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On May 21, 2015, Florida Governor Rick Scott signed the True Origin of Digital Goods Act with bipartisan support in both the Florida House of Representatives and Senate.
On May 21, 2015, Florida Governor Rick Scott signed the True Origin of Digital Goods
Act with bipartisan support in both the Florida House of
Representatives and Senate.
Summary and Impact on Businesses
The law requires companies with websites and other online
services (e.g., mobile apps) that distribute music, video, and
other audiovisual content (not including video games) of third
parties to include the website owner's contact information
— full and correct name, physical address, and either
telephone number or email address prominently on the website.
The law applies to websites that distribute audiovisual content
"to consumers in this state," and is not limited on its
face to companies headquartered or with physical locations in
Florida. As such, the law can have applicability to companies
headquartered or located outside of Florida, depending on its
connections and business with consumers residing in the state of
Florida.
Companies that distribute third party music, videos, and other
audiovisual materials should take action now to comply with the
law, which becomes effective July 1, 2015. The company's
website should display the full, true, and correct name of the
website owner (e.g., the full official name of the corporation),
its physical address, and either its telephone number or e-mail
address. This information should be displayed prominently (e.g.,
clearly noticeable on the home page, under "Contact Us,"
"About Us," etc., and not buried in the website Terms of
Use or other detailed and lengthy terms and conditions.
More Information About the Law
In particular, the law requires that:
A person who owns or operates a website or online service
dealing in substantial part in the electronic dissemination of
commercial recordings or audiovisual works, directly or indirectly,
and who electronically disseminates such works to consumers in this
state shall clearly and conspicuously disclose his or her true and
correct name, physical address, and telephone number or e-mail
address on his or her website or online service in a location
readily accessible to a consumer using or visiting the website or
online service.
The law applies to websites and other online services that
distribute substantial portions of "commercial recording or
audiovisual works," defined as:
A recording or audiovisual work whose owner, assignee,
authorized agent, or licensee has disseminated or intends to
disseminate such recording or audiovisual work for sale, for
rental, or for performance or exhibition to the public, including
under license, but does not include an excerpt consisting of less
than substantially all of a recording or audiovisual work. A
recording or audiovisual work may be commercial regardless of
whether a person who electronically disseminates it seeks
commercial advantage or private financial gain from the
dissemination. The term does not include video games, depictions of
video game play, or the streaming of video game activity.
The contact information must be provided in one or more of the
following locations:
A landing or home web page or screen
An "about" or "about us" web page or
screen
A "contact" or "contact us" web page
screen
An information web page or screen
Another place on the website or online service commonly used to
display identifying information to consumers
Copyright owners have the right to seek injunctive relief in a
declaratory judgment in the event a website owner violates the law.
While the law does not specifically permit recovery of damages, it
does not limit the copyright owner's ability to sue the website
owner for damages under applicable copyright law and other laws.
Prior to filing a lawsuit the copyright owner must make reasonable
efforts to place the website owner on notice that the owner and
site may be in violation of law, and that failure to cure within 14
days may result in a civil action being filed. The copyright owner
can then seek an order compelling compliance with the law.
Presumably, if the website owner does not comply with such an
order, the copyright owner could obtain an order requiring the
registrar of the domain to take down the website. It remains to be
seen how courts will enforce the law in the event of a recalcitrant
or silent website owner. The law provides that the prevailing party
in a cause under this section is entitled to recover necessary
expenses and reasonable attorney fees.
The goal of the law, supported heavily by the recording
industry, is to make it easier for copyright owners of digital
recordings (music and videos) to enforce their rights. Individuals
that pirate content and distribute unlawful copies through websites
are typically hard to identify, and they even register the domain
name through a service that allows them to remain anonymous, such
as Domains by Proxy.
The recording industry applauded the move. The Copyright
Alliance stated:
With this definition, the bill provides reasonable and
meaningful support to copyright owners for enforcing their rights.
By focusing only on sites that make available "substantially
all of a recording or audiovisual work," the bill does not
affect users of short excerpts for criticism or review of a
protected work, who can remain anonymous if they wish to.
Bad online actors tend to misuse the anonymity of the
Internet as one of their lines of defense against the enforcement
of copyrights. To that extent, this bill is beneficial to creators
who wish to protect their works online. It is also beneficial to
consumers, who will have more information about the source where
they obtain music or films.
Similarly, Cary Sherman, the Chairman and CEO of the Recording
Industry Association of America, stated:
This bill is a major step forward in preserving the
integrity and transparency of today's Internet environment. It
helps provide consumers with important information so they can make
the best decision when shopping for music online. Knowledge and
information are important components of a savvy Internet
user.
This law should also provide a shot in the arm to a key
driver of Florida's culture and economy — the significant
Latin music presence in the state, which has suffered a dramatic
decline in the past 15 years. The law will help expose the shady
retailers looking to profit off the hardworking artists, musicians,
songwriters, producers, engineers, and others involved in the chain
of music creation. A little sunlight in the Sunshine State can go a
long way, and that's a welcome development for Florida's
music community.
Conclusion
Because the law may apply to companies headquartered or located
outside the state of Florida, all businesses that distribute music,
videos and other audiovisual materials should take action now to
comply with the law. The company's website should prominently
display the full, true, and correct name of the website owner, its
physical address, and either its telephone number or email
address.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.