opinion

Hosting Talk: Loopholes or Lifelines?

It’s not uncommon to hear many within the online adult entertainment industry adopt less-than-positive opinions regarding Section 512 of the Digital Millennium Copyright Act (DMCA) and Section 230 of the Communications Decency Act (CDA). Put in place as crucial protection of ISPs and providers of third-party content, some rights-holders and webmasters consider these major pieces of legislation to be detrimental loopholes. But no matter what side of the fence you sit, sections 512 and 230 are essential to the function of the modern Internet and directly impact every Internet-based adult business.

Given the damaging effect of content piracy on the industry, it’s understandable why rights-holders and webmasters might take a dim view of the liability limitations of Internet Service Providers, but it’s important to acknowledge that ISPs and a variety of other web-based businesses would be sunk without them.

Imperfect though they may be, the DMCA and CDA safe-harbor provisions provide essential Internet regulations, particularly with the explosive popularity of self-publishing and social media use.

The full importance and impact of sections 512 and 230 is beyond the scope of this column, and something that is best addressed by an attorney intimately familiar with this area of cyberlaw. Having said that, what every layman who operates a web-based business can (and should) understand is that the primary function of these safe harbor provisions is to offer a layer of protection for ISPs against the illegal acts of third-parties who make use of their networks and resources.

It’s not just top-level ISPs and hosting companies that are safeguarded by these laws, but also a wide range of “interactive computer service providers,” including message boards, social networking sites, providers of user-generated content (like YouTube) and essentially any other online service that publishes third-party content.

For example, if you run an online discussion forum, and one of your users posts defamatory and/or libelous statements about another business, Section 230 helps to shield your business from liability. Under this law, you are not considered directly responsible for the actions of users whom you, the site owner, cannot control. And as anyone with message board experience can attest, operating online discussion forums without the existence of Section 230 would be nearly impossible.

But that doesn’t mean you’re 100 percent off the hook. While hosting providers, ISPs and other entities can claim no prior knowledge of the offending materials, they must take action of some kind once notified of the problem.

In some cases, a hosting company will receive a notice alleging copyright infringement on the part of a client. While the host is not in a position to immediately determine its validity, the DMCA’s Section 512 sets a defined procedure for handling the complaint, including noticing and counter-noticing, and provides ISPs with similar rules.

Imperfect though they may be, the DMCA and CDA safe-harbor provisions provide essential Internet regulations, particularly with the explosive popularity of self-publishing and social media use. While many content owners and rights-holders see them as a way out for cyber-criminals, it’s important to note that many legitimate, useful and extremely popular online services and websites — including the very hosting services that these folks use to house their sites — simply could not exist without them. In that sense, these “loopholes” end up looking a lot more like lifelines.

Steven Daris is CEO and co-founder of Red Apple Media (RedAppleMedia.com), a managed hosting, ecommerce and video streaming solutions provider.

Related:  

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

Best Practices for Payment Gateway Security

Securing digital payment transactions is critical for all businesses, but especially those in high-risk industries. Payment gateways are a core component of the digital payment ecosystem, and therefore must follow best practices to keep customer data safe.

Jonathan Corona ·
opinion

Ready for New Visa Acquirer Changes?

Next spring, Visa will roll out the U.S. version of its new Visa Acquirer Monitoring Program (VAMP), which goes into effect April 1, 2025. This follows Visa Europe, which rolled out VAMP back in June. VAMP charts a new path for acquirers to manage fraud and chargeback ratios.

Cathy Beardsley ·
opinion

How to Halt Hackers as Fraud Attacks Rise

For hackers, it’s often a game of trial and error. Bad actors will perform enumeration and account testing, repeating the same test on a system to look for vulnerabilities — and if you are not equipped with the proper tools, your merchant account could be the next target.

Cathy Beardsley ·
profile

VerifyMy Seeks to Provide Frictionless Online Safety, Compliance Solutions

Before founding VerifyMy, Ryan Shaw was simply looking for an age verification solution for his previous business. The ones he found, however, were too expensive, too difficult to integrate with, or failed to take into account the needs of either the businesses implementing them or the end users who would be required to interact with them.

Alejandro Freixes ·
opinion

How Adult Website Operators Can Cash in on the 'Interchange' Class Action

The Payment Card Interchange Fee Settlement resulted from a landmark antitrust lawsuit involving Visa, Mastercard and several major banks. The case centered around the interchange fees charged to merchants for processing credit and debit card transactions. These fees are set by card networks and are paid by merchants to the banks that issue the cards.

Jonathan Corona ·
opinion

It's Time to Rock the Vote and Make Your Voice Heard

When I worked to defeat California’s Proposition 60 in 2016, our opposition campaign was outspent nearly 10 to 1. Nevertheless, our community came together and garnered enough support and awareness to defeat that harmful, misguided piece of proposed legislation — by more than a million votes.

Siouxsie Q ·
opinion

Staying Compliant to Avoid the Takedown Shakedown

Dealing with complaints is an everyday part of doing business — and a crucial one, since not dealing with them properly can haunt your business in multiple ways. Card brand regulations require every merchant doing business online to have in place a complaint process for reporting content that may be illegal or that violates the card brand rules.

Cathy Beardsley ·
profile

WIA Profile: Patricia Ucros

Born in Bogota, Colombia, Ucros graduated from college with a degree in education. She spent three years teaching third grade, which she enjoyed a lot, before heeding her father’s advice and moving to South Florida.

Women In Adult ·
opinion

Creating Payment Redundancies to Maximize Payout Uptime

During the global CrowdStrike outage that took place toward the end of July, a flawed software update brought air travel and electronic commerce to a grinding halt worldwide. This dramatically underscores the importance of having a backup plan in place for critical infrastructure.

Jonathan Corona ·
opinion

The Need for Minimal Friction in Age Verification Technology

In the adult sector, robust age assurance, comprised of age verification and age estimation methods, is critical to ensuring legal compliance with ever-evolving regulations, safeguarding minors from inappropriate content and protecting the privacy of adults wishing to view adult content.

Gavin Worrall ·
Show More