Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Fair Use In The Digital Age

Author: Scarinci Hollenbeck, LLC

Date: September 10, 2014

Key Contacts

Back

In my last post, Lovelace vs. Deepthroat: Defining fair use, I delved into an explanation of fair use statutes, discussed the four factors that judges and juries use to determine fair use and considered a recent case that provided a clear cut example of fair use. Now, I would like to discuss a more complicated case involving the same statutes that, at the time of writing, is awaiting judgment. Many in the copyright law sphere think that this ruling will set the latest precedent for the balance between copyright enforcement and fair use in the digital age.

Fox News v TVEyes
September 2, summary judgment motions from both Fox News and TVEyes became public. These motions pertain to a year-old case in which Fox News charges TVEyes with copyright claims. TVEyes is a subscription service that records, indexes and distributes television clips to customers, most of whom are in the media. Clients of the $500 per month service include the U.S. Department of Defense, the United Nations, Time Warner Cable, pro sports leagues and The New York Times.

By and large, TVEyes argues, customers of the service use it to comment and criticize broadcast news, compare and contrast coverage of events, monitor political advertising and presence, track statements about financial securities for compliance purposes and report on the media. Using its customer base, TVEyes is mounting a fair use defense by suggesting that it provides a public benefit, facilitating a level of public discourse on media coverage and the role of the media that would otherwise be impossible.

By contrast, Fox News’ argument is fairly straightforward, arguing that TVEyes’ service is devaluing the content that it produces by providing an alternate way to access that content that is not included in its ratings. Interestingly, Fox’s memorandum includes in its argument the danger that, should use of TVEyes become widespread, Fox News’ business model would be “decimated.” In light of the $500 per month fee charged by TVEyes, this seems unlikely as of yet.

Is it fair use?
For those who missed my last blog post, the four factors traditionally used to determine fair use are:

  1. The purpose and character of use
  2. The nature of the work
  3. The amount and substantiality of the portion taken
  4. The effect upon the potential market

As a thought experiment, analyze TVEyes’ use of Fox News’ content based on these criteria.

  1. When we talk about the purpose and character of use, often we talk about “transformative” use, under which the original content is substantially changed such that it adds new meaning or expression, or that value is being added by presenting the material in a new light. While a news show that uses Fox News clips to contrast media coverage of an issue could easily be called transformative, Fox News’ legal team is focusing on TVEyes’ use. Fox News may have a strong case here, as the only change that TVEyes is effecting is to index the content.
  2. Generally, copyright protections extend further to fictional works than to factual ones, as the dissemination of facts is considered to be of public benefit. Fox News has countered by invoking an old legal doctrine called “hot news misappropriation,” which protects copyrights on facts which have a short value duration, after which they move into the public domain. Whether this doctrine is valid in this case remains to be seen, but a relatively recent judgment in Barclays Capital Inc. v Theflyonthewall.com demonstrated that, in cases involving the aggregation of news on the Internet, courts are reluctant to enforce this protection.
  3. Because TVEyes takes all of Fox News’ video content, there is likely no defense to be made based on the amount or substantiality of the portion of content taken.
  4. Finally, the effect upon the potential market may be a source of serious debate. Fox News has put forth arguments that TVEyes’ use of its content is potentially depriving it of customers. TVEyes’ defense rests, in part, on the argument that individuals are not using its $500 per month service to enjoy the news, but simply as a tool to search clips and use them for largely analytical purposes.

Clearly, the issue is sensitive and complex. To form a judgment would be difficult, as it depends upon the court’s interpretation of a number of these factors. If TVEyes can make a compelling argument stating that their service is not used for public consumption but rather for purposes that serve a public benefit, it could very well be acquitted of copyright infringement.

Check out my last post on fair use and copyright infringement regarding the infamous pornstoar Linda Lovelace and the video that made her famous “Deepthroat”:

Lovelace vs Deep Throat: Defining Fair Use

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters post image

New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters

A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program,  enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]

Author: Michael J. Sheppeard

Link to post with title - "New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters"
A Simple Guide to Industry Roll-Up Acquisitions post image

A Simple Guide to Industry Roll-Up Acquisitions

When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]

Author: Dan Brecher

Link to post with title - "A Simple Guide to Industry Roll-Up Acquisitions"
Genesis Mission: How the U.S. Government’s New AI Platform Will Reshape Corporate Innovation, Risk, and Competition post image

Genesis Mission: How the U.S. Government’s New AI Platform Will Reshape Corporate Innovation, Risk, and Competition

The federal government has launched one of the most ambitious scientific initiatives in decades, and it will redefine how companies develop technology, manage risk, and compete. The Genesis Mission, created by Executive Order and driven by the Department of Energy (“DOE”), is intended to accelerate scientific discovery through a national AI platform that links supercomputers, […]

Author: Michael J. Sheppeard

Link to post with title - "Genesis Mission: How the U.S. Government’s New AI Platform Will Reshape Corporate Innovation, Risk, and Competition"
Stablecoins and the GENIUS Act: How New Global Rules Are Reshaping Compliance post image

Stablecoins and the GENIUS Act: How New Global Rules Are Reshaping Compliance

Stablecoins Leave the Grey Zone Stablecoins were supposed to be the “boring” part of crypto: digital dollars that just work. Yet for years they have lived in a regulatory no-man’s-land, classified one day as securities, the next as commodities, and sometimes as something regulators had not even named yet. That uncertainty is finally starting to […]

Author: Bryce S. Robins

Link to post with title - "Stablecoins and the GENIUS Act: How New Global Rules Are Reshaping Compliance"
Don’t Overlook the Importance of Business License Management post image

Don’t Overlook the Importance of Business License Management

If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]

Author: Dan Brecher

Link to post with title - "Don’t Overlook the Importance of Business License Management"
Failing to Comply With NJ Rent Control Exemption May Prove Costly post image

Failing to Comply With NJ Rent Control Exemption May Prove Costly

What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing.  A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]

Author: Patrick T. Conlon

Link to post with title - "Failing to Comply With NJ Rent Control Exemption May Prove Costly"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!