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Rodney D.
Ryder *
How would
Napster have fared if its fate were to be decided in
an Indian court? Rodney D. Ryder tries to find out in
our Net Effects series
An ASP is an entity that manages
and distributes software-based services on the Internet
to customers across a wide area network from a central
data centre. Examples of ASPs include Napster, MyMP3.com,
and DeCSS, which provides the code for DVD copying. Can
an ASP be held liable for the services it provides, the
way in which it does business and/or the tools that it
uses to conduct that business?
One of the most talked about
cases on the subject of ASP liability is the one that
pitted the Recording Industry Association of America
(RIAA) against Napster. Napster delivers an Internet
service that enables users to create their own private
libraries of sound recordings. These libraries are then
made available to other users for instantaneous distribution
and copying. In March 2000, the RIAA, which represents
music labels, filed a complaint against Napster, alleging
that Napsters wilful conduct constitutes contributory
and vicarious copyright infringement.
Napster moved for summary judgement.
In May, the judge denied the motion, holding that Napster
was not an ISP because Napster did not "transmit,
route or provide connections for allegedly infringing
material through its system". (It actually provides
the computer software application by which the allegedly
infringing activity can occur.)
In June, the association asked
the judge to grant an injunction to prevent Napster,
while the case was pending, from "facilitating
or assisting others in the copying, downloading, uploading,
transmission or distribution of copyrighted musical
works". After a two-hour hearing on July 26, a
federal judge granted a temporary injunction, barring
"digital music upstart" Napster from trading
music online, pending a trial.
Napster immediately filed an
appeal. On July 28 an appellate court granted an emergency
stay, ruling that Napster had "raised substantial
questions of first impression going to both the merits
and the form of the injunction". On October 2,
both parties had the opportunity to address the arguments
for and against the injunction to the appeals court.
Napster the Indian
position
Under Indian law, the activities
of Napster would not, on the face of it, amount to direct
copyright infringement as they are not:
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reproducing
the copyrighted works or storing them; |
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selling or
hiring copyright works; |
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issuing copies
of the works to the public; |
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performing
the works in public or communicating them to the
public; |
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making any
translations or adaptations of the works. |
In the Garware Plastic &
Polyester versus Telelink case, which pertained to the
showing of video films over a cable network, the Indian
Supreme Court held that such an action amounted to broadcasting
or communicating material to a section of the public.
The court also held that such broadcasting of the programme
directly affected the earnings of the author and violated
his intellectual property rights, and stated that assisting
in infringement would amount to infringement of copyright.
On the basis of this case, it
may be possible for some to argue that Napster facilitates
unauthorised copying and, hence, should be liable for
contributory and vicarious infringement of copyright.
But the Garware case is different from the Napster affair
since Napster is not broadcasting the music
to any of its subscribers; it is merely providing software
that may be used to locate songs for copying over the
net. The legal position in India is as yet unclear and
much would depend on the facts and interpretation of
these facts by the adjudicating judge.
Indian law has a provision
similar to the personal, non-commercial fair
use exception set out in the US Home Recording Act, 1992.
This is explained in Section 52 of the Indian Copyright
Act 1957, which holds that use of a work will not amount
to infringement of copyright
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if it is private
use; |
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for criticising
or reviewing the musical work; |
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for making
back-up copies; |
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or reporting the work in
a newspaper or for judicial or legislative proceedings.
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Therefore, it may be possible
for Napster to run the argument of non-infringement,
since its subscribers are using the music only for private
use. But Napster would not be able to claim immunity
under the network service provider provision
of the Indian Information Technology Act 2000. The provision
stipulates that a network service provider can claim
immunity against third party information
only if it proves that the contravention (in this case,
copyright violation by the Napster subscribers) was
committed without its knowledge, or that it had exercised
due diligence to prevent any such offence or contravention.
Napster is not only aware of such contravention, but
is facilitating it by actively supplying the software
and service that makes such contravention possible.
The outcome of this case could
change the application of traditional copyright laws.
If the court finds that Napsters use of the copyrighted
material was a fair use, traditional protection of copyright
law will be worthless. Furthermore, a fair use decision
may have an effect on one of the major purposes behind
copyright law, which is to allow artists to restrict
reproduction of the works they create. This protection
gives artists an incentive to create works. A decision
allowing copyrighted works to be easily downloaded from
the Internet may cause artists to refrain from creating
works. Additionally, the RIAA complains that it will
lose revenue from CD sales.
By the time the time research
for this article was concluded, the infamous Napster
judgement became well known. The ruling against Napster
is a tremendous blow to lovers of the "freedom
of the Internet", but it is vital for the safeguarding
of intellectual property worldwide. Even if Napster
is shut down, many more will emerge to take its place.
This is a "menace" thats virtually impossible
to contain.
We welcome responses to the issues
raised here. Please mail your comments to this address:
rd.ryder@vsnl.net
About the author
Rodney D. Ryder is an advocate of the Supreme
Court of India and a consultant on computer and technology
laws. He has written extensively on judicial matters and
is the author of Guide to Cyber Laws, the first comprehensive
commentary on the Indian Information Technology Act, 2000.
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