http://www.wired.com/threatlevel/2010/10/dmca-righthaven-loophole/The $105 Fix That Could Protect You From Copyright-Troll Lawsuits
By David Kravets
Call it ingenious, call it evil or call it a little of both: Copyright troll Righthaven is exploiting a loophole in intellectual property law, suing websites that might have avoided any trace of civil liability had they spent a mere $105. That’s the fee for a blog or other website to register a DMCA takedown agent with the U.S. Copyright Office, an obscure bureaucratic prerequisite to enjoying a legal “safe harbor” from copyright lawsuits over third-party posts, such as reader comments...
Founded in March, the Las Vegas-based Righthaven has begun buying out the copyrights to newspaper content of the Las Vegas Review-Journal for the sole purpose of suing blogs and websites that re-post, or even excerpt, those articles without permission. The company has settled about 60 of 160 cases for a few thousand dollars each, and plans to expand its operations to other newspapers across the country.
Many of its lawsuits arise, not from articles posted by a website’s proprietors, but from comments and forum posts by the site’s readers. Under the Digital Millennium Copyright Act, a website enjoys effective immunity from civil copyright liability for user content, provided they promptly remove infringing material at the request of a rightsholder. That’s how sites like YouTube are able to exist, and why Wired.com allows users to post comments to our stories without fear that a single user’s cut-and-paste will cost us $150,000 in court.
But to dock in that legal safe harbor, a site has to register an official contact point for DMCA takedown notices, a process that involves filling out a form and mailing a check to the government. An examination of Righthaven’s lawsuits targeting user content suggests it’s specifically going after sites that failed to fill out that paperwork...