Copyright Office issues new DMCA exemptions: iPhone jailbreaking, noncommercial use of DVD snippets

Every three years, the United States Copyright Office seeks proposals for exemptions from the Digital Millennium Copyright Act ("DMCA").  As part of the DMCA, it became unlawful to circumvent access control measures copyright holders used to secure their copyrighted works.  For example, it is arguably a violation of the DMCA to use a program to "break" the content scrambling system ("CSS") encryption used for standard DVDs in order to make a copy of the DVD, even if making such a copy would otherwise be considered fair use under copyright law (although a recent decision by the Fifth Circuit arguably holds to the contrary).  The purpose of the exemptions is to adapt to any unintended consequences of the DMCA, such that lawful uses of copyrighted works are not unduly restricted.

Today, the Copyright Office issued the list of exemptions in this go-around of the triennial rulemaking process.  Included among the newly-granted exemptions are circumvention of the above-mentioned CSS encryption to use "short portions" in new works for the purpose of criticism or comment, when the use is educational, noncommercial, or for documentary filmmaking.  This is an important exemption, as it arguably covers the majority of videos on sites such as YouTube where short portions of movies, televisions shows, and the like are posted as a portion of a remix or other creative work.

In addition, unlocking a mobile phone to allow software to be run (commonly called "jailbreaking") is also exempted from the DMCA.  Notably, this does not prevent phone providers (such as Apple) from placing the restrictions on a phone in the first instance, it simply makes it not a DMCA violation to remove the restrictions.

The Office also permitted circumvention of prohibitions on "read-aloud" functionality of e-books.  Some e-books have been sold with a limitation that prevents the user from using their e-reader's "read-aloud" function, essentially turning the e-book into an audio book.  This is now not a violation of the DMCA anti-circumvention provisions.

The Copyright Office revisits these exemptions every three years.  Click below for the full text of the exemptions granted, or head to the Copyright Office website for the full release.

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Ninth Circuit: Filing copyright application sufficient to bring suit under Section 411(a)

In a decision last week, the Ninth Circuit held the filing of an application for registration with the copyright office is sufficient to meet the requirement that a copyright be "registered" before suit is brought under 17 U.S.C. § 411(a).  In the first circuit court decision on the subject since the Supreme Court's Reed Elsevier decision (holding the registration requirement of § 411(a) is not jurisdictional), the Ninth Circuit took the position that the statute was ambiguous, and that the "application" approach better comported with the purpose of the registration requirement.

The decision deepens the circuit split on the subject, with the Fifth, Seventh, and Ninth Circuits following the "application" approach, and the Tenth and Eleventh following the "registration" approach.  This continues to be an issue that would benefit from either Congressional action or a definitive ruling from the Supreme Court, something the Court declined to do in Reed Elsevier.

More detail of Cosmetic Ideas, Inc. v. IAC/InteractiveCorp after the jump.

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Supreme Court: Registration requirement of 411(a) not jurisdictional for copyright claims

Today the Supreme Court decided Reed Elsevier, Inc. v. Muchnick, a case regarding whether the registration requirement of 17 U.S.C. § 411(a) is jurisdictional or a claim processing rule. The Court held the requirement to be nonjurisdictional.

The case involves a class action for copyright infringement by freelance journalists based on republication of works in electronic databases that originally appeared in, for example, newspapers.  Some members of the class had copyright registrations, some did not.  Nevertheless, the district court certified the class and approved the proposed settlement agreement.  The Second Circuit sua sponte raised the issue of jurisdiction, and eventually held the district court lacked jurisdiction to enter an order regarding the unregistered copyrights by virtue of § 411(a).

The Supreme Court disagreed, and held the registration requirement of § 411(a) did not prevent a court from entering an order affecting unregistered copyrights.  Specifically, the Court held there was nothing in the statute that indicated Congress intended the requirement to be jurisdictional.  Notably, the Court observed § 411(a) did not "clearly state[]" that its requirement was jurisdictional, and also explicitly permits claims involving unregistered works in certain circumstances.  This was inconsistent with a jurisdictional requirement, and therefore the district court had jurisdiction to approve the settlement agreement even though it adjudicated claims for unregistered copyrights.

The Court left the question as to whether district courts should sua sponte dismiss copyright cases where the Plaintiff is asserting an unregistered copyright for another day.

More detail of Reed Elsevier, Inc. v. Muchnick after the jump.

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Fourth Circuit: Plagiarism detection service is fair use of students' copyrighted papers

In a recent decision by the Court of Appeals for the Fourth Circuit, the court decided that the anti-plagiarism service provided by iParadigms at turnitin.com, did not constitute copyright infringement of high school students' papers submitted via the service.  Instead, the court held the service was a fair use of the copyrighted works and therefore not infringement under § 107.  However, the court reversed and remanded to a district court on the issue against a student for liability under the Computer Fraud & Abuse Act for allegedly unauthorized access to its servers based on one student's use of a password meant for students from another school obtained via the internet.

More on A.V. v. iParadigms, LLC after the jump.

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Seventh Circuit: Notice requirement to Copyright Office when registration refused not jurisdictional

In a recent decision, the Seventh Circuit affirmed a district court's grant of summary judgment that a plaintiff could not prevail in her copyright claim.  The court first addressed whether the plaintiff complied with the necessary procedural requirements to have her claim heard.  The plaintiff had filed for a copyright registration and had been rejected (thereby satisfying part of the requirements of § 411).  However, when filing suit, she did not notify the Copyright Office she was doing so, and thus did not meet this second requirement applicable to those who bring suit after being refused registration.

