>> Kevin Amer: Okay. Welcome back, everyone. We are about ready to get started on our second session of the day which again focuses on domestic case law developments since the close of the comment period. I've been asked just to remind everyone -- all of our panelists to please remember to speak into the microphone when you're making a comment, and then if you could please turn off your microphone when you finish speaking. That will help from the audio recording standpoint. So, again, as before, I'd like to invite our panelists to introduce themselves, and to state their affiliation. And then, again, we invite you to just make a very brief summary statement, and we urge you, again, to please try to keep those to about 45 seconds. So we'll start with Mr. Band. >> Jonathan Band: So I'm Jonathan Band, and I represent the Library Copyright Alliance. We're most concerned with the Ninth Circuit's decision in Mavrix v. LiveJournal. In Mavrix, the court found that a service could lose Section 512 Safe Harbor by virtue of moderating the content being uploaded to its site. Though as a service provider that complies with the EU's new filtering requirements could find itself losing its DMCA filter. This is a perverse result. The Motherless decision may undo some of the damage, but Mavrix remains a potential landline. Thank you. >> Sofia Castillo: Sofia Castillo from the Association of American Publishers. AAP continues to believe that a legislative fix to Section 512 is necessary to ensure that ISPs that rely on copyright infringement as their business model are not eligible for safe harbor protection. The decisions in Cox and Grande provide helpful elements that the Copyright Office might include in its report with respect to defining a reasonably implemented repeat infringe or policy. Similarly, to address the contours of platform responsibility, the Copyright Office might look to the rulings in LiveJournal and Motherless, which clarify that screening material for potentially infringing content does not expel an ISP from the 512(c) Safe Harbor. >> Stephen Carlisle: Stephen Carlisle of Nova Southeastern University. I need to preface my remarks by all my comments here today are my personal opinion, and do not necessarily represent those of Nova Southeastern University. Through the good graces of Nova, I have managed to [inaudible] maintain one client from my previous law practice, a small music publisher of jazz who has perhaps 100 songs. From our viewpoint, 512 is simply unworkable. The whack-a-mole program on its own makes it simply unaffordable from a time standpoint and a financial standpoint to send out the number of notices required. As to the red flag knowledge which was discussed earlier, I did this last night courtesy of my good friend sitting next to me, Google. I put the name of my artist into a Google search. What I got back was recommendations for two videos. Both of these videos consisted nothing more than my client's song with a static image of the album cover, top two hits. Now, as far as red flag knowledge, I think when you have a entire work that is not modified in any way so it can't possibly be fair use, and all there is is the album cover on there, I think that's sufficient to confer red flag knowledge. Thank you. >> Caleb Donaldson: I'm Caleb Donaldson for Google. The DMCA framework provides a balanced approach to intellectual property enforcement. And we can see that in the flourishing of not only the tech sector, but the creative industries as well. We've talked -- we've heard already about the volume of searches that a video that is uploaded to YouTube, we haven't heard that -- those videos have paid six billion dollars in ad revenue to the music industry alone. But the creative sector's not just established industry players. A study last year showed that in 2017 there were almost 17 million American independent creators offering their works for money online. So this just shows the variety of creativity that the DMCA could support. It's also laid the foundation for Google's Best-In-Class rights management tools, not only our 100-million-dollar investment into Content ID, but also our bulk removal tools from search results. We processed 693 million requests to remove URLs from search results last year. And we did it very quickly, and with a high degree of accuracy. And we're very proud of those tools. And all of that rests on the framework of the DMCA. Thank you. >> Kevin Amer: Thank you. >> Kenneth L. Doroshow: I'm Ken Doroshow. I'm with the Recording Industry Association of America. And I know there's going to be a certain amount of redundancy from this morning, so I'll try to edit on the fly to keep that to a minimum. But from the perspective of the recording industry, little has changed over the two years since the last comment period. And we stand by our comments from a couple of years ago. Cases like Motherless, for example, continue the trend of judicial opinions that read the red flag knowledge requirement out of the statute. We are pleased to see those repeat infringer cases that the office has noted of BMG/Cox case, the Grande decision. But we hesitate to take too much comfort in those decisions, because, as was discussed this morning, they don't really teach us very much. These were very extreme cases. And it shouldn't be controversial or newsworthy that a service provider that effectively has no repeat infringer policy is not entitled to the safe harbor. And, of course, the Motherless court's willingness to excuse evident problems with that particular service provider's repeat infringer policy suggests that even BMG versus Cox and Grande can't be taken for granted. >> Kevin Amer: [inaudible] -- >> Kenneth L. Doroshow: So -- >> Kevin Amer: I think we should -- >> Kenneth L. Doroshow: Okay. >> Kevin Amer: Thank you. >> Kenneth L. Doroshow: Sure. >> Douglas T. Hudson: Hi. My name is Doug Hudson from Etsy. We have two million micro businesses and creators that might not be fully represented in some of these discussions. And in that, I think there's some points that they see that might become -- that might come together between the two sides. One is that I've heard from IP owners and marketplaces and others that there's a dramatic increase in the amount of fraud in the process. Fraud in terms of false takedowns, in terms of phishing and scamming, and in terms of, like, gaming the system. On the other side, they're seeing -- people are seeing fraud in counter notices. I think we need to seriously look at 512(f), and find a way to put some more teeth into the process to protect both copyright owners, marketplaces and end-users. Second, I think we need to work on simplifying the DMCA for small IP owners, for micro businesses, for people who have a small library of materials. It's hard for them to use the process. And, finally, there been solutions here, in Europe, people have recommended pre-filters. Pre-filters don't work for everyone. That's not a one-size-fits-all solution. When you deal in physical goods, when you deal in creative services that don't match digital content, it's not a viable solution. And so we need to understand how the flexibility of a system like 512 helps create things in all sorts of creative endeavors. They're not just digital, audio or video. >> Kevin Amer: Thank you. >> Keith Kupferschmid: So I'm Keith Kupferschmid with the Copyright Alliance. When it passed Section 512, Congress intended to encourage copyright owners and OSPs to work together to combat existing and future forms of online infringement. However, over the past 20 years, court rulings and other unanticipated changes in the online environment have rendered these provisions less effective, creating an ecosystem where mass copyright infringements are an unfortunate and regular occurrence, and ISPs are routinely shielded from liability and encouraged to avoid responsibility and accountability. Over the past two years in particular, we have experienced more of the same. The courts have effectively written the red flag knowledge standard out of the statute. And while there have been some good recent decisions relating to repeat infringer standard, these decisions are not the panacea that some would make them out to be. The force of the Fourth Estate decision has compounded these problems by effectively adding a new requirement to the DMCA that the works be registered before sending a DMCA notice. If you combine these decisions with the new limits on the Whois database, there can be no doubt that we are clearly worse off than we were when we attended these roundtables two years ago. >> Kevin Amer: Okay. Thank you. >> Arthur Levy: Art Levy, Association of Independent Music Publishers. Since the last roundtable with some narrow exceptions, problems with the DMCA have gotten worse for independent music publishers and songwriters, not better. Courts continue to write copyright owner protections out of the DMCA, most recently in cases that have interpreted the act's provisions on constructive knowledge and misrepresentation, among other issues. As a result, service providers have less incentive to work to prevent infringement, and it's even more burdensome for copyright owners to do so. The whack-a-mole problem has not been solved, yet ISPs continue to benefit from the safe harbor. And from the perspective of indie publishers, songwriters and other small copyright owners lacking the resources to enforce their rights under the DMCA, the DMCA essentially offers them no remedy. The Copyright Office should promote significant DMCA reform, seeking a rebalancing of the DMCA. >> Peter Midgley: My name is Peter Midgley. I'm the director of the Copyright Licensing Office at Brigham Young University. We're a private non-profit educational institution. And because we're private, we don't enjoy sovereign immunity from copyright infringement lawsuits. We're here because we believe that universities are somewhat unique in the DMCA ecosystem. Obviously, our primary role is to educate our students, many of whom are dreaming about careers in creative industries. At BYU, our animation program and advertising programs are among the most highly rated in the world. And so we definitely recognize the value of a robust copyright system. We're, by no means, copyright abolitionists. But at the same time, we are also service providers, and we manage a very large network to support our students, our faculty, staff and even visitors to our campus. And in that context, we've received numerous 512(c) notices. And the imposition that it presents for us, the administrative burden in processing those notices, and the uncertainty associated, and following the Cox and Grande cases, are somewhat problematic for us as universities. >> Kevin Amer: Thank you. >> Sasha Moss: Thank you to the Copyright Office staff