The DMCA provides a "safe harbor" for service providers that host user-generated content. What if there is a similar way to encourage online business providers, by limiting their liabilities and protecting their interests? How DMCA works? It has boomed the development of business, and even the history of humankind. The invention of the LLC has greatly encouraged people to innovate, create, and build. Had not been for the LLC, nobody would create companies to make cars. You'd be personally broke, too you and your company would be in an irrelevant place in the car market from which you would never return. If your company couldn't pay the penalties, you must. In the case of limited liability companies, the liability of members to contribute to the debts of the company is limited to the amount of their investment in the company and does not extend to personal assets.īefore LLC, if you were a car company and your customers had accidents and sued you, you'd be held with unlimited reliabilities. If the scenario above doesn't resonate with you very much, think about the limited liability company (LLC.) Since the possibility of being held liable for user-generated content could be very harmful to service providers, who dare to provide those services? Now you see where I'm going with this: if there are hundreds or even thousands of infringements, you are doomed. You know, one single copyright infringement can cost you up to $150,000. Although it's not exactly YOU who published that copyrighted work, your platform stores and serves it. So, it's easier to just sue you instead since you are the service provider and you should be responsible for your users. It's not easy for the owner to find the user who actually posted that content, but it's easy to find you since you are the service provider, not a random person around the globe. If the owner of that copyrighted work sues you, you are done. One day, a user copy-pasted some copyrighted work and published it on your platform under his name. Your service got popular and a lot of users decided to publish content on your platform. Sounds familiar, right? I know bear with me.
Let's say you created an online service that allows users to publish up to 140 characters of content they wrote or a service where users upload video clips they created.
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