The Court of First Instance in Belgium
issued a decision
two weeks ago in a copyright infringement case brought by the Belgian music
collecting society SABAM against Scarlet, an ISP formerly known as Tiscali.
In the decision, the court ordered Scarlet to implement filtering within six
months in order to remove copyrighted music from its network. An unnamed
court-appointed expert identified several technologies -- including Audible
Magic's acoustic fingerprinting -- that Scarlet could use to meet the court's
requirements.
This decision has touched off huge interest throughout Europe and elsewhere,
as content providers have been focusing on filtering as a way of getting network
providers to use automated technology to stem infringement. For example,
the mandatory use of filtering on content networks is a core issue in Viacom's
litigation against Google over YouTube.
This raises a lot of concerns for network service providers. The most
pragmatic issue is that of the cost to implement filtering on a network -- which
the network provider would bear if it used a technology such as those from
Audible Magic or Philips. At the heart of the Viacom/Google litigation is
a dispute over who
should bear the cost of infringement detection: content owners (via
so-called takedown notices, according to Section 512 of the DMCA) or network
providers (via filtering technology. Another issue is the disagreements
that would inevitably arise if the technology either fails to catch all
copyrighted content or produces false positives, i.e., filters content on a
network that is allowed to be there after all.
The broadest issue around mandatory filtering, however, relates to network
providers' status as "just the wires," which has enabled them to avoid
content-related liability (which encompasses libel, fraud, and obscenity as well
as copyright infringement). In Europe, this is embodied in Article 15 of
the EU E-Commerce Directive, while in the United States it is known as common
carrier status.
The judge in the Belgian case decided that the use of fingerprint filtering
does not mean that an ISP "selects or modifies" content, and therefore that the
technology can be mandated without otherwise affecting the ISP's content-related
liabilities. This is a controversial point and thus is likely to be a
matter of intense debate when, inevitably, similar actions are brought against
ISPs elsewhere in Europe.
Although American legal representatives of both network service providers and
content owners are also likely to look closely at this Belgian case, the
situation is different in the US. The 2005 Supreme Court ruling in FCC
v. Brand X drew a distinction between types of network services that gave US
telcos a comfort level that content control features used on their ISPs will not
affect common carrier status of their standard telecommunications networks.
This comfort level has been a factor in ISPs seeking to collect "tolls" from
content providers in exchange for preferential treatment of their content on the
networks -- leading to the debate over so-called net neutrality.
As a result, US telcos are nowhere near as fiercely protective of their
Internet services' common carrier status as they used to be. This
explains, for example, AT&T's
recent decision
to cooperate with film studios in exploring filtering technologies on its
massive network.
At the same time, the impact of the Belgian court decision in enshrining
digital rights technologies into law is potentially huge. This is a
landmark case for Belgium, Europe, and beyond.