Linking your way to liability? – Cooper v. Universal Music Australia Ltd [2006]

Although the Internet has provided the music industry with a new system for marketing and delivering its copyrighted material to consumers, it has also created significant new challenges. As recent case law in the US and Australia demonstrates (e.g. see MGM Studios, Inc v. Grokster Ltd 125 S Ct 2764 (2005) (hereinafter “Grokster”); Universal Music Australia Pty Ltd v. Sharman License Holdings Ltd [2005] FCA 1242 (hereinafter “KaZaA”)) the Internet can be used to facilitate mass copyright infringement. The Full Federal Court of Australia in Cooper v. Universal Music Australia Ltd [2006] FCAFC 187 recently upheld a ruling that the operator of a website that contained hyperlinks to unauthorised MP3 music files on third party websites had authorized the infringement of the copyright in those sound recordings. The company's Internet service provider (“ISP”) and one of its company directors were also found liable. An employee's appeal, however, was successful. This article comments on the decision and looks at the possible implications for website operators in the UK.