MP3tunes may claim safe harbor protection for EMI works stored on MP3tunes.com and EMI
works linked to Sideload.com. However, MP3tunes does not qualify for safe harbor protection
for songs sideloaded from links identified in [EMI’s] takedown notices which it failed to remove
from user lockers.”^2748
The court went on to hold that MP3tunes could have contributory liability for the
infringing material that remained in users’ lockers and for which it had received notices of
infringement. The takedown notices from EMI were sufficient to establish no genuine dispute
that MP3tunes had actual knowledge its users had stored and continued to have access to
infringing copies of the plaintiffs’ works. And MP3tunes had made a material contribution to the
infringing activity because its servers were the sole instrumentality of its users’ infringement.
The court rejected MP3tunes assertion of the Sony defense that its servers and lockers had
substantial noninfringing uses because MP3tunes had a continuing relationship with its users.
Here, MP3tunes continued to allow its users to store and access works in their lockers even
though it knew they had unlawfully downloaded those works. The court therefore granted EMI’s
motion for summary judgment on its claim for contributory infringement with respect to the
songs listed on EMI’s takedown notices and which MP3tunes failed to remove from users’
lockers.^2749
Finally, EMI argued, relying on the Cartoon Network case, that MP3tunes’ storage
system violated its right to public performance because it employed a “master copy” to
“rebroadcast” songs to users who uploaded different copies of the same song.^2750 In a ruling that
is a bit unclear in its factual rationale, the court rejected this argument:
EMI’s argument, however, mischaracterizes MP3tunes’ storage system. The
record demonstrates that MP3tunes does not use a “master copy” to store or play
back songs stored in its lockers. Instead, MP3tunes uses a standard data
compression algorithm that eliminates redundant digital data. Importantly, the
system preserves the exact digital copy of each song uploaded to MP3tunes.com.
Thus, there is no “master copy” of any of EMI’s songs stored on MP3tunes’
computer servers.^2751Accordingly, MP3tunes was entitled to safe harbor protection again EMI’s public performance
infringement claims.
In sum, the court granted EMI’s motion for summary judgment on its claim of
contributory infringement against MP3tunes for songs noticed in EMI’s takedown notices and
(^2748) Id. at 646.
(^2749) Id. at 648-49. The court also ruled that the founder was personally directly liable for songs her personally
sideloaded from unauthorized sites. However, MP3tunes was not directly liable for his or other executives’
sideloading of songs because it was not clear they downloaded those songs during the course of their
employment. Id. at 649.
(^2750) Id. at 649.
(^2751) Id. at 649-50.