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A Shout Out to Internet Cafe Owners

October 2, 2005

I’m on the hunt for a good test case. 

As you probably know, various Internet cafe owners are under threat of being shut down for their use of pirated software.  There are rumours that the authorities are conducting raids on non-compliant Internet cafes.  So far, I have yet to see any definitive proof that such a thing has happened and I’m beginning to think it’s an urban legend.

Still, if anyone out there has been shut down or threatened or affected by this, I have some advice.

I agree that the copyright owner (say, Microsoft) has the right to invoke the I.P. Code to stop the unauthorized sale and distribution of software. But I think there’s no basis in the IP Code to say that a copyright owner has the exclusive right to allow third parties to use the works.

Read the following which was written by FSF’s Eben Moglen: (to see the whole thing, click here)

In general, users of copyrighted works do not need licenses. The Copyright Act conveys to copyright holders certain exclusive rights in their works. So far as software is concerned, the rights exclusively granted to the holder are to copy, to modify or make derivative works, and to distribute. Parties who wish to do any of the things that copyright holders are exclusively entitled to do need permission; if they don’t have permission, they’re infringing. But the Copyright Act doesn’t grant the copyright holder the exclusive right to use the work; that would vitiate the basic idea of copyright. One doesn’t need a copyright license to read the newspaper, or to listen to recorded music; therefore you can read the newspaper over someone’s shoulder or listen to music wafting on the summer breeze even though you haven’t paid the copyright holder. Software users are sometimes confused by the prevailing tendency to present software products with contracts under shrinkwrap; in order to use the software one has to accept a contract from the manufacturer. But that’s not because copyright law requires such a license.

A fellow faculty member at the College of Law even wrote an article on the above theory which was published in a Law Center magazine, Digital. I think we should take this argument one step further by talking about the absurdity of interpreting “exclusive use” as part of the bundle of rights under copyright. For example, if I sing or hum a copyrighted song to myself, I’ve “used” it but have not committed infringement. If I read someone else’s book, I’ve “used” the work but not committed infringement. 

I think if we stressed this side of the argument, it makes it more difficult to argue that all “use” of a copyrighted work must be done under a license from the copyright owner.

The only copyright claim they’re left with is unauthorized distribution or copying.  If the Internet cafe doesn’t sell pirated software then the charge of distribution falls apart.  The same is true of the charge of copying if the Internet cafe doesn’t burn pirated CDs or otherwise make copies of proprietary software. 

As to the copies already running on the machines, the Internet cafe owner can’t  be held responsible unless the copyright owner can prove that the software was installed by or in behalf of, the Internet cafe owner.  Even then, the obligation to prove that fact rests with the copyright owner.  The Internet cafe owner doesn’t have to assist in that process.

So, here’s my theory: a user of pirated Windows who does not otherwise distribute, sell, or make copies of Windows can’t be sued for copyright infringement.

I had a chance to talk to a lawyer representing Microsoft about this and offhand, he agrees with me.

If there’s no copyright infringement, what’s Microsoft’s right to stop say an Internet Cafe from using Windows? There’s no contract to speak of so there’s no breach. A civil suit?

Now, this is a legal theory I’d like to test drive in the courts.

Anyone interested?

Posted by JJ Disini at 9:12 am | permalink

Previous Comments

there is no breach. but can microsoft sue for damages? what about lost profit?

Posted by doranne Lim at November 4, 2005, 8:08 pm

JJ, in principle I agree with you that the exclusive rights of copyright owners are not unlimited in scope. The fact that copyright owners enjoys exclusive rights should not be understood to mean that only the copyright owners may engage in copying, distributing or performing, etc. their copyrighted works. The right of copyright owners is exclusive in nature but far from absolute. The Intellectual Property Code provides a doctrine of fair use (Sec. 185) of copyrighted materials which is a limitation to the exclusive rights of copyright owners. In all cases of copyright infringement, the fair use doctrine can also be used as an affirmative defense. But in determining whether the use in any particular case is fair, we must consider the four factors specically listed under Sec. 185.1 of the Intellectual Property Code: (1) the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work.

As to the question on whether or not internet cafe owners are commting infringement of Microsoft's copyright by using pirated copies of Windows XP in their operations, I would say that are committing infringement because the character of the use is commercial in nature. Internet Cafe owners derived profits from their customers through the use of a pirated copy of Windows XP, such use is already outside the scope of the fair use doctrine.

I would also be infringing Microsoft's copyright if for instance, I would have installed a pirated copy of Windows XP in my laptop. In the process, I would be using my laptop to write my pleadings and use it to chat my clients abroad on the internet , of which i also got paid for such services. Although the use is personal, but certainly, the use is not anymore fair because in the example, I derived profits by using a pirated copy of Windows XP.

Posted by Alexander Llanes Acain, Jr. at January 12, 2006, 7:38 am

Other side of the argument: (1) The software installed on the computer is a copy of some original master software. (2) That the owner had authorized the copy or not is irrelevant in establishing that the copy exists. It can be argued that the owner is still "archiving" the software at the time it was discovered.

Now, I recall a case several years back (in the US) that made a corporation pay damages for allowing its researchers to keep photocopies of journal articles. I do not remember any question there as to who made the copies. I'll post back if I remember the exact details.

I'm not a lawyer (just using logic here), but it seems both works fall under the same category in terms of protection.

Posted by Jim at March 10, 2006, 12:38 am

hello

Posted by jean at March 27, 2010, 5:09 pm

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