Transcoding Is Not A Crime, Says Court In Veoh Porn Case

Update: More analysis of the decision here.

Finally, a judge who may have actually visited the Internet once or twice before deciding a case. Judge Howard Lloyd, a judge on the U.S. District Court in the Northern District of California, threw out adult entertainment company IO Group’s 2006 copyright infringement case against Veoh today. At the time Veoh had some user-uploaded porn on its service that belonged to IO Group. Despite quick takedowns from DMCA notices, IO Group sued anyway.

A key issue of the case turned on whether or not Veoh should lose DMCA safe harbor protection because they transcoded user uploaded videos to the Flash format, something every online Flash video site does as a matter of course.

IO Group argued that the transcoding made Veoh a direct infringer and that the materials were under their direct control. Lloyd disagreed, saying “Here, Veoh has simply established a system whereby software automatically processes user-submitted content and recasts it in a format that is readily accessible to its users. Veoh preselects the software parameters for the process from a range of default values set by the thirdparty software…ButVeoh does not itself actively participate or supervise the uploading of files. Nor does it preview or select the files before the upload is completed. Instead, video files are uploaded through an automated process which is initiated entirely at the volition of Veoh’s users.”

In other words, nice try but no dice.

Viacom-YouTube and a host of other Internet video related lawsuits continue to rage on, but the good guys won this one. But those of you thinking you’ll find a little adult content on Veoh now that they’ve won the case will be dissapointed. Veoh banned it permanently back in 2006. This case was about nothing but money.

The full order is included below.

http://viewer.docstoc.com/
Veoh v IO Group – Free Legal Forms