for inviting us all to speak here today. My name is Sasha Moss. And I'm here on behalf of the R Street Institute, a center [inaudible] think tank based in Washington, D.C. and the state. So as the internet has grown, so have the amount of takedown requests. As such, the burden has heightened for both rights holders and service providers to combat infringement. Now consider this. Consumption of legal content is continually rising as R Street and the Center for Democracy and Technology articulate our last round of statements. In 2015, audiences legally consumed 3.5 billion hours of movies online. So as we see, as legal options become available, users will genuinely gravitate towards that option. Now, motivation may differ from user to user. Some users are afraid of pirated content might come with malware. Others may fear having their internet cut off for the entire household. Regardless, legal options, as they become available, will be used. And we need to continue to gravitate towards that direction. And with nothing's ever easy, the DMCA as written is not perfect, but as we know as perfect as the enemy of the good. I want to thank you for your time, and look forward to your questions. >> Mary Rasenberger: Hi. Mary Rasenberger from the Authors Guild. The Authors Guild is a membership organization and advocacy organization with 10,000 members. We have a number, about at least a third of our members, maybe half, do some self-publishing. So they are trying to deal with piracy themselves. In the last two years, ebook piracy has blossomed, bloomed. It is becoming a real issue. Frequent readers are more frequently reading from piracy sites. The new cases in the last couple of years only affirm the collapse of the actual knowledge and the red flag standards into notice and takedown. And as we all know, notice and takedown is an absurd way to deal with piracy. 512 is not incentivizing cooperation, as it was intended to do. And for authors, the main issue were dealing with is that under 512 we cannot address the ebook piracy sites. That is, the sites that are devoted to ebook piracy. They hide behind 512. >> Kevin Amer: Okay. Thank you. >> Mary Rasenberger: We need to rethink 512 and switch the burdens to the ESPs. And I just want to suggest that we look to the EU directive as some kind of model. >> Kevin Amer: Okay. Thank you very much. I'd like to start this session with repeat infringer policies. Mr. Doroshow, I think you said that the recent cases don't have much to teach us. But, nevertheless, I'd like to throw the question out there, a general question. And that is to what extent have recent decisions on repeat infringer affected or clarified the state of the law in this area? And, more specifically, does anyone see any conflict among the decisions? And I'm thinking particularly conflict between Cox and Grande Communications on the one hand, and Motherless on the other hand. Mr. Midgley? >> Peter Midgley: Yeah. So I actually tend to agree that the recent case law has not been as helpful for those of us who are earnestly seeking to implement repeat infringer policies. I think what we have now are a couple of cases that make it clear that -- it actually isn't even clear if a 13-strikes-and-you're-out policy is an adequate policy under the statute. What is clear is that if you don't enforce it, you're not eligible for the safe harbor, which really isn't all that helpful for those of us who are trying to implement whatever is an acceptable repeat infringer policy. We heard a lot of talk in the earlier panel about what constitutes red flag knowledge. And somebody said they would love to know how to put somebody on red flag knowledge. Well, as an ISP, I would love to know how to implement a repeat infringer policy that's going to be held to be adequate, and what it means to reasonably enforce such a policy. I can just tell you in a university setting, again, we're somewhat unique because we have pretty close proximity to our subscribers. It's pretty easy when -- I mean, what our policy is, at BYU at least, is to forward -- to do our best to try to identify whoever was associated with a given IP address included in a notification of claimed infringement, which can be a very difficult process. And we don't -- we can't do it all the time given the dynamic nature of our network. But when we can, we forward the notices on to the people involved. And just anecdotally, I can tell you that, you know, these are students that they're -- you know, they see this big scary legal notice, they show up in my office, and they say, "I have no idea what you're talking about. I don't know what this is." And so I have, you know, some rights holder on one hand telling me somebody has a problem. I have a student on the other hand saying I have no idea. And now the question is, "Well, what's my obligation?" You know, I guess I'm one of the few ISPs that actually has a [inaudible] courtroom on my campus, so I suppose I could start holding hearings, and have the students show up and invite the rights holders in. But I don't know if Cox or Grande or, you know, who else could take advantage of that process, and really whether it should be expected of us as ISPs, what level of adjudication, what burden do we bear as ISPs to ferret out what are actual instances of infringement. >> Kevin Amer: Could you elaborate a little more on sort of what's taking place with respect to these notices the students are getting? I mean, what sort of activity are these targeted towards? Is it sort of peer-to-peer activities that go to you, and then you forward them to the students? Or how does the process typically work? >> Peter Midgley: Yes. So in almost all instances, we get these notices. They purport to be under 512(c), but they're really aimed at 512(a) activity. Which, again, makes it very difficult, because in order to even do any kind -- you know, we're different than YouTube. We don't have a copy on a server that we own and operate that we can go and check. This is just content that has flowed through our network. And to be eligible for 512(a), we can't keep copies of it. We have no way of verifying whether or not -- you know, the only thing we have to go on is the fact that a rights holder has sent us a notification. So we do our best to identify who's involved. We forward the notice on. And what we do at our campus, we refer the matter over to our Honor Code Office, which does have some fact-finding capability that we don't have in our office. And so, you know, to the extent a student wants to dispute it, they can go and avail themselves of that process. But -- >> Regan Smith: So it sounds like [inaudible] under 512(a), you take these notices as, you know, indicative data as to whether or not there's an infringement problem. Right? >> Peter Midgley: That has been our current policy. You know, again, we're looking at the Cox case and the Grande cases, and, you know, we're left wondering what precisely is an adequate repeat infringer policy. I don't think the courts have told us that, or the statute certainly doesn't appear to tell us that. And so we're just, you know, doing what we think is reasonable, and hoping that it will -- that if and when we're challenged, that we will be eligible for the safe harbor under 512, given the policy that we've adopted. >> Kevin Amer: So it sounds like you would favor the statute having more specificity. Is that correct? And I guess, you know, the second part of that question is that, obviously, we've heard from a lot of people that the repeat infringer policy was not intended, and should not, sort of impose a one-size-fits-all policy. And so I wonder what your response is to that, and what your sort of suggestions are for ways that would provide more clarity to universities and others. >> Peter Midgley: Yeah. So I do think -- I agree with the notion that a one-size-fits-all policy does not work very well. You know, again, I'm here as one example of a large number of organizations for whom internet service is not our primary function. It's an ancillary function that we provide. You know, if I were the general counsel of Cox or Comcast or some other more traditional ISP, I would be paying very, very careful attention for us as a university. And there are lots of organizations that have broadband access, you know, to supplement some other service they're providing. And so, you know, one of the things that we have to consider is whether or not the potential liability associated with providing internet access is justified by the benefits that are provided. And, you know, again, with statutory damages and all these other things looming out there, I think that's a very real conversation. So that's something the office needs to consider is, you know, if it's difficult for the Cox's and Grande's of the world to adopt and reasonably implement repeat infringer policies, how much more difficult is it for those of us that are in traditional ISP businesses to, you know, wade through all of the statutes and the case law on this. My final point, I guess, would be, at least in the university-specific context, there is 512(e), which is -- I don't know what its original intent was, but I can just tell you as somebody who is a copyright officer at a university, it's virtually useless. So if you want it to do something specific for non-profit educational institutions, which I do think would be a worthwhile thing to do, I would encourage you to consider clarifications and revisions of 512(e). And I'd be happy to talk about that further. >> Kevin Amer: Thank you. >> Kimberley Isbell: So I just want to ask sort of a practical rather than a legal question. Does your university either post what its repeat infringer policy is, or communicate that to rights holders once they've complained about a particular student or particular traffic on your network? >> Peter Midgley: Yes. Our repeat infringer policy, it's available on our internal university policy network. It's publicly viewable through our website to copyright.byu.edu. I encourage everyone to visit. And so -- and we -- one other issue, again, this is a university-specific issue, but we also have to deal with the Higher Education Opportunity Act, which includes provisions specific to copyright infringement. And so in compliance with the HEOA, we send out an annual notice to every member of our university community, all faculty, students and staff, that make them aware of our repeat infringer policy, direct them to legal alternatives, and, you know, the other provisions that are in the HEOA. So that's another area, again, if you're looking to do revisions and specifically aimed at the non-profit educational sector, I would encourage the office to consider the interplay between the HEOA and 512. Which it's not clear to me that that was considered in the