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RapidShare Not Liable For Pirating Users, Court Rules

RapidShare is not liable for acts of copyright infringement committed by its users, a German court ruled yesterday. The Dusseldorf Court of Appeals overturned the earlier decision of a local district court in a case brought by the movie outfit Capelight Pictures.

rapidshareLike most file-hosting services, RapidShare carries a wide range of movies, music and software files that are distributed without the consent of the rightsholders. This situation has caused the company to be dragged to court several times already.

One of the cases in which RapidShare lost was that against the movie rental company Capelight Pictures. This case was appealed by RapidShare and the Dusseldorf Court of Appeals overturned the earlier verdict yesterday, stating that the file-hoster is not responsible for any copyright infringements committed by its users.

“We are very happy about the judgment. The court has confirmed that RapidShare is not responsible for the contents of files uploaded by its users,” Rapidshare founder Christian Schmid said commenting to the outcome of the appeal.

“The judgment shows that attempts to denounce our business model as illegal will not be successful in the long run. With its 1-click-filehosting model, RapidShare responds to legitimate interests of its users and will continue to do so in the future,” Schmid added.

The arguments by the Court of Appeals go directly against earlier decisions in Germany where RapidShare was ordered to filter content proactively. The Court argued that RapidShare’s business is acting within the law and discounted the preventive measures that were suggested by the copyright holder.

Filtering based on keywords is not effective since that would result in many false positives, the Court noted. Likewise, manually reviewing uploaded content is not deemed feasible because RapidShare does not have the manpower to do this.

Another suggestion, banning file formats such as RARs, was also tossed out since this file type says little about whether a file is copyrighted or not. RAR is simply a format used to compress data, regardless of the copyrighted status of the files, the court explained.

The verdict is undoubtedly a major victory for RapidShare, and it will also reflect positively on other file-hosters and even torrent sites. In fact, many of the arguments used by the Court hold also for the average torrent site, as long as they stay away from other means of facilitating copyright infringement.

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  • ok

    so first of this one of the “good decisions of it’s kind because it relies was on the users doing there thing and servers doing there stuff and having a disclaimer also helped…
    and also other hosting sites might refer to this decision…
    I’m against the decision because it helps rapid share expand it’s profiteering gig,of high fees,and waiting times…

  • Nick

    That’s great, however they need to sort there download limits out it’s a piss take at 5Gb per day.

  • Kevin

    You don’t have to go to court to figure this out. Rapidshare offer a storage service, nothing more.

  • duane

    Finally, a court ruling that makes sense!

    It’s not Rapidshare that is infringing copyright, it’s not the Bittorrent protocol, it’s not rar files, it’s not Twitter or the search engines — it’s the users.

    Yes, little people in the millions, who are disgruntled with the system and want to see it change.

    They can keep suing random companies if they like, but the fact remains that the people are unhappy and tired of being oppressed and exploited. That won’t change until they give up, or until the world is turned into Orwell’s worst nightmare.

    Sounds like we don’t have a choice but to keep fighting this fight.

  • Mark

    @2 if you use a VPN as i do for £6.50 a month then thers no problem mate.

  • Mario

    Hurray! One up for RapidShare!

    @ #2:

    RapidShare has “Happy Hours” between 02:00 – 10:00 CET (17:00 – 01:00 San Francisco time). If you download during that time period RapidShare only bills 10% of your traffic, so you can download 50 GB instead of 5 GB per day!

  • lolololol

    VICTORY!

  • anonymous

    so the difference between this and torrent sites is what? 99.9% of torrent sites are free to join and contain no advertising to earn revenue, whilst Rapidshare has at least a ‘paid for’ service option and therefore does earn revenue.

  • Reasoned Mind

    @3 Kevin, I thought nothing was stored on the site itself.

    If RapidShare is only a “storage service” and therefore should have no accountability to what is actually stored by its users, then should a warehouse “storage service” knowingly and willingly storing pirated cd’s and dvd’s (that they know to be illegal)….should that kind of storage also also within the law?

    How about if they were “storing” counterfeit handbags instead of copyrighted files? How about counterfeit prescription drugs? How about if they are NOT storing illegal goods in their own warehouse but merely making a business out of finding and indicating for their customers where they CAN find illegal contraband? Should being a supportive accessory to a crime not be a crime any longer?

    This sounds a little crazy.

  • Soooooooo

    @6

    50 GB per day? Really? and you call the entertainment industry greedy?

  • Anonymous

    Did i just read this correctly?

    When did the courts get smart?

    either way, awesome for rapidshare.

