While it goes without saying YouTube is the big boy in the online video world, it is also true more and more niche specific video websites are being created by the week. If you are considering starting such a site, let’s take a look at the legal issues associated with starting a video sharing website.
Perhaps the biggest issue a video sharing website owner is going to deal with repeatedly is the DMCA. DMCA stands for Digital Millennium Copyright Act. As the name suggests, this is a law passed by the federal government of the United States to address copyright issues in an online world.
A “copyright” is the right of the owner of a work to copy and distribute the work. For example, J.K. Rowling wrote the Harry Potter books. She automatically was given the copyright in those books. If somebody wanted to copy and distribute the books or to write a film based on those books, they had to negotiate a license with Rowling.
The DMCA involves three parties online. The first party is the copyright owner. The second is the person posting the work without permission from the copyright holder. The third party is the site where the content is posted. There is a good deal of controversy regarding how the DMCA applies to the first two parties. As a site owner, however, you should thank the heavens for this law.
The Digital Millennium Copyright Act is a boon to the owners of video sharing websites. Why? The law provides site owners with a “safe harbor” from prosecution for copyright infringement so long as the site adheres to certain procedures. These procedures include designating a DMCA agent service to receive complaints from copyright holders; steps to take when complaints come in; communications to the parties and other incidentals beyond the scope of this article. The key thing to understand is the copyright owner cannot file an infringement lawsuit against the site so long as you follow these procedures.
This concept is paramount because video sharing websites receive copyright claims continuously. People upload videos containing material infringing on the copyright of others constantly. For example, a person might submit a video and include a song they like as the soundtrack for it. If they do not obtain consent to use the music, they are infringing on the copyright.
I cannot emphasize enough how important it is to comply with the DMCA. This law is your get out of jail card as a video sharing website owner. Comply with the Act, and you can avoid legal action against you. Fail to comply, and you risk an avalanche of lawsuits burying your business.
a. Dealing With Children
If you require visitors to sign up to view or post videos, you must include a COPPA statement in the terms. COPPA stands for the Child Online Privacy Protection Act. Under COPPA, a site owner must obtain the verified parental consent of parents before collecting information from children under 13 joining the site. The process is labor intensive and expensive. If you are not directing the website at young children, you need to include language in the Terms indicating as much.
b. Choice of Forum
A choice of forum or “jurisdiction clause” is a critical section of any Terms agreement. What is a jurisdiction clause? States and countries have their own set of laws. A jurisdiction clause details what laws will be used in a dispute and where a dispute will proceed geographically. Let’s look at an example.
If you are considering starting a video sharing website, please keep in mind the above discussion covers only a select number of legal topics related to the site. Video sites tend to be a target for lawyers, so make sure you retain counsel and have all your ducks in order when the site goes live.
While nobody can guarantee you won’t run into legal issues, your goal should be to minimize the risk as much as possible at the outset. Feel free to contact me today for a free consultation.
Richard A. Chapo, Esq.
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