original implementation of those two statutes. >> Kevin Amer: Thank you. Mr. Band? >> Jonathan Band: So the Library of Copyright Alliance filed an amicus brief in the Cox case. And what we were concerned about was exactly sort of this one-size-fits-all problem. And we wanted to make sure that, you know, the court didn't sort of say, "Okay, this is the standard and this is the standard that's going to apply to everyone. Everyone needs to have this kind of policy." Because exactly as Peter was describing, I mean, certainly universities are one kind of service provider, libraries are another kind of service provider. For many Americans, you know, who aren't in school, I mean, the place where they get internet access is at the library. And so it's very important that, you know, that sort of the standards that apply to Verizon and Cox and Comcast not necessarily be the standards, you know, for a policy -- or a repeat infringer policy for a university or for a library. I mean, we don't see a need for a statutory amendment. We think the language as is provides enough flexibility, especially because the idea of appropriate circumstances. And let me just also add, just to take a step back, and this sort of connects to points made in the previous session. Maybe you'll be getting to that here, too. Less about the constitutional dimension about the importance of internet access, but more the practical concern. So as I indicated, for many -- you know, for some, like, 30 or 40% of the population, the only place where they can get broadband access is at the public library. I mean, we all walk around with our iPhones, but a lot of people don't, or they're in regions where there isn't good coverage. And the access to the internet, I mean, in a sense it sort of goes beyond the First Amendment. I mean, it really goes to the ability to function in this society. I mean, as we read stories, I mean, you can't apply for Medicaid in places, or you can't meet the Medicaid work requirements unless you file things routinely, you know, on a website. So that assumes that you know that you have internet access, and that you know how to use a website, and that you can know how to apply for things online. >> Regan Smith: Do you think libraries should educate -- I mean, they probably do, right, about the need to not infringe copyright if you're depending upon this, right, repeat infringer? You have more than one -- you have to repeatedly infringe in order to be potentially terminated? >> Jonathan Band: Right. No. And, you know, certainly libraries, particularly in the high-risk situation, take that very seriously. And they have the same Higher Ed. Opportunity Act requirements. But my point is this, is that when we're balancing the issues relating to terminating internet access, we need to be aware it really -- it goes beyond -- I mean, even though the First Amendment is important, you know, I'm saying it goes -- you know, it's the, you know, right -- you know, life, liberty and the pursuit of happiness. I mean, you can't do those things in this country unless you have internet access. >> Kevin Amer: So -- >> Kimberley Isbell: I -- >> Kevin Amer: Go ahead. >> Kimberley Isbell: I just want to ask a very maybe hyper-technical question. Does LCA view the fact that libraries provide the physical facilities to access the internet as making them 512(a) ISPs? >> Jonathan Band: Yes, we do, because we're -- you know, we -- you know, we feel we fall squarely within the definition of 512(a). >> Brad Greenburg: Related to that, then I have two follow up questions. One is that in LCA's initial comments you wrote that service providers have been applying a repeat infringer policy that was actually at a higher standard than the law requires. I'm curious if you still feel that way, and exactly what that standard is. And I'll add to that. And we haven't actually talked about this yet. This might be a good time to begin talking about it. But at the last round of roundtables, the service providers were largely saying that repeat infringer means adjudicated repeat infringer. That is not what the court said in Cox. And I'm wondering if that understanding among service providers has changed, or if they think that the court just got that wrong. >> Jonathan Band: Well, as this conversation indicates, there's lots of different kinds of service providers. And I'm sure, you know, the different service providers have different opinions. You know, it would seem to me that, you know, an infringer is an infringer, not an alleged infringer. That seems to me what the plain language of the statute is. But I agree with you. The courts seem to be going in a different direction. And, you know, so that -- you know, I'm not an article III judge, so I guess the law's what they say, not what I say. >> Kevin Amer: So just -- and one last follow-up question. Just to sort of drill down. I mean, so -- I mean, we -- I think, you know, we take your point about the importance of internet access. I guess the sort of bottom-line question is so then what are you sort of suggesting in terms of either a potential change to the repeat infringer provision to accommodate these sorts of concerns? Is that what you're suggesting? Should there be a different statutory provision for non-profit institutions? Should the repeat infringer policy not apply in those situations? I mean, what is the sort of bottom-line proposal that you would favor? >> Jonathan Band: No. I think the statute as written, you know, it's a little awkward, that provision, you know, because it's also talking about terminating infringers, which I don't think we want to do. We want to terminate the subscriptions of infringers. >> Kevin Amer: I'll just [inaudible] it. If -- >> Jonathan Band: You know, just saying, I don't think that was that well drafted. >> Kevin Amer: I just -- >> Jonathan Band: But I don't think it needs -- I don't think that oddity is enough to require congressional intervention. I think as long as courts continue -- or courts don't sort of start imposing additional restrictions on what appropriate circumstances, so that we -- you know, a library can decide what's an appropriate circumstance, a university can decide what's an appropriate circumstance, and say, "Look -- " -- you know, because again, if you're a university student, and you don't have access to the network -- >> Kevin Amer: Right. >> Jonathan Band: You can't get your homework, you know, you can't get your assignments, you can't -- >> Kevin Amer: Right. >> Jonathan Band: You can't take your exams. >> Kevin Amer: So but, I mean, I guess sort of the -- the statute, obviously, contemplates that at some point people will be terminated if they are repeat infringers, and they -- right. [inaudible] their subscriptions -- >> Jonathan Band: [inaudible] that. >> Kevin Amer: That their subscriptions will be terminated. And I take your point about the need for that standard or, you know, appropriate circumstances to vary depending on the nature of the service provider, particularly given the importance of internet access. But on the other hand, that's what the statute seems to contemplate. So are you suggesting that, you know, for certain institutions that requirement should not apply? >> Jonathan Band: No, no. What I'm suggesting is that in your report you talk about how appropriate circumstances could be interpreted in different -- you know, that what's appropriate at a public library or a public -- what's appropriate for a university, may be different from what's appropriate for a large commercial service provider. >> Kevin Amer: Okay. Thank you. Ms. Castillo? >> Sofia Castillo: Well, first of all, I would like to push back or disagree with the notion that it was difficult for Cox and Grande to implement a repeat infringer policy. In those cases, it was clear that it was not difficult. They just decided not to do it. Cox had a policy, and it just decided not to implement it. And Grande didn't even have a policy, and it just decided to ignore all the millions of notices that it received for repeat infringement. So I don't think it's about difficulty levels in those cases. I think, for the purposes of the Copyright Office study, there are a couple of elements in the Cox decision that are helpful about repeat infringer policies in general. And it's what Mr. Greenberg was alluding to before about the concept of repeat infringer. The court said that a repeat infringer is someone who infringes copyright more than once, and there is no need for adjudication. And I think that is something that the court got right, and that the Copyright Office, in its recommendation, should stand for. Secondly, the Cox decision also ruled that a repeat infringer policy should be assessed from an ISP's general practices. And I think that is also the correct interpretation of the law. Then in terms of what constitutes a reasonable implementation of a repeat infringer policy, there are three things that the Copyright Office can include in its report. First, is that an ISP should meaningfully and consistently enforce its own policies, whatever that policy is. It's true that we don't have guidance from the courts on that, but at least we do have guidance and meaningful and consistent enforcement of such policy. This is from the Cox decision. And then from the Grande decision, it's clear that an ISP should be keeping a log of repeat infringers in order to be able to say that it has reasonably implemented a repeat infringer policy. And in third place, AAP believes that ISPs should prevent terminated subscriptions or terminated users from opening a new account using simply a different email address or a different user name, but still be the same person. These decisions are also helpful in pointing out what is not a reasonable implementation of a repeat infringer policy. So, for example, in Cox and Grande, the courts concluded that refusal to terminate known repeat infringers is one way to not comply with the statute. So I think that's an easy recommendation for the Copyright Office to follow through on. Another one would be the termination followed by the immediate or thereafter -- shortly thereafter reactivation of repeat infringers. That also seems to be inconsistent with a reasonable implementation of the statute. And then on the question of the contradictions between Cox and Grande on the one hand and Motherless on the other, there are at least two problems with the Motherless decision regarding the repeat infringer policy. The first one is that 512(i)(1) requires ISPs to inform their users and subscription -- or account holders of the repeat infringer policy. In Motherless, the policy was simply anything legal stays. And that hardly conveys to a user that there is a potential for termination if they repeatedly submit infringing content. Then another