blocking methods by intermediaries on their
platforms. A notice and termination approach is permitted under certain
conditions under Section 52(1) (c); however, intermediaries are not required to
adhere to a specific timeline in order to restore content[9].
Certain academics
contend that Section 79 applies to all categories of intermediaries, whereas
Section 52(1)(b) and (c) exclusively pertain to passive intermediaries. The safe
harbor provision, which applies to search engines as well, is limited in scope
in comparison to the broader framework described in Section 79 [S. 2(w)]. This
is because search engines merely provide hyperlinks and engage in incidental
storage engagement; they are not permitted to modify or select content.
In
brief, although an intuitive interpretation of Sections 79 and 52(1)(b) and (c)
seems reasonable, the position taken by the Delhi High Court regarding this
issue is still ambiguous. Advancements have been achieved with respect to the
understanding of intermediaries and their involvement in copyright infringement
cases; therefore, these developments merit additional scrutiny.
Understanding the Evolution of Intermediary Liability in India: A Two-Decade
Journey
Significant changes have occurred in India's digital governance landscape
regarding intermediary liability regulations during the last twenty years. Each
of the five distinct phases that comprise these modifications signifies a
turning point in the legal framework regulating intermediaries.
Initially Section 79 of the I.T. Act (2000) is enacted. The expedition commenced
upon the implementation of Section 79 of the Information Technology Act of 2000.
Intermediaries are defined in this section as those who participate in the
processes of message reception, storage, transmission, or the provision of
associated services. At the outset, intermediaries, specifically network service
providers (NSPs), were considered to be passive entities whose primary function
was to facilitate access to the Internet. A second phase can be observed S. 79
(2008–09) Amendments Section 79 underwent substantial revisions during the
second phase, with provisions expanded to encompass particular categories of
intermediaries in a manner analogous to the definitions found in Section 2(w).
Initially, judicial interpretations, as exemplified by Bazee.com, applied a
restricted definition of 'intermediaries' that specifically excluded e-commerce
websites. In contrast, subsequent amendments to the definition in 2008 resulted
in a more comprehensive agreement. And it further evolved by Delivery of
Judgments As legal precedents progressed; inquiries concerning the proactive or
passive status of intermediaries emerged. The initial assessments rigidly
followed a "letter of the law" methodology. In contrast, contemporary judicial
decisions, including
Amazon v. Amway[10] and Christian Louboutin[11], have
examined novel interpretations that take into account the technical capabilities
of intermediaries.
Issuance of Guidelines:
Phase IV Guidelines have
significantly influenced the development of intermediary liability standards.
The due diligence regimes outlined in the 2011 Guidelines were rudimentary at
best, whereas the 2021 Guidelines adopted technological progress by requiring
proactive measures for content removal. The 2021 Guidelines broadened the scope
of intermediaries to encompass digital news platforms, social media companies,
and over-the-top (OTT) platforms. Phase Five: Copyright Act The proliferation of
intermediary liability has been further complicated as a result of the Copyright
Act's implementation.
While the provision does not provide an explicit
definition of the term "intermediary" in Section 52(1) (c), it does furnish
instances of individuals who aid in the inadvertent and transient storage of
online content. In addition, the legislation specifies protocols for notifying
intermediaries about counterfeit materials and requires their removal within
twenty-one days after receiving the aforementioned notification. In regard to
intermediary liability regulations, India has experienced a gradual shift from
passive facilitation to active involvement due to technological progress and
evolving judicial interpretations. Change is the constant and the digital
environment continues to evolve, regulatory frameworks must be modified to
ensure the mutually beneficial coexistence of accountability and innovation.
An Analysis of Copyright Infringement Liability Regulations in the European
Union and the United States
The proprietor is granted exclusive rights under Section 106 of the U.S.
Copyright Act of 1976, which supplies the fundamental framework for copyright
law. However, liability for infringement arises when an individual engages in
actions that are restricted to the copyright holder exclusively, or when that
person offers assistance, support, or resources for such actions without
obtaining the owner's permission, which is generally obtained via a license.
This dichotomy generates two distinct categories of copyright infringement:
primary, also known as direct copyright infringement, and secondary, or indirect
copyright infringement. Particularly in the United States, case law has
primarily developed the latter in regards to the following three theoretical
premises: contributory infringement, vicarious liability, and inducement
liability.
Contributory infringement is established when the defendant exhibits both
awareness and active participation in the infringement. Conversely, vicarious
liability emerges when the defendant possesses the capacity or jurisdiction to
regulate the infringing conduct and profit directly monetarily from it. On the
contrary, inducement liability pertains to the action of aiding and abetting the
violation of another person's rights.
The Digital Millennium Copyright Act (DMCA) introduced an amendment to the U.S.
