ARTICLE
2 September 2024

Why Is Apple Inc. Being Sued For Alleged Copyright Infringement?

NN
Naik Naik & Company

Contributor

Established in 2004, Naik Naik & Co. started out as a niche media practice which has metamorphosed into a full-service law firm. Headquartered in Mumbai with a pan-India presence, we advise and perform across all aspects of corporate, disputes, banking and finance, and intellectual property law. Our sectoral focus is our differentiator and we can boast of strong industry sector expertise for over two decades. Our practice is anchored in quality service, professionalism, and integrity.
Apple Inc. is currently facing legal scrutiny over alleged copyright infringement, as renowned American photographer and director Elizabeth Waterman has filed a lawsuit against the tech giant. This
India Intellectual Property

Apple Inc. is currently facing legal scrutiny over alleged copyright infringement, as renowned American photographer and director Elizabeth Waterman has filed a lawsuit against the tech giant. This lawsuit highlights the ongoing challenges surrounding intellectual property rights in the digital age, emphasizing the necessity for corporations to ensure that all creative content used on their platforms is duly licensed and compensated.

Factual Background

The lawsuit revolves around two photographs owned by the plaintiff, Elizabeth Waterman, who holds valid copyrights for them. The 'First Photograph,' featuring a stripper at Club W, and the 'Second Photograph,' depicting a shattered CD, were used by the defendant, Apple Inc., on Apple Music's website without prior authorization. Despite multiple requests and Digital Millennium Copyright Act takedown notices, Apple did not promptly remove the 'First Photograph' and only took action on the 'Second Photograph' after extensive communication.

The Plaintiff is seeking damages for the unauthorized use of her photographs, claiming that Apple's actions have caused significant harm and continue to inflict irreparable damage. The central legal question is whether Apple Inc. committed copyright infringement by using Waterman's registered photographs without authorization?

Plaintiffs' Contentions

The Plaintiff owns valid copyright for both images, having registered the work with the Registrar of Copyrights and contends that Apple reproduced, distributed, and publicly displayed her photographs on its platform, thereby violating her exclusive rights.

Furthermore, she argues that Apple may also be liable for vicarious infringement due to its ability to control user content and its financial interest in the traffic generated by the infringing images. Waterman seeks both actual damages and disgorgement of profits from the infringement, as well as a permanent injunction to prevent further unauthorized use of her work.

Legal Framework & The Concept Of Vicarious Infringement

Each photograph in the work is an original work of authorship, embodying copyrightable subject matter and is fully protected under Section 102 of Title 17 of the United States Code, 1976 (herein referred to as the 'Act').

Section 501 of the Act identifies a copyright infringer as someone who violates the exclusive rights of the copyright owner. Defendant's reproduction, distribution, and public display of the Work without authorization from Plaintiff, holds the Defendant liable for vicarious infringement.

Vicarious Infringement Under The Act

Vicarious infringement occurs when one party is held liable for another party's infringing actions; even if the party held liable did not directly participate in the infringement. It is established when the two conditions are met i.e. the right and ability to control and the direct financial benefit from the infringing activity.

Application To The Case

1. Right and Ability to Control: As a multinational technology company with a large digital media platform, Apple Inc. holds significant control over the content hosted on its website and application. Apple can monitor, regulate, and remove content, including user-uploaded media. Despite this, Apple is alleged to have failed to act promptly to remove the infringing photographs from its platform, even after receiving multiple DMCA takedown notices from Waterman.

2. Direct Financial Benefit: Apple's business model benefits from the content hosted on its platform, including attracting users and generating revenue through increased traffic and engagement. The unauthorized display of Waterman's photographs potentially enhanced Apple's platform's appeal and traffic, which could translate into financial gains for the company. Thus, Apple may be seen as deriving a direct financial benefit from the infringing activity, fulfilling one of the key criteria for vicarious liability.

The dispute highlights the crucial issue of protecting intellectual property in today's digital world. Waterman claims that Apple used her copyrighted photographs on Apple Music without her permission, raising serious questions about copyright infringement and the responsibilities of digital platforms.

The case also considers whether Apple might be liable for vicarious infringement, given its control over the platform and potential financial gain from increased user engagement with the infringing content.

As the case progresses, it underscores the need for digital service providers to enhance their systems for copyright compliance. Companies need to enhance their monitoring and management of user-generated content to prevent unauthorized use of copyrighted materials. The outcome of this lawsuit could establish an important precedent for how digital platforms address copyright issues in the future. Both technology companies and content creators must stay vigilant about legal developments and adjust their practices to better protect intellectual property in the digital age. The court's ruling will be crucial in clarifying the responsibilities of tech giants like Apple in upholding creators' rights.

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.

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