  • Em

    Actually, that doesn’t mean the MAFIAA can’t cut deals with them… they already pay and insane amount of money to law and tracking firms, why not pay RS behind closed door for its confidential data? They used to threaten their users with this sort of s#!t!

    It was said once… people need to start moving away from RS and to other hosts for the sake of their lives. So F$@* Happy Hours!

    Right now I’m pleased with the amount of warez I can find on HF, NL, MS and MU and would take these hosts over RS any day.

  • Mario

    @ #9:

    Yes, really. It was also announced on the RapidShare homepage last year:

    “HappyHours for Premium customers

    March 19, 2009

    We will now implement HappyHours for our Premium customers, so you can use our infrastructure in the best possible way. Currently, the HappyHours will be active from 2 a.m. until 10 a.m. Central European Time since that is the only time during which there is unused bandwidth left. During that time, only 10% of the data volume you download will be charged to your traffic balance. So if you download 300 Megabytes during HappyHours, only 30 Megabytes will be accounted. This applies also if you use RapidPoints or TrafficShare for your downloads.”

    @ #8:

    Lol, “torrent sites contain no advertising to earn revenue”?
    You must be joking!

  • Jay

    Heh, wouldn’t allowing no rar files just leave you with the name of the file, which can also be changed? I mean, if you upload “transformers2.iso” you can simply remove the file extension. Or rename it “anothermovie.jpg” — I’d like to see a computer open THAT.

  • MAFIAA

    Perfect. Thank you C.

  • Lawyer.in.disguise

    perfect legal reasoning, bravo to the German Judicial system for upholding the law as it is.

  • Amit

    “Another suggestion, banning file formats such as RARs, was also tossed out since this file type says little about whether a file is copyrighted or not.”

    Have these people gone mad or what?? The Court should impose a fine on them for talking illogical and wasting its time.

  • LM

    @15: Yes, we do have some judges with brains. Unfortunately there’s not enought of them.

  • wonderwhy-er

    Refreshing to see a logical judgment.
    This type of decisions they demand stifle internet innovation.
    Honestly if choice is privacy, human rights, unrestricted/frictionless/free internet or all copyright content and industries that produce it. Well my choice would not be in favor of copyrighted stuff. I wish it was possible to filter out all copyrighted stuff from internet and be trough with it. Let those industries rot outside of this digital place and not spoil it with their content.

  • Anon

    good ruling, and good job torrent freak for posting real news.

  • Idea

    Hello movie studios!!!

    Don’t you see a business idea/model here?

    Make a file host yourself and upload low quality versions of your movies with caped download speed and offer the users unlimited downloads of high-quality versions with unlimited download speeds for a reasonable monthly fee.

  • Anonymous

    Heh. Interesting. We’ll see what the high court will say though…

    I don’t think the studios or record labels will ever get it. They are determined to fight the Internet rather than make it their friend!

  • piratepal

    @ 5

    use SwissVPN, less than 4 quid a month and it is good.

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  • chevron

    @22

    I’ve used swissvpn in the past. Yes, good, and would recommend, though I did find that they could be occasionally unstable.

    I currently use anonine.se. Similar cost, similar service, but I think they have a slight edge :)

  • Ang3r

    @20 ‘Idea’
    +1 pal

    Better yet make it a torrent site so it costs them even less, and transfer the savings onto us, the customers.
    Run it like a ratio system, so if someone buys a movie, they get the unique passkey in the torrent (all automatic) join the swarm and download off the peers.
    Only the frontend (index) of the site will see heavy traffic while the back-end tracker only tracks peers to connect to, and the bigger the file, (range of codecs and sizes, HD for instance) the less of a sharing ratio you will have, lest you do the companies job and distribute the file to many peers, ‘saving’ your ratio for another day.
    It would be bigger than Facebook in 3 months if done right.
    Unfortunately, the ACTA is not about copyright, it is about control.
    This is why the Lisbon treaty was encouraged, enforced and paid for.
    Less power locally, getting outsourced to puppets of oil tycoons, in timeshare schemes to f*ck the people.
    Anger, my friends.

  • Simon

    +1 For Rapidshare.

  • VPN reviews

    SwissVPN does keep logs and will give full information to MPAA/IFPI/RIAA if user will use SwissVPN account to illegal downloadin/uploading copyright content.

    Use VPN providers which don’t keep logs and information about you. Logs = evidences against you. No logs = no evidences.

  • Johnny Jacobs

    Well Well Well, at least the German courts show they have common sense! Well done.

    whos-logging.se.tc

  • hull

    All is well, its good to see that the law hasn’t been bought out by the media industry.

  • noko

    Good news, but they still suck.

