Gang - the deadline to comment on this stuff has been extended to April 1. You can submit your comments here:
http://www.copyright.gov/policy/section512/Below is (more or less) what I've submitted on some of the 30 points. Feel free to copy it or paraphrase it. The more people comment the better.
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Writing to express my opinions and experiences with regard to Section 512. I am a small publisher (defined as a type of service provider for the purposes of this law) who allows members of the public to post articles on my site. Although we very strictly monitor the posting of images on our site we have had incidents wherein users have unknowingly posted copyrighted images. Unfortunately, this has opened us up to attack from aggressive stock photo companies (copyright trolls) who have extorted sums of money from us under the threat of a lawsuit.
Below is a breakdown on my responses to the relevant sections of your request:
1. Are the section 512 safe harbors working as Congress intended?
Mostly yes, however, copyright trolls (mainly stock photo companies) have found a loophole that they are exploiting to extort egregious amounts of money from infringers that radically exceed anything resembling actual damages. In many cases they are able to extort from accidental infringers who have gone to great lengths to avoid infringement and who are taken completely by surprise by these accusations. Given that these companies use automated software to locate infringements (typically worth $20-$100) there is no logical reason they should be able to demand monies sometimes exceeding $5,000 for single infringements.
3. How have section 512’s limitations on liability for online service providers impacted the growth and development of online services?
Letting copyright trolls, mostly stock image companies, run rampant against publishers has severely impacted our ability to do business and is a huge distraction from things that actually matter. It also flies in the face of the spirit of copyright law because the infringements are generally trivial accidents with immeasurably small damages - they are purely money grabs by stock photo companies.
6. How effective is section 512’s notice-and-takedown process for addressing online infringement?
The notice system is fine, however requiring that a DMCA agent be filed has added confusion to the situation. Many publishers are not aware of what a DMCA agent is, or have filed on only recently which opens the door to trolls who can threaten a publisher for infringements they had no control over or may not have even been aware of. At the very least the filing of a DCMA agent should be retroactive to the founding of the company.
7. How efficient or burdensome is section 512’s notice-and-takedown process for addressing online infringement? Is it a workable solution over the long run?
There is nothing burdensome about the process, in fact, it is easily automated.
8. In what ways does the process work differently for individuals, small-scale entities, and/or large-scale entities that are sending and/or receiving takedown notices?
Small scale publishers can be easily abused by trolls who hold all the cards in the current legal arrangement. Even in cases of obvious innocence it is usually cheaper to pay a troll than to attempt to fight in court - even if the defendant wins.
9. Please address the role of both ‘‘human’’ and automated notice-andtakedown processes under section 512, including their respective feasibility, benefits, and limitations.
Automated take-down notices make sense but should not be allowed to demand money unless an infringer fails to take immediate action and remove any infringing material. A simple cease and desist letter should be the required first step and could also be easily and cheaply automated - if, and only if, the cease and desist is ignored should further action be allowed.
12. Does the notice-and-takedown process sufficiently protect against fraudulent, abusive or unfounded notices? If not, what should be done to address this concern?
Sadly no. There is a cottage industry of stock image trolls now running rampant across the internet with the ability to demand completely arbitrary dollar amounts for infringements regardless of the circumstances of the infringement. This is major problem for small businesses and needs to be stopped. At the very least an accuser should be required to send a cease and desist before any demand for money. Beyond that the accuser should be required to show that there have been actual, measurable damages suffered and not be allowed to simply make up a number and demand it.