(Also, copyright violation is not the same thing as "illegal". It is a civil violation.)
And copyright violation is illegal and you can go to prison for it (though JTV has a good excuse in that it's user generated). Making it the cornerstone of your business is risky. People go to prison for copyright violations fairly frequently, the owners of EliteTorrents are a recent example:
http://arstechnica.com/tech-policy/news/2008/06/jury-convict...
My point would be just that it's not proper to say that copyright violations are illegal because most copyright violations are in the realm of property law, not criminal law.
2) The vast majority of our content is user created.
Percentage wise I believe you that most of the content is user created. But attention wise it can't be close. Let's look at your "sports" section:
http://www.justin.tv/directory/sports
Right now there's a bootlegged feed of ESPN, a couple of soccer games you don't have the rights for and a variety of other content that is copyrighted. Those are the most viewed, your user generated content is being watched by no one.
You're running a scam.
(And for what it's worth, on the technical side I admire what you guys have done. I just think it's super shady to base your business on looking the other way when your users steal content. You're building an online cable network without paying for content.)
Here's another guess: it would remove any hope of using common carrier status (or whatever the DMCA equivalent is called). Once you proactively identify infringing material, you become responsible for anything you don't remove, if I understand correctly. Taking on legal responsibility for any failure to notice a copyright-violating feed seems like a risk that a startup can't take.
"Finally, the service provider must not have knowledge that the material or activity is infringing or of the fact that the infringing material exists on its network."
I think part of being a DMCA compliant safe harbor is not knowing there is infringing material, if they remove stuff, that implies that they have the ability to know about the infringing material.
Its kind of a loophole in the DMCA.
In other words, they do exactly the same thing as every other UGC startup, in every other medium.
Also in this case the wrongs make up the vast majority of viewed content. Live video is much harder to police from a content owner's perspective and they know it. The lawyers gotta be out documenting shit during an event. Look what they require to take something down:
http://www.justin.tv/user/dmca
All that for stuff that a ten year old could tell is stolen. I have no respect for startups that base themselves on theft.
Can you be more precise? What are they doing that's different?
Let me make it clearer for you. How are JTV's copyright policies any different from those of other UGC sites?
What's intellectually dishonest is to pretend there's such a thing as an "average" UGC site. The others vary enormously in the amount of copyrighted stuff they have on them.
Looks like an Everybody Else Is Doing It argument. What makes "the same copyright policy as any other UGC site" morally acceptable? It's easy to read that as "we'll make money from your content until you catch us".
I guess you're hoping that if you repeat this often enough we'll forget that copyright infringement isn't theft? Sadly, that will work on a fair percentage of folk, which is why I feel it's important to reply with something like this at least some of the time.
How do you know they haven't consulted a lawyer about this?
This omen reminds me a lot of what occurred in TPB trial.