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Moderating and Legal Indemnity for Hosters

A crucial question for many ISPs is: are we going to moderate or not? The downside of moderating is that the hoster brings liability on itself when it does, because in that case the statutory conditions of indemnity of Section 6:196c of the Dutch Civil Code can no longer be relied on. In the case at issue, the Court has rendered a different, and in my view a wrong, judgment.

Reliance on Indemnity Despite Moderating

The reason for the summons was a topic on the complaints forum http://www.internetoplichting.nl("Internetfraud.nl") about alleged fraud by Trendylaarzen ("Trendy boots"). Visitors and moderators had extensive discussions on the delivery problems with online purchases through Trendylaarzen. Moreover, private information of the entrepreneur behind Trendylaarzen was posted. Trendylaarzen therefore demanded the removal of the topic and the making available of the IP addresses or address details of those who had put the private information online.

The question to be assessed by the Court was therefore whether these postings were indeed unlawful and had to be removed. In order to answer this question, the Court distinguished between postings by visitors and postings by moderators. The Court considered postings by moderators to be postings of the website holder himself, and postings by visitors to be postings of third parties. This opinion is not remarkable per se. But then, the Court considered that the question as to what extent internetoplichting.nl was liable for information of third parties had to be assessed on the basis of Section 6:196c subsection 4 of the Dutch Civil Code ("BW"), which concerns the statutory indemnity against liability for hosting. ISPs that only store information at the request of a third party without having any further substantial involvement, and that provide purely technical, automatic and passive services, can rely on this statutory indemnity against liability. It is necessary in that case that the ISP does not know or - in case of claims for damages - should not know that the site contains unlawful information. An ISP can also not be held liable in the event that it is aware of the unlawful information and subsequently makes this information inaccessible or removes it at once.

The ruling of the Court is remarkable, because the activities of internetoplichting.nl do not consist of only storing information at the request of a third party. The role of the ISP is not passive here and the services are not just automatic and technical. Through the moderators, the hoster meddles with the information coming from a third party, and does more than purely storing this information. The moderators read the texts and can remove and alter them or move them elsewhere. According to the literal text of the law, this is not hosting within the meaning of Section 6:196c subsection 4 of the BW. The question of whether internetoplichting.nl is liable for the texts of third parties should therefore in my view have been assessed on the basis of Section 6:162 of the BW, but the Court chose to apply Section 6:196 c subsection 4 of the BW. However, according to the Court's preliminary judgment, internetoplichting.nl is not liable for the texts of its visitors, because the information was not unlawful; after all, the postings were about the non-delivery or late delivery by Trendylaarzen. Another fact that plays a role is that a private address that had been posted was removed at once by a moderator.

The Court did not assess the question of whether internetoplichting.nl is liable for the postings of the moderators on the basis of Section 6:196 c subsection 4 of the BW, giving as a reason for this that these were not postings of third parties. The Court argued that although the texts on the website are harmful for Trendylaarzen, this does not lead to liability. However, there may be unlawful behavior if the ISP does not provide the interested party, when asked, with the name and address details of those who have posted incriminating or private information.

Claims Not Awarded

The Court further stated that the texts the moderators had posted were unnecessarily damaging. However, this could not lead to awarding the claims to Trendylaarzen, since it is not certain, in the Court's opinion, that Trendylaarzen has summoned the correct party. Trendylaarzen summoned the party that is registered with the Foundation for Internet Domain Registration in the Netherlands as the holder of the website, and of whom the trade name 'internetoplichting.nl' is mentioned in the Trade Register. On the website, however, another company - 2dehands.nl ("Secondhand.nl") - is mentioned under the button 'Donate', and it is mentioned that internetoplichting.nl was established by 2dehands.nl. With a reference to Section 3:15(1) under a of the BW, the Court argued that 2dehands.nl could well be the party providing an information society service, and then 2dehands.nl should have been summoned. Preliminary relief proceedings leave no room for an examination of the facts in order to determine whether the correct party was summoned.

Trendylaarzen summoned the correct legal entity on 20 February after all, and 2dehands.nl is ordered by the Court to remove the topic on Trendylaarzen from internetoplichting.nl and other websites affiliated with 2dehands.nl and keep this topic removed during six months. 2dehands.nl also had to post a rectification and make IP addresses of certain users known to Trendylaarzen. 2dehands.nl pulled the plug out of internetoplichting.nl after this ruling and contemplates to appeal to it.

No Consequences for Practice

All in all, the first Trendylaarzen ruling is a remarkable one. It is too soon for ISPs to start cheering; I think that this ruling changes nothing to the legal framework that is in place. As soon as there are moderators, there is no question of hosting anymore, and the ISP can no longer lay claim to the statutory indemnity, as the second Trendylaarzen ruling of March confirms. ISPs therefore still have to make the choice whether or not to moderate.

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Nathalie Voogd

Tel: +31 20 5506 807
E-mail: nathalie.voogd@kvdl.nl

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