Identifier
Created
Classification
Origin
05TAIPEI2909
2005-07-05 09:47:00
UNCLASSIFIED
American Institute Taiwan, Taipei
Cable title:  

EZPEER NOT GUILTY OF COPYRIGHT INFRINGEMENT

Tags:  ECON KIPR TW IPR 
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UNCLAS SECTION 01 OF 02 TAIPEI 002909 

SIPDIS

STATE FOR EAP/RSP/TC AND EB/TPP/IPE, STATE PASS AIT/W,
USPTO AND USTR, USTR FOR WINELAND, WINTERS AND FREEMAN,
USDOC FOR 4431/ITA/MAC/AP/OPB/TAIWAN/MBMORGAN

E.O. 12958: N/A
TAGS: ECON KIPR TW IPR
SUBJECT: EZPEER NOT GUILTY OF COPYRIGHT INFRINGEMENT

REF: A. TAIPEI 458

B. TAIPEI 495

UNCLAS SECTION 01 OF 02 TAIPEI 002909

SIPDIS

STATE FOR EAP/RSP/TC AND EB/TPP/IPE, STATE PASS AIT/W,
USPTO AND USTR, USTR FOR WINELAND, WINTERS AND FREEMAN,
USDOC FOR 4431/ITA/MAC/AP/OPB/TAIWAN/MBMORGAN

E.O. 12958: N/A
TAGS: ECON KIPR TW IPR
SUBJECT: EZPEER NOT GUILTY OF COPYRIGHT INFRINGEMENT

REF: A. TAIPEI 458

B. TAIPEI 495


1. Summary: Taipei's Shilin District Court on June 30
announced its decision on the criminal copyright infringement
case based on a complaint brought by the International
Federation of Phonographic Industries (IFPI) against
peer-to-peer (P2P) software provider EZPeer. The Court ruled
that providing P2P service is not illegal under Taiwan law,
that EZPeer did not illegally reproduce or transmit
copyrighted materials, and that EZPeer is not guilty of
copyright infringement. The Taiwan branch of IFPI vowed to
appeal the decision. The Court's decision did not address
the matter of civil liability and stated clearly that EZPeer
members who use P2P services to transmit copyrighted
materials may be prosecuted for criminal copyright
infringement. The decision is a blow to efforts to protect
copyrights in Taiwan and illustrates the difficulties
rightsholders face when using Taiwan's judicial process to
protect their intellectual property (IP). A specialized IPR
Court could offer rightsholders more effective tools to
protect their IP. End Summary.

================================
EZPeer Not Infringing Says Court
================================


2. The first of two criminal cases filed in December 2003,
based on IFPI complaints that P2P service providers EZPeer
and Kuro were illegally facilitating the infringement of IFPI
member music companies intellectual property, was decided
June 30 by the Taipei Shilin District Court. EZPeer and its
President Weber Wu were acquitted of all charges of
infringing IFPI members intellectual property. The judiciary
is expected to reach a decision in the case against Kuro by
September 2005.


3. In its ruling, the Court said that EZPeer did not engage
in illegal reproduction, nor did it illegally publicly
distribute the works of copyright holders. The Court ruled
that Taiwan law does not prohibit the use of P2P networks,
and the law neither bans nor limits legitimate file-sharing
activities. However, the Court also said that its ruling
only addressed the criminal complaint against EZPeer and did
not have any bearing on any civil suit the copyright holders
may file. The Court also clearly stated that users of P2P
services who engage in the transmission and reproduction of
copyrighted works may be liable for criminal copyright
infringement.


4. EZPeer's President Wu, in a press conference following
the announcement of the verdict pledged to negotiate with the
record companies on an appropriate licensing fee. IFPI has
previously dismissed EZPeer and Kuro proposed licensing fee
offers as unacceptably low. IFPI's Taiwan Secretary General
Robin Lee vowed to appeal the Court's decision "to the end".
Lee also told the press that IFPI plans to begin to target
individuals in Taiwan for legal action, a strategy that he
claimed has successfully reduced internet piracy in the U.S.

=================
TIPO Disappointed
=================


5. The Director of Taiwan's Intellectual Property Office
(TIPO) Copyright division (Margaret Chen) told AIT that TIPO
was disappointed but that the administration had no choice
but to respect the decision of the Court. She added that she
expects that the case is far from over and that TIPO would
continue to support efforts to educate internet users and to
crack down on copyright infringers.


6. Comment: The decision by the Shilin District Court is a
blow to efforts to protect copyrights in Taiwan and
illustrates the difficulties rightsholders face in educating
the judiciary about proper protection of IPR. That the judge
encouraged IFPI to pursue civil damages against EZPeer is
cold comfort. The lack of credible civil or administrative
remedies for IP holders in Taiwan means that virtually every
case goes through the criminal courts, which require a higher
standard of evidence to bring a conviction. Most
rightsholders prefer not to file civil suits because these
require rightsholders to post a sizeable bond. Civil suits
can drag on for years, judgments are often difficult to
enforce, and plaintiffs risk the loss of their bond if the
judgment goes against them. Taiwan has proposed creating a
specialized IPR Court and continues to debate whether that
court should hear criminal, civil, and administrative cases
or be limited just to civil and administrative cases. A
court that hears all types of IPR-related cases could
usefully increase the number of tools available for
rightsholders as they attempt to protect their intellectual
property. End Comment.
KEEGAN