Tag Archive for: First

Uber Wins Dubious Honor Of Being First Big Tech Company To Bully A Small Nation Using Corporate Sovereignty

Six years ago, when Techdirt first started writing about the investor-state dispute system (ISDS) — or corporate sovereignty as we prefer to call it — it was largely unknown outside specialist circles. Since then, more people have woken up to the power of this apparently obscure element of international trade and investment deals. It essentially gives a foreign company the ability to threaten to sue a nation for millions — even billions — of dollars if the latter brings in new laws or regulations that might adversely affect an investment. The majority of corporate sovereignty cases have been brought by the extractive industries — mining and oil. That’s not least because many of the laws and regulations they object to concern environmental and health issues, which have come to the fore in recent years. New legislation designed to protect local communities might mean lower profits for investors, who then often threaten to use ISDS if they are not offered compensation for this “loss”.

Big tech companies, for all their real or supposed faults, have not turned to corporate sovereignty as a way of bullying small countries — until now. En24 News reports that Uber is threatening to invoke corporate sovereignty in a dispute with Colombia. According to Uber:

a series of recent measures by the Republic have had a serious adverse impact on Uber’s investments in Colombia and the viability of its operations in the country. On December 20, 2019, for example, through the Superintendence of Industry and Commerce (“SIC”), the Republic ordered Uber, Uber Colombia, and another Uber subsidiary that will virtually cease to make the Uber Platform available of Associated Drivers and passengers in Colombia.

Uber points out:

other companies in Colombia and third countries that offer similar forms in Colombia have not undergone the same treatment and continue to operate in Colombia without similar interference from the Republic.

The company claims a wide range of harms:

The illegal order of the Republic to block the Uber Platform in Colombia also constitutes an act of censorship in contravention of international human rights instruments that protect net neutrality, freedom of expression on the internet and freedom of use of the internet.

At the moment, this is all just saber-rattling, designed to encourage the Colombian government to unblock Uber in the country. If it doesn’t, the company says, it will invoke the ISDS Articles (pdf) of the 2012 United States-Colombia Trade Promotion Agreement, and ask a tribunal to award compensation. Even if the current threat to use corporate sovereignty is not followed through, it is surely only a matter of time before another big tech company joins the ISDS club.

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Nintendo Responds To RomUniverse’s Lame Argument That First Sale Doctrine Makes The Site Non-Infringing

You will recall that Nintendo, as part of its sweeping new war on ROM sites initiated a year or so ago, went particularly hard at RomUniverse and its site operator, Matthew Storman. Differentiating RomUniverse from other ROM sites is some combination of the fact that it’s run out of California as opposed to overseas, that the site is also a place to go get lots of other media that sure looks to be infringing on copyright, and Storman’s verbose attitude in making public comments that don’t paint him or his site in the best light. At the onset, as part of an attempt to crowdfund its legal battle with Nintendo, RomUniverse trotted out the claim that it was offering ROMs in an attempt to preserve video gaming history. It wasn’t a particularly believable argument given the rest of the site’s behavior and RomUniverse quickly opted for other legal arguments in court.

Storman appears to be defending himself in the matter and attempted to have the case dismissed on two grounds. The first is that Safe Harbor protections extend to RomUniverse, which Storman claims is simply a service provider and not participating or reaping commercial benefit from infringing material. Storman claims that Nintendo has acknowledged RomUniverse as a service provider by sending DMCA takedown requests to the admin for the site, at least some of which have been complied with. That, unfortunately, is not really how any of this works, as Nintendo details in its own response to Storman’s motion.

In 2009, Mr. Storman emailed members of his website that he would be adding new content including ROMs for various Nintendo game systems. In 2018, when Nintendo was successfully enforcing its intellectual property rights against other pirates, Mr. Storman bragged that he would continue to offer copies of Nintendo’s games.

Mr. Storman directly profits from this infringing activity by allowing users to sign up for “Premium Memberships.” While non-members are limited to one free download through the website, premium members pay $ 30 per year to Mr. Storman to download an unlimited number of pirated games, and at higher speeds than non-members.

That seems to be evidence of Storman and the site participating in the infringing activity and somewhat directly profiting from it. Whatever the DMCA safe harbors protect, that ain’t it. Nintendo goes on to argue that this sort of affirmative defense is not one to be made in preliminary motions, either, making one wonder if it isn’t time for Storman to get himself some actual professional legal counsel.

Storman’s latter claim doesn’t assuage that concern. In his petition for a dismissal, Storman claims that Nintendo actually has no standing to make the infringement claim, arguing that the uploads of the game content to the site were done by those that had legally purchased copies of these games. As such, Storman claims that First Sale Doctrine makes that game code the property of the purchaser of the game, who can resell it at will without it being infringing. As Nintendo again claims in its response, nah, dawg.

The first sale doctrine does not permit mass distribution of copyrighted works, copying of the copyrighted works or distribution of those copies, or the creation and sale of derivative works based on Nintendo’s copyrighted video games. See 17 U.S.C. § 109(a) (“the owner of a particular copy [of a copyrighted work]. . . lawfully made . . . is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy.”) (emphasis added). Indeed, Mr. Storman’s actions fall well outside of the first sale doctrine. The first sale doctrine only allows an owner of a lawful copy of the copyrighted work to dispose of that individual copy.

We have argued in the past that Nintendo, and other gaming companies, should really find better routes for mitigating or even making good use of the effects of piracy…but none of that makes the company’s rebuttal to Storman’s claims any less valid and correct. These are claims made at the improper time, that don’t seem to comport with the site’s behavior, and that represent a misreading of the law. That isn’t going to be good for Storman’s legal outcome prospects.

Again, to reiterate from our last post on this matter, it’s time for Storman to go into damage control mode. And for the love of god, get some professional legal assistance.

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New Gear By Techdirt: The Fourth Emojiment (And The First One Too!)

Get your Fourth Emojiment gear from
our store on Teespring »

You asked for it, so here it is! When we launched our original line of First Emojiment gear, plenty of people asked when we’d get to some other amendments. Well, the next choice was obvious, so today we’re launching Fourth Emojiment t-shirts, hoodies, mugs, stickers, and — for the first time — posters and pillows!

And the First Emojiment is still available, with new products! In addition to the t-shirts, hoodies, mugs and stickers that were previously available, you can now get posters and pillows from the First Emojiment line on Teespring.

Both designs are based on the Twemoji icon set, licensed under CC-BY 4.0.

Over the next little while we’re going to be expanding more of our existing designs to include new products, so keep an eye on the Techdirt Gear store on Teespring and let us know what you’d like to see next.

Get your First Emojiment gear from our store on Teespring »

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