“The amendments this time give more room for the fair use exemption, which upsets the copyright owners but meanwhile, gives the rights of rebroadcasting or retransmission which comfort copyright owners,” says Chu.
Finally, advertising online of pirated products will be deemed an infringement, according to the new law.
Yet, the amendment requires “knowledge” of the advertiser to constitute infringement. “Normally, the advertiser (together with the seller) needs to show the minimum effort it took to believe that the product is not counterfeit,” Chu says. “We will need to see how the courts handle this in the future.”
“People selling counterfeits always say that they ‘didn’t know’ the products were counterfeit, and the courts have typically looked at other factors like the price of the fakes versus real goods, and so on,” says John Eastwood, a partner at Eiger. “Many counterfeit sellers have difficulty if they have no documentation for their purchases from a legitimate distribution source - I got it from a guy named A-bao who sells them from the back of a truck.”