Further to Tom's Copyright Post more legal nightmares

Posted by: Hawk on 27 September 2004

Just been reading an article (link below) and if its to be believed, the record companies next target in their battle to 'protect their recording rights' will be the manufacturers of such items as the iPOD. It talks about the introduction of an 'Inducing Infringements of Copyright Act'

This is a cut and paste of what it goes on to say........

Take a look. Scared yet? You should be. When the lawyers at EFF first sat down and asked "Whom could we sue under the Induce Act if we were an abusive copyright holder?" the answer was clear: pretty much everybody. Playing the devil's advocates, we knew we could draft a legal complaint against any number of the major computer or electronics manufacturers for selling everyday devices we all know and love—CD burners, MP3 players, cell phones—and that with that complaint, we could file a lawsuit that would survive any attempt to dismiss it before trial, costing the targeted company up to $1,000,000 per month in legal fees alone. The Induce Act is a nasty, brutish stick in the hands of the wrong plaintiff.


Apple's iPod music player seemed particularly vulnerable to attack. Any major record label could bring a strong lawsuit against Apple for "intentionally inducing" infringement under this new law with the iPod, both because it's plausible to argue that having an iPod enhances the lure of using P2P to download music (gotta fill all that space!) and because all the major record labels still believe that private sharing of songs from your CDs with friends is copyright infringement. We still disagree with the labels on these points, but the reality is that no court has yet convinced them that their legal theories are flawed. We also threw in Toshiba for making the iPod's hard drive and CNET for showing people how to move the iPod's music files.


Under the Supreme Court's ruling in Sony v. Universal (the Betamax VCR case), devices like the iPod and CD burners are legal as long as they have legal uses—what the Court called "substantial non-infringing uses." This has been the rule in the technology sector for the last 20 years. Billions of dollars and thousands of jobs have depended on it. Industries have blossomed under it. And any case brought against Apple or HP or Dell would be immediately dismissed because of it.


Now Senator Hatch and his allies want to tear down that rule and substitute a new one with the Induce Act. With it, the fact that a device or product has legal uses, even lots of them, is irrelevant. Filing a lawsuit under the Induce Act is like dropping a litigation bomb on any company that gives users products that have even the slightest potential to assist in copyright infringement. Technology companies will avoid being innovative, and investors will avoid supporting new technologies for fear of being sued out of existence based on the possible conduct of their customers. If this bill had been law in 1984, there would be no VCR. If this bill had been law in 1995, there would be no CD burners. If this bill had been law in 2000, there would be no iPod. If this bill becomes law in 2004, we may lose those devices and many more that we haven't even begun to imagine.


Im not qualified to know if this is just scaremongering or not, but it made me think..

Here is the link, what do you think???

http://www.eff.org/IP/Apple_Complaint.php

Cheers

Neil
Posted on: 27 September 2004 by Jez Quigley
Nice one Hawk. I mentioned the Induce act in the 'DVD writers' thread. You could also add that Hollywood itself would not exist if these laws were in force then - film companies originally moved to Hollywood to escape copyright issues on the east coast. Ironic that they now want to jail everyone to protect their interests.
Posted on: 29 September 2004 by Jez Quigley
More than forty technology companies today warned sponsors of a controversial copyright bill in the Senate that it would engender "an unmanageable flood of litigation that would tie up innovators and chill investment." They said that even the latest version remains unacceptable. The long list of groups includes CNET Networks, BellSouth, Earthlink, Google, MCI, MySQL, RadioShack, Panasonic, Red Hat, SBC Communications, Sun Microsystems, Texas Instruments, Uniden, Verizon Communications and Yahoo.

Needless to say the Induce Act has received very strong support from the entertainment industry. The Induce Act says "whoever intentionally induces any violation" of copyright law would be legally liable for those violations, a prohibition that would effectively ban file-swapping networks and could also imperil some consumer electronics devices. This for example could target such devices as Apples iPod.

Source:
News.com
Posted on: 03 October 2004 by Bob Edwards
Hawk--

Complicated issue. Two observations.

First, the bill's chances of making it out of committee--let alone being enacted into law--are two: slim and none, and slim just left town.

Second, even if the bill became law, the record companies would not be able to sue manufacturers of devices because the manufacturers would point to the licensing agreements in place with the record companies. The record companies would then be in the rather awkward position of opening themselves to counter and cross claims from the manufacturers.

Not to mention that the bill could not be made retroactively effective, so the the exisiting base could only be liable on a going forward basis.

Best,

Bob
Posted on: 07 October 2004 by Roy T
Latest news Wired News: Induce Act Talks Sputter.
Posted on: 08 October 2004 by Hawk
looking at Roy's link it looks like Bob was spot on....... thank god!?
The industry in general seem to be in quite a spin, especially considering the comments in Shayman's thread..