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In these copyright battles, the main antagonists are the businesses that own copyrighted goods and the businesses that don't.
Under that doctrine, buyers of books, records and other copyrighted goods may lend or sell them as they wish.
Federal prosecutors assert that although the site claimed to be protected under the Digital Millennium Copyright Act, or D.M.C.A., the business was in fact a sham that made $175 million off $500 million in copyrighted goods.
In this case, the United States said that China was violating WTO provisions guarding intellectual property rights because thresholds for criminal prosecution of those pirating copyrighted goods are so high they effectively allow sales on a commercial scale.
In a 6-to-3 decision, the Supreme Court threw out that award and ruled that imported copyrighted goods were subject to the same rules as goods bought in the United States: owners of particular copies can do what they like with them.
The case against Megaupload, which is detailed in a 72-page criminal indictment, asserted that the site not only profited from the distribution of copyrighted goods but openly encouraged it with an "Uploader Rewards" program that offered cash incentives to users who stored the most downloaded files on the site.
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The Association of American Universities has stated that in order to maintain civil liberties, there must be broad exemptions to allow for "fair use" of purchased copyrighted digital goods.
Industry groups had told the justices that a decision permitting copyrighted foreign goods to be sold in the United States would limit their ability to sell materials more cheaply in developing markets and result in higher prices over all.
International exhaustion subjects copyright-protected goods to competition from lower priced imports and, to that extent, benefits consumers.
In 1998, after intense lobbying from The Walt Disney Co. and other companies, the U.S. Congress passed a law making corporate copyrights good for 95 years and those owned by individuals good for 70 years past the creator's death.
Sopa was a bill put before the US House of Representatives intended to significantly expand the powers of US authorities to combat online trafficking in copyrighted and counterfeited goods.
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