Frank Peterson, a musician, and the publisher Elsevier discovered that their works were available without authorisation on YouTube and on a file-hosting platform, Cyando. They sought damages from the platforms.
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The CJEU held that platforms do not themselves carry out a communication to the public if they play a neutral role, meaning they do not select, organise or promote the illegal content. In those circumstances, there is no direct liability.
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However, platforms may lose their liability exemption if they fail to implement effective mechanisms to prevent re-uploading of illegal content, fail to act promptly upon right holder notices, or fail to make reasonable efforts to prevent access to unlawful content.
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This accelerated the implementation of automated filtering systems, such as YouTube’s Content ID, and defined the minimum due-diligence standard for large platforms. Right holders now have a clearer legal framework for notices and takedown requests.