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WEEKLY NEWS - JULY 27, 2003

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German ruling sanctions deep linking

Germany’s highest court has ruled that bypassing the home pages of websites and linking directly to their content does not violate copyright and competition laws

Germany's highest court has ruled that bypassing the home pages of websites and linking directly to their content does not violate copyright and competition laws.

The long-awaited decision by the German Federal Supreme Court in favour of online search engine Paperboy on July 17 sets a precedent that confirms the legality of deep linking in Germany.

The decision in the case of publishing company Holtzbrinck against Paperboy is a victory for deep linking sites in Germany, such as Paperboy and NewsClub, which have been threatened with closure because of anti-deep linking rulings elsewhere in Europe, such as Denmark and the Netherlands.

"A sensible use of the immense wealth of information offered by the world wide web is practically impossible without drawing on the search engines and their hyperlink services (especially deep links)," the Court said in a statement. It added that a search engine's use of hyperlinks cannot be condemned as long as it leads the user to the copyright owner's original website.

"The decision has eliminated previous doubts over whether deep linking would violate other websites' business models, or would deprive them of their earnings by bypassing their advertisement-laden homepages, or would even infringe copyright laws," said Peter Chrocziel, partner in the Frankfurt office of Freshfields Bruckhaus Deringer, and joint head of its global intellectual property and information technology practice.

Publishing group Holtzbrinck, owner of financial newspaper Handelsblatt, brought the suit against Paperboy for directly linking to stories on its websites. Claiming the practice would infringe its copyright, Holtzbrinck also accused Paperboy of unfair competition for bypassing its advertisement-heavy homepages.

A lower court ruled in favour of Holtzbrinck, but the decision was overturned by an appeals court and has now been confirmed by the Supreme Court.

The Court found against Holtzbrinck's claims because the copyright owner had made its work publicly available by putting it on the internet without technical protection measures. Though the company may have lost some revenue, the Court said Holtzbrinck could not prevent users from taking the much quicker and easier route through the internet via hyperlinks.

Chrocziel described the Court's decision as very progressive and more liberal compared to more stringent, previous decisions on deep linking in other European countries.

While Paperpoy announced it will soon re-launch its deep linking service, Danish news service Newsbooster had to remove its links to 28 Danish online news sources after a court decided in 2002 that the practice infringed Danish copyright and database law.

German news engine NewsClub also had to remove its links to online articles on the Mainpost website after a German regional court decided the links infringed EU database and copyright law, though that question of law has now been settled by the Paperboy case.

Paperboy said on its website: "We are pleased with the Federal Supreme Court's ruling and its guidance on the key question of information and press freedom on the internet."

To view the Federal Court's release (in German), please click here.

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