In an important decision upholding the application of the safe harbors of the Digital Millennium Copyright Act and addressing claims against investors for secondary copyright infringement, the Ninth Circuit Court of Appeals on Tuesday upheld summary judgment and a Rule 12(b)(6) dismissal in favor of Veoh Networks Inc. and its investors. UMG Recordings, Inc. v. Shelter Capital Partners LLC (No. 09-55902); UMG Recordings, Inc. v. Veoh Networks, Inc. (Nos. 09-56777, 10-55732) (9th Cir. Dec. 20, 2011).

Defendant Veoh operates a website that allows users to upload and share video content that they have created; Veoh’s site also allows users to view authorized video content from major copyright holders such as SonyBMG, ABC and ESPN. Plaintiff UMG is one of the world’s largest recorded music and music publishing companies. It also produces music videos.

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