Manhattan judge rejects 'server test' for internet copyright infringement
reuters.com
reuters.com
> "Proponents of the server rule suggest that a contrary rule would impose far-reaching and ruinous liability, supposedly grinding the internet to a halt," Rakoff said. "These speculations seem farfetched, but are, in any case, just speculations."
Linking and transclusion are core features of hypertext system, so yes, deviating from this 'server rule' could have significant ramifications for how the Web works.
If copyright holders don't want third parties linking to or transcluding (via iframes and embeds) their content, they can host it on their own servers and use access control.