Eyes Wide Shut - Sharing of TV Clips Online by TVEyes not Fair Use, Says US Court of Appeals

Fair use is a tricky issue, and often a thorn on the side of copyright owners. Overall one can appreciate the opportunities it creates, but also the headaches faced by those wishing to pursue someone hiding behind that particular shield. Rightsholders have been holding out for a life-line to narrow down the reach of fair use, and might've just been rewarded a win in the wider balancing act of fair use versus infringement. The matter was faced by the Court of Appeals recently, who issued their decision on the appeal in late February.

The case of Fox News Network LLC v TVEyes Inc. concerned the sharing of segments from TV programming by TVEyes. This is done through the continuous recording of TV shows, and compiling them into a searchable database. Users of TVEyes could then search for clips from various programmes, and watch up to 10 minutes of the content that interests them (and has been used by journalists and TV producers for some time). Clips can also be archived onto TVEyes' servers, or downloaded onto the user's computer. Fox ultimately took TVEyes to court for copyright infringement through the redistribution of their audiovisual content.

The case turned on whether the use by TVEyes could be classed as 'fair use' under 17 USC section 107. This looks at the usual four factors: (1) the purpose and character of the use, including whether such use is of a commercial nature or is for non-profit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work. The factors are assessed weighted together in the light of the purpose of copyright.

Under the first factors, the Court focussed on the precedent set by the Google Books case (discussed more here). In the matter, Google's book search service added something new to the rights attached to the written works, and therefore "…communicated something new and different from the original". Similarly to TVEyes' offering, the showing of snippets from each book "…added important value to the basic transformative search function" by allowing for the user to verify the information as being what was looked for.

Some TV clips are simply captivating

The Court concluded that, in the light of the first factor, TVEyes' service "…is similarly transformative insofar as it enables users to isolate, from an ocean of programming, material that is responsive to their interests and needs, and to access that material with targeted precision". The service saves on costs and time spent looking for materials should they be done without a quick search function. Even though the service was for commercial gain, it still was not enough to counter its transformative nature entirely. Ultimately this means that the first factor slightly weighs in favor of fair use.

In terms of the second factor, the Court swiftly concluded that it is inconsequential to this case, even if the subject matter of the works is reporting on factual events.

They then moved onto the third factor, which looks at the amount of the work copied, and whether it was substantial. The Court quickly concluded that, due to the sheer volume of material copied by TVEyes, which amounted to virtually the entirety of Fox's TV programming. When compared to Google Books, TVEyes often created copies of entire segments of programming that might cover all of the relevant material being sought, whereas Google actively blacklisted certain parts of text within search results to prevent this. This amounted to copying all that is important from the protected works, and weighed against fair use.

Finally, the Court looked at the service's effect on the potential market for or value of the works, particularly whether it competes with the original service. Due to the popularity of the service, there clearly was a marketplace for such services that was exploitable by Fox. This would have impacted any hypothetical monies made by Fox should they have offered the service, particularly in the light of unauthorized, unlicensed copying by TVEyes. This means that "…by selling access to Fox's audiovisual content without a license, TVEyes deprives Fox of revenues to which Fox is entitled as the copyright holder", which meant that the fourth factor also favored Fox.

Having considered the above, the Court had to determine whether, all factors considered, the use was fair use or not. The conclusion of this was that TVEyes' service was not justifiable under fair use, due to the sheer amount of works copied and the usurping of a function for which Fox was entitled to demand compensation for, even though the service was slightly transformative.

TVEyes was deemed to be liable for direct infringement of Fox's rights, and the Court imposed a permanent injunction on their services on allowing the viewing, downloading and sharing of clips from the site. The search function, however, was allowed to continue.

The case is a very interesting one, and sets clear boundaries for services similar to the one offered by TVEyes. Should the clips have been restricted to much shorter segments, and not allowed to be downloaded or shared, the company might have escaped liability. Other video service providers will undoubtedly heed this as a warning against any significant sharing of content.

