DENVER—IBCAP has announced that one of its members, Dish Network L.L.C., has received a settlement payment of $3 million from an IBCAP-coordinated lawsuit. The settlement resolves Dish’s lawsuit against Datacamp Limited, a U.K.-based company providing global content delivery network (CDN) services under the name CDN77 and dedicated servers and network services under the name Datapacket.
The lawsuit, filed in February 2022 in the United States District Court for the Northern District of Illinois, asserted claims against Datacamp for contributory and vicarious copyright infringement for allowing continued use of the Datacamp services by 11 different pirate services.
The complaint alleged that Datacamp received nearly 400 notices of infringement from IBCAP but did little to stop the pirate services from continuing to use the Datacamp CDN. The complaint further alleged that Datacamp had no right to any safe harbor under the DMCA due to Datacamp’s failure to designate a DMCA agent to receive notifications of claimed infringement, failure to act expeditiously to remove or disable access to infringing material, and failure to implement a repeat infringer policy.
The settlement agreement follows substantial discovery and briefing on Datacamp’s motion to dismiss, which the court denied on July 14, 2023, rejecting Datacamp’s argument that the lawsuit should be dismissed because Datacamp could not be liable for infringement by its customers.
In denying Datacamp’s motion, the court found that Datacamp knew of specific infringing uses of its services. The court also rejected Datacamp’s argument that it lacked the ability to stop the infringement, and found that Datacamp obtained a direct financial benefit from the infringement.
In addition to Datacamp’s payment of $3,000,000, which has already been received, the settlement agreement requires Datacamp to implement a takedown policy and a repeat infringer policy, the IBCAP reported.
These policies will promote the expeditious removal of infringing material and permanently shut down client accounts of repeat infringers. Datacamp further agreed to provide the identity and contact information of its clients that are repeat infringers or those that had their accounts permanently shut down for failure to remove allegedly infringing material. Datacamp agreed to future damages of up to $250,000 per month if it fails to fulfill removal and termination provisions of the settlement agreement.
“This lawsuit and resulting settlement agreement against Datacamp sends a direct message to yet another category of infringers — companies who support pirate services, such as CDNs and hosting companies — that their willingness to deliver infringing content over their networks will not be tolerated,” said Chris Kuelling, executive director of IBCAP. “Datacamp’s payment of $3 million conveys a strong message that CDNs and hosting companies should not take the risk of permitting infringing content to stream across their networks. The takedown and repeat infringer policies that Datacamp has agreed to serve as examples of policies other CDNs and hosting companies should adopt to help minimize infringements on their networks and minimize their exposure to sizeable damage awards.”
The lawsuit was coordinated by IBCAP, and evidence for the case was obtained and provided by the IBCAP lab. Prosecution of the case and settlement negotiations were executed by Dish’s outside litigation counsel, Hagan Noll & Boyle, LLC.
For more information about IBCAP visit https://www.ibcap.org/membership.
