Religious Technology Center v. Netcom On-Line Communications Services, Inc.
907 F.Supp. 1361 (N.D.Cal. 1995)
Erlich was a former
Scientologist who was now critical of the group. He posted some
Scientology documents in an internet newsgroup. The Scientologists
informed Erlich that he was infringing on their copyright.
In addition to sending
notice to Erlich, they also notified Klemesrud, who owned the website
Erlich used to post the documents, as well as Netcom, which was
Klemesrud's internet service provider, and told them to block Erlich.
After Klemesrud and Netcom
took no action to block Erlich, the Scientologists sued everybody for copyright
infringement.
The Scientologists argued
that when Erlich uploaded the documents, they were temporarily stored on
Klemesrud's computer, then copies were made and sent by Netcom to places
all over the internet.
That would be a violation
of the Scientologists' right to reproduce, the right to distribute, and the right to publicly display under 17 U.S.C. §106.
Klemesrud and Netcom argued
that they weren't responsible for what Erlich was doing, and they did not
have the capability of screening their system to find every potential
infringer.
The Trial Court denied
Klemesrud and Netcom's motion for summary judgment.
The Trial Court found that
the postings were definitely fixed
enough to be copyrightable copies.
See MAI Systems Corp. v.
Peak Computer, Inc. (991 F.2d 511
(1993)).
The Court found that
Klemesrud and Netcom were not liable for direct infringement because the copying that occurred between the
computers on the internet was incidental to Erlich's intentional copying
of the documents to the internet.
The Court likened the
Klemesrud and Netcom to a photocopy machine where the public can make
copies.
The Court noted that if
Klemesrud and Netcom were liable, then where would it end? Every computer
connected to the internet copies data from other places on the internet,
so the total number of potential infringers would be unreasonably large.
The Court found that even
thought §106 is s strict
liability Statute, there should be some element of volition or causation
which is lacking where a defendant's system is merely used to create a
copy by a third party.
The Court looked to Gershwin
Publishing Corp. v. Columbia Artists Management, Inc. (443 F.2d 1159 (1971) which defined contributory
copyright infringement as where "one who, with knowledge
of the infringing activities, induces, causes, or materially contributes
to the infringing conduct."
The Court found that
Klemesrud and Netcom should have had knowledge of Erlich's activities.
The Court found that
Klemesrud and Netcom did not relinquish control of their system to
Erlich, and could have stopped him if they wanted to. Their inaction
rose to the level of substantial aid, and could constitute contributory
copyright infringement.
The Court defined vicarious
copyright infringement as where a
defendant has the right and ability to control an infringer's acts, and
receives direct financial benefit from the infringement.
The Court found that there
was evidence to show that Klemesrud and Netcom had the ability to
control Erlich's postings.
However, the Court found
that there was no evidence that Erlich's infringement gave any financial
benefit to Klemesrud or Netcom.
Later Congress enacted 17
U.S.C. §512, which establishes
"safe harbor" and provides immunity from infringement liability
under certain circumstances for internet service providers.