Appeals Court Decision a Mixed Bag for Perfect 10

PASADENA, Calif. — In the latest developments for Perfect 10’s long-running lawsuit against Google Inc. and Amazon.com, the 9th U.S. Circuit Court of Appeals has dealt the company another setback in its case against the Internet giants but left the door open on some of the lawsuit’s claims.

Finding that a lower court had erred in determining that Perfect 10 was likely to succeed in its claim that Google’s use of thumbnail versions of Perfect 10 images in its image search constituted direct copyright infringement, the court lifted the preliminary injunction regarding Google’s use of those thumbnails and remanded the case to the district court for trial.

Perfect 10’s owner Norm Zada told XBIZ that he was disappointed with the court’s ruling, but remained confident that he will prevail on at least one of the lawsuit’s surviving claims.

“There are aspects that trouble us, but the good news is that the court’s latest ruling won’t hurt us that much at trial,” Zada said.

One of the specific areas in which Zada did not agree with the court’s reasoning was in relation to the full-size versions of Perfect 10 images that are in-line linked and displayed via a frame in Google’s image search results.

“In this decision, the 9th Circuit basically says that you can’t ‘display’ something without first making a copy of it,” Zada said. “Why would Congress go to the trouble of establishing a right to a separate right of display if displaying the work was the same thing as copying it?”

In the decision, written by Judge Sandra Ikuna, the court asserted that Google does not “display a copy of full-size infringing photographic images for purposes of the Copyright Act when Google frames in-line linked images that appear on a user’s computer screen.”

“Because Google’s computers do not store the photographic images, Google does not have a copy of the images for purposes of the Copyright Act,” Ikuna wrote. “In other words, Google does not have any ‘material objects … in which a work is fixed … and from which the work can be perceived, reproduced or otherwise communicated’ and thus cannot communicate a copy.”

The court also found Google’s use of Perfect 10 images to be “highly transformative,” and argued that the search engine used the images “in a new context to serve a different purpose.”

“The fact that Google incorporates the entire Perfect 10 image into the search engine results does not diminish the transformative nature of Google’s use,” Ikuna wrote. “As the district court correctly noted … even making an exact copy of a work may be transformative so long as the copy serves a different function than the original work.”

The court then balanced the value of Google’s transformative use against the extent to which that use was commercial in nature, and concluded that “the significantly transformative nature of Google’s search engine, particularly in light of its public benefit, outweighs Google’s superseding and commercial uses of the thumbnails in this case.”

Zada told XBIZ that he wasn’t satisfied with the court’s explanation as to why it considered Google’s use of his company’s images to be “highly transformative.”

“They say Google’s use is ‘highly transformative’ without explaining how and why it is transformative,” Zada said. “They don’t explain how what Google does — which is basically use the thumbnails as a preview for full-size images — is any different from what we do with thumbnails.”

One aspect of the court’s ruling that cut in favor of Perfect 10 was the court’s analysis of possible contributory copyright infringement on the part of Google, where the appellate court once again disagreed with the lower court.

“[T]he district court held that even assuming Google had actual knowledge of infringing material available on its system, Google did not materially contribute to infringing conduct because it did not undertake any substantial promotional or advertising efforts to encourage visits to infringing websites, nor provide a significant revenue stream to the infringing websites,” Ikuna wrote.

“This analysis is erroneous. There is no dispute that Google substantially assists websites to distribute their infringing copies to a worldwide market and assists a worldwide audience of users to access infringing materials. We cannot discount the effect of such a service on copyright owners, even though Google’s assistance is available to all websites, not just infringing ones.”

Ultimately, the court decided to send the case back down to the district court to determine at trial whether Perfect 10’s action against Google and Amazon can succeed on secondary liability claims, and whether the two companies can limit that liability pursuant to title II of the Digital Millennium Copyright Act (DMCA).

Zada said that despite all the setbacks in the case, he is still reasonably confident that Perfect 10 will prevail at trial, at least with respect to the thumbnail issue. Even so, Zada said that the entire experience has been draining and frustrating, and that rather than appeal every aspect of the decision that he does not agree with, he would take a limited victory at trial and be content with that.

Given that he sent his first copyright infringement notices to Google in 2001, and filed the lawsuit in 2004, Zada said he is painfully aware of the painfully slow pace of complex litigation.

“To fully litigate this thing — to appeal all the things we believe we’re right about — would mean that it goes on for years,” Zada said. “I’m not sure I have the energy for that.”

In another setback for Perfect 10, the U.S. Supreme Court yesterday declined to hear the company’s case against payment processor CCBill and its affiliated hosting company CWIE.

By declining to hear the case, the nation’s highest court effectively upheld the 9th Circuit’s ruling issued in March, in which the court found that CCBill and CWIE were immune from liability under section 230 of the Communications Decency Act.

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 News

Clip Page Launches 'Creator Analytics' Feature

Custom content marketplace Clip Page has launched the Creator Analytics feature on its platform.

BBWXXXAdventures Relaunches Through Grooby's Blue.xxx

Paysite BBWXXXAdventures has relaunched under Grooby's new website management company Blue.xxx.

Flirt4Free Announces 'Tease the Season' Holiday Contest

Flirt4Free has announced its Tease the Season promo and model contest, which will run Dec. 21-25.The competition is led by the return of the Snowflake Contest, where models can be gifted digital snowflakes by their fans. The models who collect the most snowflakes by 11:59 a.m. on Christmas Day will win cash prizes.

SWR Data Publishes 2024 'Top Creator Platforms' Report

Adult industry market research firm SWR Data has published a report on the Top Creator Platforms of 2024.

MintStars Joins Pineapple Support as Supporter-Level Sponsor

Content platform MintStars has joined the ranks of over 60 adult businesses and organizations committing funds and resources to Pineapple Support.

Politicians Aim to Study Effects of FOSTA-SESTA on Sex Workers

In an encouraging sign for sex workers, California State Representative Ro Khanna and U.S. Senator Elizabeth Warren of Massachusetts have reintroduced the SAFE SEX Workers Study Act, which aims to study the effects of FOSTA-SESTA.

Pornhub to Shut Down Access in Florida Over Age Verification

Aylo will geoblock Pornhub across Florida starting Jan. 1, when HB 3, the state's age verification law, goes into effect.

AEBN Publishes Popular Searches by Country for October, November

AEBN has released the list of popular searches from its straight and gay theaters by country in October and November.

Texas Bill Aims to Ban Sex Toys at 'Big-Box' Retailers

Republican State Representative Hillary Hickland has introduced a bill in the Texas legislature that would restrict the sale of pleasure products at "big-box" and other non-adult retailers.

Jacquie et Michel Acquired by 'International Fund'

French adult studio Jacquie et Michel has been acquired by an international fund, marking a significant development for the well-known brand.

Show More