File sharing
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Video sharing sites
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File sharing is the practice of distributing or providing access to digital media, such as computer programs, multimedia (audio, images and video), documents or electronic books. It involves various legal aspects as it is often used to exchange intellectual property that is subject to copyright law or licensing.

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2Jurisdictions
- 2.5Germany
- 2.16United States

File hosting and sharing[edit]

File hosting services may be used as a means to distribute or share files without consent of the copyright owner. In such cases one individual uploads a file to a file hosting service, which others may download. Legal history is documented in case law.

For example in the case of Swiss-German file hosting service RapidShare, in 2010 the US government's congressional international anti-piracycaucus declared the site a 'notorious illegal site', claiming that the site was 'overwhelmingly used for the global exchange of illegal movies, music and other copyrighted works'.^[1] But in the legal case Atari Europe S.A.S.U. v. Rapidshare AG in Germany (Legal case: OLG Düsseldorf, Judgement of 22 March 2010, Az I-20 U 166/09 dated 22 March 2010) the Düsseldorf higher regional court examined claims related to alleged infringing activity and reached the conclusion on appeal that 'most people utilize RapidShare for legal use cases'^[2] and that to assume otherwise was equivalent to inviting 'a general suspicion against shared hosting services and their users which is not justified'.^[3] The court also observed that the site removes copyrighted material when asked, does not provide search facilities for illegal material, noted previous cases siding with RapidShare, and after analysis the court concluded that the plaintiff's proposals for more strictly preventing sharing of copyrighted material – submitted as examples of anti-file sharing measures RapidShare might have adopted – were found to be 'unreasonable or pointless'.^[4]

In January 2012 the United States Department of Justice seized and shut down the file hosting site Megaupload.com and commenced criminal cases against its owners and others. Their indictment concluded that Megaupload differed from other online file storage businesses, suggesting a number of design features of its operating model as being evidence showing a criminal intent and venture.^[5]

Jurisdictions[edit]

Australia[edit]

A secondary liability case in Australia, under Australian law, was Universal Music Australia Pty Ltd v Sharman License Holdings Ltd [2005] FCA 1242 (5 September 2005). In that case, the Court determined that the Kazaa file sharing system had 'authorized' copyright infringement. The claim for damages was subsequently settled out of court.

In the case of AFACT v iiNet which was fought out in the Federal Court, an internet service provider was found not to be liable for the copyright infringement of its users. The case did not, however, create a clear precedent that Australian ISPs could never be held liable for the copyright infringement of their users by virtue of providing an internet connection. AFACT and other major Australian copyright holders have stated their intention to appeal the case, or pursue the matter by lobbying the government to change the Australian law.

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Canada[edit]

The Copyright Modernization Act was passed in 2012, and came into effect on 2 January 2015. It provides for statutory damages for cases of non-commercial infringement between $100 and $5 000 and damages for commercial infringement from $500 to $20 000.

China[edit]

The People's Republic of China is known for having one of the most comprehensive and extensive approaches to observing web activity and censoring information in the world.^{[citation needed]} Popular social networking sites such as Twitter and Facebook cannot be accessed via direct connection by its citizens. Mainland China requires sites that share video files to have permits and be controlled by the state or owned by state. These permits last for three years and will need renewal after that time period. Web sites that violate any rules will be subject to a 5-year ban from providing videos online.^[6] One of the country's most used file sharing programs, BTChina got shut down in December 2009. It was shut down by the State Administration of Radio Film and Television for not obtaining a license to legally distribute media such as audio and video files.^[7] Alexa, a company that monitors web traffic, claims that BTChina had 80,000 daily users. Being one of the primary file sharing websites for Chinese citizens, this shutdown affected the lives of many internet users in China. China has an online population of 222.4 million people and 65.8% are said to participate in some form of file-sharing on websites.^[8]

European Union[edit]

On 5 June 2014, the Court of Justice of the European Union (CJEU) ruled that making temporary copies on the user's screen or in the user's cache is not, in itself, illegal.^[9]^[10] The ruling relates to the British Meltwater case settled on that day.^[11]

The judgement of the court states: 'Article 5 of Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on the harmonisation of certain aspects of copyright and related rights in the information society must be interpreted as meaning that the copies on the user’s computer screen and the copies in the internet ‘cache’ of that computer’s hard disk, made by an end-user in the course of viewing a website, satisfy the conditions that those copies must be temporary, that they must be transient or incidental in nature and that they must constitute an integral and essential part of a technological process, as well as the conditions laid down in Article 5(5) of that directive, and that they may therefore be made without the authorisation of the copyright holders.'^[12]

The Boy Genius Reportweblog noted that 'As long as an Internet user is streaming copyrighted content online ... it’s legal for the user, who isn’t willfully [sic] making a copy of said content. If the user only views it directly through a web browser, streaming it from a website that hosts it, he or she is apparently doing nothing wrong.'^[13]

In November 2009, the European Parliament voted on changes to the Telecoms Package. With regard to file-sharing, MEPs agreed to compromise between protecting copyright and protecting user's rights. A Eur