Columbia Pictures Industries, Inc. v. Fung
710 F.3d 1020
| 9th Cir. | 2013Background
- Columbia Pictures sued Fung and isoHunt for contributory and inducement infringement related to BitTorrent-based services.
- Fung ran torrent sites isoHunt, Torrentbox, Podtropolis and Ed2k-it, plus trackers; IsoHunt reportedly modified torrents by adding backup trackers.
- BitTorrent is a hybrid P2P protocol using trackers and swarms; there is no centralized file repository.
- The district court entered a permanent injunction and found Fung liable for inducement; it rejected DMCA safe harbors for §512(a), (c), and (d).
- The Ninth Circuit affirmed liability on inducement, but vacated/modifed portions of the injunction and addressed DMCA safe harbors and scope of relief.
- The opinion discusses Grokster III as governing inducement; weighs knowledge, intent, and causation; and considers the scope and enforceability of the injunction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Inducement liability under Grokster III | Columbia proves device/service distributed with intent to promote infringement | Fung argues no distribution of a device and lacks inducement | Liability established for inducement under Grokster III |
| 512(a) safe harbor applicability | Trackers facilitate transmission of infringing content | Trackers are conduit-like services | 512(a) not available for Fung’s trackers |
| 512(c) safe harbor applicability (knowledge and control) | Fung’s activity violates 512(c) due to red-flag knowledge and financial benefit | Possesses no knowledge of specific infringements | 512(c) safe harbor not available; Fung ineligible |
| 512(d) safe harbor (information location tools) | Links to infringing material enable infringement | Not applicable if no knowledge | 512(d) safe harbor not available; Fung not protected |
Key Cases Cited
- Grokster, Ltd. v. MGM, 545 U.S. 913 (U.S. 2005) (inducement liability and four-element test; know-how of promoting infringement; clear expression; causation constraints)
- Sony Corp. of Am. v. Universal City Studios, Inc., 464 U.S. 417 (U.S. 1984) (staple article of commerce; meaningful noninfringing uses)
- Perfect 10, Inc. v. Visa Int’l Serv. Ass’n, 494 F.3d 788 (9th Cir. 2007) (inducement applicability to internet services)
- Perfect 10, Inc. v. Amazon.com, Inc., 508 F.3d 1146 (9th Cir. 2007) (inducement doctrine extends to services as well)
- In re Aimster Copyright Litig., 334 F.3d 643 (7th Cir. 2003) (indicates DMCA safe harbors interplay with inducement)
- UMG Recordings, Inc. v. Shelter Capital Partners, LLC, — F.3d — (9th Cir. 2013) (DMCA safe harbors interaction with liability)
- A&M Records v. Napster, Inc., 239 F.3d 1004 (9th Cir. 2001) (gateway case on liability for infringing online services)
- Columbia Pictures Indus., Inc. v. Fung, No. CV 06-5578, 2009 WL 6355911 (C.D. Cal. 2009) (district court decision discussed and reviewed)
- Visa, Inc. v. Visa Int’l Serv. Ass’n, 494 F.3d 788 (9th Cir. 2007) (inducement/DMCA related discussion)
- CCBill, Inc. v. GoDigital, Inc., 488 F.3d 111 (9th Cir. 2007) (direct financial benefit under §512(c))