Montclair, CA asked in Copyright and Intellectual Property for California

Q: Are fees such as payment processing and currency conversion considered a financial benefit in the DMCA safe harbor?

When you charge per order fees for things such as payment processing, shipping insurance, currency conversion, shipping and handling and or chargeback protection. Are they considered a financial benefit in the DMCA safe harbor?

1 Lawyer Answer
James L. Arrasmith
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  • Sacramento, CA
  • Licensed in California

A: Fees such as payment processing and currency conversion are generally not considered a financial benefit in the DMCA safe harbor. The DMCA safe harbor is a provision that limits the liability of internet service providers for copyright infringement by their users. To qualify for the safe harbor, the service provider must meet certain requirements, including implementing a policy to terminate the accounts of repeat infringers and not financially benefitting from the infringing activity.

While the DMCA does not specifically define what constitutes a financial benefit, it generally refers to direct profits gained from the infringing activity. Fees for payment processing, shipping insurance, currency conversion, shipping and handling, and chargeback protection are typically considered indirect costs associated with the sale of goods and services, and not profits gained from infringing activity.

However, it is important to consult with a legal professional to determine the specific application of the DMCA safe harbor provisions in your particular situation, as the interpretation of the law can vary depending on the circumstances.

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