thing that the Motherless court got wrong was that it ruled that implementation of a repeat infringer policy based on the operator's personal judgment, and without a log of repeat infringers, was reasonable under the statute. We believe that Judge Rollingson's [assumed spelling] dissent is very illustrative of why this is problematic. And we also think that the Cox decision, with its standard of meaningful and consistent enforcement, is actually more in line with Congress's intent in implementing the DMCA as a system of shared responsibilities between ISPs and copyright owners. >> Kevin Amer: Thank you. Mr. Midgley, did you want to follow up? >> Peter Midgley: Yeah. Just a couple quick points. First of all I am interested if there is any guidance on -- you know, unlike Cox or Grande, at least in our university, we're forwarding these notices on, and we do receive actual notice from the subscriber, to the best of our ability, that there is no infringement. And so what is an ISP to do if in the implementation of their policy they get conflicting information? Is that now considered an infringer when they've denied that they're an infringer? And whose word are we supposed to take? And how do we deal with that? That's a question. I would just also like to say that 512(i)(1) refers to a service provider system or network. This is a very important distinction in a university setting. We provide a network, which has the First Amendment implications we talked about. We also provide the system, which is how our students access our university. And if the statute isn't clear about what precisely we have to terminate once we've decided that there's a repeat infringer, whether it's the system or the network, that's a very, very important distinction for us. And we would appreciate some clarity on that. I can just tell you that non-profit educational institutions are notoriously risk-averse. And so if -- uncertainty is going to make it very difficult for non-profit educational institutions to continue to provide the robust environments that I think we all depend on to provide the socially beneficial functions of those institutions if there is uncertainty around how to avoid, you know, potentially catastrophic liability. >> Kevin Amer: Thank you. I think I'm going to go to Mr. Donaldson, and then Mr. Doroshow. And then, unless there are further comments on repeat infringer, we're going to move to the next topic. Mr. Donaldson? >> Caleb Donaldson: Sure. I just wanted to say that Cox on the one hand and Motherless on the other shows that the courts are getting involved in whether these policies are appropriate to the nature and purpose and size of the platform. And that truly one size doesn't fit all. And these are sort of -- they provided -- the cases taken together provide a good example of why it's hard to write a regulation that would cover all of this. Even putting aside 512(a) providers, the number of different kinds of 512(c) platforms, and the different resources available to them, dictates that repeat infringer policies will have some variation. And that's true not only from the perspective of a big company to a little company, but even within Google's 512(c) products, of which there are many. You know, we tailor repeat infringer policies to the appropriate circumstances given, you know, what the purpose of the platform is. >> Kevin Amer: Mr. Doroshow? >> Kenneth L. Doroshow: This may help with the segue to other aspects of the 512. But I just want to make a comment about the importance of the repeat infringer policy, and the termination requirements and so on. Very important, obviously. These are important developments with the BMG and Grande decisions. But they're not the be-all and end-all for a couple of reasons. First, if you have to -- if you look at the facts of these cases, in order just to make the point to prove the case that there was a failure here, the rights' owners had to send millions of notices. So there's a sort of an upfront burden that's put on the copyright owner that is really unreasonable, even to make this threshold bare minimum case that these ISPs had not implemented a repeat infringer policy reasonably. And then I think -- this is to echo Ms. Castillo's point from earlier, even if you have a perfect situation and a perfect system of repeat infringer policy and terminations and so on, you still have the problem of users finding other means -- these infringing users finding other means of access to the internet, whether it's through a different service or because there's a lack of know your customer rules, they can show up again using different identification, different account information. So, again, the real action, it seems to me, is the issue of red flag knowledge and the representative list, and the sort of -- the more substantive obligations that go to the knowledge of the ISP, and then what obligations they have upon acquiring that sort of knowledge. >> Kevin Amer: So that, I think, picks up on a question that I had during the last panel. Which is how do content owners typically go about notifying conduit service providers of infringement on their platforms? Because that was, obviously -- you know, it sounds like, Mr. Midgley, you still are receiving notices that purport to be 512(c) notices in some cases. There was an issue, you know, previously in the Cox case about service providers rejecting those sorts of notices. I wonder if you have any sort of insight that you could provide as to the practice in your industry of how rights holders typically go about providing this information. >> Peter Midgley: I mean, it's somewhat variable, depending on the nature of the service. But we do send DMCA compliant notices both to 512(a) providers and 512(c) providers. >> I wanted to -- did Ms. Moss and Ms. Rasenberger, did you have comments on repeat infringer or -- you did? Okay. >> Mary Rasenberger: Yeah. >> Kevin Amer: Because I think -- okay. >> Mary Rasenberger: So real quick, since I listened to -- >> Brad Greenburg: Mic. >> Mary Rasenberger: The issues raised here -- can you hear me? >> Kevin Amer: Oh, no. Please turn -- >> Brad Greenburg: Your mic's off. >> Mary Rasenberger: Oh, thank you. As I listen to the issues raised here and in the earlier session, it occurs to me that a role that the Copyright Office might have if 512 isn't completely revamped, as I earlier suggested it might be, it would be to provide best practices to convene the different industries, the different types of service providers, and have best practices for both adequate repeat infringer policies, and also for -- going into probably the next question, for red flags and red flags knowledge, where it really differs by industry. And in that way, the service providers couldn't say, "Oh, the watermark doesn't necessarily mean infringement." I mean, they would be educated in terms by industry by industry. >> Kevin Amer: Sure. >> Sasha Moss: Just to quickly branch off that note. Something that R Street has been looking into with Legislative Branch Capacity working group is this idea of capacity within the legislative branch, so the first branch, which copyright [inaudible] is part of the Library of Congress. I see you all included that. And something the PTO has instituted is the PTO Inventor Assistance Center, almost like a toll-free call number where I can call PTO and ask a question. We have that for basic services, like the internet. I can call my internet provider and say I have a question, how to fix something, and because I am paying a service provider, they have to offer me an answer. I think there could be an interesting avenue, maybe through the registration process and fees allotted to offer this kind of assistance to rights holders. >> Regan Smith: So we have the Public Information Office. And they answer hundreds of thousands of questions every year. So that might be something where they could call. >> Sasha Moss: They could look into it in the Copyright Office. And I just think that'd be an easy way not to solve the problem by any means, but to offer avenues for the legislative branch to continually beef up its capacity. If the PTO could have it within the administrative branch, there's no reason in my mind why the legislative branch can't do the same. >> Kevin Amer: Thank you. I'm going to go to Mr. Kupferschmid, and then I think we're going to have to move to the next topic. >> Keith Kupferschmid: Yeah, I'll try to be brief, and sorry for getting in the way of you moving on. But there's a lot of discussion so far on this panel, and also in the first panel, about this one-size-fits-all does not work. And I don't disagree with that. But if we're going to consider that for ISPs, we really need to consider that for the other side of the equation, which is the creative community. Right? One-size-fits-all for the DMCA doesn't work for the notice system either, for the little guys, the small businesses, the individual creators. It just doesn't work. They can't afford to bring these expensive suits against these ISPs, these repeat infringer suits. They can't afford to be sending these millions of takedown notices, you know, that the music industry might be sending, or anyone else for that matter. They are truly sort of -- if you watch "Star Trek," they're the guys with the red shirts. Right? They get beamed down to the planet, and they're toast with -- you know, immediately the guys [inaudible]. You know? They're the expendable group here, if you will. So I think that needs to be taken into account. If we're going to take into account how the DMCA works, or doesn't work, for the small platforms, we also need to take into account how it works or, frankly, doesn't work, for the smaller creators. >> Kevin Amer: Thank you. So I'd like to turn to the issue of storage at the direction of the user, and how that relates to the no duty to monitor provision. And, Mr. Band, I know you mentioned the Mavrix case. So, obviously, we've had two recent Ninth Circuit cases, Mavrix on the one hand and Motherless on the other. Both of which involved service providers that provided some level of human monitoring. And so I wonder what your views are on the extent to which these cases have clarified the law with respect to 512(c) eligibility, particularly on the issue of when something should be considered storage at the direction of the user. >> Jonathan Band: Well, I don't think they've clarified the law. I think they've muddled it. And, you know, like I said, I think Mavrix sort of went in a bad direction. Motherless sort of improved it a little bit. But, I guess, it just really seems to be treading in a very dangerous area, especially as was indicated on the previous panel. I mean, this issue of moderation, what is appropriate moderation, it really -- it's a very fundamental issue that goes way