opinion

Decision May Signal Change For Copyright Law

Earlier this month, the 2nd U.S. Circuit Court of Appeals rendered what may be a crucial decision for the future of the Digital Millennium Copyright Act in Viacom vs. YouTube. While the decision sent much of the case back to the New York trial court for more litigation, many portions of the 2nd Circuit’s decision, concerning the knowledge required to find copyright infringement, may have profound consequences for useruploaded sites like tube sites and file lockers, and those whose content ends up on them.

The DMCA is a portion of the Copyright Act that Congress enacted to protect compliant sites from liability for copyright infringement committed by its users. It has allowed message boards, blogs and other user-generated content services to flourish. Whether many of these services comply with the DMCA, though, has been a subject of heated debate and litigation.

Although the trend for tube sites over the last several years has been to comply with the DMCA and license content, the standard for complying with the DMCA will likely increase with this decision.

Most significantly in the Viacom decision, the 2nd Circuit vacated the U.S. Distict Court in New York’s 2010 order finding that YouTube needed to have item-specific actual knowledge of infringement in order to have the “right and ability” to control infringing content.

By holding that less than item-specific knowledge of infringement could make a site operator liable for copyright infringement, the 2nd Circuit opened the door for site operators who generally know that infringement occurs on their site, but do not know specifically what files are infringing, to be held liable for copyright infringement.

However, the 2nd Circuit also signaled that site operators will need to have some knowledge of infringement to be held liable for infringement, even if it is not item-specific knowledge.

The court disagreed with Viacom’s argument that the “right and ability” to control infringing material under the DMCA was continuous with the common law definition of the term, which requires only the literal right and ability to control infringing content.

Instead, the appeals court found that the “right and ability” to control infringing material under the DMCA requires more than the mere ability to remove or block access to materials on the defendant’s website.

It is unclear how much circumstantial knowledge of infringement above and beyond the bare right and ability to control infringing content – often referred to as “red flag knowledge” – will be required for site operators to be liable for copyright infringement. All that is known at this point, though, is that it will not require item-specific knowledge.

The 2nd Circuit declined to define what level of knowledge is needed, leaving the issue to be determined by the U.S. Distict Court in New York.

The 2nd Circuit clarified two other issues that are of particular concern to tube site operators and rights holders who may wish to sue them. The court found YouTube’s repeat infringer policy and other software tools used to avoid the posting of infringing content, such as content fingerprinting technology, were not sufficient to strip the site of its DMCA protections.

The DMCA conditions its protections on sites having and implementing a repeat infringer termination policy, so that serial copyright infringers are banished from the service. Because the 2nd Circuit remanded a substantial portion of the case to the U.S. Distict Court in New York, the Viacom case is still far from done.

For the time being, however, one of the leading decisions suggesting that user-generated content service operators could not be liable for copyright infringement without item-specific knowledge of infringement has been vacated.

Although the trend for tube sites over the last several years has been to comply with the DMCA and license content, the standard for complying with the DMCA will likely increase with this decision.

Simultaneously, content owners who seek to hold sites liable for infringement may have a means to do so if they can show service operators had some knowledge of infringement — even if it was not item-specific.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Maintaining Brand Trust in the Face of Negative Press

Over the last year, several of our merchants have found themselves caught up in litigation over compliance with state age verification laws. Recently, Segpay itself was pulled into the spotlight, facing scrutiny over Florida’s AV statute, HB 3. These stories inevitably get picked up by both industry and mainstream news outlets.

Cathy Beardsley ·
opinion

How to Switch Payment Processors Without Disrupting Business

For many merchants, the idea of switching payment processors can feel pretty overwhelming. That’s understandable. After all, downtime can stall sales, recurring subscriptions can suddenly fail, or compliance gaps can put accounts at risk. Operating in a high-risk sector like the adult industry can further amplify the stress of transition.

Jonathan Corona ·
profile

WIA Profile: Katie

Katie is the ultimate girl’s girl. As community manager at Chaturbate, she answers DMs, remembers names, and shows up for creators and fellow businesswomen when it counts. She’s quick to credit the people around her, and careful to make space for others in every room she enters.

Women in Adult ·
opinion

How to Stay Legally Protected When Policies Get Outdated

The adult industry has long operated in a complex legal environment subject to rapid change. Now, a confluence of age verification laws, lawsuits, credit card processing and data privacy rules has created an urgent need for all industry participants — from major platforms to independent creators — to review and potentially overhaul their legal and operational policies.

Corey D. Silverstein ·
opinion

From Compliance Chaos to Crypto Clarity: Making the Case for Digital Payments in Adult

These are uncertain times for adult merchants. With compliance tightening and age verification mandates rising, the barrier to entry keeps getting higher.

Cathy Beardsley ·
opinion

Real-Time Insights to Streamline E-Payments and Stop Lost Sales

A slow checkout process is more than just annoying — it’s expensive. In a high-risk sector like the adult industry, even small delays or declined transactions can cost businesses thousands in lost revenue every month.

Jonathan Corona ·
profile

FSC's Valentine Leads Charge for Sex Worker Rights and Financial Access

Before ever stepping into a courtroom, Valentine already understood the power of presence. After all, they’ve shimmied on stages as a burlesque performer, consulted behind the scenes for creative businesses and moved through the adult industry not just as an advocate, but as a participant.

Jackie Backman ·
opinion

Breaking Down HB 805 and How it Affects the Adult Industry

North Carolina House Bill 805 was enacted July 29, after the state legislature overrode Governor Josh Stein’s veto. The provisions that relate to the adult industry, imposing requirements for age verification, consent and content removal, are scheduled to become effective Dec. 1. Platforms have until then to update their policies and systems to comply with the new regulations.

Corey D. Silverstein ·
opinion

Staying Compliant With Payment Standards Across Europe and Australia

So, you’ve got your eye on international growth. Smart move. No matter where adult-industry merchants operate, however, one requirement remains consistent: regulatory compliance. This isn’t just a legal checkbox — it’s a critical component of keeping payments flowing and business operations intact.

Jonathan Corona ·
opinion

How to Avoid Copyright Pitfalls When Using Music in Adult Content

When creating an adult video, bringing your vision to life often means assembling just the right ingredients — including the right music. However, adding music to adult content can raise complex legal and ethical issues.

Lawrence G. Walters ·
Show More