What is the liability of technology companies for user-generated content?

Technology companies providing user-generated content, such as social media platforms, websites and apps, can be liable under New York law for certain infringing activities posted or displayed by their users. In certain cases, a company may be held liable for the activities of its users if it failed to remove the offending content after receiving notice of infringement. Examples of user-generated content that can pose potential liability to the tech company include copyright infringement, defamation, violation of a person’s right of publicity or privacy, and false advertising. In order to reduce their potential for liability, many tech companies have adopted a Terms of Use agreement that requires users to agree not to engage in any type of illegal activity or post any content that violates the company’s standards or laws. When it comes to copyright infringement, companies may be eligible for the Digital Millennium Copyright Act (DMCA) safe harbor, which protects them from liability for user generated content that infringes on a copyright. However, the safe harbor only applies if the company puts in place a policy that informs users of the prohibitions against copyright infringement and follows that policy by taking down copyrighted material when it receives notice of infringement. In the end, a tech company must be proactive in ensuring that users abide by the laws and policies set forth in their Terms of Use agreement. If a tech company is aware of and fails to take action to remove infringing content, it could be liable for any damages caused by the offending activities.

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