This fact notwithstanding, the Seventh Circuit concluded it could hear the case, given the plaintiff had her registration refused.  The court characterized the notification requirement as a case processing rule, and observed the copyright office had granted a registration in the interim, and thus the purpose of the notification requirement (to permit the Copyright Office to address the issue of registrability) was satisfied.

On the merits, the court noted the plaintiff's claim failed because she did not allege copying of any of the actual materials protected by copyright, but rather her ideas for better educating students.  The court affirmed the long standing rule that copyright protection does not extend to ideas, but rather the original expression of an idea.

More detail of Brooks-Ngwenya v. Indianapolis Pub. Sch. after the jump.

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Digital Britain: The UK Government's vision for a 21st century digital economy

Last month, the UK Department for Culture, Media, and Sport released Digital Britain, a report regarding the future of communications infrastructure in the UK, how to deal with challenges of a digital economy (such as copyright infringement), and containing policy recommendations regarding how to move forward.  Click below for our thoughts on the report and associated documents.

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Pirate Bay operators guilty of criminal infringement in Sweden; no webcast of US file sharing case

In the past day, there has been two interesting bits of news in the world of cases alleging copyright infringement by way of peer-to-peer file sharing.

The first is that the individuals who operate and maintain the servers that host The Pirate Bay, the world's largest bittorrent tracker, were held to have committed criminal copyright infringement by a Swedish court.  The four individuals were each sentenced to a year in prison, and ordered to pay a combined 30 million kronor ($3.6 million) in damages, substantially less than the $17.5 million in damages requested by the media companies.  The Pirate Bay has video press conference on its site.  The individuals are calling the verdict a win, vowing to appeal their conviction.  As an author who wrote a book about the Swedish piracy movement stated

If they're convicted, they'll be martyrs and the "piracy" movement will continue working for what they believe in, even more strongly. If they win, the signal to the public is that file sharing isn't illegal and The Pirate Bay will basically have achieved its goal.

The issue is far from over, with an appeal of the convictions upcoming, the leader of Sweden's Pirate Party issued a statement to the BBC that the verdict was a "gross injustice," and that:

This wasn't a criminal trial, it was a political trial. It is just gross beyond description that you can jail four people for providing infrastructure. There is a lot of anger in Sweden right now. File-sharing is an institution here and while I can't encourage people to break copyright law, I'm not following it and I don't agree with it.  Today's events make file-sharing a hot political issue and we're going to take this to the European Parliament.

Despite the convictions, The Pirate Bay's website will continue operation, as the servers hosting it have been relocated outside Sweden.

The other development is a decision yesterday by the First Circuit reversing a district court's decision in a U.S. file sharing case.  In that case (In re Sony BMG Music Entertainment), the district court granted the defendant's request that pretrial hearings be made available via webcast over the objections of various recording company plaintiffs.  The First Circuit held this was not permitted based on the policy of the judicial conference of the United States and the district court's local rule 83.3.  All relevant court documents may be found on the Recording Industry vs. the People blog, which is operated by Ray Beckerman, an attorney who has represented file sharing defendants. 

All in all, a busy 24 hours in the world of file sharing cases.

Tenth Circuit: Insufficient proof of access dooms copyright infringement claim

In a recent decision, the Tenth Circuit affirmed a district court's finding of no copyright infringement after a bench trial and the findings for the defendants on related claims.  The district court held there was insufficient evidence of copying, specifically that there was no evidence the defendants had access to the copyrighted work.  The copyright infringement claim was the basis for claims under the Lanham Act and New Mexico Unfair Trade Practices Act, and the district court accordingly found for the defendants on these claims as well.  

The Tenth Circuit affirmed, finding no clear error in this determination.  The court held that while there was a "bare possibility" that the defendants had access to the plaintiff's copyrighted work, there was insufficient evidence to reverse the district court's factual determination of no access.  Further, the alleged copies were insufficiently similar to meet the "striking similarity" standard which permits access to be presumed.  Accordingly, the court affirmed the finding of no copyright infringement.

Because the copyright infringement claim was the basis for the Lanham Act and New Mexico Unfair Trade Practices Act claims, the Tenth Circuit also affirmed the district court's findings for the defendants on these claims.

More on La Resolana Architects, PA v. Reno, Inc. after the jump.

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United States did not waive immunity for copyright infringement claim brought by prisoner

In a recent decision, the Federal Circuit held the Court of Federal Claims correctly dismissed a copyright infringement suit against the United States for lack of subject matter jurisdiction.  The plaintiff is a federal prisoner who created various coyprightable works while in federal prison.  He brought suit alleging copyright infringement after his works were distributed by Federal Prison Industries.

The Court of Federal Claims dismissed the case for lack of subject matter jurisdiciton, holding the government had not waived its sovereign immunity from suit in this context.  The Federal Circuit affirmed, holding that because the calendars were created using government-furnished computers while the prisoner was in the "service" of the United States, sovereign immunity had not been waived under 28 U.S.C. § 1498(b).  As a result, the Court of Federal Claims correctly held it lacked jurisdiction to hear the case.

More detail of Walton v. United States after the jump.

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Eleventh Circuit: Similarity of architectural plans depends largely on arrangement of features

In a recent decision, the Eleventh Circuit affirmed a district court's grant of summary judgment of non-infringement in an architectural copyright case. The appellant had argued that the district court had effectively heightened the standard for infringement by performing an element-by-element comparison focusing on the differences between two floor plans. The Eleventh Circuit held the comparison was appropriate given the thin nature of architectural copyright and that, given the differences noted by the district court, summary judgment was appropriate in this case.

More detail on Intervest Constr., Inc. v. Canterbury Estate Homes, Inc. after the jump.

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