Source: JDSupra

Bowled Away - 8-Second Cricket Clips Infringe Copyright

As a major consumer of North American sports, this writer is very reliant on the provision of highlights for this favorite sports, enabling him to keep on track with the latest developments and just to indulge in great sporting feats. Even highlights, however, are big business, being an important draw for new (and old) viewers to subscribe to TV or on-demand services providing full games in many sports, or just servicing as a vehicle to sell more merchandise through official channels. The emergence of social media has changed this dynamic, allowing for the provision of live highlights or video clips, showcasing sports events as they happen, with or without the blessing of the sporting organizations. With this in mind, would short clips of sports activities constitute copyright infringement or would app creators be allowed to let their users share these moments as they please?

The case of England And Wales Cricket Board Ltd v Tixdaq Ltd dealt with an app called Fanatix, which, among providing sports news, allowed for its users to record clips (up to 8 seconds long) using their smartphones or tablets, and sharing them with like-minded sports fans who might not be able to follow the action live (encapsulating mostly the 'highlights' of an event). The clips could be viewed through the app or on Fanatix's social media pages. The England and Wales Cricket Board own the rights to broadcast all video on cricket matches played in England and Wales, and upon noticing clips of cricket games broadcast via the Fanatix app, took its owner Tixdaq to court for copyright infringement.

Tixdaq argued that their use of the works was within the remit of fair dealing, specifically for the purposes of reporting current events under section 30 of the Copyright, Designs and Patents Act 1988. As such, the substantiality of the copying needed to be assessed, including for the purposes of infringement. Justice Arnold considered both parties' submissions, and saw that substantiality is to be assessed considering "...elements which reflect the rationale for protecting broadcasts and first fixations, that is to say, the investment made by the broadcaster or producer". One should not confuse this with the requirement of originality in relation to other types of works (as the case concerned broadcasts, not e.g. literary works). He summarized the correct test as the consideration of "...the degree of reproduction both quantitatively and qualitatively, having regard to the extent to which the reproduction exploits the investment made by the broadcaster or producer".

In his early consideration of fair dealing, Justice Arnold noted that any use made for the purposes of reporting current events would have to take into account "...whether the extent of the use is justified by the informatory purpose".

Citizen journalism: the backbone of an informed society

Justice Arnold then moved onto the interpretation of the phrase 'for the purpose of reporting current events'. In his judgment, the phrase should be interpreted objectively, yet liberally, so as to allow for the effective facilitation of free speech. The use, even in the remit of free speech and fair dealing, would still have to be assessed to the extent the material is used is justified by the informatory purpose.

In determining whether the 8-second clips were a substantial amount, Justice Arnold saw that they indeed were, as every clip contained highlights and points of interest, and therefore value. Because of this value the copying would be substantial, even though in a quantitative sense it would not necessarily be.

Finally, Justice Arnold addressed whether the use would fall under fair dealing. He briefly accepted that contemporaneous sporting events could be classed as current events for the purposes of section 30(2), however excluding any possible footage of interviews and punditry (within limits). This can also include 'citizen journalism', under which the use within the app does somewhat fall. Justice Arnold deemed that the use of the material was not reporting of current events under the section, as the video clips posted "...were not used in order to inform the audience about a current event, but presented for consumption because of their intrinsic interest and value". The objective of the app was also purely commercial, and designed to utilize the clips to their fullest in the collection of revenues, rather than as a medium for sincere journalism. The copying of the works therefore infringed the copyright owned by ECB.

The case is very interesting, especially in the context of new age media and 'citizen journalism'. Even though the app's use of the works was clearly nothing but an attempt to benefit from the blatant sharing of clips of cricket games, subsequent changes to the app forced users to 'report' more on the action, clearly being driven towards the use under fair dealing. One can think of other social media outlets, such as Twitter or Vine, where extensive commentary might not be possible, as potential candidates that might fall foul of section 30(2) if taken to court. Nevertheless, the case was a curious one, and a lesson for all aspiring app makers to heed copyright when making their apps.

Source: Technollama