opinion

May Law Beat: 1

Here's a poser for you: Where would you find the one company that is simultaneously at the forefront of the federal government's concerns over minors' access to adult sexual content and at the cutting edge of the adult industry's concerns over pirated content?

The answer: Google. But I am not suggesting that to answer the question you perform an online search. Instead, I am referring to Google, the noun. In fact, I am referring to Google, the proper noun — the giant Internet, bent-on-global-content-domination, company. That Google.

The e-commerce behemoth, whose name also means the unfathomably large number of 10 to the 100th power, has been in the legal spotlight recently because it has been sued in two very important and very high-profile cases.

In the first action, Perfect 10 Magazine Inc. sued Google alleging that Google's image search function infringes Perfect 10's copyrights and trademark rights by providing searchers with cached thumbnail versions of pirated Perfect 10 photographs located on websites Google has spidered. On Feb. 17, the federal court hearing the case issued a preliminary injunction preventing Google from making Perfect 10's images available through its image search feature based on the court's opinion that Perfect 10 will probably prevail in its claim that Google's image search function infringes its rights.

In the other case, the U.S. Justice Department filed a motion in federal court seeking a court order that would compel Google to turn over "a multi-stage random sample of one million URLs" from Google's database and a computer file with "the text of each search string entered onto Google's search engine over a one-week period."

Justice filed the lawsuit after Google refused to comply with a subpoena served on Google, Yahoo, AOL and Microsoft in August, seeking the information to defend the constitutionality of the Child Online Protection Act (COPA). Google's refusal to comply with the subpoena on the grounds that compliance would violate its trade secrets and the privacy of its users, prompted Justice to file its motion to compel Google to turn over the data.

Like the Free Speech Coalition's legal challenges to the federal 2257 regulations and Utah's email registry, the Extreme Associates prosecution and the COPA trial later this year, "the Google cases" also are critically important to the adult entertainment industry. For example, the outcome of the Perfect 10 case could profoundly impact the intellectual property rights of adult entertainment content producers.

Here's why. At issue in the Perfect 10 case is the question of whether Google's image search function that creates, stores and publishes thumbnail versions of Perfect 10 content — and thousands of other copyright protected photographs in response to image search requests — can assert a defense to copyright infringement under the "fair use" doctrine.

This doctrine presents a limitation upon a copyright owner's property rights in the copyrighted work to ensure the free flow of information for purposes such as news reporting, teaching, comment and criticism. If a party's use of copyrighted material is a "fair use" of the work or works in question, they are shielded from what would otherwise be copyright infringement.

What is Fair Use?
So what constitutes fair use of copyrighted works? Here is a two-word answer lawyers are famous for: It depends. The outline of the fair use doctrine is set forth in Section 107 of the Copyright Act. But what actually comprises fair use in any particular situation depends on the nature of the work and the facts surrounding the use. Section 107 sets forth a non-exhaustive list of factors to be considered in determining whether the use made of a work is indeed a fair use. These factors include (1) the purpose and character of the use, including whether the use is commercial or nonprofit; (2) the nature of the work itself; (3) the amount and substantiality of the portion of the work used; and (4) the effect the use has upon the potential market for, or the value of, the work.

The Copyright Act's fair use doctrine also has been the subject of judicial interpretation in a large number of copyright cases, including U.S. Supreme Court decisions. The fair use doctrine is therefore flexible and capable of changing and evolving over time in response to changes in technology, etc.

An example of the evolving nature of the fair use doctrine and how it is applied on the Internet may well be what is under way in the Perfect 10 case. In the court's opinion published on Feb. 21, 2005, the court concluded that Google's creation and publication of thumbnail reproductions of Perfect 10's copyright protected photographs does not constitute fair use. The court reached this conclusion, in part, because it found that "Google offers and derives commercial benefit from its Ad Sense program," which allows participating third-party websites "to carry Google-sponsored advertising and share revenue that flows from the advertising displays and click-throughs."