Copyright Act of 1976 by incorporating Section 512. This provision provided
conditional immunity from primary and secondary copyright infringement
liabilities to online service providers (OSPs) and certain intermediaries. While
this immunity does not impact the ability of OSPs to obtain monetary relief, it
also does not apply to injunctive and other equitable reliefs.
OSPs that offer particular services, such as information location tools, system
caching, user-directed material storage, and transitory digital network
communications, are granted conditional safe harbor protections under the DMCA.
On the contrary, copyright proprietors prohibit standard technical measures and
require operating system providers (OSPs) to develop protocols for terminating
service for repeat infringers.
Comparable safe harbor protections are extended by the E-Commerce Directive
(Directive 2000/31/EC) to intermediaries and online service providers who enable
the transmission, caching, and hosting of information within the European Union.
As per the provisions outlined in Article 17 of Directive (EU) 2019/790, more
rigorous regulations have been enforced as of late. According to this provision,
online content-sharing service providers are required to obtain permission from
the legitimate proprietors of copyrighted materials.
Online content-sharing service providers are liable for unlawful acts of public
communication, as stated in Article 17, in the absence of reasonable attempts to
obtain consent, impede access to illicit content, and promptly address
notifications from rights holders.
Conclusion:
Adapting Legal Frameworks for Intermediary Liability and Copyright
Enforcement in the Digital Age
In brief, while regulatory frameworks for liability pertaining to copyright
infringement are in place in both the European Union and the United States,
recent occurrences highlight the fluid nature of legislation concerning digital
copyright and the challenges of reconciling the interests of digital service
providers and rights holders.
The current methodologies used to address intermediary liability and copyright
infringement have been widely criticized across various disciplines. The
immunity provisions have been found to favor the interests of copyright holders
over users and intermediaries. This has led to excessive focus on copyright
enforcement, which has compromised fundamental liberties such as privacy and
freedom of expression. The effectiveness of notice-and-takedown mechanisms has
also been questioned, as they may be used to suppress lawful discourse or for
censorship purposes. The lack of nuance in automated content filtering systems
may lead to the stifling of legitimate expression.
The digital environment presents unparalleled opportunities and challenges for
the enforcement of copyright and liability of intermediaries. Blockchain and
artificial intelligence, along with other promising technologies, can
revolutionize content moderation and rights administration. However, they
present legal and ethical complexities that are unprecedented. For example,
AI-driven content recognition algorithms may improve the effectiveness of
copyright enforcement, but concerns remain around their precision, partiality,
and the potential for erroneous results. Similarly, blockchain-based systems
enable decentralized content distribution and transparent rights management but
present challenges related to scalability, governance, and interoperability.
Given the intricate nature of the issues at hand, it is imperative that the
current legal frameworks concerning intermediary liability and copyright
infringement undergo revision. Principles such as due process, transparency, and
the protection of fundamental rights, including freedom of expression and
privacy, should serve as guiding frameworks for reform efforts. Diverse
stakeholders, including academics, policymakers, industry participants, and
civil society organizations, must join forces to develop nuanced and equitable
strategies concerning intermediary liability.
Engaging in this collaborative
endeavor may promote the recognition of mutual goals, the resolution of
divergent issues, and the application of novel approaches to the development of
regulatory frameworks. By encouraging discourse, ingenuity, and cooperation,
policymakers and interested parties can adeptly maneuver around these
intricacies, thereby shaping a digital milieu that nurtures advancements,
progress, and societal enhancement. An equitable approach to intermediary
liability is essential for safeguarding fundamental rights and values while
optimizing the advantages of the digital era.
End-Notes:
- Fair Housing Council of San Fernando Valley v. Roommate.com, LLC, 666 F. 3d 1216 (9th Cir. 2012)
- Faheema Shirin.R.K vs. State Of Kerala AIR 2020 KERALA 35
- Information technologies Act 2000 section 2(1)(w)
- Information technologies Act 2000
- The Copyright Act, 1957(14 OF 1957)
- Copyright Act 1957, Section 52(1) (c)
- Can Judges Order ISPs to Block Websites for Copyright Infringement? (Part 1). (n.d.). URL: https://cis-india.org/a2k/blogs/john-doe-orders-isp-blocking-websites-copyright-1
- Myspace Inc. v. Super Cassettes Industries Ltd. (2017) 236 DLT 478 (DB)
- Advani, Pritika Rai. 2013. "Intermediary Liability in India." Economic and Political Weekly 48: 120–128
- Amazon Seller Services Pvt Ltd. v. Amway India Enterprises Pvt. Ltd. & Ors. High Court of DelhiFAO(OS) 133/2019
- Christian Louboutin v. XYZ 10 (2012)
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