MUMBAI: Universal Music Group has lost the court case against user-generated video site Veoh. The US Court of Appeals for the 9th Circuit has upheld a ruling yesterday, that says Veoh Networks Inc is entitled to safe harbor from monetary damages in a copyright infringement case brought by UMG.

The court ruled that Veoh, which operated a YouTube-like site, is insulated from liability for copyright infringement under the Digital Millennium Copyright Act.

Judge Raymond Fisher wrote on behalf of the three-judge panel, Copyright holders know precisely what materials they own, and are thus better able to efficiently identify infringing copies than service providers like Veoh, who cannot readily ascertain what material is copyrighted and what is not....

Michael Elkin, a lawyer for Veoh, described the decision as important for digital media - providing protection for online businesses that allow third parties to post material on their websites. He said, The safe harbor provisions also ensure investors will back the technology that drives internet commerce. The 9th Circuit decision would strengthen YouTube's position in the case before the 2nd Circuit....

UMG sued Veoh in 2007, accusing the site of not doing enough to stop users from sharing copyrighted music videos. Veoh responded in court filings that it had done everything necessary to qualify for the protections of the act - including disabling the infringing videos and terminating the accounts of thousands of infringing users. A Los Angeles federal judge agreed with Veoh in 2009 and the 9th Circuit affirmed the lower court's summary judgment.

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