beyond copyright, and it gets into -- you know, and it gets into 230, but then it also gets into, you know, these broader issues of, you know, what do we want the internet to look like. And -- >> Regan Smith: Well, [inaudible] -- >> Jonathan Band: It seems -- >> Regan Smith: It also goes to copyright, though. Right? Because it says -- 512(c) it says "ability to control such activity." And some of the cases [inaudible], we have to reconcile copyright [inaudible] -- >> Jonathan Band: Right. But -- >> Regan Smith: You know, in thinking about it and kinds of these other issues that are very important that we heard about [inaudible]. >> Jonathan Band: Right. But 512(m) says, you know, you can't condition eligibility on monitoring. And so it really -- you know, sort of the sense of Congress, both in 1996 when the CDA was being discussed and then in 1998 when the DMCA was being discussed, was, you know, that there wasn't going to be requirements to monitor, but that people were going to be encouraged to do it, because it was this recognition that monitoring was a good thing, and moderating was a good thing. I mean, moderating not monitoring. But that you wanted to have, if possible, human involvement, because, you know, you could make all these determinations algorithmically and so forth. And so we just -- that's what's so troubling. Now, it could be that in the specific facts of Mavrix you could sort of say, "Well, okay, they were -- there was so much human involvement," and, you know, that they sort of numerically were filtering out, you know, two-thirds, three-quarters of the content, so it really was sort of a situation like a publisher that -- where, you know, a hundred submissions -- you know, a hundred authors submit novels, and only one gets published. >> Kevin Amer: Well, that's what they -- >> Jonathan Band: But it's -- >> Kevin Amer: I'm sorry to interrupt, but, I mean, that seems to be the point that, you know, I think we were trying to get at. When -- I mean, at the beginning you said that, you know, Mavrix -- I don't know if you said it was wrongly decided, but, you know, you said that it has sort of muddled things. And, you know, it seems to me that there was quite a lot of content-based selection going on in that case. You know, if that doesn't constitute storage at the direction of the service provider -- I don't know, can -- it's hard to think of examples that would. Is it? >> Jonathan Band: [inaudible] and I guess -- and I don't remember. My recollection was that in Mavrix that there wasn't anything that -- you know, I'm sure there was in the trial court, but I don't remember in the appellate decision, if there was any sense of quantification. But I -- and I, obviously, don't want to have hard and fast rules. But I think quantification does give you a sense of how much -- >> Kevin Amer: Quantification in terms of how much -- >> Jonathan Band: Well, right. >> Kevin Amer: What percentage [inaudible] -- >> Jonathan Band: Like, so at what point do they stop -- does it really -- if I'm the service provider, and, you know, I'm a platform, and I'm getting in, you know, hundreds or thousands of submissions a day, and I'm just kind of doing this very quick and dirty, you know, cat video, yes, you know, something else, no. You know, that kind of -- and, again, it's not even me. It might even be, again, the community that's sort of -- or volunteers who are doing that. That's one thing. And then if you end up with, let's say, 80% or 90% of the content that is submitted by users, that ends up going up, then it's -- I think it's pretty easy to say, "Yeah, that is storage at the direction of the user." On the other hand, if you have a situation where, you know, 90% gets screened out for a variety of reasons, and not -- you know, including that it's not appropriate or the quality isn't good enough, I mean, you really do have these sort of editorial decisions, then it starts looking a lot more like a publisher. And then you could sort of say, "Well, that starts looking -- " and, again, it is a continuum. And in the specific facts of Mavrix, I don't know. I don't know if it was -- were they screening out 10% or were they screening out 90%, or was it somewhere in the middle. But all I'm saying is that some of the language in that decision was troubling, and reflected a lack of sensitivity that, again, Mother [sic] will to some extent correct it. But still, you know, the bigger point is that we don't want to make -- we don't want to put platforms in this impossible decision -- you know, in a possible place where if they try to moderate or try to look at and make sure that the stuff is really appropriate, that they end up losing their safe harbors. >> Kevin Amer: Thank you. Ms. Castillo? >> Sofia Castillo: I think it would be helpful for the Copyright Office to look at these two cases to stand for the proposition that screening material for potentially infringing content is an activity that enhances public accessibility of content stored at the direction of the user, and does not expel an ISP from the 512(c) Safe Harbor. The types of screening in these two cases were very different. Motherless was screening for illegal content. Their policy was, again, anything legal stays. And so the court there found that this was an activity that was acceptable for purposes of the safe harbor, because it would still render the content to be stored at the direction of the user. The type of screening in LiveJournal was different. It was for substance. The court called it manual, extensive and substantive. And it was a much closer call. And one thing they were not screening for was infringement. And so at that point -- I think what's helpful from these two decisions is that if an ISP is screening for substance, and it's not screening for infringement, then it is possible that it will lose its safe harbor. In Motherless, the ISP was simply screening for illegal content, including copyright infringement. I think these decisions are helpful in that they attenuate, to some extent, the ISP's incentive not to look at user submissions for infringement. And they also clarify that screening content for substance is not an accessibility-enhancing activity. And that the ISP might lose its safe harbor if it engages in this behavior. I think one other point I would like to make is that we disagree with court's interpretation of Section 512(m) so far. The title of that provision is Protection of Privacy. And both the Senate and the House report make it clear that Congress's intent with this provision was to prevent ISPs from violating privacy laws, such as the Electronic Communication Privacy Act, when they were pursuing efforts to address infringement. This section was not meant to say that ISPs have no obligation to monitor whatsoever when it comes to copyright infringement. >> Kevin Amer: Thank you. >> Brad Greenburg: Yeah, I just want to ask a quick follow-up question on that. If I understood correctly, you were saying that to the extent that a service provider is screening for illegal content, they should also be screening for copyright infringement, which is illegal. So the question there I have is does that mean that if a source provider is screening for child pornography and snuff films only that they are going to suddenly be out of the safe harbor? And if it's not what you're saying, what is sort of the limiting principle between screening for no illegal content and all illegal content? >> Sofia Castillo: No, no, that's not what I'm saying. What I'm saying is what the court said in Motherless was that screening for illegal content of any kind, so child pornography and copyright infringement, were things that Congress could not have meant to discourage by eliminating the safe harbor. So what I'm saying is that if ISPs are screening for illegal content, including copyright infringement, then they shouldn't lose their 512(c) Safe Harbor. Does that make sense? >> Brad Greenburg: It does. My question is what if they're only screening for some illegal content, but not copyright infringement? >> Sofia Castillo: Hm, that's a closer question. Right? Because according to the LiveJournal decision where there isn't any discussion of screening for any kind of illegal content, in that case the court seemed to think that on remand the ISP might lose its safe harbor. >> Kevin Amer: Mr. Carlisle? >> Stephen Carlisle: I think that content moderation is a good thing, and that it should definitely be encouraged, because the alternative to that is no moderation at all. And it just becomes an absolute, you know, free-for-all in a cesspool. I think that perhaps by getting better practices out there that we could solve a lot of these particular problems. And I'll reference them from my own experience. I used to be a musician and write songs. Now, in order to get these heard, I placed them on a website called ReverbNation. Now, according to ReverbNation's terms of service, I had to warrant that I was the author of the material, or I had to license -- property license the material, or it would not go up at all. And I think that a lot of the problems that we're experiencing with red flag knowledge, and a lot of experience about well, it's got a watermark on it, but who owns it, we could have better practices along these lines before we get it posted at the direction of the user. Perhaps the threshold question is who owns the material? Is the user who's posting the material claiming to be the owner of the material? Are they the proper licensee of the material? Or is the material in the public domain? I think that these factors would go a long way to eliminate a lot of the guess work and the problems that we're experiencing between the Mavrix case and the Motherless case about how much content is -- you know, moderation is required. >> Kevin Amer: Doesn't Google already -- Mr. Donaldson, maybe you can answer this. But, I mean, doesn't Google require people to affirm that they have the rights to upload whatever it is they're uploading? >> Caleb Donaldson: Yeah, our terms of service include that you have the right to upload what you're uploading. >> Kevin Amer: So, Mr. Carlisle, I wonder sort of are you suggesting something kind of from the regulatory standpoint -- >> Stephen Carlisle: Yes. >> Kevin Amer: That would -- okay. >> Stephen Carlisle: Yes. >> Maria Strong: Yeah, actually, if I can follow up with Mr. Donaldson, so, I mean -- with following up with what Mr. Carlisle was saying. Could you maybe explain a little bit if the situation happens, you know, when folks are using Content ID, and I understand there are a variety of additional products that are offered on the YouTube platform, to answer the question of your connecting the copyright owner and the alleged infringer to take their dispute offline, to go to the contract