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3. 2 CPTWG MEETING #106 September 19, 2007 Legislative/Litigation Update Jim Burger jburger@dowlohnes.com CPTWG MEETING #106 September 19, 2007 Legislative/Litigation Update Jim Burger jburger@dowlohnes.com

4. 3OverviewOverview n Legislation u Intellectual Property Enhanced Criminal Enforcement Act u Berman/Conyers Anti-Piracy Bill n Regulatory u CCIA FTC Complaint n Litigation u Perfect 10 v. Microsoft u Golan v. Gonzales u Veoh v. Universal u RIAA v. Lime Wire u UMG v. Augustino u Coupon Inc. v. Stottlemire n International Issues n Legislation u Intellectual Property Enhanced Criminal Enforcement Act u Berman/Conyers Anti-Piracy Bill n Regulatory u CCIA FTC Complaint n Litigation u Perfect 10 v. Microsoft u Golan v. Gonzales u Veoh v. Universal u RIAA v. Lime Wire u UMG v. Augustino u Coupon Inc. v. Stottlemire n International Issues

5. 4 LegislationLegislation

6. 5 Intellectual Property Enhanced Criminal Enforcement Act (H.R. 3155) n Background u DoJ Proposal u Introduced by Rep. Chabot n Key Provisions u Attempted Copyright Infringement u Increased Penalties u Increased Forfeitures u Calculation of Damages n Background u DoJ Proposal u Introduced by Rep. Chabot n Key Provisions u Attempted Copyright Infringement u Increased Penalties u Increased Forfeitures u Calculation of Damages

7. 6 Berman/Conyers Anti-Piracy Bill n Intended proposal n Key Provisions u Strengthen interagency cooperation u ISP warning letters F Phase-in period n Reactions n Intended proposal n Key Provisions u Strengthen interagency cooperation u ISP warning letters F Phase-in period n Reactions

8. 7 Regulatory Issues

9. 8 CCIA Challenges Anti-Piracy Warnings n FTC Complaint u Unfair and deceptive trade practices u Misrepresent consumers’ rights n Culprits u Sports leagues (NFL, MLB) u Motion picture studios u Book publishers n LCA support n Response n FTC Complaint u Unfair and deceptive trade practices u Misrepresent consumers’ rights n Culprits u Sports leagues (NFL, MLB) u Motion picture studios u Book publishers n LCA support n Response

10. 9 LitigationLitigation

11. 10 Perfect 10 v. Microsoft (C.D. Cal., filed Aug. 17, 2007) n Background n Complaint u Thumbnail images u Full-size images u Linking F Sites with infringing images F Sites with illegal passwords n Perfect 10 v. Amazon n Background n Complaint u Thumbnail images u Full-size images u Linking F Sites with infringing images F Sites with illegal passwords n Perfect 10 v. Amazon

12. 11 Golan v. Gonzales (10 th Cir., Sept. 4, 2007) n Background u CTEA u URAA u Eldred n Decision u “traditional contours of copyright protection” n Impact n Background u CTEA u URAA u Eldred n Decision u “traditional contours of copyright protection” n Impact

13. 12 Veoh v. Universal (S.D. Cal., filed Aug. 9, 2007) n Background u Veoh u DivX n Preemptive suits u DMCA safe harbor u No DMCA takedown notices n UMG sues Veoh n Background u Veoh u DivX n Preemptive suits u DMCA safe harbor u No DMCA takedown notices n UMG sues Veoh

14. 13 RIAA v. Lime Wire (S.D.N.Y., filed Aug. 4, 2006) n Background n Counterclaims u Collusion to stifle competition u Destroy innovation that disrupts traditional business models n UMG v. Lindor n Background n Counterclaims u Collusion to stifle competition u Destroy innovation that disrupts traditional business models n UMG v. Lindor

15. 14 UMG v. Augustino (C.D. Cal., filed May 10, 2007) n Background n Complaint u Copyright infringement u CDs licensed, not sold n First Sale Doctrine n Software licenses n Background n Complaint u Copyright infringement u CDs licensed, not sold n First Sale Doctrine n Software licenses

16. 15 Coupon Inc. v. Stottlemire (N.D. Cal., filed Aug. 2007) n Background u Coupons, Inc. u Stottlemire n Complaint u DMCA violation u Circumvention? n Background u Coupons, Inc. u Stottlemire n Complaint u DMCA violation u Circumvention?

17. 16 International Issues

18. 17 International Issues n UK u Format shifting exception n Germany u File sharing “petty offense” u Promusicae v. Telefonica n Sweden u ISP anti-piracy mandates n UK u Format shifting exception n Germany u File sharing “petty offense” u Promusicae v. Telefonica n Sweden u ISP anti-piracy mandates