  • Unauthorized Content Consumer

    It should actually read…

    “RapidShare Not Liable For Pirating Users until RIAA/MPAA lobbyists brainwash lawmakers.”

  • Pingback: P2PTalk » RapidShare Triumphs in Court, Escapes Filtering Obligation

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  • piratepal

    @ 26

    The chances I think of the Swiss handing over any logs to anyone are I think as about likely as finding cheese on the moon, they have still not handed back all that nazi gold from WW2.

  • neostyles

    Great, so they’ve basically given the go ahead for people to continue using rapidshare to be used as a tool of massive infringement? How can a keyword system create false positives? If the file name contains “Watchmen”, it would copyrighted (so would anything related to it.)

  • TerribleTony

    @13: A hex editor opens anything. And if you already knew what an iso and jpg starts like, then it wouldn’t be too hard to work out it was an .iso

  • $$$$$$$

    the big moive people could open their own file host site and make money

  • Ninja

    It’s been a while since I last used rapidshare for anything but it’s still a good thing.

    Some sanity amidst all the madness.

  • murrayy

    Its Düsseldorf!

  • imerebus

    Ban *.rar???? WTF??!!!??

  • gorehound

    Go Rapidshare Go !!!

    Die Big Content Studios Die !!!

  • me

    That movie studio made the mistake of picking a jurisdiction (OLG Düsseldorf) with sane judges. Had they picked LG Hamburg (which is usually selected by content owners for its infamous Buskeisms), they would probably have won.

  • h33t

    excellent news for filesharing services!

    httpd//:www.h33t.com is also hooked on The Apprentice, if you havent seen it then make the effort, it is an absolute scream

  • Shhh

    @32, Tony

    Don’t be giving the location of the booty away to the trading companies…

    Either way… they are pretty much forcing us to encrypt everything. I don’t think it will be long before torrents and cyberlocker releases are heavily encrypted and the keys jealously guarded ala “private tracker” mentality.

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  • JonnieHayward5655

    http://consumerist.com/2010/05/man-seals-self-inside-foreclosed-home.html

    Man Shuts him self in side his house with a WEBCAM –happening now

  • Jeff

    @20 & 33 – As if the MAFIAA will ever agree to that. They’re so entrenched in the old way of doing business that they would never agree to an ‘authorized’ file hosting or torrent site.

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  • Mavi Gozler

    Suing RapidShare for uploaded file content is not any different than arresting the postal worker/letter carrier for delivering mail that might have within its envelopes material of a criminal/illegal nature (sexually harassing, fraudulent schemes, etc).

    Anyone who asserts “false/strained analogy” is an idiot.

  • Acce

    Long live file sharing! Copyright holders with their tactics only encourage people to BUY an account (Rapidshare, VPN, Seedboxes, etc) to share files.
    When there is a need, there is always a solution!

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  • Wildbillcat

    @Reasoned Mind

    No storage service is liable for crimes their customers commit. If I rent a storage space and keep 3 dead bodies that I murder in there, it is not their fault. They are not responsible for checking what I have in there, they are merely renting me space. Should I be caught, I am held accountable for my actions, not some storage service who gave me 16 square feet of storage. Rapid share is the same thing. If you let some guy stay the night at your place and find out 3 weeks later he is a terrorist, should you be found guilty of harboring a terrorist? I think not.

  • Doink

    judge paid off by rapidshite. crooked judge

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  • Reasoned Mind

    @47 WildBillCat.

    You asked “If I rent a storage space and keep 3 dead bodies that I murder in there, it is not their fault.”

    True, as long as it can be shown they didn’t know and had no reason to suspect. But the moment reasonable cause can be shown that they likely knew or had reason to know, they are on the hook as an accessory.

    Don’t even TRY to argue that RapidShare didn’t know or had no reason to know. Rapidshare knows exactly what they are doing and profiting from it besides. That’s just wrong. Pirates only get respect when they make their points on the merits, not by pretending and winking. This ruling will be overturned.

  • Kjar

    Wait … Will RS still delete Files?

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  • Anonymous

    if u are pro piracy u should be against rapidshare it’c companies like them profiting from piracy that cause probs for the rest of us.

  • a ha

    and pirate bay is ?!?

  • Anonymous

    Unbelievable. So the chop shop gets to stay open because it’s not actually stealing the cars, it just sells them? This open stealing won’t stop until someone gets violent. With the millions of dollars at stake, I’m very surprised noone’s been shot over something like this yet.

  • me

    wtf? the pirate bay is not responsible 4 the actions of its users but they got guilty anyway

  • me

    OH NO!!! I just realized Reasoned Mind is back from his braindead vacation

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