question that Mr. Carlisle raised, is there anything you can share about maybe some of the experience you guys have seen in the use of both not only just Content ID, but also some of the other tiers of service [inaudible]? >> Caleb Donaldson: Yeah, sure, absolutely. Content ID resolves 98% of the copyright disputes that arise on YouTube. So it's been very effective. We've also just recently introduced the Copyright Match tool, which you've alluded to, and that allows smaller creators to easily find matches to their works, and to file takedown notices in a much more streamlined way. We've rolled that out now to 400,000 smaller creators. And we're continuing to expand the universe of people who are eligible for a Copyright Match tool. So, you know, we've seen good results. You know, to circle back to the Beyonce question from earlier, those songs are a demonstration that the record label wants those songs on the platform, Beyonce's record labels. They're licensed. And, you know, in most of the cases, if you can recognize the song, so can Content ID. And if, you know, Beyonce or some other artist chooses to monetize some fan's upload of the printed lyrics and the song, we're happy to help with that. >> Regan Smith: Can I ask you is that always clear -- is that always going to be clear that the Beyonce, or whoever the rights owner has opted to leave that up? Or how do we know that that's true? I mean, YouTube may know, but -- >> Caleb Donaldson: Yeah, it's complex. I don't think there's an easy way for the public to find out. It's true, though, that YouTube has, you know, more than a thousand deals with music rights holders, including all of the largest music rights holders. So the vast majority of content on the service that's music is licensed. I'll say further that in general in the music industry there's a huge problem with incomplete data. That publishing houses and record labels, to some degree, in collecting societies can't or won't reliably tell you exactly what the list of works is that they represent. And so we're working with incomplete information. >> Regan Smith: Mr. Levy, did you want to engage with that, because I think sometimes independent musicians have a slightly different perspective? >> Arthur Levy: I absolutely did. Yeah -- sorry. I absolutely did. Content ID and Content Match rely on representative lists. And it's fine for publishers that have direct arrangements with YouTube. But a lot of our independent publishers, and certainly songwriters, don't have those direct deals. And, therefore, as far as I know, are unable to submit a representative list that would keep their content off of YouTube. Is that right? >> Caleb Donaldson: Content ID doesn't rely on a representative list. It relies on ingesting a copy of the music to make -- a fingerprint is even too simplistic, to make a statistical representation of that song. >> Arthur Levy: Who's submitted by the labels, which is essentially the same thing. Right? It's here's a list of content that we want to protect. >> Caleb Donaldson: It's not a representative list. It's a complete list of the things that we'll protect. >> Kevin Amer: Well, what about the broader point? You know, in the last roundtables, we did hear from individual music creators in particular who were concerned that Content ID wasn't available to them. Has that changed in the intervening years? And is that -- you know, have there been efforts made to sort of expand the universe of rights holders who are eligible? >> Caleb Donaldson: There has been some growth in third-party aggregators of claimants, so that people who work with a smaller rights holder to send Content ID notices. There's the Copyright Match tool, which I just mentioned, that we're very proud of. That's a tool better tailored to smaller creators. And -- >> Kevin Amer: Why is it that Content ID doesn't work well for smaller creators? >> Caleb Donaldson: Content ID is inordinately powerful. It's very complicated to operate and administer. It allows sophisticated, larger partners to specify amounts of their material that they're willing to use, for example, thresholds. And, you know, we've seen examples where even from those Content ID partners, a user who isn't as experienced at Content ID can, you know, take down or wrongly monetize a broad swath of content. >> Regan Smith: Is there an obligation -- this may already [inaudible]. But is there an obligation to monetize a certain amount of material through Content ID? Or could you just use it all for takedown? >> Caleb Donaldson: If you were a -- if you were a Content ID partner, you could take it all down. >> Kevin Amer: Mr. Doroshow? >> Kenneth L. Doroshow: Yeah. Just returning to the discussion about moderation and if a service provider chooses to screen certain illegal content, but not copyright infringement, should they lose the safe harbor. I think it's our position is if the means to screen for copyright -- that copyrighted material exists, and they do, then there is that obligation that in -- you know, if a service provider is interacting with the content on its site for the purpose of improving its bottom line, and making it a more appealing site, and benefiting from the presence of the copyrighted material, and it has the means available to screen that copyrighted material out, then we would say yes, you would lose the safe harbor for that reason. And this goes -- there was enough discussion, I suppose, in the first panel, so I won't belabor it, that the availability of these tools -- now, Content ID, obviously, Google invested a lot of money and built its own solution, there are other solutions out there that are not so expensive and costly. And if those are reasonably available, then we think that that is an appropriate condition of the safe harbor. >> Brad Greenburg: Well, so I want to follow up on that question. But, firstly, I do want to go back to Mr. Donaldson just to clarify a point. At the outset, you said that Content ID was $100-million system. The last time we did these roundtables, now it has been three years, it was a $60-million system that everybody was saying should be given to every single ISP in the world. Is that because of subsequent investments? Or does that include other things like Content Match and stuff? >> Caleb Donaldson: I think we said more than 60 million, but I'd have -- >> Brad Greenburg: Okay. >> Caleb Donaldson: To check the record. And as far as I know, the number's accurate and it's $100 million. >> Brad Greenburg: Okay. So I just want to follow up, though, on this. The last time around we heard that everybody needs to be using filtering technologies, it can't -- maybe they can't afford things sophisticated as Content ID. They certainly would take years to develop [inaudible], even if they could. But since then, even at the time, numerous large service providers had some sort of filtering technologies they were using. I'm sure more have been developed in the three years since, or two years since the last round of comments. So I'm curious to hear a little more of what has been added to the ecosystem. And whether or not -- what the feelings are as whether or not we've reached a point where filtering technologies, whether it's Content ID or something a little more rudimentary, are STMs? >> Caleb Donaldson: Just to quickly follow up on your first little question. It's inaccurate to refer to -- to think of Content ID as a static entity. And it's the subject of, you know, major ongoing investment all the time at Google. So, you know, an additional $40 million of investment, give or take, in the last three years sounds reasonable to me. It's the work of many, many people at the company. As to whether they've become standard technical measures, I mean, under the statute, I'd say no, because they're not in widespread use. And so that -- you know, that's something we would -- you know, we'd have to consider. >> Kevin Amer: Mr. Hudson? >> Douglas T. Hudson: So I think some of this fails to account for the long tail. That, you know, when you're doing from long tail content, non-digital content, small creators, this filtering technology for the foreseeable future isn't going to be comprehensive. Just like with the repeat infringer policy, you're now faced with a question of how much of a filtering technology is sufficient for you to stay inside the -- to stay inside the protection of 512. It's not going to be comprehensive -- if it's not comprehensive enough to you now, whose protection. We're just kind of -- we're moving the question over, but the uncertainty still remains. I think that's why the flexibility of the current regime and the ability to tailor it based on the size of the entity, the type of content, the type of content provide -- content creators needs to be taken into account. And simply just changing it to add a filtering requirement isn't going to solve the problem. >> Kevin Amer: What's your response to the argument that, you know, at a minimum you could filter entire works, for example, and that the universe of instances where the uploading of a full work is going to be licensed or fair use or otherwise permitted is relatively small? I mean, why couldn't filtering technology at a minimum capture full works? >> Douglas T. Hudson: What if the full work is a quilt? How do you -- we're -- our minds are set for, like, digital content. And a lot of the content that's being shared or discussed isn't digital. It may be a picture of a digital [inaudible]. The picture of it may be digital, but it is -- it gets inordinately complex when you're going one or two levels beyond that. If you're talking about, you know, a full copy of a movie or an audio work, I think that's where there's been technological work done here to help solve that problem. But my point is that there's a huge long tail, and that long tail, when you add it up, is significant, that the technology that everyone has been talking about just doesn't work for. >> Brad Greenburg: I don't want to lose the forest for the trees here. But just so we're talking about the kind of content might be uploaded to Etsy. Let's say, a full image of a movie poster printed on a t-shirt. Right? Like, why isn't that the kind of [inaudible] that could be screened out? >> Douglas T. Hudson: I think it depends on the type of technology available, and how reverse image search, how other technologies could be applied. You know, I can't speak to any one particular instance. And -- There are also issues where there are things that are old and things that are new. We can't determine -- for example, there could be a vintage t-shirt that has something on a -- or a vintage poster. So we're not generally in the position to know whether that vintage is correct or not, unless we get assistance from the copyright holder. >> Regan Smith: Has Etsy changed its