Super Cassettes Industries Ltd. v. MySpace Inc.

Online intermediaries are protected from copyright liability only when they act responsibly after gaining knowledge of infringement.

Summary

This case is a landmark Indian ruling on copyright infringement and intermediary liability in the digital environment. Super Cassettes Industries Ltd. (T-Series), a major music company, sued MySpace, a social networking platform, for hosting and facilitating access to copyrighted music without authorization. The Delhi High Court examined the scope of safe harbour protection available to online intermediaries under the Information Technology Act and the Copyright Act.

Facts of the Case

Super Cassettes owned copyrights in numerous sound recordings and musical works. It alleged that users of MySpace uploaded its copyrighted content and that MySpace enabled streaming and sharing of such content, thereby profiting from infringement. MySpace argued that it was merely an intermediary providing a platform for user-generated content and that it removed infringing material upon receiving specific notices from the copyright owner.

Findings / Reasoning

The Delhi High Court held that intermediaries can claim safe harbour protection only if they act diligently after receiving actual knowledge of infringement. The Court ruled that MySpace could not claim blanket immunity because it exercised control over content presentation, categorization, and monetization through advertisements. However, the Court also clarified that intermediaries are not required to proactively monitor or filter all content. Liability arises only when they fail to remove infringing content after being notified with sufficient details.

Suggestions / Observations

The judgment struck a balance between protecting copyright owners and encouraging growth of online platforms. It emphasized that copyright owners must provide specific and clear notices identifying infringing content. At the same time, intermediaries must respond promptly and effectively to such notices to retain legal protection.

Judgment & Date

The Delhi High Court held that MySpace could not claim unconditional safe harbour and was required to act upon specific takedown notices. The matter was partly decided in favour of Super Cassettes.

Judgment Date: 23 December 2016