FLVTO.biz Petitions SCOTUS To Hear Jurisdiction Argument In Stream-Ripping Lawsuit

from the we-are-not-the-world dept

While the music industry's war on stream-ripping sites -- sites that have perfectly legitimate and legal uses -- continues, it's true that this is a war in which one side has almost universally surrendered. Facing legal opposition with well-funded industry groups, most stream-ripping sites simply close up shop when staring down litigation. But Russia-based FLVTO.biz has been an exception. We first wrote about the site's decision to defend itself back in early 2019. At that point, the owner of the site, Tofig Kurbanov, had successfully argued in a Florida court that the United States legal system had no jurisdiction over his site, given that it operates in Russia and makes no effort to entice American patronage.

It was a sensible ruling. After all, why should anyone want websites in one nation to be subject to the laws of every other nation's laws just because the internet is designed to be international? And, yet, the RIAA labels appealed the ruling and got it reversed. The case was sent back to the lower courts where it was supposed to once again proceed, except that Kurbanov's team has asked the Supreme Court to consider its jurisdiction arguments once more.

Those plans were then confirmed last month back at the Virginia court where the lawsuit began, which is considering the case anew following the Fourth Circuit ruling. Kurbanov’s lawyers have asked the district court to pause the ongoing proceedings there pending their application to the Supreme Court.

That application was submitted earlier this week. It argues that the top court should consider the case, because some Supreme Court style consideration is required on the issue of whether or not “the ‘due process clause’ of the United States Constitution is violated when a foreign citizen is subjected to personal jurisdiction based entirely on: (1) his operation of a website that is popular both within the United States and worldwide, but which is not specifically aimed at the United States; and (2) minor internet-based and internet-initiated transactions entered into by the foreign citizen entirely from outside the United States”.

This is indeed just the sort of important due process argument in the age of the internet that a sober SCOTUS should be weighing in on. And, while we could get lost in the legality of it all, common sense really should rule the day here. Does American law have jurisdiction over foreign entities not making any real effort to do commerce on American soil or does it not? And, if so, what precedent does that set for every other nation out there in terms of how American-based businesses conduct business over the internet?

Shall legal pornography websites in America be subject to the more prudish laws of other nations? Should news organizations in America face litigation from countries with far fewer press and free speech protections? Hell, should American entities legitimately selling RIAA label music themselves face threats from countries with obscenity laws and the like?

Evan Fray-Witzer said: “If you operate a website that is popular, then you’re subject to jurisdiction anywhere – and everywhere – that people access the website. And that’s not a precedent that anyone should want to stand, because if Kurbanov can be dragged into court here from Russia, then any US citizen who creates a popular website can expect to be dragged into court anywhere in the world”.

The lawyer also told Torrentfreak that the major labels should support his client’s bid to get the Supreme Court to provide clarity on this issue.

“If the record companies are so certain that the Fourth Circuit got this question right, then they should be anxious for the Supreme Court to take up the case”, he added. “We invite them to join our petition and ask the Supreme Court to weigh in on these crucial jurisdictional questions. But I’m not holding my breath that they’ll do so”.

It can be hard for the labels to see past the ends of their own noses, but they should realize that they could truly be biting themselves in their own asses if SCOTUS refuses to hear this case and this precedent gets set. The internet is international, but American laws are not.

Filed Under: copyright, jurisdiction, russia, streaming, supreme court, us
Companies: flvto, flvto.biz

Foreign Stream-Ripping Site Wins Against Music Labels Based On Jurisdiction

from the not-like-this dept

It's been quite frustrating to watch the music industry continually turn its legal gaze to whatever it insists is the "new" threat. From the traditional piratey-scapegoats like Napster, to torrent sites, and on to file-lockers, before finally moving over to stream-ripping sites -- it's been quite predictable, if a bit silly. As with so many industry-led crusades against technology tools, this attack on these types of sites carries with it the misguided notion that because a site or tool can be used to infringe on music copyrights, it therefore is an enemy and must be shut down entirely. We've seen this same tactic used against tons of technology tools that have had perfectly legal uses in the past, but in the case of stream-ripping sites, most have decided to simply fold.

Which makes it somewhat noteworthy that one foreign site is fighting back and winning against a legal challenge in the US, if only on jurisdictional grounds.

FLVTO.biz and 2conv.com, owned by Russian developer Tofig Kurbanov, remained online despite being sued by several record labels last August. Where other site owners often prefer to remain in the shadows, Kurbanov filed a motion to dismiss the case. According to the defense, the court has no jurisdiction over the matter. Only a small fraction of the visitors come from the US, and the site is managed entirely from Russia, it argued.

The RIAA labels involved in the suit disagreed, of course. As with all lawsuits of this kind, the labels merely see a tool that American users can get to, and can use to infringe, therefore it must be killed off. FLVTO pointing out that it doesn't do anything to entice American users to its site, nor does it engage in any commercial activity on the site other than displaying advertisements, did nothing to keep the RIAA from suing. It did, however, convince the judge to toss the case on jurisdictional grounds.

“Even if the Websites’ servers knew exactly where the users were located, any interaction would still be in the unilateral control of the users as they initiate the contacts,” Judge Hilton’s opinion reads.

There could be personal jurisdiction if there’s a “commercial contract” involved. However, that’s not the case here. The site generates revenue from users through advertisements, but that’s not seen as a basis for a commercial contract, the court concludes.

In other words, an American company can't sue a foreign operator in the US simply because the internet works as intended.

While this is a good ruling generally, it might be nice to get the courts to establish some clarity on the legal status of stream-ripping sites. Again, these are essentially dumb sites that don't care whether the rip is infringing or not. They are a tool, nothing more. Given that, the fact that these sites are shutting themselves down under the mere threat of lawsuits represents a pretty clear chilling effect on the dissemination of otherwise legal tools and technology to the internet writ large.

This is especially true given that we already have a pretty clear precedent for this issue. Stream ripping is little different from the VCR in effect. It is taking a "stream" of live content, and "recording" it for personal use and storage. Thirty-five years ago, the Supreme Court made it clear that this was perfectly legal in the famous Sony Betamax case. In that case, the court found that there were substantial non-infringing uses of the technology -- as is true of stream rippers -- and that "time shifting" of content that was being streamed live was a perfectly legitimate use. As the ruling in the Betamax case found:

The question is thus whether the Betamax is capable of commercially significant noninfringing uses. In order to resolve that question, we need not explore all the different potential uses of the machine and determine whether or not they would constitute infringement. Rather, we need only consider whether, on the basis of the facts as found by the District Court, a significant number of them would be noninfringing. Moreover, in order to resolve this case, we need not give precise content to the question of how much use is commercially significant. For one potential use of the Betamax plainly satisfies this standard, however it is understood: private, noncommercial time-shifting in the home. It does so both (A) because respondents have no right to prevent other copyright holders from authorizing it for their programs, and (B) because the District Court's factual findings reveal that even the unauthorized home time-shifting of respondents' programs is legitimate fair use.

It is difficult to see how that same standard does not apply to stream ripping as well -- but so far, the RIAA (in particular) is acting as if the Supreme Court ruled the opposite way in the Betamax case, and because many of these sites are small, they have little desire to actually fight a huge, costly legal battle. And thus, the RIAA has mostly been able to kill off the modern VCR. This case turned on jurisdiction issues, which is a good start, but a clear ruling that stream ripping is legal, a la the Betamax, would be even better.

Filed Under: copyright, fair use, intermediary liability, jurisdiction, recording, stream ripping, substantial non-infringing uses, time shifting, tofig kurbanov
Companies: 2conv, flvto.biz