policies at all following this [inaudible] decision? Or do you do that as just, like, qualitatively entirely different, because in that case, they're printing and they're producing it themselves [inaudible]? >> Douglas T. Hudson: We do view that as qualitatively different. Etsy is kind of a pure marketplace, a pure platform. We don't handle goods. We don't do drop shipping. We don't print on demand. Users are responsible for their own content. So we've used a different set of facts and a different issue. That said, we do have a repeat infringer policy. We do have a kind of a comprehensive set of policies to deal with intellectual property issues. And [inaudible] into a [inaudible] property issue such as counterfeiting, which we view as slightly different. >> Kevin Amer: Mr. Kupferschmid? >> Keith Kupferschmid: Thank you. So on the issue of filtering, I'm going to take a line Sasha said earlier which is about the DMCA, that perfect doesn't need to be the enemy of the good here. And we tend to talk -- when we talk about filtering and screening and monitoring, we seem to just focus on the extremes. And there's a huge middle ground there. Right? And this isn't just a black-and-white issue. That there can be monitoring and screening and filtering, or whatever you want to call it, that can be done in a way that takes into account different concerns and different types of examples. And just to identify a few -- I think, Brad, you had mentioned sort of the full movie example. What about a test that is never licensed to anyone, is held sort of in secrecy, never found online? I mean, if you notify a platform that that test shouldn't be up, that should be good, so it never sees the light of day. I mean, that's just, you know, one example. The example that Mickey [assumed spelling] was talking about earlier today about metadata on a photo, and then the response question was," Well, what if that photo is licensed?" Well, just because you find metadata on a photo doesn't mean that that photo is automatically just taken down. Why isn't there a middle ground here? Right? Why isn't the question asked to the person who's posting or trying to post? That photo is -- do you consider this fair use? Are you the copyright -- are you a copyright owner? Are you licensed because your name differs from the name that's on the metadata? There's a middle ground. I mean, hell, man, every time I go to a website, I'm asked if I'm a robot. You'd think that you could say -- you could come back and just ask a question, right, ask a question in that regard. I think in short, and what this roundtable and all the roundtables are about, are not about solving the problem. It's about getting us closer to solving the problem, getting us to a place where we are right now where things are really, really not working, we need to close that gap. We really do, because, I mean, there's a desperation out there, I've spoke on behalf of little guys, but it's not exclusive to the little guys. It's across the board. And, you know, when it comes to filtering and in screening, monitoring, there's absolutely more can be done. >> Kevin Amer: I'm going to jump back, if it's okay, to Mr. Band just to see if you had a response to that last point about filtering. >> Jonathan Band: Right. Well, and I think this gets to the whole moderation point. And certainly, you know, the example that we heard from Etsy, I mean, if you have an image from a movie on a t-shirt, I mean, that very well might be fair use. It all depends on what the -- you know, if there's -- on the context and the purpose of the image. And that could -- obviously, if you have an automatic filter, that could be a problem. But with respect to sort of getting back to Sofia's point about moderation, so imagine you have institutional repositories. So that's a lot of the kinds of platforms that in the libraries and universities have where they -- you know, they have a platform where people can up -- you know, for a department or whatever. Now, it could be that in some cases, especially if you start having a very large repository, that you want to have some degree of moderation to make sure that the stuff that's being uploaded really belongs there. Well, why should you -- it doesn't make sense that you would lose your 512 Safe Harbor by virtue of that by virtue of making sure that the stuff that is uploaded there is appropriate to that website, as opposed to just looking to make sure that it's not illegal content. And I'm even thinking of a repository like SSRN, which is owned by one of your members, [inaudible] also here. You know, they have huge amounts of content, and, you know, a lot of us in the room have probably uploaded content to that site. It doesn't go up automatically. At first, you know, it has to be reviewed by someone at SSRN who is -- and I don't know what they're screening for, but among other things they're deciding where it -- you know, where it's appropriate to go. But it's also -- >> Kevin Amer: But doesn't that -- I mean -- I'm sorry to interrupt. But, I mean, that sounds like volitional conduct to me. I mean, that sounds like, you know, someone making a choice, the intermediary, the service provider making a choice about whether or not to post something. I mean, if I were just to email you, you know, some materials, and you had your own website, and you decide -- you know, even if you post 100% of them, it seems to me that there's an argument that, you know, while I have expressed my view that I think they should be uploaded, ultimately, you're the one who kind of says yes or no. >> Jonathan Band: Right. But I still think, at least for purposes of 512(c), that uploading is at the direction of the user. >> Kevin Amer: But if you have the ultimate choice, then how is it at the direction of the user? I mean, I take your point about, you know, a sort of high-level filtering for illegal content, or something of that nature. But I just wonder how we sort of draw the line properly if we at some point are talking about whether the content is suitable for the platform. >> Jonathan Band: Again, it just seems to me that if it's, you know, under the terms of the statute, I mean, you know, it is the user that is sending the stuff, and if, basically, everything was going to end up on the site, so long as it is, you know, the kind of thing that should be on that site, that's a very different situation from the traditional publishing model, where you really could sort of say okay, because they are making that kind of qualitative decision that only, you know, one submission out of a hundred or of a thousand is going to be disseminated. You know, I think that that just falls on a different place on the spectrum. >> Kevin Amer: Oh, I'm sorry, Ms. Rasenberger, you've been patient. Thank you. >> Mary Rasenberger: Thank you very much. Thank you. A couple points. I want to go back to what Mr. Carlisle said about, you know, having some sort of "I affirm that I own this, I licensed it -- I licensed it or it's fair use." And terms of service are not enough for that. I mean, we all know nobody reads the terms of service. So to echo what Keith said, I think it would be really good if whenever you uploaded something to any site, you have to say "I own it," or "I licensed it," or "I believe it's fair use." Why not? I mean, not only do you have to now say I'm not a robot, but you have to identify bikes or storefronts or something. And if you don't have very good eyesight, that's sometimes hard to do in those photos. So I also, though -- one thing we haven't talked about, and I want to make sure we do, is the question of who the user is. And I know that the Mavrix case touches on it. But I want to -- we also haven't talked about the bad actors here, and how ineffective 512 is against the really bad actors. So I want to give an example of a site right now that we've been dealing with for a couple of years already. It's Ebook Bike. It's owned by a gentleman named Travis McCrea, who founded the Pirate Party in Canada. He also is one of the principal members of a religion called Copynism [assumed spelling], and hosts their website. The sacrament for Copynism is that copying is a sacred duty. So he owns this site. He hides behind Section 512. And I will say for most of the ebook piracy sites that is true. They say, "Oh, we don't know anything about it. It's all user uploaded content." Now, to upload content, you have to become a member. Most of the members we know are part of the Piracy Party or related. If you remember, you were instructed on how to buy an ebook, strip out the DRM, upload it to the site, and then return it. So you don't even have to pay for the ebook. So I just want to make sure that we think about these kind of cases. We have sent notices to -- authors have independently, and we organized groups of authors to do this, send notices to Ebook Bike. Sometimes it works, sometimes it doesn't. I mean, sometimes the site doesn't even work, the notice form. We have sent notices to Google. We have sent notices to these servers. Now, the server provider did take it down. But, of course, he just went and got another server. Right? And this has been over two years we've been struggling with this, completely ineffectually. When we started, it was mostly the independent authors' books that were there. Now every -- all fiction works are there, particularly any popular fiction books can be found on EBook Bike now. And we are left without anything that we're able to do, other than to bring a lawsuit and litigate whether 512 -- whether they're protected by 512. But with all of these open issues, we can't do that. Those cases cost millions and millions of dollars, which authors can't afford to do. And who knows what the outcome would be. >> Kimberley Isbell: I just want to follow up on that a little bit. You know, in the first roundtables, we also heard a lot about these sort of pirate and bad actor sites. But do we really think Congress ever intended to cover those types of sites -- >> Mary Rasenberger: Of course not. >> Kimberley Isbell: In 512? >> Mary Rasenberger: Of course not. But the way that the courts, particularly the Viacom/YouTube case, and the [inaudible] case, which have now become the ingrained law in all of the circuits, that make it possible for the bad actors to be protected. Or, I mean, it's possible that we could win a litigation. But you have to go -- because the burden has been put on the copyright owners, and pretty much every aspect of 512, except for the repeat infringer policy, those cases are very, very hard to prove. >> Kimberley Isbell: But what is the answer? Is the answer to pull back 512 for everyone, including the good actors? Is it to have a clearer off ramp for the bad actors? I mean, how do we deal with this without blowing the system up? >> Mary