The court also may have pushed the evolution of the fair use doctrine in response to new technology in a significant way by also basing its decision on the fact that Google's image search feature allows consumers to freely download small thumbnail photographs to their cellphones. The court found that this use could have a substantial negative effect on the market for Perfect 10's photographs "to the extent that users may choose to download free images to their phone rather than purchase Perfect 10's reduced-size images." In reaching this conclusion, the court reasoned that this case differed from a previous case in which thumbnail search retrievals were found to be fair use.

Because of the Perfect 10 decision, we may be witnessing an important shift in the fair use doctrine. It is a potential change that all adult content creators should carefully note. While both sides are appealing the judge's ruling, this case could be of critical importance to content producers because nearly all content producers are, or will in the future be, exploiting their content via small screen devices such as mobile phones and personal entertainment devices such as Apple's iPod and Sony's PSP.

If Perfect 10 prevails against Google, virtually every search engine with image searching capability could be liable to numerous adult entertainment companies for copyright infringement on a massive scale. Also, other sites depicting thumbnail images, such as eBay, may also become vulnerable to huge copyright infringement actions.

In part two, we'll take a look at producer rights and beyond.

Gregory A. Piccionelli is a senior member of Piccionelli & Sarno, one of the world's most experienced law firms specializing in Internet, intellectual property and adult entertainment matters. He can be reached at (310) 553-3375.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Unpacking the Payment Card Industry's Latest Data Security Standard

The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements and guidelines that apply to all businesses that accept credit card payments, and is designed to ensure the security of those transactions.

Jonathan Corona ·
opinion

Compliance With State Age Verification Laws

During the past year, website operators have faced a slew of new state age verification laws entailing a variety of inconsistent compliance obligations.

Lawrence Walters ·
opinion

Merchants in Spotlight With Visa's VIRP

By now, most merchants know about the Visa Integrity Risk Program (VIRP) rolled out in spring 2023. The program is designed to ensure that acquirers and their designated agents — payment facilitators, independent sales organizations and wallets — maintain proper controls and oversight to prevent illegal transactions from entering the Visa payment system.

Cathy Beardsley ·
opinion

How to Know When Hosting Upgrades Are Really Needed

I was reminded about an annoyingly common experience that often frustrates website owners: upgrades. Sometimes, an upgrade of physical system resources like CPU, RAM or storage really is required to solve a problem or improve performance… but how do you know you’re not just being upsold?

Brad Mitchell ·
profile

WIA Profile: Natasha Inamorata

Natasha Inamorata was just a kid when she first picked up a disposable camera. She quickly became enamored with it and continued to shoot with whatever equipment she could afford. In her teens, she saved enough money to purchase a digital Canon ELPH, began taking portraits of her friends, shot an entire wedding on a point-and-shoot camera and edited the photos with Picnik.

Women in Adult ·
trends

Collab Nation: Top Creators Share Best Practices for Fruitful Co-Shoots

One of the fastest ways for creators to gain new subscribers and buyers, not to mention monetize their existing fan base, is to collaborate with other creators. The extra star power can multiply potential earnings, broaden brand reach and boost a creator’s reputation in the community.

Alejandro Freixes ·
opinion

Bridging Generational Divides in Payment Preferences

While Baby Boomers and Gen Xers tend to be most comfortable with the traditional payment methods to which they are accustomed, like cash and credit cards, the younger cohorts — Millennials and Gen Z — have veered sharply toward digital-first payment solutions.

Jonathan Corona ·
opinion

Legal and Business Safety for Creators at Trade Shows

As I write this, I am preparing to attend XBIZ Miami, which reminds me of attending my first trade show 20 years ago. Since then, I have met thousands of people from all over the world who were doing business — or seeking to do business — in the adult industry.

Corey D. Silverstein ·
opinion

Adding AI to Your Company's Tech Toolbox

Artificial intelligence is all the rage. Not only is AI all over the headlines, it is also top of mind for many company leadership teams, who find themselves asking, “How can this new tool help our company?”

Cathy Beardsley ·
opinion

The Ins and Outs of IP Addresses: What Website Owners Should Know

Think about your home address, the place you live. It is unique. That’s important because when you decide to invite someone over, they will need directions to find you. It’s even more important if you want a lot of visitors.

Brad Mitchell ·
Show More