In the recent case of CoStar Group v. Loopnet Inc., the U.S. Court of Appeals for the Fourth Circuit found that Internet Service Providers (ISPs) are not liable for copyright infringement when they passively store data. Specifically, the Court found that "the automatic copying, storage, and transmission of copyrighted materials, when instigated by others, does not render an ISP strictly liable for copyright infringement under §§ 501 and 106 of the [U.S.] Copyright Act." However, the Court found that an ISP could become liable indirectly upon "a showing of additional involvement sufficient to establish a contributory or vicarious violation of the Act, in which case, the ISP could still look to the Digital Millennium Copyright Act for a safe harbor if it fulfilled the conditions contained in the DMCA for the protection of ISPs.
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