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[Simple Logic]

Hi All,

First of all -- I love this website !

I am a start-up entrepreneur building a website that is likely to have a high amount of user-generated content, which will lead to significant legal risk from a content owner / DMCA perspective.

I intend to fully comply with the DMCA takedown notice procedure. However, I can still imagine potential competitors filing law suits and worse, class action lawsuits against our fledgling business to increase the cost of operation.

Would I be better off incorporating my company outside the US? Are there any safe-havens from a "copyrights" perspective?

Would love any guidance you can offer.

Thanks!

Simple Logic

[artchain]

Operating an offshore business has its own set of problems, and in the end it won't offer much protection.  The fact that websites span borders has led to widespread venue shopping, where someone sues the site under their own more favorable local laws, and then tries to get the judgement enforced in the websites own country.

Having said that, I should also note that the fear of groundless lawsuits is often exaggerated.  I am involved in the operation of a number of User Contributed Content websites,  and I can tell you that we get HUNDREDS of threats of legal action (some lawyers just love sending registered mail on company letterhead...  they must get a bulk rate), and virtually no follow-through in terms of actual action.

I would advise you to to find a lawyer who is very familiar with DCMA, as well as Section 230 of the Communications Decency Act of 1996, and the SPEECH Act of 2010.  Discuss how these laws will affect your site, and how you should tailor your site policies. 

And one very important (and often overlooked) point about DMCA:  it's not enough to follow the process.  You MUST have a REGISTERED DMCA agent in order to secure legal protections:  http://copyright.gov/onlinesp/

 

[Zonath]

I agree with Artchain.  As long as this website generates significant traffic from the US and its operators have US addresses, the courts in the US will probably have little problem with finding jurisdiction exists in the US.

In addition, most countries are members of the Berne Convention, the WTO, or both.  So it's questionable how much protection you would receive even if you moved your entire operation and yourself to a country which did not care about copyright.

[JSonnabend]

And one very important (and often overlooked) point about DMCA:  it's not enough to follow the process.  You MUST have a REGISTERED DMCA agent in order to secure legal protections:  http://copyright.gov/onlinesp/

This is utterly critical and often overlooked.  The safe harbor provision requires it.

One other note: the reference to "class action" suits is utterly misplaced.  There is nothing magical about "class action".

- Jeff

[MYK]

And one very important (and often overlooked) point about DMCA:  it's not enough to follow the process.  You MUST have a REGISTERED DMCA agent in order to secure legal protections:  http://copyright.gov/onlinesp/

This is utterly critical and often overlooked.  The safe harbor provision requires it.

One other note: the reference to "class action" suits is utterly misplaced.  There is nothing magical about "class action".

- Jeff

Just to note, pretty much anyone can be the "registered DMCA agent".  The primary purpose is to give a point of contact for someone (or "someones") who will respond in a timely manner to takedown demands.
http://www.wired.com/threatlevel/2010/10/dmca-righthaven-loophole/