Internet Cafe Liable for Copyright Infringement: 1,000 Yuan Awarded in Online Video Case

Internet Cafe Liable for Copyright Infringement: 1,000 Yuan Awarded in Online Video Case

Case Overview

A Chinese cultural media company sued an internet cafe operator for copyright infringement after the cafe provided unauthorized online streaming of a popular television series. The court found the internet cafe liable for helping to facilitate the infringement and awarded 1,000 yuan in damages, including reasonable legal costs. The case highlights the duty of commercial internet service providers to monitor the content they make available to customers.

Case Background and Facts

The plaintiff, a Beijing-based cultural media company, held the exclusive right to distribute the television series “The Legend of Bruce Lee” over the internet in mainland China. The plaintiff alleged that in November 2009, the defendant, an internet cafe operating in Eastern China, allowed customers to stream the series without permission. The plaintiff claimed this unauthorized public performance infringed its exclusive information network dissemination right and sought 8,500 yuan in damages, comprising 7,000 yuan in economic losses and 1,500 yuan in legal and investigative costs.

The defendant argued that it had no subjective intent to infringe. It claimed that after renovating its premises in October 2009, it removed all desktop shortcuts to the infringing website and switched to a different service. The defendant contended that the plaintiff’s evidence was collected on November 16, 2009, immediately after the renovation, and that the infringement period was very short and did not generate direct profit.

Court Proceedings and Evidence

The plaintiff presented several notarized documents to establish its ownership of the exclusive distribution rights. These included an authorization from the China International Television Corporation and the CCTV Literary and Artistic Program Center, which jointly produced the series. The plaintiff also submitted a notarized record of its visit to the defendant’s internet cafe on November 16, 2009, showing that a computer in the cafe could access and play the series through a website called “Internet Cafe Cinema.”

The defendant challenged the validity of the plaintiff’s notarizations, arguing they were performed by a notary in Beijing rather than locally. The defendant also claimed the plaintiff’s rights had expired by the time the lawsuit was filed. The court rejected both arguments, noting that the notarizations were proper since the authorizing entities were based in Beijing, and that the infringement was captured within the plaintiff’s valid licensing period.

Court Findings and Judgment

The court held that the plaintiff held a valid exclusive license for the series during the relevant period. The website “Internet Cafe Cinema” was a specialized platform for streaming movies, and the defendant, as a professional internet cafe operator, had a commercial interest in providing content to attract customers. By placing a desktop shortcut to the website, the defendant actively guided users to access the site, making it more than a passive network terminal.

The court found that the website lacked a proper license for audiovisual program dissemination and even included a disclaimer denying responsibility for the legality of its content. The court ruled that a reasonable internet cafe operator should have recognized the risk of infringement. By failing to exercise due diligence, the defendant assisted in the infringement and bore fault.

Regarding damages, the court rejected the plaintiff’s claim of 8,500 yuan because no evidence showed the actual loss or the defendant’s profit. Instead, the court considered the series’ popularity, the nature and duration of the infringement, the defendant’s fault, and the cafe’s size and pricing. The court awarded 1,000 yuan, including reasonable costs for notarization and attorney fees.

Key Legal Principles

The court applied the principle that commercial internet service providers, including internet cafes, have a duty of reasonable care to ensure the content they facilitate access to does not infringe on copyright. A provider that actively directs users to an unlicensed source of copyrighted material can be held liable for contributory infringement. Damages are assessed based on the circumstances of the case when actual loss or profit cannot be proven.

Practical Insights

This case serves as a caution for businesses that offer internet access or digital content to the public. Simply providing a link or shortcut to a third-party website does not absolve a business from liability if the linked content is infringing. Operators should verify that any content made available to customers is properly licensed. Courts will consider the commercial nature of the service and the ease with which the operator could have identified the infringement.

Legal References

General Principles of the Civil Law of the People’s Republic of China, Article 130. Copyright Law of the People’s Republic of China (2010 Revision), Articles 10(1)(12), 48(1), and 49. Supreme Peoples Court Interpretation on Copyright Civil Disputes, Articles 7, 25, and 26. Supreme Peoples Court Interpretation on Computer Network Copyright Disputes (2006), Article 3. Civil Procedure Law of the People’s Republic of China (2007 Revision), Article 64(1).

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for specific legal matters.