Rasenberger: Well, that's a really good question. So as I said before, I think that we should have best practices that are in the law, or at least regulations for what red flags knowledge is. And I think Congress should step in and say -- and clarify that knowledge and red flags knowledge do not mean only knowledge of a specific infringing item at a specific location. That is the problem. Knowledge that your site is a place for piracy, that it's -- that pretty much everything on the site is pirated, should take you out of 512. And that you should be able to win, you know, on summary judgment. >> Kevin Amer: Thank you. So we're running low on time. So I'm going to ask Ms. Moss -- if you have a comment on this topic. And then I'm just to -- because we're short on time, I'm going to sort of introduce the next topic. One or two of you during the introductions mentioned 512(f). And so I invite folks to state their views about, you know, the state of the law with respect to 512(f), particularly post-Lens and post-the-denial-of-certain-Lens. Feel free to answer. [ Inaudible Speaker ] Yes, of course. >> Sasha Moss: So three really - >> Kevin Amer: Oh, I think your mic is -- oh, it is. Okay. >> Sasha Moss: Three brief notes. The first is regarding my friend, Ms. Rasenberger, and Mr. Kupferschmid's point regarding this [inaudible] of idea of verification when you upload. That's putting onus on the user. And I don't know about you, most users don't have a legal education. And they don't know what fair use is. And they might not read the terms of service to find out what fair use may or may not be. The second brief point is regarding filtering technology and upload filters. Upload filters are not working as properly. I think many around the table like to say they would be. For example, in the EU [inaudible] had her video taken down off of YouTube because it said there was infringing content in her video. It was a speech on the floor of the EU Parliament. And the third note, I just briefly want to mention, is the moderator's dilemma. This idea of seeking after content that may or may not be infringing. As we saw with the passage of [inaudible] and CDA 230, this creates the [inaudible] raised on what can or cannot I take down, or am I taking down legal content versus the infringing content as I intended to do? And that'll wrap me up, so you can start doing 512(f). >> Kevin Amer: Okay. Thank you. Mr. Levy? >> Arthur Levy: Yeah. Now we're on 512(f)? >> Kevin Amer: Yes. >> Arthur Levy: Excellent. So Lens is still a major problem for us, because it appears to require -- it does require that a copyright owner consider fair use before it take down [inaudible] dissent. It doesn't give any real guidance as to what that means, what considering fair use is. It's kind of hanging out there as a potential time bomb for us. Again, for small publishers and certainly for songwriters who may have just massive amounts of infringing examples of their works out on the internet, to you have to engage in a four-point analysis of fair use prior to sending a notice for each and every one of those, would be truly burdensome and potentially expensive, if you have to have some of that staff to do it. >> Regan Smith: Well, do you interpret that case as imposing a one-size-fits-all standard on everyone? Or can you look at whether it is an individual copyright owner or an individual user filing a copyright -- a counter notice who may be less sophisticated than the defendant in that case? >> Arthur Levy: I don't think the ruling really helps us make that determination. >> Brad Greenburg: It's, like, you mentioned that Lens is a problem, but didn't actually -- I didn't hear you guys talk about automation. In fact, whether or not you can use automation in making a fair use assessment. The last time we did these roundtables, we heard some -- there was some sense that there probably was still some room there. And my question is your thoughts on what -- with the Lens cert denied, whether and how the Ninth Circuit has left in place room for automation? >> Arthur Levy: Well, again, I'm not sure if it addressed it directly. It seems as if language regarding automation has been taken out of the second version of the opinion. That's a concern for us. It might very well mean that they're going to interpret it so that we cannot use automation, which, again, increases our cost burden and the ability to protect our works. >> Kevin Amer: So we're running out of time. So I think we're just going to do kind of a lightening round. I urge you all to be brief. Mr. Hudson, do you have a response to Mr. Levy's concerns >> >> Douglas T. Hudson: Only that you just need to keep in mind that the platforms that are in the middle there. We're not in a position to make various determinations. You have to rely on the data [inaudible] by the copyright owner. The response is provided by users. And in the world of filters, where does liability live for the intermediary trying to just enforce the system as it is? So this is why an enforceable mechanism for 512 of when either side violates their duty to follow the laws is important for platforms to enable copyright owners to get protection, and enable users to express their own creative content. >> Kevin Amer: Mr. Carlisle? >> Stephen Carlisle: Yeah. I think that for small creators, independent musicians, Lens becomes a good-news/bad-news joke. Fair use is incredibly complex. We can't even get the courts of this nation to agree on a simple standard for fair use. Everything has to be examined on its merits. And for an independent musician to be required to make that kind of assessment before sending a takedown notice is really burdensome, especially when the alternative -- I mean, you take red flag knowledge, we have these very sophisticated companies professing that they have no idea what a red flag knowledge is, or whether something's infringement. From my standpoint as a musician and a creator, it's much easier to figure out whether something's infringing or whether it's -- and whether something is, in fact, fair use. >> Kevin Amer: But, I mean, isn't the statute sort of premised on the idea that really, you know, it should -- it's going to be the copyright owners who ordinarily are -- you know, have the most knowledge about whether the use is authorized, and in general should have the responsibility for monitoring platforms? I mean, isn't that sort of the basic bargain that was struck? >> Stephen Carlisle: Yes. And I think it was the wrong bargain to strike. I think putting the sole onus on policing the entire vast internet on copyright owners -- some of them are very, very small and don't have the money or the time or the ability to monitor the entire internet 24/7. I think it was the wrong balance to strike. >> Regan Smith: It's a drill in on the misrepresentation part of the statute, 512(f). I mean, this is only liability for knowingly, materially misrepresenting that something's infringing, or doing, you know, the same type of representation for our counter notice. So if you are someone, and you have an honest mistake as to whether something is fair use or not, why is that a problem? If it's complicated, and you do your best, and you're not [inaudible] new material and misrepresenting, is 512(f) really a risk? >> Stephen Carlisle: I think that the problem, again, is it goes back to material misrepresentation, and what the ultimate standard on that's going to be. It seems to me that even the court in Lens struggled mightily with what Mrs. Lens was doing was -- or rather what Universal Music Group did was a material misrepresentation there. And you have a very sophisticated, you know, actor. I think that -- you know, I think it's a very gray area. And I think it's a problem. >> Regan Smith: Yeah. I think it's suggesting for the little guy where knowingly is very helpful on both sides of, you know, the system. >> Stephen Carlisle: Yes. But, again, you're dealing with somebody who may be a creative person. They may know something about copyright, but, again, that knowingly part of it -- musicians can get incredibly aggressive when it comes to asserting their rights. And sometimes they're right, and sometimes they're wrong. And especially in an area with music where there is a lot of homogeneity. And there's a lot of musicians out there who will hear any similarity as being infringing. >> Kevin Amer: Okay, Ms. Castillo? >> Sofia Castillo: Just a quick response to Ms. Moss' concern with the taking down of legal content by over aggressive filtering. I think that's what you were referring to. I think for those cases, we have the counter notice system. And that is working. So I think concerns with the accidental takedown of legal content should not be a reason not to implement filtering, or not to look at filtering as a solution for rampant infringement online. >> Kevin Amer: Okay. We're going to go to Mr. Band, and then I think we're going to have to close things down. But we do have our open mic at the end, so if there are things left unsaid, feel free to sign up for that. >> Jonathan Band: So this is in response to Mary's point about, you know, litigation being expensive. Yes, it is litigation. And many lawyers in the room like the fact that litigation is expensive. But putting that aside, the point is courts are very good at figuring out who's a good guy and who's a bad guy. And if you're a bad guy, courts find a way to hold you liable. Napster lost. Grokster lost. I think sometimes the -- sometimes rights holders either they're not as careful as they should be in selecting their defendants, or they have a misperception of who's a good guy and who's a bad guy. It didn't really make sense to go after YouTube. It really didn't make sense to go after Google. It doesn't make sense to go after [inaudible] Trust. You know, courts, you know, when they look at these defendants, you know, they look at the balance of what's going on, and they will -- usually they're very good at figuring out who's abusing the system. And they will find a way to shut them down. >> Kevin Amer: We had, I think, a reference to the [inaudible] Trust case. So I think we're going to let Ms. Rasenberger [inaudible]. >> Mary Rasenberger: Thank you. I appreciate it. I won't talk about [inaudible] Trust, which I was not at the office [inaudible] when that was brought. I do want to just mention good actors, because I mentioned bad actors before. Good actors who want to keep pirated ebooks and audiobooks off their site can do it. And they do do it. Amazon uses fingerprinting. And they are pretty successful at keeping pirated copies off their site. And when something slips through, they work with us. They take it down. >> Kevin Amer: I think we're going to have to leave it there. Thank you all very much. We will start back up at one o'clock.