This Could Happen to You
[Used with permission from Media/Professional Insurance and Media Ink . Volume 9 No. 1. Contains examples of litigation over intellectual property in cyberspace.]
The experience of M/PI in managing cyber suits thus far suggests that intellectual property claims are the greatest liability exposure in cyberspace. Many of the rules of the road in cyberspace are comprised of the laws relating to intellectual property (copyright, trademark, trade name, patent, etc.), and they are evolving as quickly as the electronic environment itself. The examples below describe several of the information highway "collisions" that have occurred under these ever-changing rules. They are based on actual cases, which are cited after each example.
Online Service Sued Because Its Users Exchange Copyrighted Material Via The Online Service: In at least three separate cases, holders of various types of copyrighted material sued large online services or small, local BBS (electronic bulletin board system) operators because the individual users of the systems were sending each other digitized versions of pictures, music or video games via the service. In one case, the operators of the BBS system argued that they were unaware that protected material was being ex changed among its users, that they did not authorize or encourage the exchange, and that it was simply not feasible to monitor the exchanges to determine whether material exchanged might be protected by copyright. This argument was unsuccessful. (Playboy Enterprises, Inc. v. Frena, Frank Music v. CompuServe, and Sega Enterprises v. Maphia).
Free Lance Authors Sue Publishers And Online Services Over Cyberspace Publication Rights: In recent years, a number of publishers have sold their past and current content to online services, so that the material can be read by users of the online service. In a case currently pending in federal court in New York, several free lance writers who sold their stories to the New York times and other publications years ago are alleging that the publications and the online services are violating copyright law because the original license agreements with the authors do not assign electronic publishing rights to the publications. Notably, at the time these license agreements were signed, cyberspace did not exist as a recognized medium for information exchange. (Tasini, et al. v. New York Times. et al.). [Want a liability insurance quote? Click here. ] [And please tell us what you think about this service.]
Newspaper Reporter Downloads Protected Information From The Internet, Is Sued By Copyright Holder: Given the high volume and variety of information published on the Internet every day, reporters and publishers may have to access the 'Net on a regular basis to obtain information. The temptation to download text, graphics or other material for research or reprinting is always present. Unfortunately, if the material downloaded by the reporter was posted on the Internet by a third party without the copyright holder's permission, the reporter (and the publication) may be sued. (Based on Religious Technology Center v. Lerma, Washington Post, et al.).
Daniel J. Langin Claims Counsel
Coverage for these claims is not to be inferred from this list but must always be determined in reference to a particular insurance policy, which is the controlling document, as well as the facts and circumstances of each claim and applicable law.
